HARBOUR VILLAGE PROPERTY OWNERS ASSOCIATION

Minutes of Board of Directors Meeting

May 20, 2005

President Brian Kirkpatrick called the meeting to order at 2:00 PM EST

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

The meeting notice was posted on the condominium property as required by Florida Statute 718 and in accordance with the Association Bylaws.

The agenda for this meeting was to hear proposals from Sherry Danko of Star Hospitality Management, Inc., our current management company and Peter Grant of Harbour Village Management Company, a competing Management company for the upcoming contract for administrative and custodial management of the Harbour Village Condominium property.

Presentation by Sherry Danko-Star Hospitality Management, Inc.  Mr. Peter Grant excused himself from the proceedings during this presentation   Sherry Danko felt the strong points for Star Hospitality Management, Inc., included the fact that they are NOT an on property company, which makes it easier when dealing with residents that are in violation of rules and regulations, and that they can serve as an independent check and balance for the property.  Secondly, that they have a lot of experience managing condominium properties.  At the current time they are responsible for 52 properties including Harbour Village .

Ms. Danko addressed some of the past shortcomings of Star Hospitality Management, Inc., including several accounting problems, and advised us that there have been some key personnel changes recently made at the company.  One of the changes is adding a second certified accountant to the staff, and also a more efficient receptionist.  She feels they will be better able to service Harbour Village in the future.

Ms. Danko also offered to have Administrative management personnel on the property for three hours a week instead of the current two hours per week.  This would be allocated 1 ˝ hours on Tuesday mornings and 1 ˝ hours on Thursday afternoons.  The cost of their contract would not increase.  Ms. Danko left the property after her presentation.

Presentation by Peter Grant-Harbour Village Management Company - Mr. Grant felt his advantage is two-fold.  First he would be an ON-SITE management company.  Secondly, he has a vested interest in the Harbour Village Property, as he is currently an owner of two condominiums there.

Mr. Grant offered to initially match the custodial coverage we currently have, which includes two full eight-hour days per week.  In addition Mr. Grant would be available three days per week for 3 hours per day, tripling our current coverage.  There would be no increase in the cost of the contract over our current contract with Star Hospitality Management, Inc.

Mr. Grant shared his vision of eventually taking over some of the other contracts i.e., pool maintenance and lawn care so that a full time (40 hour per week) caretaker for our property would be available and accountable at little or no increase in cost to Harbour Village Property Owners.

Ty Bevington challenged item 8c in the management contract offered by Mr. Grant.

            “8c.  Insurance claims: 5% of insurance company proceeds for claims of

            $10,000 or more.  This Association expense will be charged in lieu of the

            hourly additional management services charge for Agent’s time spent on

            insurance claim.  This provision shall survive the termination of this Agree-

            ment as long as Agent was responsible for filing said insurance claim prior

            to termination.  The fee will be regarded as part of the loss and shall be

            included in the claim.”

Mr. Grant agreed to a change in the verbiage.  A suggestion was made to change it to a fee arrangement being mutually agreed upon in the event of a catastrophe i.e., hurricane, fire etc. 

Mr. Grant reported that he would be using an accounting system by Quick Books rather than the Tops program currently being used by Star Hospitality Management.  He felt it is better suited to customizing for our property.  Mr. Grant excused himself at the end of his presentation.

Brian Kirkpatrick then recapped the presentations and opened the floor to discussion.  After reiterating the strengths and weaknesses of each of the companies Donna Gerritsen made a motion to change our management contract from Star Hospitality Management Inc. to Harbour Village Management Company.  Rich Moreau seconded the motion.  President Brian Kirkpatrick called for a vote.  The motion passed unanimously.

Donna Gerritsen then made a motion to contact Star Hospitality Management Inc. before June 1, 2005 and terminate their contract as of June 30, 2005.  Ty Bevington seconded the motion.  President Brian Kirkpatrick called for a vote.  The motion passed unanimously.

Brian Kirkpatrick said he would call both Sherry Danko and Peter Grant and report the outcome of the meeting.  He will also e-mail both parties prior to June 1, 2005.

Next meeting:  Tuesday, July 12, 2005 at 10:00 AM EDT.    Meeting Adjourned