Y, INDOMIN: I JULY 21, 2005 Board Members Present: Susan King, Patti Place, Chris Cook Presidio Realty, Inc.: J. R. Wear, Shella Ullmann The meeting of the Board of Directors of Key Royal Condominium Association, Inc. was called to order at 6 pm by President, Susan King. Susan King introduced the Board Members and Presidio Realty representatives to the homeowners present. J, R. Wear introduced Dennis Cook, CPA. Mr. Cole has had 35 years experience as a CPA in Florida. He is located in the St. Petersburg — Clearwater area. Dennis Performed the turnover audit for the Association from March 2004 to March 31, 2005 when the Developer turned over the Association to the Homeowners. As of March 31, 2005 there was a surplus of cash in the account in the amount of $49,000. Mr. Cole pointed out that there is usually a zero balance. He also pointed out that there were no reserves. The Developer chose not to set up a reserve account. He stated that this ‘community was in the best shape that he has seen in 20 years on a condo turnover. He suggested to the Board that they take some of the Budget surplus and apply it to reserves. Mr. Cole advised that $36,000 of the surplus to applied to painting reserves. AAs of January 1, 2006 funding of the reserves should start. The Board of Directors could do a special assessment if there in no money in the reserves and it was needed. A motion was made by Patti Place to accept the audit. Susan King seconded the motion and it was passed. ‘The minutes were read and accepted from the meeting of May 10, 2005. ‘Susan King discussed the new pool passes that would be required to gain entry to the pool area. There will be two resident passes and two guest passes for each unit. If a unit is rented, the tenant would receive the passes. Parking stickers will be given out. Registration must be made in the office with proof of residence. Vehicles will be towed after a certain date. Residents will be notified of that date. Guests spots will be by the Clubhouse.J. R. Wear introduced himself to the residents. As of June 30" the financials were completed and ready for review. There was $43,262.57 in delinquent accounts. A local attorney will be hired to file liens if necessary against the unit owners who have not paid. The Association has the right to do this. ‘Susan King discussed the new landscaper. They are taking care of the irrigation and weeding problems. The trimming will be done. The timers will be repaired. The renting of the Clubhouse was discussed by Susan King. A contract and policy for rental will be established. J. R. Wear discussed the hiring of a new guard service, Kent Security Service. A motion was made by Chris Cook to accept the new company. Patti Place seconded the motion. All board members were in favor. Passed. The security gates in the front will be closed all the time now as of next week. Susan King explained how to use the camera and Channel 95. Patti Place gave a report on the ARB committee. The met June 19". Keystone was the company recommended to use for paving patios. Motion was made by Patti Place, seconded by Chris Cook and passed. The meeting was adjourned at 7:15 by President, Susan King. Respectfully submitted by, ip Ebbw Sheila Ullmann Office Administrator Key Royal Condominium Association, Inc.