BOARD OF DIRECTORS BUDGET MEETING – OCTOBER 2, 2025
The meeting was called to order at 9:00 a.m. by President Tim Pellerin. Board members in attendance were Tim Pellerin, Mike Dammeyer, Deb Stevens, and Steve Couch. Terry Barrett was absent from the meeting due to a pre-arranged conflict. Attending from Hilton Grand Vacations (HGV) were Chip Fosth, Tami Phillip, Matt Fox, Sharry Luneke, and Amy High.
APPROVAL – PREVIOUS MINUTES: MOTION was made by Steve Couch and seconded by Mike Dammeyer to approve the minutes of the board meetings held on May 2, 2025, as presented. Mr. Pellerin voted aye, Mr. Dammeyer voted aye, Ms. Stevens voted aye, and Mr. Couch voted aye. Motion carried unanimously.
PROPERTY UPDATE:
Hot Tub opened 10.1.25.
North Elevator came online 10.1.25.
South elevator parts are in which means the repair time will be considerably less than what it was for the North elevator.
Backup generator wiring was started 10.1.25. Fuel tank permit is in process. Landscaping around the north side of property near the tanks will be done when complete.
Turtle lighting is now being permitted (through 3 of 5 stages).
Doors and panels for fire room have been delivered.
Missing tennis court pole is still under review by FPL.
2026 BUDGET: Many aspects of the insurance coverage, business interruption cut off dates, credits, and deductible were discussed. A detailed discussion was initiated by Matt Fox that disclosed the need for a Special Assessment in early 2026. This was the first indication or notice of this need that the Board of Directors received from HGV. As Matt pointed out, there have been and continue to be a number of moving parts to the finances of Seawatch. As of the date of this meeting, the insurance company has not approved any owner maintenance reimbursement fees beyond week 26 in 2024. This leaves us with potentially 15 weeks of uncovered maintenance fees or a total of 588 unit weeks (taking into account the reduction of weeks for September deep clean weeks). This need, along with other uncovered insurance items, and the need to restore capital reserves for the cost of building re-pipe, demo, and repair, will require the Board to hold a Zoom meeting later in 2026 to discuss and vote on a special assessment. Owners will be given two weeks’ advance notice of this meeting in accordance with statute. Matt Fox indicated that the amount of the assessment is not currently known. Tim Pellerin stated that he was going to publicize this need to the ownership group immediately and Matt Fox cautioned Tim on this decision, stating that the amount has yet to be determined. At the time of our meeting, under full reservation of rights, the best guess of the amount of the Special Assessment is somewhere between $ 1,000 and $1,300+ per unit week and Matt Fox recommended that it be due and payable in one installment due at the same time as the 2026 maintenance fees.
Operating Budget – reviewed.
Security personnel was discussed. Budget has been adjusted for an increase with a potential change of security services. Proposals will be sent to the entire board for review.l Decision to be made at a later date.
Recreation contract is being recommended to be increased from two days per week to three days per week resulting in a $10,000 annual increase. This was rejected by the board due to increased costs so will not be pursued.
Reserves – reviewed and adjusted.
Master Bedroom – 55″ TVs – MOTION was made by Tim Pellerin and seconded by Mike Dammeyer to proceed with the new TVs in units. All the televisions are being replaced in the units because the current televisions are not compatible with the new cable system. Mr. Pellerin voted aye, Mr. Dammeyer voted aye, Ms. Stevens voted aye, and Mr. Couch voted nay. Motion carried.
Assessment Billing Letter – Not discussed.
Sales Report:
2025 Year to Date total through 9/24/25, 46 weeks sold, $235,150 Total Dollar Volume.
2025 Association Sales through 9/24/25, 6 weeks sold, $17,500 Total Dollar Volume.
These sales are included in the figures above.
FLORIDA STATUTE CHANGES:
Timeshare boards are no longer required to meet quarterly; one meeting per year required unless governing documents specify great frequency.
Board meetings held by video conference must be recorded, recording must be retained for one year and must be posted on owner website. Link to video conference must be included in meeting notices to all owners.
Annual Owner meetings may be held virtually, but in-person attendance must also be permitted. If meeting is held virtually, a quorum of the board must be present in the physical location where owners may attend in person.
Alternative funding methods are now permitted in order to meet SIRS funding requirements. Reserves may be funded by regular or special assessments, a lien of credit, or a loan. Special assessments, lines of credit, and loans require a majority vote of the owners.
2025-2026 TAXES: Overall DECREASE of 37.3%
Weeks 1-6 = $8.58, Weeks 7-13 = $28.61, Weeks 14-18 = $8.58, Weeks 19-23 = $5.37, Weeks 24-33 = $8.58, Weeks 34-42 = $5.37, Weeks 43-48 = $8.58, Weeks 49-50 = $5.37, Weeks 51-52 = $28.61.
After all items were adjusted, the maintenance fee was determined to be $1,417.51 per unit week, a 7.27% per unit week increase over the 2025 budget.
WHEREAS the 2026 operating budget (“Operating Budget”) and 2026 capital reserve plan (“Capital Reserves”) for Seawatch On-the-Beach (“Association”) were presented to the Board prior to the October 2, 2025 Board meeting.
WHEREAS, after review and discussion of the Operating Budget, the Board approved the total operating expenditures and annual operating fees for 2026 for the respective interval types as described in the 2026 Owner Summary Budget; and
WHEREAS, after review and discussion of the Capital Reserves the Board approved 2026 Capital Reserves funding for the respective interval types as described in the 2026 Owner Summary Budget; and
WHEREAS the Board approved the total 2026 Capital Reserves expenditures of $720,535; and
WHEREAS the Board authorized Hilton Grand Vacations Management, LLC as manager for the Association, in its sole discretion, to adjust expenditure amounts for individual projects within the Capital Reserves as long as those individual expenditures do not exceed and remain within the foregoing Capital Reserve approved limits; and
WHEREAS the Board approved and instructed Manager to adjust the balances in the respective reserve accounts to match the reserve study balances at year-end and allow for the transfer of reserve money within one reserve study and from one reserve line item (i.e. roof) to another reserve line item (i.e. exterior paint) at the discretion of Manager provided that no transfers of funds are made from the Structural Integrity Reserve Study to any other Reserve Study; and
WHEREAS the Board approved and instructed the General Manager to facilitate the mailing of the 2026 annual maintenance fees to the members of the Association; and
NOW, THEREFORE, BE IT RESOLVED, that the Board hereby approves the total operating expenditures for 2026, with total annual maintenance fees (operating and reserve) for the respective interval types as described in the 2026 Owner Summary Budget; the funding for the 2026 Capital Reserves as described in the 2026 Owner Summary Budget; and total expenditures for the various projects in the Capital Reserves of $720,535; and authorized the General Manager to adjust expenditure amounts for individual projects within the Capital Reserves as long as those individual expenditures do not exceed and remain within the Capital Reserve approved limits, and further approves and instructs the Manager to facilitate the mailing of the 2026 annual maintenance fees to the members of the Association.
MOTION was made by Deborah Stevens and seconded by Steve Couch to adopt the 2026 budget with individual annual maintenance fees of $1,417.51 per unit. Mr. Pellerin vote aye, Mr. Dammeyer voted aye, Ms. Stevens voted aye, and Mr. Couch voted aye. Motion carried unanimously.
MOTION was made by Mike Dammeyer and seconded by Deb Stevens to approve waiving of non-SIRS statutory funding of reserves. Mr. Pellerin voted aye, Mr. Dammeyer voted aye, Ms. Stevens voted aye, and Mr. Couch voted aye. Motion carried unanimously.
The ARDA resort Owners’ Coalition (ARDA-ROC) is a non-profit program sponsored by the American Resort Development Association, dedicated to preserving, protecting and enhancing vacation ownership. ARDA- ROC is an alliance of owners, developers and managers who are committed to advocating for local, state, and federal policies that enable the vacation ownership industry to thrive.
**MOTION was made by Deborah Stevens and seconded by Steve Couch to allow Hilton Grand Vacations to include a request for a voluntary $3.00 per week contribution to ARDA- ROC on the maintenance fee statement. Mr. Pellerin voted aye, Mr. Dammeyer voted aye, Ms. Stevens voted aye, and Mr. Couch voted aye. Motion carried unanimously.
MOTION Was made by Mike Dammeyer and seconded by Steve Couch to reaffirm the existing investment policy in pl;ace. Mr. Pellerin voted aye, Mr. Dammeyer voted aye, Ms. Stevens voted aye, and Mr. Couch voted aye. Motion carried unanimously.
NEXT MEETING DATES:
January 26, 2026 @ 10:00 am ET – This meeting can be canceled due to FL change. MOTION was made by Steve Couch and seconded by Mike Dammeyer to cancel the January 26, 2026 scheduled meeting. April 24, 2026 @ 9:00 am ET(Board) and 3:00 pm (Annual), and October 29-30, 2026 @ 9:00 am ET (Budget)
Audit Engagement Letter: Myers, Brettholtz and Company, PA submitted an engagement letter for the audits and tax preparation for the years ending 2025-2027 at $7,850 per year. MOTION was made by Deborah Stevens and seconded by Steve Couch to approve the audit engagement with Myers, Brettholtz & Company for the years 2025, 2026 and 2027 as presented. Mr. Pellerin voted aye, Mr. Dammeyer voted aye, Ms. Stevens voted aye, and Mr. Couch voted aye. Motion carried unanimously.
Flood Control Barriers: Discussed but board decided not to pursue due to current budgetary issues
Door Sliders: This item was included in the SIRS (Structural Integrity Reserve Study) report for replacement, Budgeted $119,000. Proposals submitted. Hine and AGS quotes are being considered (AGS would need to be rebid due to timing). Chip Fosth will send to the Board the scope manuals Karins Engineering sent out for bids. Chip will send board questions to Karins before decision is made on vendor.
OWNER Q & A:
Mosquito/No-see-um issue: It has been an unusually wet spring and the insect issues has been worse than any other year. It has been reported that the spray tanks have been empty on a couple of occasions. The refill is on a scheduled timeframe. Chip Fosth will instruct maintenance personnel to “rock the tanks” to determine when they are close to being empty.
Housekeeping: If an owner has an issue, it should be brought to the office’s attention. If it is not, it cannot be addressed.
ADJOURNMENT: There being no further business, MOTION was made by Mike Dammeyer and seconded by Deborah Stevens to adjourn. October 3, meeting time is not needed. Mr. Pellerin voted aye, Mr. Dammery voted aye, Ms. Stevens voted aye, and Mr. Couch voted aye. Motion carried unanimously.
The meeting was adjourned at 4:13 p.m. A property walk was done on Friday, October 3, 2025 with the board members and GM, Chip Fosth
These minutes were approved on December 2, 2025.