Key Royal Meeting Minutes For October 9, 2008

MEETING MINUTES BOARD OF DIRECTORS KEY ROYAL CLUBHOUSE THURSDAY, OCTOBER 9, 2008 @ 6:30 P.M. Call to Order - The meeting was called to order at 6:32pm by Joe Kalinowski, President. Roll Call - Roll Call was taken and all Directors were present. Approval of Minutes – A motion was made to approve the Meeting Minutes for the meeting held on June 25, 2008. Approved by vote of 3-0. Old Business - Gate installation has begun. On October 6 the first phase began with the removal of a bougainvillea where a new gate arm controller will be installed. Additionally, a new concrete pad was needed to anchor the controller. Progress slowed temporarily due to inclement weather. New exit gate comprised of two swing sections with two heavy duty operators. Completion expected week of October 13, followed by reprogramming of codes, etc. Officer Reports Presidents Report – • Joe Kalinowski reviewed a proposal from Elias Brothers to provide painting services for the community at a cost of $232,148 if signed before end of year. • This includes painting all 17 residential buildings and clubhouse along with compactor out building. Includes exterior of buildings, front entry doors, exterior door frames. • Additionally, breezeways and stairways would be painted with two coats to treat stains and cracks. • As of this discussion lanais would be optional and require an additional $85 to paint walls and ceilings per lanai. • Steve Rodeiro interjected that painting payments will be made after job completion with 50% upon completion and then 12 equal monthly payments with no interest charge. • Delinquencies and foreclosures are at an all time high. As of the meeting $174,112 is owed with a portion of that being from the new quarter ($80,636) and the remainder ($93,476) in arrears from previous quarters. • An update was given on the status of reserve monies being moved to Certificates of Deposit. A deal had been struck in late June to provide for 3.45% on CD's and went into effect with deposits in July. Balances were given for each CD. (also see below Treasurers report)

8204 Key Royal Circle Naples, FL 34119 Phone: (239) 304-3266 Fax: (239) 304-3270

Vice Presidents Report - Charlie Miller read from a statement which has been scanned and included with these minutes. Treasurers Report – Ken Stephens reported the following financial balances: • Operating Account Balance stands at $84,909.27 • Insurance Escrow Account Balance - $24,086.02 • Egress (Laurel Lakes Easement) Account Balance - $7,037.03 • Overall Reserve Balances (breakdown below) - $260,415.54 CD #1 - $100,699.95 CD #2 - $50,349.97 CD #3 - $50,349.97 • •

Money Market Account - $59,015.65 Late Water Payments as of the recent billing - $5,215.19

Secretary's Report – Ken Stephens gave the following updates: • Newsletter recently sent to all owners of record. Key Royal has been up and running since July. Much of the available Association information can be found there. Web address is http://www.keyroyalcondos.com • Voting materials for the proposed amendment to the Declaration of Condominium will be mailed out in the near future but no later than the initial Annual Meeting notice in January. This amendment proposes to increase the size of the Board of Directors from three to five members. • Answering Service costs/issues were reviewed. Quite a number of people use the answering service for issues that could most likely wait until the next business day. Such messages cost the Association in overage fees. Please use the service only for non life threatening emergencies related to your unit or the community. As always, if something is of a life threatening nature please call 911 to ensure you receive prompt attention. Laurel Lakes Easement Committee •

Progress on metering the lake fountain has been slow due to low number of bids received. Cost of those have been prohibitively high. In the meantime we will be computing how much we owe based on power ratings for the fountain and street light.

8204 Key Royal Circle Naples, FL 34119 Phone: (239) 304-3266 Fax: (239) 304-3270

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Median improvements of a non-landscaping nature would cost approximately $4,000 and bids are being solicited to clean up the mulch and plantings.. Also, there has been discussion to add two more street lights on the Laurel Lakes Blvd.

Budget Committee • •

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Two meetings were held on September 25 and October 7 to discuss proposed bud get numbers for 2009. After working through the various big tickets increases, looking at reductions and cost cutting are possible there was consensus that a modest increase in assessments for 2009 was needed. Suggested increases were in the range of $30 to $50 per quarter which translates to no more than an 8% increase over the current 2008 budger numbers. Final budget numbers will be presented at the Annual Budget Meeting. We are entering the 6th year of existence (building wise) and have seen several big repairs over the past several months. This will continue and the possible increase will allow the Association to take a more proactive stance to maintaining the community.

Management Report • • • • •

Reviewing schedule of maintenance work so that activity can be better managed. Fountain light and timers fixed. Leak damage repaired in Bldg 17. Damage in Bldg 6 unit from fire and washer/dryer water damage is probably not reimbursable due to unit being in foreclosure. Presidio will look at ways to curtail costs of AAA Answering Service.

Attorney Report - John Goede was not in attendance New Business •

Building Painting, Repairs and Breezeway cleaning/coating covered in Presidents report. Frank Casale with Elias Brothers was able to stop in to answer any questions related to the possible contract for painting.. Questions related to warranty (7 years), breezeway maintenance (should be power washed yearly and coating should help with occurrence of more crack problems), irrigation stains (Elias will provide up to 10 hours of maintenance with extra costs for ongoing maintenance).

8204 Key Royal Circle Naples, FL 34119 Phone: (239) 304-3266 Fax: (239) 304-3270

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A motion was made to approve the Elias Brother painting proposal and to sign with the stipulation that lanais and 3rd floor breezeway ceilings including repairs to ceilings as needed for no additional charge. Approved 3-0. A motion was made and approved by a vote of 3-0 to ratify a new vendor contract for pool maintenance service with Campabasso & Sons at a base rate of $515 per month. Response to Anonymous Letter – Each Director made individual statements about the anonymous letter regarding the dismissal of Diane Eager by Presidio.

Comments from Owners • • • • •

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Teresa Worklan suggested adding staff names/pictures to website. Vincent Zasa suggested adding CCTV cameras to help with vandalism/property damage and asked about replacing windows with a different type/style. Jacquelyn Stephens suggested that the Association should not be paying for lanai painting as that is an individual owner responsibility. Susan King relayed concerns about mold potential related to foreclosure/empty units and asked the Association to look into what options we may have. Al LaFemina voiced the need to have stronger rules in place regarding tenants, vacancies and whether we can require locks to be changed annually without violating owner rights. Tim Gibbons was concerned about the use of visitor parking passes on a permanent basis and some residents having more than two vehicles. Much debate between various owners and members of the Board regarding how restriction on vehicles should be enforced. Tim asked whether residents could lease spaces that are not currently assigned. Debbie Graves asked about possibly charging owners/tenants more during the application process so they have more to lose if they do not comply with rules/regulations.

Meeting Adjournment - A motion was made to adjourn the meeting at 8:28pm.

8204 Key Royal Circle Naples, FL 34119 Phone: (239) 304-3266 Fax: (239) 304-3270