MEETING MINUTES

BOARD OF DIRECTORS
KEY ROYAL CLUBHOUSE
THURSDAY, 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 the
meeting 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 the
removal of a bougainvillea where a new gate arm controller will be installed.
Additionally, a new concrete pad was needed to anchor the controller. Progress slowed
temporarily due to inclement weather. New exit gate comprised of two swing sections
with two heavy duty operators. Completion expected week of October 13, followed by
reprogramming of codes, etc.

Officer Reports
Presidents Report –
• Joe Kalinowski reviewed a proposal from Elias Brothers to provide painting
services for the community at a cost of $232,148 if signed before end of year.
• This includes painting all 17 residential buildings and clubhouse along with
compactor out building. Includes exterior of buildings, front entry doors, exterior
door frames.
• Additionally, breezeways and stairways would be painted with two coats to treat
stains and cracks.
• As of this discussion lanais would be optional and require an additional $85 to
paint walls and ceilings per lanai.
• Steve Rodeiro interjected that painting payments will be made after job
completion with 50% upon completion and then 12 equal monthly payments with
no interest charge.
• 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) and
the remainder ($93,476) in arrears from previous quarters.
• An update was given on the status of reserve monies being moved to Certificates
of Deposit. A deal had been struck in late June to provide for 3.45% on CD's and
went into effect with deposits in July. Balances were given for each CD. (also see
below Treasurers report)

8204 Key Royal Circle

Naples, FL 34119
Phone: (239) 304-3266
Fax: (239) 304-3270
Vice Presidents Report - Charlie Miller read from a statement which has been scanned
and included with these minutes.

Treasurers Report –
Ken Stephens reported the following financial balances:
• Operating Account Balance stands at $84,909.27
• Insurance Escrow Account Balance - $24,086.02
• Egress (Laurel Lakes Easement) Account Balance - $7,037.03
• Overall Reserve Balances (breakdown below) - $260,415.54
CD #1 - $100,699.95
CD #2 - $50,349.97
CD #3 - $50,349.97

• Money Market Account - $59,015.65

• Late Water Payments as of the recent billing - $5,215.19

Secretary's Report – Ken Stephens gave the following updates:

• Newsletter recently sent to all owners of record.
Key Royal has been up and running since July. Much of the available
Association information can be found there. Web address is
http://www.keyroyalcondos.com
• Voting materials for the proposed amendment to the Declaration of Condominium
will be mailed out in the near future but no later than the initial Annual Meeting
notice in January. This amendment proposes to increase the size of the Board of
Directors from three to five members.
• Answering Service costs/issues were reviewed. Quite a number of people use the
answering service for issues that could most likely wait until the next business
day. Such messages cost the Association in overage fees. Please use the service
only 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 ensure
you receive prompt attention.

Laurel Lakes Easement Committee

• Progress on metering the lake fountain has been slow due to low number of bids
received. Cost of those have been prohibitively high. In the meantime we will be
computing how much we owe based on power ratings for the fountain and street
light.
8204 Key Royal Circle
Naples, FL 34119
Phone: (239) 304-3266
Fax: (239) 304-3270
 • Median improvements of a non-landscaping nature would cost approximately
$4,000 and bids are being solicited to clean up the mulch and
plantings.. Also, there has been discussion to add two more street lights on the
Laurel Lakes Blvd.

Budget Committee

• Two meetings were held on September 25 and October 7 to discuss proposed bud
get numbers for 2009.
• After working through the various big tickets increases, looking at reductions and
cost cutting are possible there was consensus that a modest increase in
assessments for 2009 was needed.
• Suggested increases were in the range of $30 to $50 per quarter which translates
to no more than an 8% increase over the current 2008 budger numbers.
• Final budget numbers will be presented at the Annual Budget Meeting.
• We are entering the 6th year of existence (building wise) and have seen several
big repairs over the past several months. This will continue and the possible
increase will allow the Association to take a more proactive stance to
maintaining the community.

Management Report

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

• Fountain light and timers fixed.
• Leak damage repaired in Bldg 17.
• Damage in Bldg 6 unit from fire and washer/dryer water damage is probably not
reimbursable due to unit being in foreclosure.
• Presidio will look at ways to curtail costs of AAA Answering Service.

Attorney Report - John Goede was not in attendance

New Business

• Building Painting, Repairs and Breezeway cleaning/coating covered in Presidents

report. Frank Casale with Elias Brothers was able to stop in to answer any
questions related to the possible contract for painting.. Questions related to
warranty (7 years), breezeway maintenance (should be power washed yearly and
coating should help with occurrence of more crack problems), irrigation stains
(Elias will provide up to 10 hours of maintenance with extra costs for ongoing
maintenance).

8204 Key Royal Circle

Naples, FL 34119
Phone: (239) 304-3266
Fax: (239) 304-3270
 • A motion was made to approve the Elias Brother painting proposal and to sign
with the stipulation that lanais and 3rd floor breezeway ceilings including repairs
to ceilings as needed for no additional charge. Approved 3-0.
• A motion was made and approved by a vote of 3-0 to ratify a new vendor contract
for pool maintenance service with Campabasso & Sons at a base rate of $515 per
month.
• Response to Anonymous Letter – Each Director made individual statements about
the anonymous letter regarding the dismissal of Diane Eager by Presidio.

Comments from Owners

• Teresa Worklan suggested adding staff names/pictures to website.

• Vincent Zasa suggested adding CCTV cameras to help with vandalism/property
damage and asked about replacing windows with a different type/style.
• Jacquelyn Stephens suggested that the Association should not be paying for lanai
painting as that is an individual owner responsibility.
• Susan King relayed concerns about mold potential related to foreclosure/empty
units and asked the Association to look into what options we may have.
• Al LaFemina voiced the need to have stronger rules in place regarding tenants,
vacancies and whether we can require locks to be changed annually without
violating owner rights.
• Tim Gibbons was concerned about the use of visitor parking passes on a
permanent basis and some residents having more than two vehicles. Much debate
between various owners and members of the Board regarding how restriction on
vehicles should be enforced. Tim asked whether residents could lease spaces that
are not currently assigned.
• Debbie Graves asked about possibly charging owners/tenants more during the
application process so they have more to lose if they do not comply with
rules/regulations.

Meeting Adjournment - A motion was made to adjourn the meeting at 8:28pm.

8204 Key Royal Circle

Naples, FL 34119
Phone: (239) 304-3266
Fax: (239) 304-3270