PARC CONDOMINIUM ASSOCIATION MINUTES OF THE MEETING OF THE BOARD OF DIRECTORS OF PARC CONDOMINIUM ASSOCIATION, INC. HELD ON JANUARY 29, 2009 IN THE PARC IV GARDEN ROOM, 3614 MONTROSE BOULEVARD, HOUSTON, TEXAS 77006 PRI z Daniel Tighe, President Russell Duesterhof, Vice President Kleta Gerhart, Treasurer Ann Miller, Secretary Rob Yannaccone Scott Hairston IN ATTENDANCE: 14 Homeowners Frank Cario, General Manager, Pare Condominium Association Ray Saillant, representing Association Management, Inc. Derek Howard, representing Association Management, Ine. CALL TO ORDER: Due notice of the meeting having been given and a quorum being present, the meeting was called to order. Daniel Tighe presided and Derek Howard assisted in recording the minutes. ADOPTION OF AGENDA: The agenda was adopted as presented. APPROVAL OF THE MINUTE! On a motion duly made and seconded, the minutes of the Board Meeting held on December 4, 2008 were approved as submitted, FINANCE COMMITTEE: Don Poole reviewed the financial report for the month ending December 31, 2008, He noted that the balance in the Operating Account was $670,375.04 and the balance in the Replacement Reserve Account was $617,572.92. Mr. Poole noted that some expenses were higher than anticipated. He also noted that air conditioning expense was higher due to the quarterly maintenance expense along with a valve that had to be replaced. Mr. Poole stated that the electricity bill in November was over budget due to higher usage when AAR’s equipment on site to facilitate storm cleanup. He also mentioned that natural gas expense was higher than anticipated and that he will research past bills. After discussion, the December 31, 2008 financial statements were accepted Mr. Poole also presented the 2009 budget and advised that there would be a 1% increase in the monthly maintenance fee. Mr. Poole noted that for the 2009 budget, electricity expense would be lower due to a new contract, and that payroll would be decreased due to the elimination of the outdoor maintenance position. A landscape contractor will be hired at a lower cost. After discussion and on a motion duly made and seconded, the Board approved the 2009 Budget.| COMMITTEE REPORTS: Conservation No report. Reserve Study The Committee met with David Regenbaum to discuss the reserve fund spreadsheet. After discussion and on a motion duly made and seconded, the Board approved changing the name of the reserve fund to the Capital Improvements Fund. Capital Improvements — Sprinkler No report, Capital Improvement - Plumbing No report, ‘Web Committee No Report Interiors Committee Jim Halloran reviewed the Committee’s plans for renovating the common areas of Pare IV and Vv. Community Action Ann Miller advised that many business signs along Montrose Boulevard are still being missing from the storm. She suggested that it might be beneficial to email messages to local businesses to persuade them to begin work on replacing the missing signs. Architectural Review ‘No Report. ‘Window Replacement ‘No Report. GENERAL MANAGER'S REPOR' Frank Cario reported that the non-working elevator phones have been replaced in Pare IV and the parking garage clevator. He also provided a construction update, and in response to an inquiry from a Board Member, agreed to discuss with Basic Builders whether they planned to patch any % inch sheetrock with 5/8 lunch sheetrock. MANAGING AGENT’S REPORT: Derek Howard was introduced as the new community manager for the Association. He also discussed in detail the Parc website and described options that can be explored. LEASE/ SALE CONSIDERATIO} On a motion duly made and seconded it was agreed that the Association decline to exercise its right of first refusal with regard to the following: Sale of Unit 905 Parc IV Saleof Unit 103 Pare IV Sale of Unit 105 Parc IV Sale of Unit 407 Parc 1VADDITIONAL BUSINE: Rob Yannaccone reviewed electricity supplier bids provided by the Association’s consultant, CETX Energy. After discussion and on a motion duly made and seconded, the Board approved 2.36 month contract with Gexa Energy. Derek Howard reviewed the 2009 insurance summary prepared by Brady, Chapman, and Holland and the annual premium of $124,087. After discussion and on a motion duly made and seconded, the Board approved borrowing $124,087 from the replacement reserve to pay the premium in full, and repay the replacement reserve in equal installments over the next twelve months. SCHEDULING OF NEXT BOARD MEETING: ‘The next Board Meeting is scheduled for February 26, 2009 at 6:00 p.m. in the Pare IV Garden Room. ADJOURNME! With no further business to conduct, the meeting was adjourned. Respectfully Submitted: Recording Secretary Approved as Correct 2frb/o5 Date