KEY ROYAL CONDOMINIUM, ASSOCIATION, INC.BOARD OF DIRECTORS SPECIAL ASSESSMENTJULY 13, 2006MINUTES

Board Members Present: Susan King, Patti Place, Linda SarchioniPresidio Realty, Inc.: J.R. Wear, Steve Rodeiro, Sheila UllmannBarry Scarr, Barry Scarr Agency, Attorney for the Association, John Goede.President, Susan King, called the Special Assessment Meeting to order at 6:40 pm.Susan King introduced the Board Members, Presidio Realty representatives and otherguests to the homeowners present. J. R. Wear explained the purpose of the meeting.The annual budget was prepared in October 2005 with and estimated insurance. Therenewal was placed with Citizens Property Insurance. After the down payment and twoother payments were made a notice was received that there was an increase on thepremium of $81,000.Barry Scarr, Principal Agent of Barry Scarr Agency gave a brief summary of hisbackground in property management. He explained that there was a crisis in theinsurance industry. In May of 2006 Gov. Bush signed an insurance law designed toincrease insurance very high. No wind damage insurance will be issued. Citizens wasdeveloped to take care of condominiums, HOA, etc.When the insurance for Key Royal was first quoted a different rating was used forCollier County. May 1, 2006 this was changed. Rating is based on age, location,construction, and exposure.There is wind mitigation through Citizens that could give substantial discounts. Theroof repairs must be completed first. They will be looking for hurricane clips and straps.The forms will go to J. R. Wear. A licensed general contractor will have to complete theform and will charge a fee for this service. Barry Scarr stated some homeowners arepaying much more. He hopes to get 20% back on the wind mitigation. Citizens cannotgo broke as they are backed by the State of Florida.Susan King explained that the assessment for the insurance would be $300 per unit.Steve Rodeiro informed the homeowners that the condo docs cap any specialassessment at 15%. The quarterly maintenance does not change again unless theBoard of Directors changes it or waits until the next fiscal year. Steve explained that if there were money returned, it would be kept in escrow for next year. A mid year