Casa Del Lago

As Approved 10/11/07

CASA DEL LAGO

BOARD OF DIRECTORS MEETING

September 20, 2007

The Board of Directors meeting of Deer Lake Homeowners Association, Inc. (a.k.a. Casa Del Lago) was held on September 20, 2007 at the Casa Del Lago clubhouse.

Board Members Present:George Boyer

Ed Zeglarski

Bob Golden

Rob Cooper

Jeff Holiman

In attendance by invitation of the Board: Bob Gelles, Schoo Management.

Call to Order: The meeting was called to order at 7:05 PM by George Boyer who presided.

Proof of Notice: A copy of the Proof of Notice of the meeting was posted in accordance with Florida Statutes.

Determination of Quorum: The Board acknowledged that a quorum was present to conduct business.

Minutes of Prior Meetings: A motion was made by Rob Cooper to waive the reading and approve the minutes of the Board of Directors Meetingof July 12, 2007. The motion was seconded byEd Zeglarskiand passed unanimously.

Opening Remarks: George Boyer opened the meeting by introducing each member of the Board to the residents in attendance. George Boyer introduced Bob Gelles, Schoo Management, as the management company for the Association.

Collection Activities for Unpaid Assessments:

George Boyer reported on the collection activities for unpaid assessments owed tothe Association. George Boyer stated that there are 15 homeowners that owe the Association for past due assessments and other costs and interest. George Boyer stated that 2 homes in the community have been foreclosed by the mortgage lender, which resulted in uncollected assessments in the amount of $3,443 and $4,810. George Boyer stated that the homeowner that owes the $3,443 cannot be located. George Boyer stated that the homeowner that owes the $4,810 is being pursed in small claims court by the Association’s attorney. George Boyer stated that there are 10 homeowners facing foreclosure, which includes homes which are being foreclosed upon by the Association. George Boyer stated that the Board continues to work with the Association’s attorney and managementcompany to find ways to pursue collection activities against the homeowners that are subject to foreclosure. In addition, George Boyer stated that the Association has levied liens against homes in the community for unpaid assessments, costs and interest. George Boyer states that the collection procedures adopted by the Board of Directors are being followed and there has been progress in collection of unpaid assessments.

George Boyer states that the worst case situation for the Association for uncollectible assessments is a bad debt write-off of approximately $43,000 for fiscal year 2007. George Boyer stated that despite the estimated bad debt write-off amount, he expects the Association to be under budget for 2007 (actual expenses less than income).

Rob Cooper stated that the homes that were foreclosed by the mortgage lenders should be responsible for payment of assessments from the date of foreclosure. George Boyer instructed Bob Gelles, management company, to invoice the new owners (lender) for the assessments for the home. Bob Gelles stated that he would invoice the new owner (lender).

The residents in attendance and the members of the Board engaged in discussions regarding cost of proceeding with foreclosures in the community by the Association, the current foreclosure environment in LeeCounty and other matters regarding the collection efforts of the Association.

New Rules and Regulations:

George Boyer stated that Bob Golden was working to distribute personally as many new rules and regulations packets as possible so the Association could save the mailing costs. George Boyer stated that we will give Bob Golden one more month to personally distribute the rules and regulations packets, and after that time, the Association will mail the packets to the remaining homeowners. George Boyer stated that Bob Golden will write an article for the newsletter informing residents of the need to personally pick up the new rules and regulations so the Association can save money.

Storm Sewer Grate Repair Update:

Rob Cooper stated that the repairs to the two storm sewer grates located on Sika Deer Way (back) were repaired incorrectly. Rob Cooper stated that he spoke with DavidUnderhill from Bank Engineering, and Mr. Underhill is working with the contractor to determine a solution. Rob Cooper stated that Mr. Underhill will authorize the corrective work as soon as possible.

Irrigation Permit and Installation of New Well:

George Boyer stated that Engle Homes has agreed to install at its cost the new well necessary for the Association to secure a new irrigation permit for the community. George Boyer stated that he will contact the neighbors affected by the drilling work.

2008 Budget Committee Report to the Board:

(A copy of the draft 2008 budget is attached to these minutes)

A draft 2008 budget was made available to all residents in attendance at the meeting. Jeff Holiman stated that the draft 2008 budget was not being submitted to the Board for approval as the final 2008 Budget. Jeff Holiman stated that the draft 2008 budget was being presented to the Board for discussion and revisions, which revisions would be taken back to the budget committee for consideration and, if appropriate, inclusion in the final budget for 2008 to be presented to the Board for approval. Jeff Holiman stated that the final 2008 budget would be submitted to the Board for approval at the Board’s October meeting.

Jeff Holiman then proceeded to discuss each income and expense line item of the draft 2008 budget. Jeff Holiman also compared the 2008 budget against the final 2007 budget and the financials for 2007 actual year-to-date (Jan – July, 2007).

Jeff Holiman, the rest of the members of the Board and residents in attendance engaged in discussions regarding income and expense line items. Jeff Holiman explained to the other members of the Board the reasoning used by the budget committee members to determine the 2008 budget numbers.

Jeff Holiman stated that the Comcast bill (annual) for the community increased by approximately $8,000 (2007 - $76,936 budget; 2008 - $84,000 per Comcast). Jeff Holiman summarized by stating that if you remove the cable increase of approximately $8,000, the annual assessment for 2007 and 2008 are about the same amount. Jeff Holiman stated that the 2008 budget provides for a quarterly assessment of $673.00 ($2,692.00), including cable and security. Jeff Holiman stated that the 2007 quarterly assessment was $662.40.

The members of the Board did not recommend any changes to the draft 2008 budget.

A motion was made by Rob Cooper to approve the draft 2008 budget as presented by Jeff Holiman and to instruct the budget committee to formally submit the final 2008 budget to the Board at its October, 2008 meeting for approval. Bob Golden seconded the motion and it passed unanimously.

Rust Treatment Proposal:

George Boyer stated that the Association currently pays $750.00 per month for rust treatment for the irrigation lines (eliminates iron stains on the buildings, etc.) to King Landscaping. George Boyer stated that the contract with King Landscaping is set to expire in September 2007. George Boyer stated that Bob Golden and George Boyer interviewed Suncoast Rust Control, Inc. to provide rust treatment. George Boyer stated that Suncoast Rust Control, Inc. currently provides rust treatment for Heritage Palms. George Boyer stated that Suncoast Rust Control, Inc. will provide rust treatment services for $650.00 per month. George Boyer stated that Suncoast will provide and maintain new equipment at no cost to us. George Boyer stated that Suncoast’s fee per month includes removing all rust stains from the common area buildings, gates, light poles, street signs, curbs, sidewalks and any other common item affected by rust stains. George Boyer stated that King Landscape did not provide any such services to the Association. George Boyer stated that if the iron count in the water increases, Suncoast has the right to increase the price per month by 15% (or to $750.00).

George Boyer stated the contract is for 12 months.

George Boyer stated Suncoast will remove rust stains from any home in the community for $30.00 per home, to be paid by the homeowner.

A motion was made by Bob Golden to terminate the current arrangement with King Landscape immediately, to approve and adopt the contract with Suncoast Rust Control, Inc., and to execute and deliver a copy of the contract to Suncoast Rust Control, Inc. with a start date of October 1, 2008. The motion was seconded by Rob Cooper and it passed unanimously.

Jeff Holiman stated that he would take the new contract price to the budget committee for consideration for the final 2008 budget to be submitted at the Board’s October meeting.

Engle Homes Turnover Claims:

George Boyer stated it was time for the Board to consider making a turnover claim to Engle Homes. George Boyer provided the members of the Board with a list of claim items and estimated amount of repair, if applicable. George Boyer stated that the total dollar amount of the claims is approximately $61,000, not inclusive of the irrigation well and permit and the storm system repairs currently being handled by Engle Homes. George Boyer stated that some of the claims are the result of the turn-over engineering study prepared for the Association and some of the claim (for money) result from the report from Engle’s auditor. George Boyer stated that these new claims are in addition to the $28,000 previously paid by Engle Homes for funds identified by Engle’s auditors as owed to the Association.

George Boyer suggested that the Association present a formal letter listing all of the items and the amount of the claim to Engle Homes. George Boyer stated that he would like to work with Rob Cooper and the Association’s attorney to determine a strategy for presenting claims to Engle. Jeff Holiman suggested that the claims against Engle Homes include the cost of the engineering study.

A motion was made by Rob Cooper for George Boyer and Rob Cooper to work with the Association’s attorney in the presentation, negotiation and settlement of the developer claims with Engle Homes and to keep the members of the Board informed of the status thereof. The motion was seconded by Bob Golden and it passed unanimously.

Board of Directors Election Procedures:

(Election Process Guidelines attached to the minutes)

George Boyer stated that Ed Zeglarski’s term is up at the next annual meeting. George Boyer stated that Ed Zeglarski’s seat will have a 3 year term. George Boyer stated that in anticipation of interest in Ed Zeglarski’s seat, he proposed that the Board of Directors adopt election procedure guidelines to be followed. George Boyer provide each member of the Board with a copy of the proposed guidelines. George Boyer read the entire list of guidelines to the members of the Board and the residents in attendance.

A motion was made by Rob Cooper to approve and adopt the Election Process Guidelines as presented by George Boyer. The motion was seconded by Jeff Holiman and it passed unanimously.

George Boyer stated that he would include a summary of the guidelines in the newsletter for October.

Comcast Cable Contract:

George Boyer stated that he believes we may be paying too much for our cable services. George Boyer stated that he was given a copy of a Comcast agreement for a community in LeeCounty that is comparable in size to the Association which provided for a 50% discount off standard price per month. George Boyer stated that the Association’s contract for cable provides for a 22% discount.

George Boyer stated that he would like to George Boyer and Rob Cooper to contact Comcast and try to reduce the cable costs for the Association. A motion was made by Rob Cooper to appoint George Boyer and Rob Cooper to investigate the Comcast agreement and the possibility of a reduction in cable service costs. The motion was seconded by Bob Golden and it passed unanimously.

Clubhouse Parking:

George Boyer stated that it has been brought to the attention of the Board that there are 2 vehicles that continuously violate the clubhouse parking rule. Ed Zeglarski stated that the most recent violation of the clubhouse parking rule occurred during an event at the clubhouse which resulted in one less parking space for the guests. Ed Zeglarski stated that the Association cannot permit the violations of the parking rule to continue since the non-compliance would be seen as setting a new rule or no rule as to restriction on parking at the clubhouse.

Rob Cooper stated that there has been some discussion in the past that some residents are using unsigned parking passes or parking passes that expired. Rob Cooper stated to avoid any confusion the Association should terminate all parking passes currently outstanding (legally or illegally) and that if a resident wants a parking pass to park at the clubhouse then they will need to contact a member of the Board or Bob Gelles, management company. After discussion among the members of the Board, the Board agreed that Bob Gelles and Bob Golden would be responsible for coordination and signing of all parking passes.

A motion was made by Rob Cooper to terminate all parking passes currently outstanding (legally or illegally) and that if a resident wants a parking pass to park at the clubhouse then they will need to contact Bob Golden or Bob Gelles, management company. The motion was seconded by Ed Zeglarski and it passed unanimously.

George Boyer instructed Bob Gelles, Management Company, to contact the owners of the 2 vehicles that continuously violate the clubhouse parking rule and advise them of the action taken by the Board and the fact that violations of the clubhouse parking rule will result in a towing of their vehicle.

CONCLUSION OF OLD AND NEW BUSINESS.

The Board of Directors and the residents in attendance engaged in discussions regarding various topics concerning the business of the Association, specifically, the residents and the Board discussed the fact that teenager were using the play area slides in improper and unsafe ways and that some teenager were using the clubhouse as a hang-out; the Board stated that they would look into the matter, but also stated that residents should call the police if there is criminal activity in the community, and vehicles parked overnight on the street in violation of the rules; the Board stated that it will continue its towing policy for such vehicles.

ADJOURNMENT: At 9:40 PMJeff Holimanmade a motion to adjourn the meeting. Ed Zeglarskiseconded the motion and it passed unanimously.

DeerLake HOA Election Process

Adopted at Board Meeting 9-20-07

One Board Seat needs to be filled due to term expiration of Ed Zeglarski.

An Election will be held, January 24, 2008 to fill the open position.

The Term of Board Seat to be filled will be three years.

Process That Will Be Used:

This election process will be followed and communicated by Mail to each homeowner, and printed in the Newsletter and on the website.
Any homeowner, in good standing (current in Association Dues payments), wishing to run for a Board Seat should contact Bob Gelles at Schoo Management in writing or by email prior to December 12, 2007.
Board candidates are encouraged to prepare and provide a one pageBio to Bob Gelles at Schoo Management prior to December 12, 2007. Additionally, candidates may submit up to a 100 word article for placement in the January 2008 Casa Del Lago newsletter and website in writing or by email to Bob Gelles at Schoo management prior to December 20, 2007.
At the December 13thBoard meeting Thursday at 7PM, any homeownerwho has notified Schoo Management of their intention to run for the Board position will get 5 minutes to address the audience. The Board will allow any homeowner from the floor to also announce their intention to run for the open Board position and also have 5 minutes to address the audience.
Following the December 13th Board meeting, a Ballot will be created containing all of the names of homeowners (in good standing) who made it known to the Board that they want to run in the Election for the open Board position. The Board will distribute the ballotand Election notice by mail to all homeowners along with copies of any one pageBio’s received by Bob Gelles-Schoo Management by December 13th.
The HOA Board Election meeting will be held Thursday, January 24, 2008 at 7PM. Schoo Management will oversee the Election voting process. Volunteers for counting will be selected from available homeowners.
After the meeting is called to order, Ballots will be opened, counted twice by two separate groups of homeowner volunteers and the confirmed results given to the Board to announce.
The Election Meeting will be adjourned.
Immediately following the adjournment, the Board of Directors Organizational meeting will be held to elect all officers for the 2008 Board of Directors.