Presidents Report_Diane Exter_Issue 07_211222

FRENCHMAN’S CREEK, INC.

President’s Report

Diane Exter, President

December 22, 2021 — Issue 7

Dear Fellow Members, We are at the start of the busiest 10 days of the Frenchman ’ s Creek year and the FC staff has planned a full schedule of fun for Members, family, and guests. How lucky we are to live here at Frenchman ’ s! But while there is lots of fun to be had here at Frenchman ’ s, Covid cases have risen rapidly in Palm Beach County and many of our family members and guests will be coming from areas that have even higher incidences of Covid. For this reason, the Board and the Medical Advisory Com mittee on Sunday put out revised Covid restrictions that will be in place until after the holidays. All family members and guests must be registered with the POA. Unvaccinated family mem bers and guests are required to either quarantine for 7 days or take a Covid test on the 3 rd day. Vaccinated guests are requested (but not required) to take a Covid test. Neil and I have had our fully vaccinated and boosted guests take a 15 - minute antigen test on the day they arrive and then another one on the third day. A very easy and inexpensive way to increase our peace of mind. We highly recommend you consider doing the same. New Board Members: Over the last two meetings we have welcomed two new Board members to the FCC Board (Jonathan Mayblum and Jill Kremer) to replace two former Board members who have left the com munity. We look forward to working with both of them! (Click on the buttons below to view Jon ’ s and Jill ’ s bios)

Search for the next Frenchman ’ s GM: Bob Scherer, Co - Chair of the Search Committee, reported to the Board that the Committee has narrowed down the GM search to six highly accomplished semifinalists, who the Search Com mittee will conduct in - person interviews with on January 10 th and 11 th . The Committee will then nar row this field down to two finalists, who will meet with Board members and staff on January 25 th and 26 th .

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The New Clubhouse Vote:

be completed with furniture from the Clubhouse. Once the Certificate of Occupancy is obtained (all City permits have been submitted), the Pavilion will be used this season for catered events (out of the main clubhouse kitchen), meeting areas, card playing and other events if weather conditions re quire. The support trailers for food and beverage, ware washing, laundry, etc. will not be in place until after the first of the year. The current plan is to use existing venues – Sports Bar, Bistro 19, Golf Café, Pool Café and Beach Club – to stage the holiday events. The east parking lot, where employees park, has been converted to accommodate addi tional member parking (lost on the west side by the expansion of the Golf Café) and to stage con tractors for the erection of the Pavilion and the supporting trailers and facilities. When the Pavil ion is in full operation the east parking lot will be used for member parking. As a temporary meas ure, employees are parking on Tournament Drive. The golf maintenance area is being reconfigured to accommodate some of the employee parking needs. Frenchman ’ s Creek Drive and Rivoli Drive Paving: The back section of Frenchman ’ s Creek Drive (between the dog park and Toulouse Drive) is failing for a third time. The first two times were in 1993, upon turnover of the community from the developer, and in the summer of 2002, when ma jor repairs were made. This most recent roadway failing has developed just over the past few months since the end of the summer rainy season. A total of twenty borings were made of the roadway during the week of November 29 th . Jeff Trompeter of Civil Design Inc. (the civil engineer ing firm contracted for the new clubhouse) will re view the report and prepare a remediation plan for the roadway. Initial analysis indicates the road is failing due to a recurring high - water table. This section of roadway is in the lowest elevation in the community. Roadway repair to this section of Frenchman ’ s Creek Drive could range from total road replacement (removing 6 to 9 inches of as phalt and repairing the roadway base) to milling 2 to 4 inches of existing asphalt and re - asphalting same.

We had a very strong showing for the December 3 rd New Clubhouse vote with 516 of our community households voting and 385 (75%) voting to support the revised New Clubhouse plan . It is wonderful knowing that our community is so solidly in support of this plan. After the vote, the New Clubhouse Ad Hoc Committee moved quickly to finalize the various key professional contracts, which were then approved at our December 14 th Board meeting. Harvey Schulweis, Chair of the Committee, reported that the schematic de sign is expected to be completed by late Janu ary, at which point the design development drawings will be started. It is expected that the demolition of the existing clubhouse building will be started in late summer 2022. Construc tion documents should be completed in late fall, at which point they will go out for competi tive bidding. The current expectations are for the new clubhouse to be completed in late 2024. There will be challenges with re spect to labor costs, material costs, delivery times, etc. but the New Clubhouse Ad Hoc Committee and our professionals are all fo cused on bringing the project in on time and within our approved budget. The New Clubhouse $58mm loan agreement with Truist Bank was approved by the Board and is expected to be signed this week. The interest rate hedging has been completed and ratified by the Board. Based on current attractive hedging levels, the 20 year monthly member assessment will be $446/ month (vs. the $460 in the booklet). This monthly assessment will be charged starting in January 2022. The Alternative Facilities: Brett Handler, Chair of the Alternative Facilities Ad Hoc Committee, and Bernie Polselli, Assistant General Manager, provided an update to the Board on the progress of the alternative facilities. Everything is moving for ward. The Pavilion is up, and the interior will The New Clubhouse Project: Financing for the New Clubhouse:

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Additional paving projects left to be com pleted are 1) Rivoli Drive from Tournament Drive through Rivoli Circle which will be required to be completed and 2) if the Board approves, the re maining portion of Frenchman ’ s Creek Drive for an estimated cost of $500,000. The Board will conclude this discussion at the January Board meeting, with the work to be postponed until June 2022 when it will be the least disruptive to residents. The community finished the month of November with a year - to - date negative variance to budget of ($50k), comprised of the following components: Club operating income was favora ble to budget by $17K, POA operating income favorable to budget by $163k, relocated club house facility expenses totaled ($174k) and ex penses for the maintenance of the church build ings were ($56). Additional expenditures for the relocated clubhouse facilities totaling $110k will be reclassified at year end to Capital. The total of all forecasted operating expenses are expected to break even by the fiscal year end. Total cash balances exceeded $18.5M at month - end. Home sales have continued to be very strong this year after a record breaking 54 homes sold last year. So far this year 14 homes have sold with 5 more pending for a total of 19. Our budget included only 18 home sales for this year. Through November, $938k has been spent on the Alternate Facilities. The total costs for these facilities are projected to be $2.2mm for the current fiscal year and just under $3mm in total for the three years. Review of our Board Goals for this Year: As we approach the end of the calendar year and the end of this Board year, we are in creasing our focus on our Board Goals for this year. In addition to 1) working towards complet ing a beautiful clubhouse project on time and on budget, 2) finding an exceptional leader who ap preciates Frenchman ’ s culture and high stand ards of service to follow Mr. Goswami, 3) main taining a high level of member services during the clubhouse construction period through a fo cus on high quality temporary facilities, a contin- Financial Matters:

uing high level of service (including both dining and sports) and lots of fun activities to connect both our newer and our longer tenured Mem bers together, we also want to make sure we are increasing the visibility and impact of our member committees. While we as a Board and as Board members are quite visible, there is a lot of im portant work happening at the committee level. Well over 200 of our Members are actively in volved in our 30 plus Frenchman ’ s Creek com mittees. We have already had one well attend ed Meet the President that focused on our golf programs and our golf courses. In the coming two months, be on the lookout for a Meet the President that will focus on our various French man ’ s Creek Charities, one that will focus on our Tennis and Fitness/Spa offerings and one that will focus on the Entertainment and New Member Committees. Before the end of this Board year, we will have the Governance, Le gal and ARB committees coming to the Board to propose some changes to our various gov erning documents. And you will see other com mittees highlighted in other ways. Lots of good work is happening at the committee level. THANK YOU!

Best, Diane Exter President@Frenchmanscreek.com

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Grievance Matter:

Pursuant to our Rules and Regulations, all violations and penalties recommended by the Grievance Committee and imposed by the Board of Directors, and not overturned by an Appeals Panel, are required to be published:

Member Debbie Hornstein

Grievance

Penalty

Inappropriate behavior towards other members and staff by mail ing unsigned offensive communi cations.

Six - month suspension from all recreational facilities, including all dining outlets, athletic facilities, communi ty facilities, entertainment events, and vehicle barcode, including as a guest.

2021/2022 BOARD OF GOVERNORS

Upcoming Meetings (all meetings will be held via zoom)

Officers: Diane Exter, President

• Tuesday, January 18, 2022 2:30 p.m. — Regular Board Meeting

Michael Azeez, 1st Vice President Robert Scherer, 2nd Vice President Robert Annunziata, 3rd Vice President Herbert Selzer, Treasurer Martin Krall, Secretary

• Saturday, February 12, 2022 2:30 p.m.—Meet the Candidates

Board Members: Stewart Friedman

• Tuesday, February 15, 2022 2:30 p.m.—Regular Board Meeting

Jeffrey Glazer Brett Handler Jill Kremer

Ellen Malasky Jon Mayblum Jeffrey Parker Gale Salz Harvey Schulweis

• Saturday, March 19, 2022 2:30 p.m.—Annual Meeting