HARBOUR TOWN YACHT CLUB, INC.

BOARD OF GOVERNORS

November 3, 2013

The Board of Governors meeting was held on Sunday, November 3, 2013. The Board met in Executive Session at 2:00PM. The Club Group, Ltd. Management Team joined the Board at 3:20PM. The meeting was called to order by Charlie Dorton, Commodore.

ROLL CALL

PRESENT: Charlie Dorton, Commodore

Beverly McKinney, Board Member

Tim Ballinger, Treasurer

Tom Bosley, Secretary

Dudley Parker, Board Member

Larry Wilson, Board Member

STAFF PRESENT: Mark King, President, CGL

Brian Little, GM, CGL

Andy Sutton, Controller

The Board reviewed the September 23rd meeting minutes. A motion was made and seconded to approve the September 23rd meeting minutes. The motion was passed unanimously.

FINANCIAL – ANDY SUTTON & BRIAN LITTLE

Andy gave an overview of the balance sheet as of September 30th, 2013. Cash is up over $41,000 from 9/30/12 to 9/30/13. This is due in part to the increase in pre-paid membership dues as well as reserves that have yet to be used on capital projects.

Total receivables (1100 to 1399) are at the lowest levels in many years at $244,233 due to the collection efforts, which has attributed to improved cash flow.

Andy explained the Statement of Cash Flows.

Brian reported that the variance to budget on G&A department 910 was due to $10,000 of the initiation proceeds from four sales going towards covering delinquent memberships. Cable TV is over budget by $4,000 due to unforeseen increase by the local provider Hargray Communications. The Club has spent $6,000 more than expected on legal fees for foreclosed memberships and spent $4,000 more than anticipated in Board Meeting expenses.

Lodging is $11,000 less than budgeted due to more members selecting a departure clean instead of daily housekeeping ($7,000). Also, Credit card discounts are over budget by $3,500 due to members paying their pre-paid dues by credit card as opposed to a check.

F&B is ahead of budget YTD by close to $2,000, due to an increase in group business this year.

Housekeeping is $4,000 behind budget as the department used more casual labor than normal to cover the loss of Frankie in March, who went out on disability from a car accident.

The Mystique is currently right at budget.

The front desk is ahead of budget by $3,000.

The only reserve item remaining for the year is the solar project at just over $5,000.

SALES REPORT – MARK KING

A total of 8 Equity membership re-sales have been sold this year for an average of $18,050.

Five Social memberships have been sold year-to-date and there are currently 14 Social memberships available for re-sale.

OTHER

A motion was made, seconded and approved unanimously to not reimburse Board members for their travel expenses.

Brian gave an update on the solar project. The plumber has run into some supply issues and the town asked American Micro Solar to purchase an additional permit which set the project back a number of weeks. It has also taken two weeks to get an inspector from the town to come down and take a look at the complete solar set up.

Andy forwarded the bylaws to the collection agency and is awaiting their approval to go ahead with placing phone calls to members who are delinquent.

Andy stated the following with regards to several delinquent members:

- Boswell ($9,250) and Inman ($8,869) have personal judgments on both, so it’s hard to advance and collect on them.

- Rasmussen paid $6,000 so his balance is down to $2,800.

- Johnson ($8,110) is hard to pin down. He has a one year allowance as his membership was split with another member. He needs to pay his end and then find a buyer for the other half of the membership. - Harden is on a pay plan and has kept the balance below $5,000. She will pay it off by year end.

- White ($5,475) is in the beginning stages of legal

- Bowman paid $1,330. The balance is down to $1,030.

- Ceasar ($2,911) is paying $200 per week until balance is paid off.

There was discussion on what financial impact there would be on the Club if it were to lose the Swallowtail and Spicebush business. Mark stated that the properties generated an estimated $1,000,000 in revenue for the Club in the last 10 years.

There was discussion on how to possibly better align revenues and expenses on the P&L.

One option is to combine the lodging (911) with housekeeping (913). One other option is to transfer some of the revenues in General & Administrative (910) to Food & Beverage (912) to account for the number of hours we staff the clubroom 365 days of the year.

The Club Group will do an analysis of HTYC’s fixed versus variable expenses so the Board has a clearer understanding of how business decisions affect the financials.

Brian stated that the $17,000 originally set aside to purchase decorative items for the living rooms will be used to instead paint the walls in the second and third floor hallways as the original estimate for this line item was much more than originally anticipated.

Mark ran through the agenda for the 2013 Annual Meeting.

Mark went down the list of action items.

Meredith Schroeder is with BFG and it is the advertising agency for SC Parks, Recreation & Tourism. She is interested in using the signature HTYC photograph. She would like to use it in a print ad targeting international visitors. She would need a high-resolution file, and the state also requires that the folks pictured have signed a release. A motion was made, seconded and unanimously approved to allow BFG to use the photo.

Brian has been asked to e-mail the Board a list of the larger capital reserve projects the Club has taken on over the last two years. These are to be uploaded onto the member side of the HTYC website for all members to see as well.

Brian placed the approved clubroom dress code on the member side of the website and the F&B staff will enforce the policy going forward.

Charlie will contact the auditor to see why there was a $2,000 charge for the auditor’s latest trip down to HHI to take a look at the Club’s financials.

RECOVERY UPDATE: - MARK KING

Mark stated there were no further updates from the previous Board meeting.

With no further business, the meeting adjourned at 5:15pm.

FUTURE MEETINGS:

Monday, November 4th, 2013 9AM Clubroom