MINUTES OF MEETING

BOARD OF DIRECTORS
KEY ROYAL CLUBHOUSE, 8204 KEY ROYAL CIRCLE, NAPLES, FL 34119
WEDNESDAY, JUNE 25, 2008 @ 7 P.M.

Meeting was called to order at 7:06pm and roll call found all Board members present.

A motion was made by Joe Kalinowski to approve the minutes of the April 4, 2008 meeting.
Seconded by Ken Stephens and approved 3-0.

Under Old Business two new contracts for landscaping (Southern Gulf West Landscape) and
security (Preferred Security Providers, Inc) services were ratified by a vote of 3-0. Contract
amounts are $57,600 and $27,600 respectively.

Presidents Report - Joe Kalinowski gave an update on the Board working with Wachovia Bank
on providing a more beneficial deal for monies set aside for Reserves and Insurance. The
intent being considered is to move monies into a CD vs. the current money market account and
thereby earn more interest.

Vice-Presidents Report - Charlie Miller wished to thank everyone involved in helping with BBQ
grill upgrades. The following people were recognized: Tom & Chris Carroll, Pat Foiles, Joe &
Carol Kalinowski, Al & Karen LaFemina, Charlie & Jeanne Miller, Al Spina and Dave & Theresa
Worklan all volunteered time and/or money to spruce up the BBQ grill areas around Bldgs
1/Clubhouse, 2/3, 4/14 and 15/16. Additionally, the memorial plaque for Phil Ignoffio has been
ordered and will be installed in the near future. Only four grills are left to upgrade. If anyone
wishes to volunteer please contact Diane at the office for information on materials needed.
Cost is approximately $40 for mulch/lava rock and $60 for bench. Also, thanks to Diane Eager
and Jacquelyn Stephens for the time and money in planting of new hibiscus plants at the front
gate/keypad area. Thanks to Kristin Farrar and Jeanne Miller for work at the Front Clubhouse
entrance and last but not least thanks to the many anonymous donors who have contributed to
the Clubhouse Library for everyones enjoyment.

Secretary/Treasurers Report - Ken Stephens gave the following information: Working on a new
website for Key Royal with the intent to have it up and running by end of July. Watch for
further details. There is $206,901 in the Reserve account, $39,014 in the Insurance Escrow
account, $7,033 in the Egress account and $45,525 in the General Operations account. There
are $80,685 in arrears for quarterly assessments.

Laurel Lakes Easement Committee Update - Ken Stephens summarized the meetings with
Laurel Lakes and where we stand on Easement issues. Continuing to gather cost estimates for
work to be done in the easement area related to lighting, isolation of the fountain pump meter,
etc so Key Royal can have a more accurate idea of future costs and present division of billings
that the Association will be responsible to pay.

Management Report - Steve Rodeiro gave a status on work that has been done on trying to fix
the entry gates as far as providing evidence to the Attorney for claims with State Farm.
Thanked Diane Eager for her work on the recent Community Newsletter sent out to all owners.
The past due collections level for assessments is higher than past years and in terms of what is
having to be referred to the Attorney. Working with Diane and other communities on ensuring
we're ready for any future hurricane related activity.

Attorney Report - John Goede reported that the foreclosures have doubled standing at 25
units. Working with State Farm on insurance claim for gate damage that equates to
approximately $8,000 in damage. Continuing to work with the Board to bring in monies from
past due assessments.

New Business - Ratified revised contracts with Valet Waste ($19,278 in year one) and Presidio
Realty ($17,820 in year one) via motions and seconds by Charlie Miller and Ken Stephens.
Passed 3-0. Both contracts contain major cost reductions ($2.50 per unit per month per door
for Presidio and $4.12 per unit per month per door for Valet Waste) for the Association. A
motion was made by Charlie Miller to begin the process of putting together the necessary
paperwork to increase the Board size from 3 to 5 members. Seconded by Ken Stephens and
passed 3-0. Volunteers were solicited to sit on a new Hearing Committee to address issues of
fines and allow owners to have a forum to address any fines levied against them. Any
interested owners should contact Diane Eager. A motion was made by Joe Kalinowski to move
Reserve funds from the current money market account into an interst-bearing CD account.
Seconded by Ken Stephens. Passed 3-0.

Member Open Discussion -

• Karen LaFemina asked how fines were being handled by past Boards and why a
Hearing Committee is needed. John Goede stated that by law if an Association is going
to levy fines a committee made up of peers must be formed to hear grievances related
 to the fines and allow due course by the owner to make their case to overturn the
fines.
• Debbie Graves asked for a clarification about the costs of the new Valet Waste contract
and Joe Kalinowski went through the figures from year one through 2014 and explained
the escalation structure from $5.95 per unit per month to $11.95 in later years.
• A question was asked by Joe Godcharles about swimming at night. It was explained
that the State and the Collier County Health Dept provide licensing to operate the pool
and a stipulation is actual pool use is only allowed from dawn to dusk.
• Tim Gibbons had several questions - Did the Board think about hiring an employee who
would be responsible for hauling the waste. What can we do about the cut-thru from
Laurel Lakes around Bldg 16. Parking issues where neighbors have more than 2 cars
and what can be done. In response the Board replied that several options had been
considered for Valet Waste but at the end of the day the best seemed to be to stick
with the company and negotiate a better price, the Board will have to look at what the
issues are with the cut-thru and lastly parking was left alone to allow what a Board
majority felt was the most fair method of enforcement.
• Linda Sarchioni asked if there was a specific breakdown on the arrears in terms of
owner-occupied, rental units, etc. That information was not available at the time. Also,
when will the budget committee meetings take place Ken Stephens replied they have
typically been. held in the September / October timeframe and that will probably be the
same this year.
• Karen LaFemina discussed the pool monitor efforts she and Al LaFemina had made and
was unhappy in receiving a notification of termination for later in the summer. But, in
order to help the Association financially she wished to terminate immediately instead of
waiting to end of July. On this topic there was much discussion about whether the
termination will need to be revisited in the future or not but it will be a monitored issue
going forward.
• Al LaFemina reiterated his thoughts on it being possibly problematic to terminate the
pool monitoring and gave examples. Additionally, he asked about trimming garbage
pickup to 3 days vs 5. Joe Kalinowski agreed with Al on the pool issues but said we
would have to wait and see. As far as 3 or 5 days on trash it could create too many
other problems such as people being confused about the days for pickup, trash sitting
out on breezeways atracting insects, etc and companies generally locked in a 5-day
minimum.
• Debbie Graves asked about an owner/tenant ratio. Response was approximately 2:1 as
best can be tallied at this time.
• Joe Godcharles thanked the Board for the car wash.

Meeting was adjourned at 8:15pm