OceanForest Club Homeowners’ Association, Inc.

Annual Meeting Minutes

January 17, 2015

The annual meeting of the OceanForest club Homeowners’ Association, Inc. (HOA) was held on Saturday, January 17, 2015 at 10:00 a.m. at La Quinta Inn & Suites Myrtle Beach Broadway, South Carolina.

Welcome and Introductions

Board President Mary Stephens called the meeting to order at 10:13 a.m. and welcomed everyone present. She introduced Board members G. Bruce Robertson (Buzz), Gina Howard, Elaine Poovey, J. Kelly Lee, and Elizabeth Foster. She presented Michelle Hargrove, contractor for housecleaning services, who shared her duties with the group. Mary noted that check out time is 11:00 a.m. and check in time is 4:00 p.m. Mary shared evaluative comments, both pro and con, that have been made by owners/guests. She reminded owners they have a responsibility too. Michelle’s contract expires on January 31, 2015 and the Board will discuss extending the contract. Mary stated that the pool and landscaping work was good. A question was asked about bug spraying and Buzz explained the process currently being used.

Certification of Quorum

In order to establish a quorum, 51% of the total votes (166 votes) of the association must participate in person or by proxy. Secretary Elaine Poovey stated a quorum was established (216 votes).

Review of 2014 Annual Discussion Meeting Report

Vice President Elizabeth Foster reported the quorum fell short by forty votes for the 2014 meeting. The minutes were suspended and financial statements were presented, however the figures were not accurate. The cash flow was not covering the expenses. Discussion followed about past due accounts and members in good standing. Treasurer Kelly Lee explained the process for collection of overdue payments.

Review of December 31, 2014 Financial Statements

Treasurer Kelly Lee reported there are forty-one weeks held by the Homeowners Association. That translates to $24,600 in lost maintenance fees. Currently the balance in the checking account is $7,291.37. The savings account balance is $66,444.66. The property taxes and property insurancepremium have been paid for the year. Questions and discussion followed regarding returning lapsed members to good standing. The Board will discuss this issue further.

Review of July 31, 2014 Financial Reports (RAMs Final Report)

Board member Buzz Robertson explained the expense report for 2014 and presented the budget for 2015. He noted a monthly cost of approximately $7,491.47. The property was appraised with a value of $2,500,000.

Owners Association Reports

Board member Gina Howard who oversees social media for the association shared comments about the website (oceanforestclubhoa.com), online payment through a Pay Pal account, Facebook page and Twitter account. One member stated the sign on the property should match the website address for easier access. A request was made to put the Bylaws on the website and Gina agreed to add those. Mary stated the Board is working on a method to secure deposit information for damage assessment charges.

Unfinished/New Business

President Mary stated that both unfinished and new business would be discussed together.

1. Mary explained an issue involving renting weeks from owners. She received a notice from HorryCounty requiring a tax be paid if weeks are rented. Owner/Attorney Kathryn Cook, House 5, will look into this and render a judgment if the association has to comply.

2. Elaine shared results of the survey that was drafted in August. Discussion followed. The membership was informed if the association sells the property now, the master deed will have to be amended. It will require 100% agreement of the owners to sell. The purpose of the survey was to gauge the feeling of the owners. The Board will continue to gather information and discuss the issue.

3. Buzz reported on recent appraisal costs and property value regarding taxes. The prior value was $2,100,000 with property taxes levied at $30,500. The current value is $2,500,000 with taxes of $28,000. A question was asked if the property were sold immediately, how much revenue would each owner receive. $2,500,000/364=$6,834, realizing not all owners are in good standing. It was noted the association is in good standing with RCI.

4. Gina reported on renovations to House 4. The lattice has been removed. The Board will be securing bids for painting House 4 and floor replacement for Houses 4 and 6. Funds are available for these projects.

5. Mary shared thoughts on owners exchange and their willingness to share personal information if they so choose. Connie Cathey, House 6, moved that information be shared in a secure manner on the website if the owner chooses. The information will include name, telephone number, e-mail address, house(s) /week(s) owned. The motion was seconded and approved. Members must be in good standing to access this service.

6. Mary reported sink garbage disposers were replaced in all houses that needed them. The Board will discuss replacement furnishings. Buzz reported one major issue is the wiring in the pool house. It is out of code compliance and has to be done immediately. He is securing estimates for the work. A question was asked about handicapped accessibility, especially for bathtubs. The Board has discussed this concern and will continue to investigate.

7. Mary stated there would be no swapping of properties. Regarding the issue of deeding property back to the association, the Board is working through this to develop policies. If the owner moves the property to an LLC, he must put a personal guarantee along with it.

8. Mary stated we need a maintenance person. She reiterated the Board would prefer to have maintenance fees paid in December. Payments can be sent monthly to Treasurer Kelly if that would help the owner.

Election of Directors

Elizabethpresented the following list of candidates for five vacant positions for Board membership:

Robert H. Forbes, J. Kelly Lee, Elaine Poovey, Gina Howard, G.. Bruce Robertson (Buzz), Chris Ove, and Yvonne Pigatt. She requested nominations from the floor. Mary then removed the names of Chris Ove and Yvonne Pigatt as not being members in good standing. Elizabeth explained that elections could not be certified for 2014 because of lack of a quorum. Mary requested volunteers from the membership. Forest (Tally) Roberts and Robert I C (Ric) Forbes volunteered. Connie Cathey, House 6, moved we accept the slate by acclamation. The motion was seconded and approved. Mary Stephens and Elizabeth have one more year on their term. This election moves the composition to nine members instead of seven as required in the Bylaws.

In lieu of the Board electing the officers as required in the Bylaws, Mary stated the membership should do so. Kelly Lee moved we elect Buzz Robertson President. The motion was seconded and approved. Mary announced the following would serve as officers:

Elizabeth Foster-Vice President

Elaine Poovey-Secretary

Kelly Lee-Treasurer

Gina Howard-Social Media Specialist

The meeting was adjourned at 12:50 p.m.

Elaine Poovey

Secretary

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