Pelican Isle Condominium Owners Association, Inc s1

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PELICAN ISLE CONDOMINIUM OWNERS ASSOCIATION, INC. BOARD OF DIRECTORS MEETING JULY 10, 2009

MINUTES

Board Members Present: David McCombs, President

Board Members Via Teleconference: Hugh Randall, Vice President Holly McCann, Treasurer Lynn Boyer, Director

Brooks and Shorey Representation: Ron Shorey, Association Manager Bill Treon, General Manager Stasia Pavlich, Executive Assistant

Emerald Coast CPA: Robert Anderson

CALL TO ORDER President David McCombs called the meeting to order at 3:05 p.m.

ESTABLISH QUORUM A quorum was established with four (4) Board members present.

PROOF OF NOTICE President David McCombs advised that the Notice of the meeting was posted in accordance with the By-Laws and Florida Statutes.

REPORTS OF OFFICERS AND MANAGEMENT President: No Report Vice President: No Report Secretary: No Report Treasurer: No Report Association Manager: No Report

OLD BUSINESS Budget Review: David McCombs appreciates the team working to have this meeting. Holly McCann reviewed the comparison to the budget for the first six months of the year. Holly McCann stated she did not see anything that was out of the ordinary in actual versus budget. Building maintenance supplies was a $1,000.00 over budget and swimming pool and labor, which was $5,700.00. Robert Anderson stated the Board authorized the purchase of BBQ grills in January at a cost of $2,256.00, which would be in the building maintenance supply line item. If the grills had not been purchased the Association would be under budget in the building maintenance supply category. Bill Treon stated the pumps for the spa and hot tub were raised to prevent damage from flooding at a cost of $1,000.00. David McCombs stated the actual to budget to date looks good.

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Robert Anderson stated $297,000.00 in assessments has been billed and $270,000.00 of those assessments has been collected. Ron Shorey stated there is $84,000.00 in bad debt resulting from foreclosures and bankruptcies. Robert Anderson would create an additional journal entry of $1,000.00 per month for bad debt. Holly McCann recommends keeping track of those that owe money separately from the financials. Robert Anderson would create a separate form for the Board for this purpose. Ron Shorey stated a couple of developments that could positively impact the Association are that banks are tapping into the TARP money. Ron Shorey stated banks are more apt to accept short sales this year and the Association would receive all the funds owed on a unit that would go into foreclosure. Secondly, if units go into foreclosure, the Association should hire Becker & Poliakoff to go after the owner in foreclosure for the difference owed. Concern was discussed regarding a possible assessment later in the year to make up for the shortfall in revenue due to the 12 foreclosures at Pelican Isle. The budget planned for 5 which is why the BOD wanted a mid year budget review. Significant discussion was given as to how to give additional monthly visibility to the board regarding the monthly revenue vs. the budget. This need is being generated due to the foreclosures and not having the monthly income, which was planned for. Robert Anderson is initially going to add a line up to begin to budget for foreclosure starting at a $1000 per month. In addition, the board discussed the two major savings in our building insurance, which has helped our financial position, but the overall savings have been eaten away due to the gap in revenue. Overall, the HOA is in good financial shape but the board does feel that a fall or year-end assessment may be necessary. Revenue generating ideas for the future: David McCombs stated the only thing that may have excess funds is the reserves, which the Association is not paying into, because the Association can’t afford it. Ron Shorey stated the Board would have to special assess the owners at the end of the year to pay back the reserves or get the owners to agree not to fully fund reserves, which Management would not support that decision. Ron Shorey stated after the roof was replaced, the roof reserves were used to get the Association through 2008. Ron Shorey stated the Operating account owes Reserves approximately $15,000.00, so there are no excess funds in the Reserve account.  Hugh Randall asked if a timer has been installed on the footwash/shower and the trash rooms. Ron Shorey would check with maintenance. a. Office space vendor plan: Lynn Boyer stated Brooks and Shorey Resorts sent out the proposal for the front desk office. Ron Shorey explained the proposal to the Board. Ron Shorey recommends the Board of Directors discuss the front desk office with the Association attorney. Lynn Boyer motioned to table the front desk rental agreement discussion until the next Board meeting on July 24, 2009. Holly McCann seconded the motion. The motion passed unanimously. i. Brooks and Shorey Resorts first right of refusal: ii. Request for proposal plan: Ron Shorey encouraged the Board to obtain other proposals for the front desk. David McCombs state this issue would be tabled until the July 24, 2009 Board meeting. Audit/Tax prep company proposal synopsis/selection: David McCombs stated he has been working with Robert Anderson of Emerald Coast CPA in reference to the audit and tax prep company. David McCombs motioned to accept Carr Riggs and Ingram’s proposal to perform the audit and taxes for Pelican Isle at a cost of $6,200.00. Holly McCann seconded the motion. The motion passed unanimously.

NEW BUSINESS

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NEXT MEETING Friday, July 24, 2009 at 3:30 p.m. at Brooks and Shorey Resorts. Annual Meeting: Saturday, October 17th, 2009 at 9:00 a.m. at the Emerald Coast Conference Center.

ADJOURNMENT Holly McCann made a motion to adjourn the meeting. Hugh Randall seconded the motion. The meeting was adjourned at 4:50 p.m.

Signature:______Date:______