PRESIDENT REPORT.ISSUE 3

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

President’s Report

Diane Exter, President

July 2, 2021—Issue 3

Dear Fellow Members, The summer season is officially here and many of you have headed north. I hope you are all enjoying your summertime activities and time with friends and family wherever you may be! While the summertime months may be slower in some regards, there are many important projects making significant progress thanks to committed Staff and Committee Members. A number of these projects are outlined below. The process has begun to find a new Executive Director by next June, when Mr. Goswami will retire. Herb Selzer is chairing a committee to interview potential search firms. Once the Board approves a search firm, we will put together a small search committee that represents our full com- munity. Bob Scherer and I will co-chair this committee.

year. In FY21, gross revenue fell short of budg- et by $2.03M and unbudgeted expenses related to the pandemic totaled an incremental $876K. However, FCC’s management reacted very quickly and effectively and was able to imple- ment significant savings in cost of sales, house- keeping expenses, Clubhouse décor, entertain- ment, and labor and overtime hours to more than offset this loss of revenue and incremental Covid expenses. And all of this was done while providing the membership with a high level of service in a very difficult year. A great big thank you to Mr. Goswami and the staff from all of us! Balance Sheet: Cash balances totaled over $17.5M at month-end. Operating Cash deposit- ed at Truist has been placed in an Insured Cash Sweep account. These funds are spread into different accounts at separate institutions ensur- ing that all deposits are covered by the FDIC.

FINANCIAL REPORT At the June 22 nd board meeting Mr. Selzer, Treasurer, reported that the community finished the first month of the new fiscal year (May) with a positive operating variance as compared to budget of $67K; Club income was favorable to budget by $22K and the POA favor- able by $45k. Food and Beverage, Golf, Tennis and Fitness all closed the month with positive variances. As Mr. Selzer previously reported, Frenchman’s finished the full fiscal year, ending April 30, 2021, with a positive operating vari- ance as compared to budget of $469K; Club in- come was favorable to budget by $274K and the POA favorable by $195k. (These are not yet audited numbers.) As we all may remember, the operational budget for FY April 30, 2021, was prepared and approved in a pre-pandemic environment result- ing in the need for management to make signifi- cant changes to operations over the past

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Real Estate Update: We closed out the fiscal year ending April 30, 2021, with a record 54 homes sold to new members; netting the Club close to $6M in additional Capital. There are al- ready five new member sales (2 closed and 3 pending) for this fiscal year ending April 30, 2022. Paycheck Protection Program (PPP): You may recall that last year, as a result of the pan- demic, we submitted an application with the Small Business Administration (SBA) under the CARES Act. After some challenges, our applica- tion was approved and we received the funds on May 13, 2020. After a final audit by the SBA, we are happy to report that on June 16, 2021, the principal of the loan and any unpaid interest was forgiven. LONG-TERM PROJECTS PLAN As reported in the May 14th President’s Re- port, the Board decided to accelerate two pro- jects in Frenchman’s Long-Term Projects Plan—roadway paving and the replacement of the landscape maintenance building; both are progressing as planned: Road Remediation: The Community has en- gaged All County Pavement Management Solu- tions to pave all the neighborhood roadways and repair the roadway cement gutters, exclud- ing Frenchman's Creek and Tournament Drives. The repair of the cement gutters will begin in July, and the milling and asphalt paving of the neighborhood roadways will start in early Au- gust. Civil Design Inc., a civil engineering firm, has been engaged as the Project Manager to oversee the paving project. The neighborhood roadway paving is an important community project that will include some short-term aggravations but give our com- munity long term value. Daily communication and coordination with residents and service pro- viders will be implemented to ensure that the paving project is successful with as little incon- venience to residents as possible. That is why the project is planned for July, August, and early September when we will have the fewest Mem- bers in residence. Be on the lookout for the POA emails which will estimate when the paver crews will be coming to your individual streets. Please keep in mind that rain can change the schedule.

Landscape Maintenance Area: The land- scape maintenance building is a 30+-year-old structure in need of total replacement. The building functions as working space and stor- age for the community’s landscape crews who maintain the POA homes, common areas and the golf courses. The staff is working with Insite Studio to prepare a site plan for the location of the new landscape building; provide for effi- cient workflow throughout the maintenance fa- cility, and add additional parking. Once a final site plan is approved, the project's cost can be calculated. Upon approval of the project, plans will be submitted to the City of Palm Beach Gardens to start construction in June 2022. POA MATTERS Community Irrigation System Update: Un- fortunately, the irrigation project has taken sev- eral months longer than planned due to numer- ous issues encountered with replacing a 35- year-old irrigation system. All homes on the community's central irrigation system are cur- rently being irrigated three times per week. Various irrigation issues around houses are being addressed, including areas of landscap- ing not fully covered by the irrigation system, clogged and broken irrigation heads, and re- placing grass and plants disturbed by the in- stallation of the new irrigation valve box. Project work that remains: valve box wir- ing on five roadways (that initially were not scheduled to be replaced) will be rewired and placed in conduit as a safeguard. Other work still to be done include the valve box replace- ments for the houses on Calais, Le Bateau, and LaPorte. In addition, Rhone Drive and Rhone Circle are being added to the central irrigation system. Underground boring to install irrigation piping on Rhone Drive and Circle has started. The valve boxes and related wiring in all other roadways in the community have been replaced. Treasure Coast Irrigation has added ex- tra crews and, anticipating afternoon weather delays, has committed to completing the irriga- tion project by August 15 th .

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Agreement with the Oceanview Methodist Church in Juno Beach : Frenchman’s has re- cently signed a three-year lease with the Oceanview Methodist Church in Juno Beach, beginning June 1, 2021, and ending June 1, 2024, which will cover the entire Clubhouse ren- ovation period. The Club has had an excellent relationship with the Church for over 20 years with the Club using the Church’s property as overflow parking for the Beach Club in ex- change for the Club assisting with the Church’s landscaping. Under the new agreement, in addition to the use of the Church’s parking during peak Club times, the Club will be able to use 9 offices for up to 18 staff members and use the Fellow- ship Hall and kitchen for Board, Committee and Community meetings. This will be very helpful during the Clubhouse construction period. In exchange the Club will provide day-to-day rou- tine maintenance and repair for the Church building (not including major repairs or replace- ment of capital items) and continue to do the Church’s landscaping. The Board enthusiasti- cally supports this agreement. Dog Park Expansion: The POA is currently studying ways to expand the play area at the dog park for our four-legged members. A local land planner was engaged to review the area and provide a proposal. We expect to have a detailed plan including costs within the next month or two. Train Noise Issues: For many years French- man’s, through our External Affairs Committee, has worked very hard on efforts to reduce rail- road noise, even opposing the more recent rail- road expansion efforts. This matter has again been brought back for discussion. An Ad Hoc Committee will be formed to look at additional future solutions.

RENOVATION CLUBHOUSE AD HOC COMMITTEE UPDATE

Mr. Schulweis, Chair of the Clubhouse

Ad Hoc Committee, reported the following:

• The design process is moving forward. The schematic design (first phase) is nearly complete, and the design team is working closely with engineering consultants to de- termine the field conditions and how they need to be incorporated into the plans. • Early demolition plans have been reex- amined and reduced to an investigative pro- cess so that selective areas of walls and ceilings will be revealed to determine the field conditions and any “hidden issues”. • The Committee has completed and ap- proved the site plan and the City of Palm Beach Gardens will meet in late July with Gaudet and the Civil Engineer to provide necessary approvals for site and drainage work to begin. • Most of the external consulting contracts have been signed with the total amount for professional fees currently within budget. • Numerous walkthroughs have been per- formed by the Committee with the various professionals working on the project. • Mold reports have been completed with nothing significant found to date. • The cost of building materials has risen dra- matically. We are carefully monitoring the impact to determine if this trend will continue. TEMPORARY FACILITIES AC HOC COMMITTEE UPDATE Mr. Handler, Chair of the Temporary Fa- cilities Committee along with Mr. Goswami, Mr. Polselli and many other staff members contin- ue to move forward with plans for how Member services will be successfully continued during the Clubhouse construction. An update on the progress is as follows:

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• The Bag Drop Café is being enhanced, ex- panded and moved closer to the driving range. This dining facility will serve Mem- bers during the next season and during construction. The goal is for the enhanced and expanded Bag Drop Café to be com- pleted before the Fall. Next spring this ar- ea will also include a temporary trailer for the Golf Shop, an area for cart repair and a beverage/snack area. • The Pool Kitchen is being enhanced and expanded to enable the Club to serve meals in the temporary fitness dining area during construction and, more importantly, to enable the Club to host larger, more complete community and private parties at the pool area for many years to come. Be- cause this improvement will serve the membership for the long term (not just dur- ing construction) the Finance Committee proposed, and the Board approved, using up to $150,000 of the Board’s FY2022 board designated capital dollars for this project. The goal is for the enhanced and expanded Pool Kitchen to be completed before the Fall. • The plan remains that just the cardio area and the atrium of the Fitness Center will be used for temporary dining during construc- tion. More analysis is being done on how the atrium roof should be built. The goal is for the Fitness Center Dining Area to be completed before next Summer. • The plan remains for the Bistro 19 and an additional functions tent to be located on the current pickle ball courts. Pickle ball will be moved temporarily to tennis court 1 and then permanently to 8 new pickle ball courts to be completed before the Club- house construction begins next Summer. • The Primary Kitchen will also be located on the current pickle ball courts. The goal is for this Primary Kitchen to be completed by next Spring.

• The plan is for the POA staff to be located in the current bank building and the accounting staff to be located at the Oceanview Method- ist Church. Lots more to be done. But these are the largest temporary facilities projects currently be- ing planned. FINAL THOUGHTS I wish all of you a happy and healthy sum- mer and I look forward to seeing you in the fall. Feel free to send me your thoughts or questions to President@Frenchmanscreek.com.

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

U PCOMING M EETINGS

Board Meetings—2:30 p.m. (Zoom) • Monday, July 26, 2021 • Tuesday, August 24, 2021 (Tentative) • Tuesday, September 21, 2021 Meet the President—4:00 p.m. Main Dining RoomWest • Wednesday, September 22, 2021