MINUTES OF MEETING

BOARD OF DIRECTORS

KEY ROYAL CLUBHOUSE, 8204 KEY ROYAL CIRCLE, NAPLES, FL 34119

WEDNESDAY, JUNE 25, 2008 @ 7 P.M.

Meeting was called to order at 7:06pm and roll call found all Board members present. A motion was made by Joe Kalinowski to approve the minutes of the April 4, 2008 meeting.Seconded by Ken Stephens and approved 3-0.Under Old Business two new contracts for landscaping (Southern Gulf West Landscape) andsecurity (Preferred Security Providers, Inc) services were ratified by a vote of 3-0.Contractamounts are $57,600 and $27,600 respectively.Presidents Report - Joe Kalinowski gave an update on the Board working with Wachovia Bank on providing a more beneficial deal for monies set aside for Reserves and Insurance.Theintent being considered is to move monies into a CD vs. the current money market account andthereby earn more interest. Vice-Presidents Report - Charlie Miller wished to thank everyone involved in helping with BBQgrill upgrades.The following people were recognized:Tom & Chris Carroll, Pat Foiles, Joe & Carol Kalinowski, Al & Karen LaFemina, Charlie & Jeanne Miller, Al Spina and Dave & TheresaWorklan all volunteered time and/or money to spruce up the BBQ grill areas around Bldgs1/Clubhouse, 2/3, 4/14 and 15/16.Additionally, the memorial plaque for Phil Ignoffio has beenordered and will be installed in the near future.Only four grills are left to upgrade.If anyonewishes to volunteer please contact Diane at the office for information on materials needed.Cost is approximately $40 for mulch/lava rock and $60 for bench.Also, thanks to Diane Eagerand Jacquelyn Stephens for the time and money in planting of new hibiscus plants at the frontgate/keypad area.Thanks to Kristin Farrar and Jeanne Miller for work at the Front Clubhouseentrance and last but not least thanks to the many anonymous donors who have contributed tothe Clubhouse Library for everyones enjoyment.Secretary/Treasurers Report - Ken Stephens gave the following information:Working on a newwebsite for Key Royal with the intent to have it up and running by end of July.Watch for

further details.There is $206,901 in the Reserve account, $39,014 in the Insurance Escrowaccount, $7,033 in the Egress account and $45,525 in the General Operations account.Thereare $80,685 in arrears for quarterly assessments.Laurel Lakes Easement Committee Update - Ken Stephens summarized the meetings withLaurel Lakes and where we stand on Easement issues.Continuing to gather cost estimates forwork to be done in the easement area related to lighting, isolation of the fountain pump meter,etc so Key Royal can have a more accurate idea of future costs and present division of billingsthat the Association will be responsible to pay.Management Report - Steve Rodeiro gave a status on work that has been done on trying to fixthe entry gates as far as providing evidence to the Attorney for claims with State Farm.Thanked Diane Eager for her work on the recent Community Newsletter sent out to all owners.The past due collections level for assessments is higher than past years and in terms of what ishaving to be referred to the Attorney.Working with Diane and other communities on ensuringwe're ready for any future hurricane related activity. Attorney Report - John Goede reported that the foreclosures have doubled standing at 25units.Working with State Farm on insurance claim for gate damage that equates toapproximately $8,000 in damage.Continuing to work with the Board to bring in monies frompast due assessments.New Business - Ratified revised contracts with Valet Waste ($19,278 in year one) and PresidioRealty ($17,820 in year one) via motions and seconds by Charlie Miller and Ken Stephens.Passed 3-0.Both contracts contain major cost reductions ($2.50 per unit per month per doorfor Presidio and $4.12 per unit per month per door for Valet Waste) for the Association.A motion was made by Charlie Miller to begin the process of putting together the necessarypaperwork to increase the Board size from 3 to 5 members.Seconded by Ken Stephens andpassed 3-0.Volunteers were solicited to sit on a new Hearing Committee to address issues of fines and allow owners to have a forum to address any fines levied against them.Anyinterested owners should contact Diane Eager.A motion was made by Joe Kalinowski to moveReserve funds from the current money market account into an interst-bearing CD account.Seconded by Ken Stephens.Passed 3-0.Member Open Discussion -

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Karen LaFemina asked how fines were being handled by past Boards and why aHearing Committee is needed.John Goede stated that by law if an Association is goingto levy fines a committee made up of peers must be formed to hear grievances related