HARBOUR VILLAGE PROPERTY OWNERS ASSOCIATION, INC.

Minutes of Board of Directors Meeting

August 31, 2004

President Brian Kirkpatrick called the meeting to order at 9:00 AM .

Board Members Present:  Vice President: Ty Bevington & Treasurer: Peter Grant in person.  By way of teleconference:  President: Brian Kirkpatrick, Secretary: Donna Gerritsen and Director: Stu Lewis.  Thus establishing a quorum.  Also attending:  Sherry Danko and Paul Michalezka representing Star Hospitality Management, Inc.

The meeting notice was posted on the condominium property as required by Florida Statutes and the Association Documents.

President Brian Kirkpatrick moved to give Peter and Patty Grant a sincere and heartfelt thank you for all of their help to the absentee owners before, during and after Hurricane Charlie!  Ty seconded the motion.  The motion passed unanimously.   THANK YOU!  THANK YOU!

Un-disposed Minutes:  Peter Grant moved to waive reading of the June 29, 2004 Board of Directors meeting and approve them as distributed.  Ty Bevington seconded the motion.  The motion passed unanimously.

Financial Report:  Treasurer Peter Grant gave an overview of the end of July financials. (See web site).  Various accounts were reviewed and Peter answered Board members questions.  The seawall account was discussed in length.  After refunds to owners that had overpaid to the seawall account an amount of $12,069.00 remains.  Stu suggested that we look into the circumstances concerning any overdue payments missed by owners.  An expenditure of $6,023.00 toward amenities needs to be transferred back into respective reserve accounts before the end of the year.

Stu would like to review the cash accounts for building expenditures.  Management will supply Stu details of the accounts.

Storm Damage Report:  Peter reported that he and Paul met with an insurance adjuster from Citizens Insurance Company on August 29th.  All buildings were inspected.  Peter reported our deductible is approximately $34,000.00 per building.  Based on the damages we incurred we will not come close to exceeding the deductibles.  We should consider ourselves very fortunate.  Peter received a quote from Mike who had sided our buildings previously.  To repair siding, soffit and facia Mike quoted $18,235.00 Peter feels this is a high bid and we need to obtain additional quotes.  Most important is the drying out of the ends of the buildings where the felt underlayment has been blown away from the building itself.  No quotes on replacing or repairing perimeter lattice and insulation under the buildings has been received as of yet.  Peter moved that we immediately take action to water proof the building’s that are damaged, and to get competitive bids where possible considering cost as well as the work being completed in a timely manner.  Donna seconded the motion.  The motion passed unanimously.  Donna moved to spend up to $1,500.00 to have debris from hurricane removed from property.  Brian seconded the motion.  The motion passed unanimously.

Clubhouse Entry:  Peter reported project is complete and well done.

Drainage/Standing Water:  Peter reported an Engineer from Johnson Engineering came out last week.  They indicated that water could be drained into the river by way of a “Sand Filter Box”.  The Engineer suggested having SWFMD look at the situation and make their suggestion.  SWFMD told Peter a field agent could be out in about a month.  Water under the buildings can be drained into the retention ponds.  Elevations need to be checked.

Insurance:  Peter reported coverage for our pool filtration and heating system were not covered by insurance.  The cost for the coverage is $348.00 per year.  Coverage has been reinstated at this time.  The insurance company received our check (1) one day before the pump was hit by lightning again.  It was brought to our attention by Statewide Insurance that our buildings are each approximately $350,000.00 under insured.  There is no liability coverage on the fishing pier.

We received a quotation for new increased limits of coverage and a lower deductible before Hurricane Charley.  The quote may no longer be valid at this due to the Hurricane’s we’ve had.  Peter will keep in touch with Tom Danaher at Statewide Insurance.  Our policy renews in December if it is renewed.

Sewer Line Report:  Donna spoke with Mike Durieux from Severn Trent Services around August 11th.  Mike said they had acquired new equipment to clean out sewer lines and that we were on their schedule.  There may be some schedule changes due to the hurricanes.

Legal Update:  Brian reported he has been communicating back and forth with Joe Adams at Becker & Poliakoff.  We are waiting for a reply from Mr. Martel regarding ownership of the dock space in front of building (4) four.  Brian asked that all legal correspondence and only supporting attachments be faxed or mailed to all Board members.  Brian reported it would require approximately $10,000.00 in fees to pursue the dock ownership issue.  Brian then suggested we defer the rewriting of our association documents because of the legal expenses we are now incurring.  Overall opinion of the Board was to wait for response from Mr. Martel and not to approve the $10,000.00 expenditure.  Peter is looking for a date the additional docks were built.  Peter will check with Charlotte County Seawall.

Harry Issue:  Brian reported there would be significant cost to pursue.  We have approximately (4) years per statute of limitations.  Search for notices and letters to unit owners concerning Water Heaters and shutting off water when leaving for prolonged periods of time is being done.  Brian is sending a letter he as found.  Brian suggested we defer any further action until next board meeting.

Boat Rules:  Brian reported our attorney advised a 51% of membership vote is required to adopt and enforce Boat Rules.  Set up cost would be approximately $500.00 - $700.00

Tennis Court Resurfacing:  The courts are just about completed.

Structural Inspection:  No action at this time.

New Business:  Discussion of preliminary 2005 budget was discussed.

The Board set the next meeting for October 19th at 10AM .  With no further business to be discussed the meeting was adjourned. 

                                                                        Respectfully submitted,

                                                                        Paul Michalezka, CAM

                                                                        Star Hospitality Management, Inc.