Minutes of Regular Meeting of Board of Directors Of s1

MINUTES OF REGULAR MEETING OF BOARD OF DIRECTORS OF SUMMERHOUSE BEACH & RACQUET CLUB CONDOMINIUM ASSOCIATION, INC. August 15, 2009, 2009

The Board of Directors of Summerhouse Beach & Racquet Club Condominium Association, Inc. held their regular meeting at 9:00 AM on Saturday August 15, 2009, 2009 at the offices of the Association. President Norm Breen called the meeting to order. Secretary Carol Vaneman took role call and declared a quorum.

Directors present were: Phase I Phase II Richard Harmon, Norm Breen Phase III Bob Ford, Wendy Crothers Phase IV Bob Mericle, Bob Wheeler, Carol Vaneman

Directors Maurice Brown, Phase I and Harry Balance, Phase III, were absent. Don Coker, Phase II participated by teleconference. A number of owners were present at the meeting.

President Breen asked that the June 20, 2009 President’s Report be corrected to state ‘The new Florida statute states that board terms can be either one year or two year staggered as voted on by individual condominiums’. A motion by Bob Ford, seconded by Wendy Carothers, to accept the June 20, 2009 minutes as revised for the Board of Directors passed unanimously.

Officers’ Reports President. Mr. Breen said Tom Freeman was unable to attend the Board meeting to accept appointment as Director for Phase I. Mr. Breen announced that Mr. Freeman plans to submit his name as a candidate for the October election. Mr. Breen stated the Board now has clear documentation from attorneys Becker and Poliakoff on the involvement of the Association in the operation of SRI. See the attached letter from Becker & Poliakoff. Upon the recommendation of Mr. Breen, Bob Wheeler made a motion to appoint Association Director Bob Mericle to sit on the Rental Board (SRI). The motion was seconded and passed unanimously. Upon the recommendation of Mr. Breen, a motion by Bob Ford, seconded by Bob Mericle, to appoint Association Director Bob Wheeler as an off-the-Board Treasurer for SRI passed unanimously. Mr. Mericle and Mr. Wheeler will each serve two months until the annual reorganizational meeting in October. A motion by Wendy Crothers, seconded by Bob Mericle, to renew the General Manager’s contract for one year, effective December 1, 2009 and ending November 30, 2010, passed unanimously. Vice President . Bob Ford. No report Treasurer. Don Coker. See attached financial reports. Mr. Coker answered questions and discussed a number of budget variances including legal expenses, water and sewer, pools and net operating income. A motion by Don Coker to accept the financial statements ending 7/31/09 was seconded and passed unanimously. The preliminary budget for 2010 was presented. See attached. Secretary. Carol Vaneman reported that the first notice of election was mailed and encouraged all owners to consider volunteering their time and submitting their name as a candidate for the Board. Candidates are asked to submit a written notice of intent to Mr. Jones before September 7, 2009. The deadline for candidate information sheets is September 11, 2009. The second notice of election will be mailed September 16, 2009.

Rental Report. Keith Jones reported that the SRI Board met Friday August 14, 2009. SRI will pay the Association a $20,000 dividend this year. New advertisement brochures were printed. Thank you cards will be sent to renters at Summerhouse during the past three years, with the purpose of encouraging them to return to our beautiful resort. 2 General Manager. Keith Jones. See attached Manager’s report.

Committee Reports Landscape. Garry Vaneman. No report. Architectural. Dick Harmon discussed the problem of the cracked concrete. He said the in-house maintenance staff would test a concrete caulking product, Silaflex. Mr. Jones said he would have the cracks professionally evaluated. The bubbles in the concrete coating and the peeling paint were discussed. These problems will continue to be evaluated. Bylaws/Documents. Keith Jones. No report. Planning/Finance Committee. Bob Wheeler made a motion to accept the Statement of Philosophy, which should become a permanent part of the SRI by-laws. See attached document. The motion was seconded and passed unanimously. A motion by Bob Wheeler, seconded by Bob Mericle, to move at least $36,000 from the Fire Safety Reserve Fund to the Roofing Reserve Fund passed unanimously. A motion by Bob Ford, seconded by Bob Wheeler, to move $30,000 from the Operating Fund to the Phase V Paint and Waterproofing Fund passed unanimously. A motion by Bob Wheeler, seconded by Wendy Crothers, to move up to $58,000 from the Operating Fund to the Tennis Reserve Fund passed unanimously. See attached Planning/Finance Committee Minutes.

Old Business Comcast proposal. Mr. Breen reported the contract is still being negotiated between the attorneys. Mr. Breen said until a new contract is signed Summerhouse is still being charged the 2007 rate. Mr. Breen said he would personally pursue the matter. Clubhouse deck. After evaluating the clubhouse deck, the St. Johns County chief building inspector recommended repairing the existing deck. He said the basic structure is solid and Summerhouse would have trouble getting a building permit for the purpose of replacing the deck. A motion by Carol Vaneman to obtain bids to repair the clubhouse deck and to proceed with the repair for a cost not to exceed $30,000 was seconded and passed unanimously. Unit 310-update on water intrusion problems-engineer’s report. Mr. Jones said the civil engineers used thermal infrared imaging to determine the cause of the water intrusion in unit 310. Two problems were discovered in the unit above. The owner of that unit is correcting the problems. Insurance update. Mr. Mericle reported he was informed by our agent at the Thompson Baker Agency that the Summerhouse carrier, American Keystone, was downgraded to a ‘substantial carrier’ from an A rating. The agent recommends no action at this time because he feel the American Keystone Company will be restored to an A rating. He will keep us advised.

New Business Annual Financial Questions. A motion by Carol Vaneman, seconded by Bob Wheeler, to present two questions to the owners at the annual Owners’ meeting for vote passed unanimously. The questions are: 1) If there are surplus funds from fiscal 2009 operations, should the Association use those surplus funds to reduce member assessments for the fiscal year 2010? 2) May the Board of Directors transfer funds from one reserve category to another reserve fund category within the same Phase if necessary to avoid or reduce a special assessment to fund the other reserve fund category? Election proposal. Mr. Breen said two year staggered terms can be implemented in future years only by a majority vote of each condominium. A motion by Bob Wheeler, seconded by Bob Ford, to ask the owners in all four Phases to vote in October to authorize two year staggered terms, passed unanimously. 3 Board Candidates. Mr. Breen added that the legal opinion received from Attorney Geiger state that all Board terms come to an end at the annual Owners’ meeting in October. The vote this October will be for twelve one year terms. Mr. Breen offered to include in his President’s Newsletter article encouragement for owners to run for seats on the Board. Mr. Mericle asked that the owners be reminded that they do not need to be Board members to serve on a committee. Mr. Breen appointed Bob Ford and By-laws and Documents Chair Mr. Jones to review the revised Summerhouse Bylaws and recommend appropriate changes. The original by-laws were revised and approved by the membership several years ago, but never legally recorded. Mr. Geiger will be consulted as to whether the previously revised by-laws should be recorded now or should the by-laws be reviewed, revised, and then recorded. Insurance requirements. See Mr. Mericle’s report under Old Business PVC pipe and washout. Beverly Abrams, unit 118, brought to the Board’s attention an unsightly PVC drainage pipe and dirt washed out behind the stairs in building 2. Mr. Jones said he would see to it that the pipe problem gets corrected. Mr. Breen asked Mr. Harman to review the dirt washout problem. Racquetball court roofs. A motion by Bob Ford, seconded by Mr. Wheeler, to accept the bid for $6500 to repair the racquetball court roofs passed unanimously.

Action Items Wi-Fi reception and update. Wi-Fi problems were discussed. Mr. Jones said the system is currently working well. Any problems should be brought to the attention of the GM, who can reset the system. Mr. Jones reminded the owners about Wi-Fi in the business center. Poolside showers. A motion by Bob Ford, seconded by Carol Vaneman, to install pool showers in Phases I,II,III like the prototype shower in Phase IV passed unanimously. Showers at crossover. Completed. Unit 118 caulking. Per the request of the owner, Mr. Jones said he would also have the exterior of the guest bedroom window unit 118 caulked and painted. Newletter article regarding conforming doors and windows. Completed. Fire station signs. Mr. Jones presented a prototype and discussed the signs to be placed above every fire alarm pull station. The signs were made according to the specifications defined by the county Fire Marshall. The signs will save Summerhouse approximately $20,000 annually because they replace the need for a central monitoring station. Nails in crossovers. Mr. Jones said the crossovers will be inspected weekly. Illegal grills. Mr. Jones said MR. Bellamy will inspect the property regularly. Letter to owners about attachments to stucco walls. The letter was sent. Unit 310 presented a letter from Mary Lou Travis, a previous office manager, granting permission for a driftwood sculpture. Mr. Breen presented the letter. The minutes of the August 2002 meeting will be reviewed for clarity about this issue. GM to receive training as Wi-Fi expert. Completed. Legal opinions regarding SRI vacancies, Association BOD term limits. Completed. Legal opinion regarding SRI by-law revisions. Action item for October.

The meeting was adjourned at 11:20 AM.

The next meeting is the annual owners meeting. It is scheduled for October 17, 2009 at 9:30 AM. The owners’ meeting will be followed immediately by the organization meeting and the regular business meeting. An owners’ dinner is planned for Friday evening, October 16, 2009. The details will be communicated to the owners. 4

Action Items for the General Manager  Comcast contract  Install poolside showers in Phases I,II and III  Caulk and paint around the exterior of the guest bedroom window, unit 118  Include in next newsletter info about conforming windows and doors  Install signs above every fire alarm pull station  Repair racquetball court roofs for bid of $6500  Owners’ vote by Phase regarding 2 yr. BOD terms  Legal opinion-record by-laws now, or review, revise and then record  Pest control contract  Continue to box in fire alarm and electrical panels  Research minutes from 8/02 regarding 310 wall hanging letter  Concrete cracks- trial new caulk product, get professional evaluation  Evaluate peeling paint, get estimates  Bids and proceed with repair of clubhouse deck  PVC pipe building 2  Newsletter- ask owners to consider serving on a BOD committee-BOD membership not required  Annual owners’ dinner  Two financial questions to owners for a vote  Correct June minutes

 Other Action Items  Revise SRI bylaws  GM contract  Architectural committee-evaluate washout behind the steps building 2  Move up to $58,000 from Operating to the Tennis Reserve fund  Move $36,000 from the fire safety reserve fund to the roofing reserve fund  Move $30,000 from the operating fund to Phase 5 paint & waterproofing reserve fund

Respectfully submitted,

Carol Vaneman, Secretary