Your Board of Directors: Your Management Staff

1 1 John Hamel - President Donita Burke Higgins - Vice President Cathy Klingensmith Secretary Ann Hendricks - Treasurer Donald Moore Director Carol Powell - Director John Zino Director Please feel free to contact any member of your Board by e-mail with questions or comments or write to them c/o The Beach Club. We enjoy hearing from you and value your input. The Beach Club Rhonda Swain - Manager/Resales (503) Michelle Smith - Asst. Manager/AR (504) Kathy Kerr - Reservations (506) 2 Ocean Trace Road St. Augustine, FL 32080 (904) 471-2626, (904) 460-4884 Fax E-Mail: Cunningham Property Management Corp. Sharon Cunningham - President/Broker Kevin Mattoni - Vice President 1030 Seaside Drive Sarasota, FL 34242 (941) 349-7333 E-mail: Web Site: Brian Chamberlain- Rentals 1001 Point of Rocks Road Siesta Key, FL 34242 (800) 333-7335, (941) 349-4324 Fax E-Mail: Web Site: Social Media The Beach Club 2 Ocean Trace Road St.

2 Augustine, FL 32080 (904) 471-2626 SPRING 2016 The 2015 Annual Meeting was held at the club on December 5, 2015. The approval votes for the pro-posed 2016 budget and reserves were again very high. Current Board members, Ann Hendricks, Cathy Klingensmith and John Zino were re-elected and new Board member, Carol Powell, was elected. Special thanks go out to everyone who volunteered to run for the Board and to everyone who attended or sent in their proxy/ballot to vote prior to the meeting. With-out your involvement, we couldn t hold the meeting, so keep up the good work! Remaining Board meetings for 2016 have been scheduled for: June 3/4, October 7/8, December 2 and the Annual Meeting for December 3rd. As al-ways, owners are encouraged to attend the meetings or submit any comments to the Board for discussion at a meeting.

3 As required by florida Statutes, The Beach Club s financial records are audited every year by an in-dependent accountant. The full report is kept on file with the State and at The Beach Club. The enclosed 2015 Budget to Actual report is a sum-mary of that audit. It compares the 2015 operat-ing, tax and reserve budgets to the actual income and expenses received and incurred in 2015. It also shows how these numbers compare to the 2016 budgets. If you have any questions about this document, please feel free to contact Rhonda or Michelle at The Beach Club. Your Management Staff : Your Board of Directors: Enclosure Annual Meeting Update 2 Dear Fellow Owners, First, the Board would like to welcome Carol Powell, our newest Board member. Carol lives in Tallahassee, florida .

4 I know you are looking forward to warmer weather after all this cold, especially those owners north of florida . A lot of work has been done this winter and I believe you will love the changes! We had a leaky sewer pipe under the game room floor. The floor was excavated, the work was done and you can't even see the difference. Hopefully we will see it in our water flow. The Phase II roof has been re-placed and the HVAC units have been put on stands to meet new requirements. The electrical wiring and conduit was also replaced and extended to reach the new units. Phase II elevator s working components were re-placed and upgraded while the roof was being replaced. In the bedrooms, new mattresses have been installed along with all new bedding (mattress pads, sheets, blankets, pil-lows, spreads, shams, etc.)

5 The trim on all of the bed plat-forms was also replaced. All granite counter tops have had chips repaired and have been polished and sealed. The internet speed has been DOUBLED!, HBO and Show-time has been added to our cable television lineup as well as HD channels. We also upgraded the GEM systems to a wireless system in half of the units. This is the system that monitors the heat and air system when we leave and return to our unit. This helps reduce the electrical bill. During my vacation at The Beach Club in December, there were many people using the new heated pool. All com-ments were very positive. The contractor that is working on our dune project is in the process of getting our permits. A survey of the property has been completed and he is working with a landscape architect to create a landscape plan for the dunes area.

6 When these plans are done he will be ready to return to Tallahassee for permits. We will have five years to com-plete the project with this permit. This will enable us to take our time and monitor the dune restoration, vegetation re-moval and replacement, as well as our cash flow. Of course we have to work around turtle season. All the above items have been paid for with either reserve dollars or have been budgeted items. Your annual maintenance fees for 2016 were due on Janu-ary 1, 2016 and if you have not paid them yet, they are now delinquent. Please call or email The Beach Club and make arrangements to get them paid. They will be glad to help you. Ann Hendricks, Treasurer 1. Fees are due on January 1, and are considered delinquent on February 15th. 2. Unpaid accounts are already delinquent (as of 2/15) and have been charged a $ late fee and one month s interest.

7 Per florida Statutes, once properly assessed, these fees cannot be waived, even by the Board . Additional interest is posted on the 15th of each month 3. Delinquency beyond sixty days from January 1 may also be subject to assignment to an outside collection agency resulting in an additional 40% charge. As with the late fee and interest, once your account has been assigned to the outside collection company, it cannot be released without payment in full to them. This will happen on March 1st. 4. Please contact us at The Beach Club before this happens. 5. Payment plans are available. Once you have a payment plan set up, payments made at least every 30 days will keep your account active. If you cannot pay your account in full, please do not just ignore it; it will not just go away.

8 Your ownership at The Beach Club is deeded and cannot simply be discontin-ued. We are here to help you, but you must contact us. We accept checks, Visa, MC, Discover and Amex for payments. Without making arrangements and keeping your account active, it WILL be assigned to the collection agency and WILL cost you more the longer you wait. Accounts can be assigned to the collection agency on March 1st. Once your account is in collections, there is nothing we can do to reduce these extra charges to you. In addition, you cannot make a reservation until your ac-count is paid in full, so the longer you wait to pay your fees, the less chance you have of being able to secure the most desirable reservation. Once your account is paid in full, please don t forget to contact us, in writing, to make your reservation request.

9 Looking Forward: If you find that paying the annual assessments in one lump sum is difficult for you, you may want to consider making payments towards next years fees now. Once your account is current, you can make payments as often as you d like throughout the year to get a jump start on the next years fees. Just 3 or 4 monthly payments of $150-200 each between now and July 1st will have your 2017 fees paid in time to get your Preferred season re-quest into the opening day drawing for reservations. If you know you are going to need a payment plan for 2017 s fees, you should start planning and paying now to avoid late fees and interest next year. Get ahead of the game and don t wait until the fees are due or delinquent to start making payments.

10 Assessment Fees Letter from Your Board 3 ===========================THE BEACH CLUB RESERVATION REQUEST FORM============================ OWNER S NAME_____RESORT SHARE_____ (Please Print) DAYTIME PHONE _____E-MAIL _____ MAY WE E-MAIL YOU ASSOCIATION BUSINESS?_____ (Please Print) IF SO, PLEASE GIVE US A 6-8 CHARACTER PASS CODE TO IDENTIFY YOU:_____ CHECK #_____AMOUNT_____DATE_____ VISA/MC, DISCOVER or AMEX #_____($25 convenience fee per unit) NAME ON CARD_____EXP. DATE_____SEC CODE_____ 2016 FEES: $ ONE BEDROOM $ TWO BEDROOM 1ST CHOICE: UNIT A)_____B)_____C)_____FOR WEEK #_____STARTING_____YEAR_____ 2ND CHOICE:UNIT A)_____B)_____C)_____FOR WEEK #_____STARTING_____YEAR_____ 3RD CHOICE:UNIT A)_____B)_____C)_____FOR WEEK #_____STARTING_____YEAR_____ _____PLEASE BANK MY WEEK WITH RCI , MY RCI NUMBER IS_____.