SUMMERHOUSE RENTALS, INC. Minutes of Board of Directors Meeting April 20, 2012

President Ed Presson called the meeting to order at 3:03 p.m.

Board members present were Ed Presson, Karen Lindsey, Don Coker, Steve Tate and Sherry Millard. Also present were Keith Jones and several owners.

Steve Tate moved that the reading of the minutes of the February 17, 2012 meeting be waived and that they be accepted as presented. The motion was seconded by Karen Lindsey and passed.

Officer's Reports:

President - (Complete report on file.) Ed Presson formed a Rental Rate Committee with Pat Coker as the Chairperson. Also on the committee are Don Coker, Dianna Domitz, Karen Lindsey, Bob Mericle and Sid Sewell. The February open house resulted in 14 reservations and $28,000 in bookings. March reservations were over budget by $7,476. Reservations for the first four months of 2013 are very strong. The new computers and servers were replaced in mid March with no problems. We now have email lists for winter, summer and off season guests. This will allow Summerhouse to target guests with specials that apply to the time they visit and to keep our guests updated about Summerhouse. Sherry Millard asked if we needed an opt out option at the bottom of the emails. Keith Jones will check with our lawyer to see if it is needed.

Vice President - None Secretary - None

Treasurer - (Complete report on file.) Don Coker reported the gross income through March 31, 2012 was $562,963 or 95% of the 2012 budgeted gross income of $590,352. SRI income was $149,626 or 94% of the budgeted SRI income of $158,352. Expenses were $108,567 or 83% of the budgeted amount of $130,191, yielding a net income of $41,059. The March 2011 SRI income was $148,145, which was 89% of the plan.

As of March 31, 2012, the total assets were $735,000, current assets were $678,000, and total liabilities were $486,000. According to the weekly rental reports, SRI deposits of $1,443,000 are behind the 2011 deposits of $1,449,000.

Ed Presson accepted the report and it will be filed for audit.

Rental Manager's Report: Keith Jones reported that bookings are about $5 to $10 thousand behind last year's pace. The bookings for July are currently $50,000 over last year's pace.

The housekeeping supervisor has resigned. The position was filled by Jamie Suter, a former cleaner at Summerhouse.

Keith feels that we have some good marketing strategies in place right now. The Villages will be targeted in the fall. Our ad came out in The Jacksonville Magazine April/May issue. For the last month, a new program on the computer has identified our number one market as Jacksonville, followed by Atlanta, Georgia and the states of New York and Tennessee.

Comment cards from the winter guests were reviewed and they were extremely favorable. Keith started a program to give $10 to each person mentioned favorably on the winter comment cards. He will do the same at the end of the summer and again in December. Ed Presson reports that 63 to 65% of our rentals are returning customers. He also said the website booking dollar amount has increased 93% from 2010 to 2011. Photography on website needs updating. Karen Lindsey said that Lighthouse Realty is having their website redesigned and is having the search engine optimization improved. She will report back on what that cost them.

Keith reported that the buildings to have the concrete restoration done next will be determined at the homeowners meeting tomorrow. It is recommended that buildings 2, 10, 11 and 12 and the front of 9 be done at this time. This could affect rentals

Steve Tate asked that a copy of emails being sent to the different target groups also be sent to the board members. The office has sent over eighty emails to Georgia people.

Committee Reports: Rental Rate Committee - (Complete report on file.) Pat Coker presented the Income Analysis by Don Coker, the Model excel worksheet, kept by Dianna Domitz, and the current SH Rate Sheet. Although there is a strong backlog of summer deposits for 2012 and the economy is forcasted to gradually improve, Summerhouse rates are still slightly above Ocean Gallery rates. The committee recommends no change to the summer rates at this time. Don Coker moved that the recommendation be accepted. Steve Tate seconded the motion and it passed.

Old Business: Dianna Domitz was not available to report on the replacing of linens. The cost of replacing the hand towels and wash cloths with the upgraded design will be on the agenda for the next meeting.

New Business: Bob Wheeler presented a resolution (complete resolution on file) stating how a compensation committee, which determines and recommends compensation for the general manager immediately following each annual contract review, will be formed. Don Coker moved that the resolution be accepted with the recommended corrections. Karen Lindsey seconded the motion and it passed. Bob will present the resolution to the Homeowners Board at their meeting tomorrow.

Keith Jones presented a sign design for the front of the complex to advertise vacation rentals and specials. Don Coker asked if we could have some kind of logo to identify Summerhouse. Mrs. Tate asked if we wanted a permanent or changeable sign. It was felt that a changeable sign was better. After much discussion it was decided that a permanent sign with Vacation Rentals, the phone number and email address would be best with an add on sign that can be changed to announce Open House or Four Heated Pools, etc. Keith Jones will come back with a new sign design. (Action item.)

Communications: None

The meeting was adjourned at 4:10 p.m.

Sherry Millard Secretary