8204 Key Royal CircleNaples, FL 34119Phone: (239) 304-3266Fax: (239) 304-3270

MEETING MINUTESBOARD OF DIRECTORSKEY ROYAL CLUBHOUSETHURSDAY, OCTOBER 9, 2008 @ 6:30 P.M.Call to Order - The meeting was called to order at 6:32pm by Joe Kalinowski, President.Roll Call - Roll Call was taken and all Directors were present.Approval of Minutes – A motion was made to approve the Meeting Minutes for themeeting held on June 25, 2008. Approved by vote of 3-0.Old Business - Gate installation has begun. On October 6 the first phase began with theremoval of a bougainvillea where a new gate arm controller will be installed.Additionally, a new concrete pad was needed to anchor the controller. Progress slowedtemporarily due to inclement weather. New exit gate comprised of two swing sectionswith two heavy duty operators. Completion expected week of October 13, followed byreprogramming of codes, etc.Officer ReportsPresidents Report –

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Joe Kalinowski reviewed a proposal from Elias Brothers to provide paintingservices for the community at a cost of $232,148 if signed before end of year.

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This includes painting all 17 residential buildings and clubhouse along withcompactor out building. Includes exterior of buildings, front entry doors, exteriordoor frames.

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Additionally, breezeways and stairways would be painted with two coats to treatstains and cracks.

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As of this discussion lanais would be optional and require an additional $85 topaint walls and ceilings per lanai.

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Steve Rodeiro interjected that painting payments will be made after jobcompletion with 50% upon completion and then 12 equal monthly payments withno interest charge.

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Delinquencies and foreclosures are at an all time high. As of the meeting$174,112 is owed with a portion of that being from the new quarter ($80,636) andthe remainder ($93,476) in arrears from previous quarters.

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An update was given on the status of reserve monies being moved to Certificatesof Deposit. A deal had been struck in late June to provide for 3.45% on CD's andwent into effect with deposits in July. Balances were given for each CD. (also seebelow Treasurers report)

8204 Key Royal CircleNaples, FL 34119Phone: (239) 304-3266Fax: (239) 304-3270

Vice Presidents Report - Charlie Miller read from a statement which has been scannedand included with these minutes.Treasurers Report –Ken Stephens reported the following financial balances:

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Operating Account Balance stands at $84,909.27

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Insurance Escrow Account Balance - $24,086.02

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Egress (Laurel Lakes Easement) Account Balance - $7,037.03

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Overall Reserve Balances (breakdown below) - $260,415.54CD #1 - $100,699.95CD #2 - $50,349.97CD #3 - $50,349.97

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Money Market Account - $59,015.65

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Late Water Payments as of the recent billing - $5,215.19Secretary's Report – Ken Stephens gave the following updates:

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Newsletter recently sent to all owners of record.Key Royal has been up and running since July. Much of the availableAssociation information can be found there. Web address ishttp://www.keyroyalcondos.com

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Voting materials for the proposed amendment to the Declaration of Condominiumwill be mailed out in the near future but no later than the initial Annual Meetingnotice in January. This amendment proposes to increase the size of the Board of Directors from three to five members.

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Answering Service costs/issues were reviewed. Quite a number of people use theanswering service for issues that could most likely wait until the next businessday. Such messages cost the Association in overage fees. Please use the serviceonly for non life threatening emergencies related to your unit or the community.As always, if something is of a life threatening nature please call 911 to ensureyou receive prompt attention.Laurel Lakes Easement Committee

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Progress on metering the lake fountain has been slow due to low number of bidsreceived. Cost of those have been prohibitively high. In the meantime we will becomputing how much we owe based on power ratings for the fountain and streetlight.

8204 Key Royal CircleNaples, FL 34119Phone: (239) 304-3266Fax: (239) 304-3270

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Median improvements of a non-landscaping nature would cost approximately$4,000 and bids are being solicited to clean up the mulch andplantings.. Also, there has been discussion to add two more street lights on theLaurel Lakes Blvd.Budget Committee

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Two meetings were held on September 25 and October 7 to discuss proposed budget numbers for 2009.

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After working through the various big tickets increases, looking at reductions andcost cutting are possible there was consensus that a modest increase inassessments for 2009 was needed.

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Suggested increases were in the range of $30 to $50 per quarter which translatesto no more than an 8% increase over the current 2008 budger numbers.

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Final budget numbers will be presented at the Annual Budget Meeting.

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We are entering the 6th year of existence (building wise) and have seen severalbig repairs over the past several months. This will continue and the possibleincrease will allow the Association to take a more proactive stance tomaintaining the community.Management Report

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Reviewing schedule of maintenance work so that activity can be better managed.

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Fountain light and timers fixed.

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Leak damage repaired in Bldg 17.

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Damage in Bldg 6 unit from fire and washer/dryer water damage is probably notreimbursable due to unit being in foreclosure.

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Presidio will look at ways to curtail costs of AAA Answering Service.Attorney Report - John Goede was not in attendanceNew Business

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Building Painting, Repairs and Breezeway cleaning/coating covered in Presidentsreport. Frank Casale with Elias Brothers was able to stop in to answer anyquestions related to the possible contract for painting.. Questions related towarranty (7 years), breezeway maintenance (should be power washed yearly andcoating should help with occurrence of more crack problems), irrigation stains(Elias will provide up to 10 hours of maintenance with extra costs for ongoingmaintenance).