Windsor Court

Annual Owners’ Meeting

October 5, 2018

1

Call to Order and Introductions

2

Board of Directors

Dick Cruickshank

Rich Forlini

Bart Mitchell

Stephanie Reardon

Don Shassian

Annual Meeting Notice

3

September 6, 2018

Dear Windsor Court Owner,

The Annual Meeting of the Windsor Court Horizontal Property Regime Owners’ Association will be held at 2:00 p.m., Friday, October 5, 2018, at the Omni Hilton Head in Palmetto Dunes Plantation.

The purpose of this meeting will be to:

Elect Board members Review the current fiscal status and operation of Windsor Court VillasDiscuss the 2019 budgetOther business to come before the meeting

We urge you to attend in person if at all possible. A conference phone and bridge will be established to enable owners to listen in to the meeting and to ask questions at the appropriate time of the meeting. The dial-in instructions are:

Dial-in: 1-800-458-4121

Code: 5413209

Regardless of your plans to attend, we request that you complete the enclosed proxy card and return it as soon as possible to ensure a quorum for conducting the business of the Regime. Sending in your proxy does not rescind your right to attend and vote on any and all business. If you send in the proxy and then attend the meeting in person, the proxy will be voided.

Enclosed is a memorandum from your Board of Directors summarizing a number of matters including current finances, the 2019 proposed budget and an update on major projects.

There are two, 3-year Board positions up for election this year. These seats are currently held by Rich Forlini and Stephanie Reardon. Stephanie has expressed a willingness to stand for re-election. Rich will not be running and his position is open. Dave Mason has expressed an interest in serving on your board. Your board endorses the candidacy of both individuals. Resumes for both Stephanie and Dave are enclosed along with the ballot portion to be completed on the enclosed proxy.

There will be an Owners’ social gathering at the Windsor Court pool on Friday, October 5, 2018 starting at 6:00 p.m. Snacks, soft drinks, beer, and wine will be served.

Thank you in advance for returning the proxy. We look forward to seeing you at the social gathering and the meeting.

Determination of Quorum

Do we have a quorum to conduct business?

4

Minutes of Preceding Meeting

Motion to Approve

5

6

WelcomeDon Shassian

First order of Business: Today’s Key Issues

Timing of individual unit construction activities

Windowpane replacement process

7

2018 Initiatives

Mansard roof re-built with an open back – meets 142 mph code

Hired CPS to drive bidding, contracting and quality assurance

JRC selected to build open backed mansard

Very pleased with quality of work performed

100% warranty on both flat roof and mansard

Plan was to start November 1 and be complete by January 20.

February 9 was built into the contract as date tied to liquidated damages

Substantial completion was May 29

Liquidated damages penalty used to re-build 27 drains, 71 pipe vents and 25 overflow drains

Total cost of $1.8M was covered by insurance and reserves. 8

2018 Initiatives (cont.)

Hurricane Matthew Insurance Claim

Final settlement completed and final check received

Insurance covered 87% of our mansard expenditures

Negotiated final settlement balanced against litigation cost,

net of attorney fees --- same answer.

Result is NO ASSESSMENT and 2019 commences with

reserves of over $400,000.

9

Matthew Work Funding

Source of Funds:

Phase 1

Insurance proceeds…………………………… $2,727,800

Deductible paid by the regime………………… 121,500

Transfers from reserves…………………………… 138,800

2,988,100

Phase 2

Insurance proceeds………………………… 1,261,700

Transfers from reserves……………………… 501,700

1,763,400

Total Sources……………………………………………$4,751,500

Use of Funds:

Phase 1

Service Master initial mitigation, interior unit repairs,

mansard takedown, flat roof demolition, new

edge-to-edge flat TPO roof installed, garage

repairs and exterior repairs……………………………$2,988,100

Phase 2

Open backed mansard built …………………………. 1,763,400

Total Uses……………………………………………… $4,751,500

10

2018 Initiatives (cont.)

Elevators:

Assessment ($187,500) was used to replace all of the electrical and

mechanical systems.

Mechanics of several doors were also replaced.

Interior cab panels were also replaced.

Elevator lift noise partially addressed

Outstanding issue (remaining roll bars) to be addressed this winter with the

replacement of remaining door rollers

11

2018 Initiatives (cont.)

Significantly enhanced landscaping in the back of both buildings

Painted the pool fences, trellis, gazebo and pool house.

Painted the metal panels on the pool house, gazebo and entrance

gates same color as roof and railings

Total cost of $101,800 funded from reserves

12

Reserves

Replacement Insurance Hurricane Total

January 1, 2018 $157,000 $19,800 $214,000 $390,800

Regime fee transfers/insurance assessment 281,600 187,400 469,000

Insurance proceeds 2,700 1,438,900 1,441,600

Elevator assessment 187,500 187,500

Transfers 45,900 (45,900) 0

Draw from letter of credit 857,800 857,800

Spending

Elevator refurbishment (187,400) (187,400)

Pool complex painting (39,000) (39,000)

Landscaping upgrade (37,400) (37,400)

Elevator room A/C, repair frozen pipes,

Kiddie pool heater, door painting, reserve

Study update (26,400) (26,400)

Mansard re-build (contractor, consultant,

engineer and interest) (1,607,000) (1,607,000)

Paydown of letter of credit (857,800) (857,800)

Insurance premium and other ________ (169,000) (169,000)

Expected Dec. 31, 2018 $381,800 $40,900 $0 $422,700

13

Looking Forward – 2019

Replace remaining elevator door rolling bars/tracks

Repaint parking space lines and curbs

Re-surface the spa with tile

Paint hallway floors and stairs

Evaluating the following:

Expand reading deck

Re-build the pool fence

Strip and paint condo doors and frames

Purchase and install new hallway ceiling fixtures

Replacement of all walkways around the pool complex

Replacement of all bollards 14

Reserve Study

15

Performed another engineering study of the complex to update costs and timing of

necessary replacement activity

With $382,000 as the reserve balance at December 31, 2018, 5% annual increases in the

contribution to the reserve = adequate funds to cover the next elastomeric project in

2027.

Study lays out annual spending for hallway floors, elevator upgrades, etc.

Manager & Risk Management ReportKent Eddy & David Howard

16

Communications ReportStephanie Reardon

17

Building & Grounds ReportBart Mitchell

18

Hargray Triple Play

Will be installed after Windsor Place and Hampton

50Mbps/5Mbps upgraded to 100Mbps/10Mbps

Current video channel line-up will be expanded to 156 digital

channels and 90 in HD. Will include ESPN, Showtime, Epix and

The Movie Channel.

New numbering scheme

MUST install a set top box for EVERY TV in your unit

Monthly cost increases from $79 to $88.19

Windowpane Replacements

Our windows are an area of vulnerability

Tight exterior seals are critical

The board does not want to dictate who to use for

windowpane replacements but the board DOES want to

ensure that the exterior seal is tight.

New policy issued: windowpane replacements must be

done during the week of December 3 thru 8. MUST notify

Katie by November 5 of your intent to do so. This will enable

us to arrange a lift and contractor to check all new seals the

week of December 10 thru 15. 20

Treasurer’s ReportRich Forlini

3.7% Increase overall in regime fee

1.8% due to 5% increase in contribution to reserve fund

1.3% due to 11% Increase in triple play cost for higher speeds and more channels

0.6% due to increase in basic operating costs (pool maintenance, management company, maintenance and landscaping, elevator maintenance costs and R&M)

Operating regime fee is one of the lowest, while the replacement reserve portion is among the highest

21

Treasurer’s ReportRich Forlini

Discussion of the 2019 Budget

22

Old & New Business

23

Kent Eddy

keddy@atlanticstatesmanagement.com

David Howard

dhoward@atlanticstatesmanagement.com

Katie Crosthwait

kcrosthwait@atlanticstatesmanagement.com

Election of Directors

Election of Inspectors of Election

Nominations

Dave Mason

Stephanie Reardon

Voting

Results

24

Any Additional Q & A

Any questions not addressed yet?

25

Adjournment

Thank you!

26