The Pelican Condominium of New Smyrna Beach, Inc South Atlantic Avenue New Smyrna Beach, FL Annual Owners Meeting

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1 The Pelican Condominium of New Smyrna Beach, Inc South Atlantic Avenue New Smyrna Beach, FL Date: October 8, 2011 Time: 10:00 am to 12:00 noon Place: New Smyrna Beach Regional Library 1001 South Dixie Highway New Smyrna Beach, FL Annual Owners Meeting 1. Call for Final Balloting of Election of Directors/Close of Balloting: Pursuant to Florida statute, an election of the directors of this Association is not required, since the number of persons wishing to run for the Board was less than the number of vacancies to be filled. Accordingly, the new Board Members are: Frank Armetta, Ann Flugge, Ed Pantalone, Peggy Pickett, Don Sullivan and Archie Williams. When this Board holds their organizational meeting immediately following this meeting, a seventh member will be appointed to serve a one year term. 2. Certifying Quorum Call to Order Ninety units were represented either via proxy or in person. A quorum was established and the meeting was called to order. 3. Proof of Notice of Meeting Affidavits were provided confirming mailing of the First and Second Notice of the Annual Meeting of the Association to be held on Saturday, October 8, Reading and Disposal of Unapproved Minutes Minutes of the October 9, 2010 Annual Owners Meeting were approved as published. 5. Reports of Officers and Employees a. Treasurer s Report Frank Armetta covered the Fiscal Year from July 1, 2010 to June 30, 2011 with a Six Year Comparison (copy attached). In accordance with Florida statutes, an audit will be completed after the end of the current fiscal year. 6. Committee Reports a. Finance Committee John Kelley affirmed the Treasurer s report concerning the Reserves: to cover the parking lot drainage project, $60,000 will be used from Parking Lot; $30,000 for replacement shut off valves from Repairs; $7,000 from Fencing to cover the wind fence and beach gate brings this Reserve down to $0. There is $160,000 in Smith Barney money market account to cover the payment of bills. b. Building Maintenance Bob Kosar stated that one heat pump was down and needed to be replaced and that the second heat pump may fail. We are getting bids. There is a need for a higher speed modem for the power line internet service. It is time to put up the wind fence. Bob is in the process of checking options for other cable capabilities bearing in mind that our cost for basic cable is $40,000. The satellite dish that Bob installed on the roof is another option. One dish could be shared by several units at a minimal cost. The Meraki system service for unit computers can be greatly improved by 1

2 utilizing the plug in box provided by the Pelican office at a cost of $ for the wired internet service so their guests will have good internet service in the unit. c. Westside Restoration Project Ed Pantalone reported the committee is working closely with the engineer and architect to establish coordinated, prioritized guidelines with a special effort for grandfathering as much of the work as possible. The order of priority: #1 drainage; #2 landscaping for 10 x10 trenching, plumbing and shutoff valves; #3 parking lot and #4 the Pelhouse. Frank Armetta reminded everyone that it takes 75% of owners to approve any material alterations or substantial additions, and that pressing needs should be done first. Also reserve funds cannot be used for other purposes without owners approval. Susan Simmons cautioned that being aware of possible sink holes in the parking lot makes the Association liable. d. Rental Committee Sandy Hokanson presented the attached report. After much discussion, Frank Armetta made a motion, seconded by Susan Simmons, to offer a 5% increase this year and have a committee explore expectations on both sides to determine a fair solution to the cost of future deep cleans. Five Board members voted YES, Estie Keyes voted NO. The motion passed. e. Manager s Report In Steve Simpson s absence; Marla Nance, representing Sea-Action Properties and Management, Inc., covered the attached report and stated the highlight was that we were going live with the on-line rental system this coming Tuesday. f. Social Committee Alecia Williams reminded all regarding the arrangements made for the evening s Annual Dinner. Ed Pantalone took this opportunity to commend Alecia for a job well done, especially her above and beyond efforts regarding the new poolside furniture. 7. Old Business None 8. New Business a. Vote on Utilizing Reserve Funds to cover Normal budgetary expenses Should the Association give the authority to the Board of Directors to utilize reserve funds to cover normal budgetary expenses for the fiscal year ending June 30, 2012 as provided by Florida Statute (2)(f)(3)? The proxy vote was 86 yes and 13 no. The motion passed. There was some discussion regarding the verbiage in the proxy and recommending that, in the future, the word borrow be used instead of the word utilize.. Lisa Stapleton was congratulated for achieving her CAM license.. Approved Owner s list and Winter Directory copies are available in the Pelican Office. 9. Adjournment There being no further business for discussion, Bob Strade made the motion, seconded by Cindy Eckert, to adjourn at 12:10 p.m. which was unanimously passed. Respectfully submitted, Steve Simpson, Manager 2

3 Owners Present: A106 Rob and Trish Kershner A201 Pat Hunt A204 Sharon and Jim Bayer A301 Edie Pantalone A303 Larry Metcalfe A306 Don Sullivan A405 Ed Pantalone A406 Billy Tucker A504 June Davis A601 Bob Kosar A603 Virginia Trombley B103 Dick and Jean Shaw A 301 Karen Hamilton A302 Shirley and Lyndon Leffler B305 Bette Long B306 Carol Hartman B505 Anita Dorio B606 Archie and Alecia Williams C101 Jean Ellis C102 Barry Morris C201 John Venis C203 Bob Strade C206 Bob and Sandi Crittendon C304 Madge Baker C306 Frank and Sharon Armetta C506 Susan and Mark Simmons C604 Cindy Eckert C606 Peg and Ron Pickett D105 John Kelley D106 Allan and Sandy Hokanson D206 Ann and Perry Flugge E101 Claudia Putney E102 Bill Cohane E106 Ada Folmer E205 Ed Pitts 3

4 The Pelican Condominium of New Smyrna Beach, Inc South Atlantic Avenue New Smyrna Beach, FL Date: October 8, 2011 Time: 12:15 pm Place: New Smyrna Beach Regional Library 1001 South Dixie Highway New Smyrna Beach, FL Board of Directors Meeting 1. Call to Order With all newly elected board members present, a quorum was established and the meeting was called to order at 12:15 pm. 2. Notice of Meeting An affidavit was provided confirming mailing of the Notice of the Organizational Meeting of the Board of Directors to be held on Saturday, October 8, Election of Officers Prior to election of officers, Archie Williams nominated Bob Kosar to fill the open position on the board. The motion passed unanimously. The following officers were elected by the board members: Archie Williams, President Ed Pantalone, Vice President Frank Armetta, Treasurer Don Sullivan, Secretary A motion was made, seconded, and passed that Ann Flugge serve as the maintenance liason for the Board. 4. Adjournment There being no other business to come before the board, a motion was made and seconded to adjourn. The vote was unanimous and the meeting was adjourned at 12:25 pm. Respectfully submitted, Steve Simpson, Manager Next Meeting Board of Directors Meeting: Date: November 12, 2011 Time: 10:00 am to 12:00 noon Place: New Smyrna Beach Regional Library 1001 South Dixie Highway New Smyrna Beach, FL

5 Fiscal Year July 1 thru June MAJOR INCOME ITEMS Maintenance Fee Income for Operating 405, , , , , ,590 Maintenance Fee Income for Reserves 199, , , , , ,860 Rental Commissions 151, , , , , ,263 Total Income 886, , , , , ,123 MAJOR EXPENSE ITEMS Repair & Maintenance Expense Utilities Payroll Contract Management Total Payroll & Contract Mgmt Insurance Taxes (incl Payroll Taxes) Professional Fees Office Expense Bad Debt Expense Pelican Financial Highlights with Six Year Comparison 89,808 89,427 77,731 74,915 76,511 78, , , , , , , , , , , , ,643 38,213 63,301 9, , , , , , ,643 72,282 75,243 91, , , ,101 23,569 26,429 30,181 32,791 34,705 27,315 7,880 14,869 20,222 15,675 12,236 19,499 23,847 22,666 28,001 27,197 26,462 20,074 3, Total Expense 583, , , , , ,394 Net Ordinary Income (Before Deductions for Reserves, Int & Insurance Fund) 204, , , , , ,852 Net Income (16,041) 2,660 18,606 11,972 16,013 (38,619) Reserve Balances Year-End Reserve Item ' Elevators 77,633 62,949 50,121 75, ,093 61,615 Pool 38,365 36,056 24,243 19,199 13,024 30,355 Paint/Waterproof/Seal (963) 24,236 37,198 59,001 41,848 23,620 Patio Funrniture ,260 6,822 5,345 Major Bldg Repairs 29,938 24,785 5, Roof 125,984 96, ,469 86,431 61,427 36,586 Pool Deck 33,325 33,418 26,033 20,476 14,893 9,306 Railings 112,839 95,843 77,595 57,109 37,087 15,774 Parking Lot 62,087 60,752 54,447 32,724 10,868 52,577 Fences 14,521 25,318 24,851 22,721 20,120 18,662 Concrete Restoration 22,484 (16,465) 48,832 76,603 63,479 55,331 Total Reserves 516, , , , , ,171 Insurance Deductable Fund 99,032 85,820 72,782 59,828 46,832 33,631 Monthly Maintenance Fees at Year-End Unit Type Current ' BR BR w/tv Rm BR Twn Hse BR

6 RENTAL COMMITTEE REPORT OCTOBER 2011 In September, the rental committee submitted a report consisting of a survey of deep cleaning costs from several Condo s on New Smyrna Beach. Based on the survey, our two cleaning companies were under compensated and requested an increase. The Rental Committee recommended we raise the rates approximately 30% putting our compensation at an average of comparable condominiums. The Board felt the increase was too large an increase, suggesting perhaps a raise of 10% if any should be considered. The board also asked for additional information to make their decision. The committee and Rental staff was also asked to look into options if our Cleaning Companies should decide not to retain us as a client. The committee suggested perhaps a special meeting might be necessary because of the urgency to start the deep clean process. It was agreed that may be an option. The discussion was tabled until the additional information could be compiled and presented to the board. A package was presented to the board via . Documentation included additional condo s on the beach, a letter from our vendors, a letter from our rental representative regarding deep cleaning process, the check-sheets used by the cleaners in the deep clean and regular clean process, a deep clean process sheet as well as an outline and summary sheet; The Board denied the request for an increase. The decision was discussed with our vendors. Needless to say, they were very disappointed with the decision, but agreed to continue the 2011 schedule. They will work as they did last year, without supervision (our rental team will assume that role), and without completing the unit inventory, which will also be completed by our team. Based on last year s experience, we estimate this will result in approximately 2-3 hours of our team s payroll for each unit rented. The rental committee and office rental representatives would be pleased to make a presentation on any facet of the unit preparation procedures, rental processes or miscellaneous policies regarding rental units. This could be done if enough time were allocated at a regular board meeting or call a special meeting for the discussion.

7 The Pelican of New Smyrna Beach, Inc. Manager s Report October 8, Rental Agreements Each owner with a unit in the Pelican rental pool has been requested to complete, sign and return a current rental agreement. When we go live with the online rental system, guests will be able to reserve units online and if an owner has not blocked their unit in advance, their unit will show as available. Therefore, it is very important that owners return the rental agreements to provide the office with owner blocks. 2. Fall/Winter Bookings Bookings for the fall (October through December) are typically close-in and we do anticipate additional activity, however, the bookings are following a similar trend as the third quarter and are currently down 20% versus last year s final results. On a brighter note, current booked base revenue for January 2012 is up 7.1% over January 2011 actual results, February is up 7.1% and March is up 4.9%. In total, the first quarter is currently booked up 6.2% over 2011 actual base revenue, which was up 3.4% over Preparation for Deep Cleans Debbie is finalizing a deep clean schedule for this fall. She has already begun to communicate with owners to coordinate the best time for the deep clean. A few deep cleans have already been completed the goal to complete the deep cleans shortly before the arrival of the winter guest while working around owner blocks and other rentals during the fall. 4. Inspections The Paint and Seal Project was completed almost one year ago and A.A.T. Restoration Group will inspect the condition of the building exterior later this fall. The maintenance staff has already identified a couple areas that will require minor concrete repairs that will be addressed during the inspection. A representative from 2001 Company will complete the annual roof inspection in November or December. Along with the inspection to maintain the roof warranty, they will identify if there are preventative maintenance issues that should be addressed.