BB 2007 Minutes

2. ESTABLISH QUORUM of Directors: Vice President Clyde Hoover, Secretary Don Bauman, Treasurer Irene Nishimura and Director Jim Millican were in attendance. Director Kelly Pemberton could not attend. Michelle Dugan of Reconcilable Differences also attended and recorded the minutes of the meeting. Eleven members also attended.

Proof of Meeting Notice Properly Posted: Manager stated that agendas had been posted more than 48 hours in advance of this meeting.

3. APPROVAL of MINUTES: Irene Nishimura motioned to approve the minutes of the October 24th Budget meeting. Don Baumann seconded the motion and it passed by unanimous voice vote. Copies will be posted on the bulletin boards and on the website.

4. 2008 BUDGET APPROVAL: Clyde Hoover stated that, based on owner request at the budget meeting last week, the attorney was contacted regarding the ability to fund the reserves in 2008 by Special Assessment. While the attorney did not recommend anything except fully funding reserves through monthly regular assessments, he did say that owners could vote to pay for reserves by special assessment with a 75% positive vote. This would mean 103 owners would have to vote positively to assess separately. This would require legal fees, another mail out cost and a concerted effort by many volunteers to knock on doors to obtain that vote. The attorney recommended that if this route was chosen that the proxy also require a vote to amend the documents to a lower approval percentage for the future. While it was stressed at this meeting that none of the Board members like the increase any more than their neighbors, with the time constraint and the cost to obtain this vote to Special Assess, the Board decided it was not something to start at this late date. At last week’s meeting, the general consensus of the audience was that they wanted to fund reserves; they just did not want the monthly fee to be so high. Clyde reminded the audience that the budget started out at $455 per month and with discussion of each line item in September, it was brought down to $440 and now, with insurance quotes coming in at less than expected, we can look at $430 per month per unit, while funding reserves at 50% of need. He went back to the discussion with the attorney wherein Mr. McCulloh said it is a statutory requirement to fund reserves and it is not wise to try to circumvent the legal process. While this is as high as many beach condo fees, Banana Bay has many more buildings and much more landscaping than other Associations beachside.

Irene motioned to approve the 2008 budget at $430 per unit per month unless insurance rates come in lower than expected. Don seconded, all in favor.

5. NEW BUSINESS: SWALE FLOODING: With the rainy season came flooding on sidewalks near the clubhouse and section 3 parking, and the walkway in between the 2 midrise buildings. A plumber recommended a sump pump at a cost of $2,850 per area. Jim Millican researched portable pumps and discussed his findings. He recommended a Northern Tool pump with a Honda engine, the same as the generator we have. Being smaller, it can be placed on the back of the maintenance man’s truck and moved to different areas. The water would then discharge into the parking lots and into the city sewers or storm drains. Residents stated that parts of the parking lots are also underwater, making it very difficult to get into vehicles. There was discussion about finding other alternatives as well, but all agreed the pump would be a good item to start with. Attachments of hoses and strainers were discussed and the total will be about $750.00. Irene motioned to purchase this pump and attachments. Clyde seconded, all were in favor. This order will be placed next week

6. NEXT MEETING DATE: Unless an emergency need arises, the next meeting will be held the fourth Tuesday of January, January 22nd, at 6:30 p.m.

7. ADJOURNMENT: With no further business to conduct, the meeting adjourned at 8:40 pm.

Due to a presentation by Will Way and Billy Lange from People’s First Insurance, the Meeting was CALLED to ORDER at 7:00 p.m.

1. ESTABLISH QUORUM of Directors: Vice President Clyde Hoover, Secretary Don Bauman, Treasurer Irene Nishimura and Directors Jim Millican and Kelly Pemberton were in attendance. Michelle Dugan of Reconcilable Differences attended the meeting and Kathy Watts from Reconcilable Differences recorded the minutes.

2. ESTABLISH QUORUM of Owners: Seventy-four units were represented at the meeting; Sixty-nine attendees were required for a quorum. Twenty-seven were present in person and 47 by proxy.

3. APPROVAL of MINUTES: Don Bauman motioned to approve the minutes of the September 12th Board meeting. Irene Nishimura seconded the motion and it passed by unanimous voice vote.

5. DISCUSSION AND RESULTS OF OWNER INPUT TO WAIVE AUDIT OF 2007 FINANCIALS: Sixty-six owners voted to WAIVE the audit and have a review. Four units voted for a full audit and four units did not vote. A review of the 2007 financials will be started in January of 2008.

6.DISCUSSION AND RESULTS OF OWNER VOTE TO WAIVE FULL RESERVE FUNDING IN 2008: Clyde Hoover spoke about the proposed increase in monthly assessments. He stressed that the Board doesn’t wish the assessments to go up either but with costs going up, especially insurance, there isn’t a choice. The reserves haven’t been fully funded in years and it’s important to have reserves to cover repair or replacement costs when needed. Florida Statute 718 dictates the Board must present a fully funded reserve budget. Clyde continued by saying there have been a lot of comments made against the Board when they are just doing what the law requires of them. Clyde stressed that the Board invited any owner to attend the budget meetings in August and September to give their input, but very few did. At the September meeting, the Board went through the budget line by line to try and cut expenses.

While the Board must approve a fully funded reserve budget, which would mean $558.00 per month per unit, the Board gave the members the option of voting for less reserve funding. The votes received were 69 in favor of reduced reserves, one voting in favor of fully funding them, and four did not vote. Irene Nishimura made a motion to waive the fully funded reserve requirement based on owner majority vote. Kelly Pemberton seconded the motion and it passed with Don Bauman voting no to partially funding reserves.

7. BOARD APPROVAL OF 2008 BUDGET: Some residents attended who felt the Board should look at options such as Special Assessing for reserves so the monthly fee would not increase by so much. They felt a higher monthly fee would hurt sales. After much discussion, the Board agreed to table their approval of a final budget until the attorney could be contacted about the legalities of special assessing for funds not immediately needed for a certain repair, and the ability to lien for such an assessment. Michelle Dugan, Clyde Hoover and Don Bauman will have a phone meeting with the Attorney, Neal McCulloh, in the morning to see what options the Board has. There were requests from some owners to allow Terry Booth to attend the phone meeting with the attorney. The Board had no objection to this.

Carport Roof Replacement: This issue has been on the agenda for many months while bids were obtained. Costs ranged from $8,228.11 from American Eagle Manufacturing, to $13,500 plus fees from Aero Construction, to $18,836 from Advanced Aluminum to over $35,000 from CRI for a concrete carport. Don Baumann motioned to approve the bid from American Eagle to remove one 8-place carport roof in Section 1, replace with new beams and an additional cross beam, and add gutters and aluminum fascia to match current roof look. This bid also replaces two damaged aluminum posts where cars had run into them and bent them causing structural damage. Clyde Hoover seconded the motion and it passed by unanimous voice vote.

Landscaping: It was suggested at the last meeting that management speak to Commercial Mowers to see if we could lower the monthly fee by cutting winter services. Jon stated that he did not increase the fee this year, but if we take one person off the team, in the winter when they try to catch up on trimming that got out of hand in the growing season, we will see a lowering of quality. While some residents thought that was fine, other owners did say the grounds look better than they ever have, that Banana Bay is a showplace and to lower this service isn’t in the best interest of the community. Palms are currently being trimmed at a cost of $13.50 per tree, which is lower than we have ever paid before.

Water Accumulation at both pool areas: When it rains, the area between the 2 midrise buildings and the area to the west of the clubhouse are flooded for days afterwards. Some owners cannot get to their vehicles without walking through the water. All Florida Plumbing recommended a sump pump to get rid of the pooling water, at a cost of $2,850 per pump. Don Bauman suggested we tie into our own sewer lines, having the maintenance man use a portable pump to drain these areas. Management, Don Bauman and Jim Millican will meet with All Florida to discuss possible solutions, but Bob will be asked if he can try using a portable pump first.

Legal Contract: Clayton & McCulloh offers a legal package that lowers the cost per hour by paying for it in full up front. While the Board determined an attorney is not needed to attend the annual meeting, covenant violations do come up, legal questions need to be asked and we will use one legal hour per month on average. Irene Nishimura made a motion to go with the $3,000 legal package. Don Bauman seconded the motion and it passed by unanimous voice vote.

10. OWNER INPUT: It was requested that management post the minutes in the display cases after Board approval.

Michelle Dugan recommended that financial statements not be posted in display cases or on the web page, but any owner who requests a copy of the monthly financials can call the Reconcilable Differences office and we’ll be glad to have a copy of the financials and/or check register ready to be picked up within 24 business hours.

Don Bauman discussed covenant enforcement and the large number of letters recently being sent out regarding plants growing through or on top of the fences. He stated that the wood balconies are also an issue. Don specifically directed management to pay special attention to the townhome balconies that have been covered with carpet or other coverings. These hold in water and hasten wood rot. These balconies were designed to allow water to drain through.

11. NEXT MEETING DATE: Due to the tabling of the budget, a meeting will be needed soon to finish this. Notice will be posted at least 48 hours in advance on all bulletin boards.

12. MEETING ADJOURNED: Irene Nishimura made a motion to adjourn the meeting at 9:35 pm. Kelly Pemberton seconded the motion and it passed by unanimous voice vote.

ESTABLISH QUORUM of Directors: Vice President Clyde Hoover, Secretary Don Bauman, Treasurer Irene Nishimura and Directors Jim Millican and Kelly Pemberton were in attendance. Michelle Dugan of Reconcilable Differences chaired and recorded the minutes. Five residents attended.

APPROVAL of MINUTES: Don motioned to approve the minutes of the August 21 Board meeting as written. Jim seconded, all in favor.

FINANCIAL REPORT: Irene stated that the Association budget is still very tight. The Association is over budget by almost $30,000 to date, mostly in the building maintenance expenses, with the fire pump problems, the fire alarm requirements, and basic maintenance costs being more than were budgeted for the year. Luckily, a majority of owners pre-pay their monthly fees. It is with these fees that there is money in the bank right now. We are only spending money for needs, not wants at this time.

A. Backflow Preventers: Annually, Petro Plumbing bids to certify the 24 backflow devices on the property. They need to turn off the water to each building for about 20 minutes, and in the past this has not caused any problems. The Board agreed to this cost, as it is a budgeted item. The testing will be done on Monday September 17^th.

B. Pool Issues: We had another pool pump go out. There was much discussion about how long these pumps last. Price Rite Pools later stated that with a pump running 24 hours per day, 7 days per week, near the ocean, they last 1 to 3 years on average. The pump that failed was 3 years old. The north pool is closed until the pump is replaced, so will be done this week.

C. Budget Discussion: A draft budget had been given to the Board at the last meeting. At this meeting, the Board went over each line individually and made some changes based on input and repairs planned for next year. Management was asked to obtain costs from local banks for an insurance premium loan for the Nov 2007 to Nov 2008 property and wind coverage. The Board was very happy with maintenance man, Bob Szcerba’s work, as were all the residents who attended the meeting. They budgeted a $1.00 per hour (5%) increase for Bob for next year. Based on the fact that there is a very large loss expected at the end of 2007, the Board realized that more money needs to be reserved for future repairs and for annual maintenance expenses. While a fully-funded reserve budget would have cost each unit owner $560.00 per month, Irene motioned to also approve a reduced-reserve budget to mail to the owners for their vote. If owners vote for reduced-reserve funding, the monthly fee will be $440.00 per month per unit. Clyde seconded this motion, all were in favor.

There is still a problem with window installations by Beach Window at the midrise. While this was a privately-contracted installation, Don felt the Board needed to help this woman to get the windows installed correctly because it affects the building, due to water leaking into other units. Don and Michelle will meet with the city inspector to see what they can do.

Some areas of the landscaping need more trimming and a weeping willow needs to be staked. Commercial Lawns will be contacted about this.

We did receive another bid on carport roof repairs. This bid from American Eagle Contractors seems much more reasonable than others we have received, at $5,962 for the one carport, which includes a city permit. Don felt the specifications were what we are looking for, but he wants to see a sample of the material. Management will arrange a meeting next Friday, September 21^st for Don, Jim and management to meet with the contractor. If the bid is accurate for what we need, the Board will approve this work at the next meeting.

We had another problem at the pool. Townhouse renters in #1803 were in the pool at 1:30 am. The man was not properly dressed, was drunk, spewing profanity, threatened a Board member, and was very defiant. The police were called, but these people went home before the police arrived. A letter will be written to the owner of that unit and the realtor/manager of the unit. This type of behavior cannot be tolerated from owners or renters. The pool rules very clearly state the pool hours.

The NEXT MEETING will be held October 24^th at 6:30pm. An agenda, proposed budget and proxy will be mailed to all owners at least fourteen days before that date.

APPROVAL of MINUTES: Irene motioned to approve the minutes of the June 19th Board meeting. Clyde seconded, all in favor.

FINANCIAL REPORT: Irene stated that the Association budget is very tight right now and not in good shape at the present time. Irene explained that as of the July 31^st financials, the Association is $ 25,000.00 over budget. Irene stated that there have been a few emergencies that could not be avoided. There was a leak in the fire pump in the 2300 building which cost $ 1,200.00. There were also repairs that needed to be done to the fire alarm system to bring it up to code, which cost $1,400.00. The inspection and annual testing of the fire alarm system cost $1,350.00 and replacement of the Jockey pump was $ 2,450.00. Irene announced that the total cost for these emergencies cost $ 6,452.00.

OWNER INPUT: Michelle explained that this item was put on the agenda so that unit owners could ask questions in advance just in case they were holding off on voting. At this time Michelle asked the audience if anyone had any questions regarding issues on the ballot. A resident asked why they would want to heat the pool. Don explained that the unit owners would be able to use the swimming pool for an extended amount of time in the winter if it were heated. Michelle stated that this ballot was sent out to the membership to find out what was important to them. It did not mean the Board was planning to make any changes.

	YES	NO
1. RAILING MATERIAL: Are you in favor of allowing alternate materials to be used when replacing railings in the midrises and at the pools?	62	22
If given a choice, your preference of material would be:
Current T1-11 wood	16
Thermoplastic	53
Aluminum railings	2
2. TOWNHOME GUTTERS: Are you in favor of making townhome gutters an ASSOCIATION COST, shared by all, for installation, replacement and repair?	25	58
3. TOWNHOME CARPORTS: Are you in favor of changing materials to include concrete stanchions (posts) and a heavier roofing system? Cost would probably be less than new replacements of the same.	56	26
4. POOL HEATING: Would you be in favor of installing an electric pool heater at the north (river) pool only? Cost would be about $8,000 initially and then electricity costs of approx $3,500 per year?	16	68
5. POOL HEATING: Would you be in favor of installing solar panels on the roof of the 2400 garages to help in increasing the temperature of the pool water? Estimated costs are $15,000 to $18,000 to install	16	66
6. RENTAL REQUIREMENTS: Are you in favor of changing the current 30 day minimum rental period to a longer term?
Do not change	26
Change to 90 day minimum rental period	30
Change to 1 year minimum rental period	25
7. TOWNHOME SHEDS: Are you in favor of changing materials to include concrete block walls on replacement sheds, when needed?	41	41
8. COMMUNITY FENCES AND GATES: Are you in favor of using different materials for pool fences, townhome fences and gates, to include options such as thermoplastic, aluminum or concrete? This vote is being taken to see if owners are willing to change the look of the community a bit by using better and more durable materials.	47	36

UNFINISHED BUSINESS: Christina stated that she is in the process of acquiring carport bids from Aero Construction and Paul Dupre. Mike from Aero Construction gave a verbal bid of $ 13,500.00 for the large carports (8 spots) and $ 9,500.00 for the small carports but his pricing does not include permits or any engineering that may be required. Christina stated that as soon as she receives the bids, she will supply them to the Board.

Michelle stated that Bob has installed the new benches on the dock and they look very good. Christina explained that Bob is in the process of securing the unleveled planks on the dock. He will be trimming and sanding the planks down to ensure a leveled surface. Christina stated that if Bob is unable to do this we will have to look into replacing the planks. There are 10 of them and it would cost approximately $700.00. After he completes this, he will be pressure cleaning and sealing the entire dock. Don stated that they are also installing 8-inch yellow and black safety strips on the steps to avoid anyone from tripping.

Michelle stated that there have been a few issues of people bringing in trailers; most seem to be renters that we had no information on, and therefore the vehicles were towed. There was also a van with a flat tire that was towed. Michelle asked that any changes in vehicles be brought to management’s attention so they we will know who to contact when there is a problem. Clyde asked about parking stickers. Management agreed that this is useful at other properties. The stickers could be the ones with the sticky back that would go in your window or ones that would go on the bumpers of the vehicles. Clyde stated that there are also the ones that could be hung from the rear view mirror. Don stated that they did have them at one time approximately 9 years ago. Renter problems were then discussed. Michelle stated that all new owners and renters are given a profile sheet to fill out. Many do not fill them out and that is where the problems occur. Irene asked if it is in our documents to charge a security deposit from renters. This will be researched.

Michelle announced that the alarm company for the midrises will be out to the property tomorrow. They will be inspecting the 2 and 3 bedroom units to make sure that what they will be re-inserting will be acceptable. After the inspection they will give a time for the completion. Michelle stated that the Fire Marshal is requiring this and it must be done. It will be an inconvenience, but notices will be sent out to everyone in the midrises when they are on the property. It will take approximately 1 day per building. According to the company they are removing the existing and replacing with a louder unit. Don stated the 2400 building fire pipe is encased in wood and may pose a hazard if they get a leak. He recommended that the wood casing be removed. Michelle stated that the Board should vote on this due to it being a structural alteration. Irene motioned to remove the wood casing around the fire pipe in the 2300 and 2400 building for safety reasons. Don seconded. All in favor.

Christina stated that there are 2 Mercoid switches that need to be replaced. She explained that these are the switches that operate the pressure to the jockey pump and to the fire pump and that these switches control the fire suppression system. Christina explained that the system is up and operational even without the Mercoid switches, however per Bill they are not up to code. She stated that the switches have been ordered and will be installed on or before August 27^th -28^thand that the cost for the installation and labor is $ 980.00. Don stated that he is to also paint the area per his contract.

Management presented a draft budget to the Board and asked them to look it over before the next meeting. Irene recommended that the Board have a budget workshop meeting in early September to go over each line of the budget before it is sent to the membership. Michelle explained that in the meantime, if any Board members had any changes to let her know. The Board was also given the reserve analysis for their review. Don explained that the Association has never had full funding and now major repairs are needed due to the age of the buildings and at this time they do not have the money. Clyde stated that every year the membership votes down the full funding. Don stated that it seems that they are either going to have to go to full funding or they are going to have to have a special assessment.

Irene stated that the community is going to try to have a garage sale in October. Irene will coordinate the midrises and Bea Byrnes will coordinate the town homes.

ESTABLISH QUORUM of Directors: Vice President Clyde Hoover, Secretary Don Bauman, Treasurer Irene Nishimura and Director Jim Millican were in attendance. Fourteen owners were present and Michelle Dugan of Reconcilable Differences chaired and took minutes.

APPROVAL of MINUTES: Clyde motioned to approve the minutes of the April 17th Board meeting. Irene seconded, all in favor.

RESIGNATION: President Barbara Peterson tendered her resignation. Jim Millican thanked her for her years of service. She gave a lot of time and effort for the benefit of the Association and she was appreciated. All concurred.

APPOINTMENT of INTERIM BOARD MEMBER: Manager stated that no one had sent in a letter of interest in serving on the Board. Jim stated that Kelly Pemberton, whose name was on the ballot at the Annual Meeting, was still willing to serve. Don motioned to appoint Kelly as the interim Board member. Irene seconded, all in favor. Kelly joined the group at this time.

APPOINT OFFICERS: Don asked that officer appointments be tabled while the new Board works together to see who will best serve the Officer positions. He asked that Kelly be the point of contact for management. She agreed and Board concurred with tabling the election of officers.

FINANCIAL REPORT: Irene stated that the Association budget is very tight right now and proposed a moratorium on any non-emergency spending until reserves are replenished. Currently, there is only $56K in reserves for the entire property, and that is not enough. Irene motioned to finish all outstanding contracts and then hold off on any non-emergency repairs or replacements. All agreed.

Midrise 2400 Repair: There were two issues on this roof. First was the west side flashing repair. Concrete Restorations made a repair that wasn’t acceptable and they are working on a final repair. There was also a leak repair and an air conditioning stand repair to be made. Rock Roofing completed these repairs two weeks ago with the use of an electrician and air conditioning contractor. Payment to both companies is still pending.

Carports: Paul Dupre of Concrete Restorations did come back, met with Don Bauman and the manager and asked if he could finish his work. Since none of the 5 companies we contacted to finish the work were willing, Don and manager felt this was the best scenario. Dupre has completed the work and removed all his tools from our property. No bill has yet been received.

Grass Weeds/Landscaping: Sod was installed at the 100 building and was hand watered for many weeks but seems to be growing in well. Clyde felt they were not bagging the lawn clippings because there was clumping grass this week. Manager will contact Commercial Mowers about picking up or raking out these clumps. Jim stated that a strangler fig is wrapping around a Canary Island date palm on the east side of the property. This will be removed. Jim also asked that the oleander in the 2300 east courtyard be inspected and a limb removed if dangerously rotted. Pearce will be called to inspect this.

Fishing Pier/Dock Issues: Bob & Dave did a tremendous job on installing a new fish cutting and cleaning station, including with a foot water switch. Bob is still working on the dock seating and we need to replace some of the deck boards.

Railing Repair: A portion of the 2300 third floor railing is compromised. The pipe between the outer T1-11 boards disintegrated. A majority of the Board members agreed that this is a priority repair.

Towing: We had an issue with a renter. No resident profile or notice of his residency was brought to the attention of management, so when a trailer was stored in Section 3, we did not know who it belonged to. Notice was posted on it and when no one came forward, the trailer was towed. We found out later that it belonged to a new renter who didn’t know the rules and whose realtor did not notify us of his presence. He requested compensation from the Association for part of his towing charges. Management told him we did nothing wrong and would not reimburse him. One of our tow and rule signs was broken so a replacement has been ordered. It was reiterated that no RV’s, trailers, boats or motorcycles are allowed in common areas except to unload. It was also discussed that the documents requires all owners to notify the Association when they rent their units. Management has a form for the renter to fill out. Call or go to the website for that form.

Midrise Alarm Installation Completion: The fire marshal failed the interior alarm installation inspection in November of 2006. He required the contractor, CFS, to reapply for a permit and exchange one alarm bell for a larger one in every unit. He also required covers on all the exterior pull stations. CFS says they are still waiting on engineering changes requested by the fire marshal and hope to complete the job within the next month.

Ratify Approval of Two Clubhouse Air Conditioner Condensers: The clubhouse interior a/c units stopped working. Bids were received and with the summer upon us and clubhouse reservations most weekends, a new unit was required before this meeting. A majority of the Board approved this purchase on an emergency basis. Irene motioned to ratify the purchase of 2 condensers from Tom Hoskins A/C at a cost of $3,000. Jim seconded, all in favor.

Bid to Replace Service Valves in 2300 Bldg and 2 hose bibs: While these midrise valve replacements would allow a “stack” of units to be shut off when needed instead of the whole building, this is not an emergency, so was tabled until there were funds to do this work. Bob will be asked to cover the holes, but flag them for the future change.

Request to Allow Motorcycle Parking in Midrise Garage: The attorney was asked for an opinion on this issue. The garages are “limited common elements” and the Board has authority to make rules about their use as long as they are reasonable. After discussion, Clyde motioned to allow this request, and any future requests on a case by case basis, but with the requirement that the cycle not be started or stopped on Association property and not stored in any outside parking space. It must be walked from Banana River Blvd to its garage. Don seconded, all in favor.

Carport Replacement Bids: Two bids were received for replacement of carports. The most recent was $25K for the smaller ones and $36K per larger carport. There is currently no money in the budget for this replacement. Paul Dupre will be asked to quote a price for only a roof and fascia replacement because the southeast carport in Section 1 must be replaced. This night’s discussion included complaints about the Section 3 carport, so this will be bid as well.

Newsletter Preparer: There was discussion about the increased cost of postage so minutes will be placed in the plastic boxes at the mailboxes for pick-up and will also be on the website. Newsletter articles were requested by management.

Safety and Security: We have at least two units with noise concerns. One certified letter has gone out to 1004 and the unit in 1200 building has been quiet for now. There seems to be a problem at 1800 building, so more investigation will be done there. It was requested that if you encounter noise issues after 10 pm, please call the police so proof of the issues can be recorded. Another letter will be written to 1004 and if this does not stop the problems, the next step is arbitration with the state.

Landscape Requests for Common Areas: Common areas are supposed to be maintained by the Association but some people have planted in these areas. It was asked that in the future, all requests to plant anything except annuals be requested in writing and approved by the Board before planting. It was also requested that owners who do have current plantings keep them away from the sidewalk and trimmed back one foot from the fences.

Voting to Mail Ballot to Owners: Irene requested that a ballot be sent to owners to vote on alternate materials for the midrise railings so that when the time comes, the approval of other than the current T1-11 wood is already in place. A townhome owner had also requested that the owners vote to make gutters on the townhomes a common Association expense. There was also a request to allow an alternate front door on a townhome. Clyde stated that two attorneys had already given verbal approval for this door change, so Don motioned to allow a townhome owner to install an approved alternate front door, at his own cost for installation and future maintenance. Jim seconded that, all in favor.

There was much discussion about what to place on the ballot, to include a vote to install a heater on the north pool and alternate options on railing material, carports, fences and sheds. A modification will be approved by the Board before being mailed out.

Announcements: The Space Coast Condo Assn meeting will be held this coming Saturday at the Comfort Inn, with attorney Poliakoff answering questions from the audience.

OWNER INPUT: A resident had requested Board approval to use a generator to keep his oxygen machine working if a hurricane should take down the power lines. The Board felt that battery back-up power would better serve this issue and did not want to approve a generator on one floor when a higher unit would not be able to use one also. They also felt a person with these concerns should ask their physician and oxygen-provider to help them make emergency plans.

Don welcomed Kelly to the Board and thanked the rest of the Board and Michelle for working well together.

The NEXT MEETING will be held August 21^st unless emergency issues arise before that.

2.) Appoint Chairman and Inspectors of Election Committee: Five residents offered to count ballots: Todd Norris, Nancy and Bob Sperling and Bill and Deb Masse. The attorney, Brian Hess, asked that all ballots be turned in at this time so the counting could start. He stated that regarding the ballot and the election, Paige Hargrove is no longer an owner, so therefore any votes for Ms. Hargrove tonight would not be counted. She was thanked for volunteering to serve.

3) Proof of Notice of Meeting: The second notices of election, along with ballots and Proxies, were mailed to all owners on February 15^th. Notices were posted by Barbara Peterson on all bulletin boards more than 14 days ago.

4) Reports of Officers: Treasurer Irene Nishimura stated that all is in order and going as planned.

President Barbara Peterson stated that we have some new owners since last year: #804 Worsham, #903 Wolfard, #1603 Schoenle, #1801 Sulkes, #1804 Grapevine, #2403 Kilpatrick and #2307 Romano. She welcomed them to our community.

Barb asked that in this coming year we have more owner involvement. Barbara Salber helped organize the library at the clubhouse and there are always recordkeeping needs at the on site office. Landscaping is also a vital and never-ending part of having the beautiful grounds that we do. We are looking into salt and drought-tolerant plants in this new year. There are many opportunities for Board and member training in the community. Space Coast Condo Association schedules monthly meetings September through May that are informational and entertaining. Clayton and McCulloh sponsors an annual workshop that we just attended and it was stated there that a Board that does not agree is a good board. Looking at all sides of an issue is important. The state offers free workshops on reserve planning and other aspects of condo living. All owners are welcome to attend these free meetings. Barb stated that we have minimal problems and a strong association. She attends the SCCA “Presidents Forum” monthly and sees what other Associations are doing and knows ours is running well.

Barb thanked Maintenance man Bob Sczcerba who works hard and saves us a lot of money. Current work is on the clubhouse pool fencing and gates. We were quoted more than $17K for new fences. Bob is patching holes before painting and doing a terrific job. He has also installed a couple of doors, which are very tricky and is learning new things while helping us. She also thanked Michelle Dugan and RDI. Condo phone calls to her personal line have drastically reduced and things are working out well.

Manager’s Report: In the midrise units, we upgraded the elevators in 2005 and after this was started, we found that the fire alarms had to be upgraded as well. The fire marshal inspected the work and said the decibel level was not high enough inside the units and would have to be re-done. The contractor had to go back to the city for a permit on new engineered plans, but is in the last phase of approval now. Our understanding is that there will be no drilling or cutting, only a louder alarm will be installed in each unit. We will also be required to cover all the pull stations with clear plastic locked covers. The fire inspector will have to re-inspect all midrise units to test decibel levels before final completion.

Carports are the next item of concern. While Paul Dupre has taken more than a year to complete half the carport work he was contracted to complete, once that issue is resolved, we have other carports in sad shape. We are obtaining bids to replace, which are about $8,000 per carport if the stanchions are in good shape, and we are obtaining bids to sandblast and repaint carports based on Don Baumann’s recommendation. There is not currently money in reserves to do this work.

There is another leak in the North Pool which is causing heavy water usage when the pool is full. We know the leak is in the scupper or top edge of the pool, but we will have to do dye testing and then ultrasonic testing to find the leak. We hope not to have to cut the deck open again. Testing will start in two weeks.

Some residents believe the Association should take care of everything, like in an apartment. This is just not true. First, all owners are responsible for their own doors, windows, and sliding doors, screens and screen doors. They are also responsible for their own air conditioners and this includes the electrical that your air conditioner is hooked up to even though it may share a conduit with other units. While the Florida Insurance statutes say that drywall replacement is the responsibility of the Association, if your hot water heater or washing machine line bursts and water pours down into your neighbor’s unit, morally, you should help them with their repair costs. The Association is not responsible for texture or painting or wallpaper, no matter where the damage came from and is only responsible to replace “mushy” drywall. That is another reason why it is so important for owners to have their own condo insurance to cover their personal items and to repair damage when their neighbor above has a water bursting incident.

Dogs and vehicles are another rule issue we have. ONE dog, under 30 pounds is allowed to be kept, but you have a responsibility to keep the dog quiet so as not to disturb your neighbors and the responsibility to clean up after your pet whether people see you or not.

5) Attorney Report: Brian Hess was asked to speak on the foreclosure issues we currently

have. Unit #604 had two foreclosures this last year. The Association had been working on a lien foreclosure with attorneys Watson, Soileau for non-payment of assessments since the hurricane assessment were billed in 2005. When the Board changed law firms, they were advised to continue the #604 lien with the old firm to save money. Two years later the hearing for foreclosure came up near the same time the mortgage company was foreclosing on that unit. Brian stated that C&M would have recommended that the lien foreclosure be stopped, but Soileau’s office did not advise the Association of this and moved forward with the lien foreclosure. We find out now that because we purchased our lien for $1.00, our debt was satisfied. Now the mortgage foreclosure sale is coming up at the end of this month. There will be an outside bidder or the mortgage company will take over, but within a month after sale, someone will start paying the monthly fees, but no past debt on that unit. There was discussion about suing the Soileau law firm for bad representation, but this would take more funds. On the#504 Foreclosure, the owner is trying to sell the property and her mortgage foreclosure was released this month, so the Association is going forward on foreclosure for delinquent assessments.

6) Certifying of Proxies: Due to some owners putting their proxies in their ballot outer envelopes, we needed to open all of those before certifying the membership quorum. Unfortunately, with 24 units represented in person and 42 by proxy, we had a total of 66 units represented, but needed 68 for a quorum, so we do not have an actual membership meeting tonight. The attorney stated that no business could be voted on; it could just be an informational meeting. We could not even approve last years’ meeting minutes. There were enough ballots received to have an election, however, so the counting of the ballots proceeded.

7) Approval of Minutes: Next year, the members will have to approve the minutes from 2006 and 2007 if a quorum is attained.

The results of the ballot count were that the same Board will be back in place: 1) Don Baumann 2) Clyde Hoover 3) James Millican 4) Irene Nishimura and 5) Barbara Peterson. It was a close race, and Kelly Pemberton was thanked for her participation.

Edna Maloney said the new roof is ruining her deck. Discussion confirmed that the old tile roofs held in some of the morning moisture and now the condensation drips down. Some owners have installed their own gutters. The Board must approve these installations. There was discussion about putting a vote out to owners to make gutters an Association responsibility. This will be discussed at the next meeting.

There being no further business, Todd Norris moved to adjourn the meeting, another audience member seconded and the meeting adjourned at 7:50 p.m.

Clyde motioned to keep the same officers in place. There was discussion and no one wanted the Presidency. After discussion, Barb agreed that with the infrastructure issues, the carport work and reserves too low to do the needed repairs, she would be willing to be president again to see it accomplished. Irene motioned to keep the current officers, agree to disagree and learn to work together. All were in agreement.

The Board agreed to have one or two members meet every Thursday with management and maintenance, on a rotating basis. In this way, the small weekly Association decisions can be made fairly. Those who can attend will e-mail the group weekly.

A resident has written a complaint that someone has sprayed white paint on his car. The Association did not hire any painters and it was made clear that the asphalt striping was not done the day this paint was seen. The attorney stated that it would be a breach of fiduciary duty for the Association to pay for his repainting with no evidence of it being an Association issue. The resident will be asked for more information or photos in the future of contractors causing these problems, but at this time, the Association is not responsible.

Another resident wanted the Association to paint her ceiling where a water stain exists and says she smells mold. The attorney stated that more information would be needed before any mold remediation should be handled by the Association. Most problems are found in the individual’s air conditioning ducts and pans. As for ceiling painting, that is an owner issue.

ESTABLISH QUORUM of Directors: President Barb Peterson, VP Clyde Hoover, Secretary Don Bauman, Treasurer Irene Nishimura and Director Jim Millican were in attendance. Six residents were present and Michelle Dugan of Reconcilable Differences attended and took minutes.

APPROVAL of MINUTES: Barb motioned to approve the minutes of the December 21, 2006 meeting as changed by Irene. Clyde seconded, all in favor.

FORECLOSURE Status – Unit #604: Barb stated that although there is no new information about the foreclosure issue, there were some rumors that had to be clarified. There will be no Special Assessment to pay off the first mortgage on unit #604. At this time, the manager was asked for the most recent update on this legal issue. Michelle synopsized the issue:

Because this owner was not paying his assessments to the Association, the Association started foreclosure proceedings almost a year ago. In September of 2006 we were made aware of the first mortgage-holder’s lien and foreclosure proceedings. Because we had started our lien first, our foreclosure hearing came up first. We went to Titusville in December, bid $1.00 for title to the property and we are still waiting for the title to come from the county. What this title means is that the Association is the warranty holder, just like an individual holds title to their own unit. Most people have a mortgage on their property. In this case, the title to the unit comes with the liens of first mortgage holder, second-mortgage holder, the Association lien and 2 tax liens. Obtaining title does not mean we have to pay all those liens off; just that we now hold title and can work to obtain our judgment. If we allow the first mortgage holder to foreclose and just “give up” we will lose everything – all $16,000 that we are owed. If we try to negotiate with the bank so that we both take a little less in a sale, we all win. To add to this scenario, we have a second mortgage holder. Jack Hurt called Michelle today. He loaned Mr. Koch first $20K to pay us off and then an additional $12K to pay his mortgage up to date. Obviously Mr. Koch did not pay anyone, so Jack Hurt evicted him the week before our foreclosure sale and was in the process of adding crown molding and carpeting at the time we changed the locks, which was the week after the foreclosure hearing. He says his attorney did not know about our foreclosure.

At the time we took verbal title, we had Masse Home Repair services finish the work on the interior. United Carpets cleaned the carpets to get rid of the dog urine stench. United also found and removed black mold under the upstairs bathroom sink and in the air ducts. That cost was $330 for his services and Masse Home Repair services were about $420. Our maintenance man put on a new front door.

Second mortgage holder Jack Hurt is working with attorney Michael Minot so manager called the Association attorney to give him the update. Attorney Justin Payne said he would call Minot immediately, but nothing has yet been heard. Mr. Hurt asked manager what the Association was willing to take to get out from under this. He still thinks he can get it sold and make a profit. He says he is working to become the first mortgage-holder but did not go into detail. He also said he would speak to his attorney and get back to us. That was TODAY. There is currently no further information except that Mr. Hurt seems to be willing to work with us. This might be the best scenario of all, but again, we still do not have all the facts to make any decisions.

The Board discussed the options. Part of the $16,000 is interest and late fees, so the Board might be willing to negotiate a bit with this 2^nd mortgage holder. At this time, they agreed to try and see if Mr. Hurt would actually come up with the funds, while simultaneously putting it on the market. All agreed that we need to negotiate for the most money we can try to recoup. The three options are still in place: 1) Try to sell the property quickly to cover all debts, including the Association’s lien. 2) Rent the unit to cover the mortgage payments while still trying to find a buyer for the property. 3) Allow the bank to foreclose. If the bank forecloses, all other lien holders get nothing, and the Association only gets 6 months of past Association fees, but the bank will be responsible for future monthly fees until the unit is sold to a third party. In that case, the Association would have a bad debt for the balance of what was owed on the unit and this would show as a loss expense on the P&L for 2007.

GOLF CART: The old cart had battery problems, no seats and many damaged areas. There were no re-usable parts to trade-in. Prices were obtained and Barb visited the Titusville vendor to see what was being bid. A rebuilt 2004 cart with all new batteries, aluminum chassis, no dents or missing parts cost $3,800 plus tax. New carts were $5,000 without any extras. The last cart lasted 20 years and we hope the new one would last as long. Barb motioned to accept the purchase of the 2004 green Club Car for a price of $4,039 (with tax). Don seconded, all in favor.

SAFETY CABINET: Bob was concerned that we store gas for the generator, paints, solvents, chlorine and other flammable items in the clubhouse. A flame-proof safety cabinet was purchased and is now installed in the maintenance room. It is storing all possibly-dangerous chemicals.

UNIT 504 COLLECTION ACCOUNT: The attorney stated that the foreclosure hearing is scheduled for Feb 8^th and a sale date is set on the 8^th, which should be a month later. This unit will be sold at auction about March 9^th unless she pays all lien holders in full before that date.

EMPLOYEE RAISE: There was much discussion about Bob’s benefits. The Board approved a medical insurance policy for him in 2007. Blue Cross/Blue Shield quoted $262.00 per month for a policy with a $1,500 deductible. Barb motioned to approve this policy for payment by the Association. Don seconded, all in favor. Manager had assumed this benefit would be his raise for 2007. Board discussion ensued and Irene motioned to increase his salary by 50 cents, to $18.00 per hour, retro-active to January 1, 2007. Don seconded, all in favor. The balance of the wage budget will be used to give bonuses when warranted or for part time help when needed.

OWNER INPUT: The pavement in front of the 2300 loading zone is covered with white residue from tile work that was done and not cleaned up. It was reiterated that owners are responsible for their contractors’ clean-up and use of the common areas.

Barb stated that the grandson of a unit owner is deathly allergic to peanuts, so much so that he must be home-schooled and kept away from all peanut products. Some people may be feeding the squirrels at Banana Bay as well as in the Publix Shopping area. They are asked to stop this behavior for the safety of allergic people. Don stated that he would speak to the Publix manager and the hairdresser to ensure they also respect this request.

Sharon asked again about the debts owed on #604. With the first mortgage at $142K and this 2^nd mortgage at $32K, the Association’s lien at $16K, unknown debts to the county and state and a realtor’s fee of 6 %, that would make the cost of selling this unit more than the current selling prices of other units at Banana Bay. Our understanding from the realtor was that the man the Board approved use of to try and negotiate a lower mortgage payoff would only speak with the bank after we receive a written offer from a third party buyer. Therefore it is unknown just how much less the mortgage company would take to have this debt paid off. At this time, the best hope is that Mr. Hurt takes control of the unit by paying off the bank. We are awaiting return calls from the Association attorney.

PUBLIX SECURITY: Publix Shopping Center has contracted with a security company. They patrol the shopping center during the hours of 6:00 PM to 1:00 AM and 4:30 PM to 6:30 PM to help residents feel safe when coming in and out of the center.

The NEXT MEETING will be held at 5:30 pm on Tuesday, February 20^th if we have obtained more information about the foreclosures. If not, the next meeting will be the Annual Meeting on March 6^th.