MINUTES OF BUSINESS MEETING OF BOARD OF DIRECTORS OF

SUMMERHOUSE BEACH & RACQUET CLUB

CONDOMINIUM ASSOCIATION, INC.

February 18, 2012

The Board of Directors of Summerhouse Beach & Racquet Club Condominium Association, Inc., held its regular business meeting on Saturday, February 18, 2012, at the offices of the Association. President Norm Breen called the meeting to order at 9:00 a.m. Secretary Wendy Crothers took roll call and declared a quorum.

Directors present were: from Phase I, Beverly Abrams, Maurice Brown, and Laurie Mitchell; from Phase II, Norm Breen, Anne Zickus, and Don Coker; from Phase III, Wendy Crothers, Harry Ballance (by phone), and Bob Ford; and from Phase IV, Bob Wheeler, Jim Lilley, and Ed Presson.

A motion to approve the minutes of the last Board meeting was made by Bob Wheeler, seconded by Don Coker. All approved.

At the urging of several Board members, President Norm Breen had invited Summerhouse’s attorney, John Geiger, to the meeting to answer questions about the Association’s liability under certain circumstances. Some BOD members had concerns about the relationship between the Summerhouse Association and its wholly owned subsidiary, Summerhouse Rental Incorporated (SRI). Keep them as separate as possible, said Mr. Geiger, even though some of their policies and some of their members may overlap and even though their employees are linked through payment, by PayChex.

Will that separation protect the Association if, say, SRI is threatened with suit? he was asked. Nothing will protect the Association in the advent of a determined suit of any of its parts; that’s the nature of litigation — sue everyone in sight — but it’s still wise to maintain the corporate veil as much as possible in a delicate balance of practicality and risk. Mr. Geiger was questioned on many other matters of policy: the influence of e-mails, for instance. They’re good for keeping Board members informed, he said, but Board action can be taken only after a vote at a Board meeting. Mr. Geiger’s overall answer to many queries stressed the importance of written agreements. If, for instance, the Association’s Board wants to change SRI policy, it may fire the SRI directors and vote in new SRI members amenable to the change. That problem can be solved simply by means of a memo of understanding giving the Association final say in SRI policy. And so it goes, Mr. Geiger continued, with most Board issues: If something requires change, make a motion, vote on it, and write it into policy; even it it’s as universally understood as “my mother loves me,” write it down so that it has the effect of a contract. But from his experience at the question-and-answer session, Mr. Geiger concluded, he hadn’t heard of anything worth major consternation for the Board, and he cautioned the Board from making many policy changes at this time.

Anne Zickus announced that she was unaware that the minutes of the preceding meeting had been approved, and she wanted to make a correction. Norm Breen made a motion to suspend the rules for a correction to the minutes. Seconded by Bob Ford.

President’s Report: President Norm Breen declared he would do no more polling by e-mail.

Vice-President: No Report.

Treasurer’ Report: Treasurer Don Coker said that Summerhouse was financially sound and would continue to be as long as owners continue to pay their monthly maintenance fee on time. The Treasurer’s report is filed with the minutes.

Secretary: No Report.

Prior to the General Manager’s report, Jim Lilley brought up the question of extending the CREST contractor’s contract, since the work on buildings 5, 7, 18, and 19 was very acceptable. Laurie Mitchell agreed to research our contract to see if it can be extended, if we need to write a new one, or if perhaps we have to put the project up for bids.

General Manager’s Report: Keith Jones noted that the front side of building 9 has also been refurbished; its walkway was in such a state of disrepair that our engineer judged that it couldn’t wait to be fixed in the second round of building repairs starting next August. In the spring, the engineer will reassess the remaining buildings to be repaired and recommend which four buildings will be worked on in the fall. The final price of resurfacing the Phase I pool and installing non-slip tiles on its steps was $8,500, less than anticipated; the workmanship is guaranteed for two years. Our sale of used pool furniture has netted us more than $1,500. A used (but in good condition) golf cart was purchased for use by the night manager; repairs to the old cart were becoming too expensive. The racquetball courts are being repaired and painted.

Mr. Jones stated that, insomuch as we spent over $3,000 last year on repairs and replacement parts for our office computers, it’s high time that we replace them and acquire a new server and software updates. He had sent out for bids for the entire job — including labor to move files from each workstation to the new PC’s, along with data backups and anti-virus software. Among the three bids received, he recommended the highest one, $12,412, on its merits: The high bidder, a man with a master’s degree in electrical engineering, has guaranteed that his system would be good for at least eight years; in addition, he would make available the services of four computer experts to come on site to help us, should problems arise. Payment for the whole computer job would be split between the Rental Board and the Association, with the Rental Board bearing two-thirds of the cost, leaving the Association’s contribution at $4,140. Bob Ford made a motion to allocate the appropriate amount to replace the whole computer system. Don Coker seconded. Eleven Board members approved. Bob Ford opposed. The motion passed.

Mr. Jones suggested that we start thinking about getting new heaters for the pools. Historically, such heaters have tended to be plagued by disproportionately serious problems in the final year of their 5-year warranty program. The warranty on our current heaters runs out at the end of this year.

Some concern was voiced about dead bushes on the side of the road behind the racquet ball courts, reducing screening protection from the road and road noise. President Norm Breen suggested that Keith Jones work with the Landscape Committee to find a fast growing bush or perhaps a fence of some sort to replace the bushes. This will be put on the agenda for the April meeting.

Insurance Committee: We will be getting a rebate on the flood insurance.

By-Laws and Documents: No Report.

Unfinished Business: Anne Zickus said there will be two Policy Manuals, one for SRI and one for the Summerhouse Association. Rules and regulations for both bodies will be on the agenda for the next meeting. Harry Ballance made a motion for a policy and procedure committee to identify portions of the manual that need to be corrected. Seconded by Ed Presson. All approved.

President Norm Breen announced that Summerhouse will not engage directly in general recycling but that there is a company that will do it by the unit. Bob Ford made a motion to communicate aggressively to owners the availability of this program and assess the effectiveness of the program at a later date. Seconded by Jim Lilley. In favor of the motion were Bob Ford, Jim Lilley, Wendy Crothers, and Don Coker. Opposed were Norm Breen, Bob Wheeler, Anne Zickus, Laurie Mitchell, Beverly Abrams, Ed Presson, and Maurice Brown. The motion was defeated. Guidelines for “going green” will be put on the next agenda.

Norm Breen made a motion to consider a salary increase and/or a bonus for the General Manager, Keith Jones, since he has not had a raise in four years and many Board members feel he has done an outstanding job. Also, Mr. Jones’ performance was ranked tops in our Owners’ Survey. The motion was seconded by Bob Ford. Each Board member was given a minute and a half to speak on this subject. After the discussion, the motion was amended by Mr. Breen to not include a salary increase but only to consider a bonus. Bob Ford agreed to second that motion. All approved. Mr. Breen appointed a committee — composed of Ed Presson, Don Coker, Bob Ford, and himself — to look into the matter and report back at the next Board meeting with their recommendation.

The next meeting will be held on April 21, 2012.

The meeting was adjourned at 12:00 p.m.

Respectfully submitted,

Wendy Crothers, Secretary

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