Cabana Club Condominium Annual Meeting

October 8th, 2011 Call to Order At 1 p.m. President Karen Williams called the meeting to order, welcomed all and encouraged everyone attending to visit a few open units that were available to see. Board members present: Karen Williams, Robin Barker, Dee Barton, Bob Dooley, Ali Beck, Susie Maxfield, Janet Schreiber, Mary Sligh. Consultants Wayne Scott and Nancy Birdwell also attending. Registration and Quorum Karen checked to see if anyone had a proxy form. Review and approval of Annual Minutes 2010 Karen asked for a motion to approve 2010 minutes. Shane Lauren made a motion to approve and Doane Blair seconded the minutes from 2010. A vote was taken and motion was approved. Managers Report Karen shared a manager report that Gary had submitted for August. This report showed several projects he completed during the months of August and Sept. (Keith Birdwell showed this report on the projector.) Karen also shared how Robin and Steve Barker had overseen the flooring renovation project in 2011 and we now have new vinyl plank floors and carpeting in all timeshare units. Karen shared that Robin is maintenance director for Cabana and thanked Robin and Steve for their outstanding job in this role. Karen shared about the water leak over the July 4th weekend and how the parking lot had to be dug up in one section, and re-asphalted to fix the leak. This was an unexpected expense. Karen shared that managers unit was also being worked on to bring it back into living condition. Gary was continuing work on fixing windows valances, 3 TVs were also purchased this year and Cabana will be eventually going to all flat TV screens. BBQs are being reviewed and may be replaced. Karen updated everyone on the hot tub and filter problem we had during 2011. Cabana had to rewire hot tub unit and hot tub is currently usable. It was down occasionally in 2011, but progress is being made in an effort to bring it up to code. The bench in the hot tub room has been removed in order to provide room if CPR needs to be administered, per Whatcom County code. Keith Birdwell showed another slide of a few current projects: getting spa up to code, replace stair supports on building #2 and 3, refacing or replacing cabinets in manager unit, replacing and painting railing caps where necessary, and slip resistant floor in spa room.

Treasurers Report Karen went over treasurer report (below). Bank Balances as of 9/30/11 Operating: $49,132.72 Manager: $1,390.48 Reserve: $5,010.99** Petty Cash : $100 US Bank CC: $889.18 Assessment Acct: $26,218.06 Total: Accounts Receivable as of 9/30/11 Accts/Rec $110,372.41 Past Due (85,018.83) *** Collectable $25,353.58 Past Due: 2009 2010 2011 Total:

$82,741.43

**No increases/deposits to reserve account since 2007

$13,110.14 $31,853.97 $40,054.72 $85,018.83

***38 owners past due includes 2 full time owner units. Liens filed for $19,002.11 on full time owner units. 4 owners turned over to Drico Collection Co. for $16,138.89

Karen went over the past due amounts for each year. There were a few questions about whether we can stop a full-time owner who is behind in dues from using pool, etc. We cannot stop these owners from using the facilities at Cabana. It was asked whether we allow people who are behind in dues to rent their weeks and put the money for their dues. Karen said past due owners can work with Nancy on this. Karen went over assessment account. Keith showed a slide of these figures. Karen also went over the assessment expenses in detail. Cabana Club Assessment Account as of 10/8/11 Assessment Billed 2009 $225,000.00 Adj. for discounts, etc ($10,481.94) Deeded Write off (22,224,97) Expenses paid (134,748.01) Accts/Receivable (31,327.02) Balance $26,218.06 Expenses Paid as of 9/30/11 Topside Roofing Pool Repair & Heater Parking Lot Window Blinds Plumbing Bldg 1. Window Replacement Chimney Repair & Caps Kelly Services Lowes Flooring Spa Upgrades Total Expenses Paid: $38,886.41 $24,833.01 $4,741.45 $ 737.57 $1,889.93 $7,942.20 $2,710.13 $2,000.00 $50,013.63 $ 993.68 $134,748.01

Assmt receivable as of 9/30/11 $31,327.02

There are 19 owners past due (includes 2 full time owner units). Liens have been filed for $11,232.24 on full time owner units. 3 owners turned over to Drico Collection Co. for $3,105.16. Mary Sligh asked a question about how assessment money is broken out between full time owners and timeshare owners. Nancy said she would have to look back at the 2009 budget and list of assessment items. Nancy explained most of the balance of the assessment money would go toward common area repairs (stairs, railings, spa, etc). Karen explained that we prioritize projects/repairs and that is how the assessment often is used. New Business Karen explained that Richard is no longer at Cabana. Vivienne and Gary have been managing the past few months. Karen explained that our current budget cannot afford to keep Vivienne and Gary at our current pay rate. Karen explained that the board took time to interview potential managers, etc including Vacationvilles, Rosemary Black. Rosemary came up and introduced herself to the owners. She explained she had worked with Worldmark and other timeshare organizations. Rosemary explained she will keep Gary on staff and will be interviewing Vivienne after this annual meeting. She reiterated that every employee has a chance to work for Vacationville. Rosemary explained what her Vacationville office would be doing and fielded questions from the timeshare owners at the annual meeting. There were questions about checking in late and whether Cabana would still feel like a community. Nancy explained that Rosemary knows a lot of contractors and connections around the Birch Bay area. It will benefit Cabana. Rosemary shared the benefit of her contacts of past summer renters in the area and she may be able to rent units for timeshare owners who are interested. She may even have renters who are interested in buying available weeks for sale. Nancy shared that Rosemary also is licensed to be able to rent units. 2012 Budget Presentation and Adoption Karen moved to the 2012 budget presentation. She explained that several budgeted expenses are being rolled into the fee we will pay Rosemary Black. Nancy explained how she has been involved with at least 8 managers over the past 10 years. She explained that our current management situation is not guaranteed. If we keep the current managers in their current hours, we need to raise the dues . Nancy explained that we will pay Rosemary $4,000 a month for a year, starting Nov 1st. Nancy Birdwell is the bookkeeper for Cabana as of March 2011. There were a few questions on the budget and Nancy fielded these questions. There were a few questions on how many weeks Whatcom County owns. Whatcom County owns 8 weeks. Wayne asked what our strategies are for selling our weeks. Susie shared we are using TUG timeshare website, facebook, Craigs list, Vacationville, word of mouth, Cabana website.

Don Cogdill made a motion to approve budget, seconded by Gary Vox. A vote was taken with the 2012 budget being approved. Dues Update Karen said we will not raise dues this year. We may increase in small amounts in the coming years though so we can stay on top of renovations. Election of Board Members 2011-2012 Wayne made a motion to re-elect Ali Beck, Karen Williams and Robin Barker to the Cabana board. Keith Birdwell seconded it. The motion was approved bringing the total members of the Board of Directors to seven as per bylaw 6.12. Vote Talley Keith said we had a quorum of 28.54% of voting membership. Wayne thanked Karen and Robin for their time and Nancy Birdwell for their countless hours. Wayne also thanked Robin and Steve for their hours as maintenance 2011. Karen thanked Nancy and Wayne too. Adjournment President Karen adjourned the meeting at 2:49 p.m.