Dick Titus called the meeting to order at 1:35 p.m. The meeting was held upstairs in the Magnolia Point Clubhouse.

Magnolia Point Community Association, Inc. Board of Directors Meeting Magnolia Point Clubhouse February 18st, 2019 Minutes Dick Titus called the meeting to order at 1:35 p.m. The meeting was held upstairs in the Magnolia Point Clubhouse. Committee Members present: John Lochner, John Bastress, John Weidner, Susan Mitchell, Gary Dake, Bart Wood, Larry Hanline and Tom Sprott. Also, present: Karen Gowen, CAM Lifestyles Realty. Helen Atter representing Liles Gavin, PA was also in attendance. Liles Gavin provides legal counsel for the Association for Turnover activities. Quorum was met with Dick Titus, Wally Bransford and Bill Nisley in attendance. Approval of Previous Board Meeting Minutes (January) The minutes for the January Board meeting was approved unanimously without corrections. (Bransford motion/ Nisley second) Financial Statement Review (December) Finance Chairman John Lochner was in attendance and provided a summary of the financial statement for December. Operational income and expenditures remain as expected and within budget with no major issues. 2018 financial data has been supplied to the auditors for review. Committee Reports Access Control Chairman Jon Bastress was in attendance. Jon provided a short report summarizing gate activities and issues. A comprehensive report has been posted on the website. It will be updated monthly to ensure that it is current. Jon indicated that there has been no gate damage during 2019 to date. He also indicated that the costs for the gate damage occurred in 2018 will have been reimbursed within the next few weeks. Jon has also set up a meeting with the Golf Club to identify methods and procedures to track and control outside visitors at the club. 1

Architectural Review Chairman John Weidner was in attendance. John provided an ARC summary indicating 11 ARC review and approval actions were accomplished in January. These are posted on the web site. Communications Chairman Susan Mitchell was in attendance. Susan indicated that work to verify the existing email data bases was has led to a database of 732 email addresses. She also continued to encourage everyone to update their email addresses and get their neighbors to sign up. Community Liaison Chairman Gary Dake was in attendance. Gary provided a short report on the committee activities. A complete copy of all reports and activities is available on the website. Gary indicated that they took the month off from meetings but had not stopped working. They have reviewed the Appendix D requirements of the agreement and did an audit of the facilities to identify any concerns. These will be provided to Trevor to determine plans for maintenance actions and activities. The next meeting is planned for March 4 th. Trevor did not attend. The Green Cove Springs utility project to bring a third wire into the community to improve service was discussed. The City has been supplied an easement for this improvement by the Club, but the Club has no responsibility or involvement in the work. Bill noted that a meeting is set up on Wednesday at 3:00 pm between the City, the Club and impacted homeowners to review plans and get concerns about the project identified and answered. Landscape/Irrigation Chairman (Open) There was no report. The association continues to need a volunteer for this position. Roads/Drainage/Waterways Repair Chairman Bart Wood was in attendance. Bill Nisley who has been acting Chair provided a brief report. Bill, Mike Yuro (Association engineer) and Karen met at the Oglebay pond to review and evaluate identified water leaks and erosion on the pond banks. These areas are in previously identified areas on the north bank as well as new areas around the spillway on the south bank. Mike has been tasked to identify a plan to go forward which addresses the new areas and identify needed repair action. The Roads Committee report has been updated and posted on the web. Rules Enforcement Chairman Larry Hanline was in attendance. Larry provided the summary of REC activities and provided a summary of the committee violation and fine process. The REC conducted monthly Rules Enforcement Rides, conducted Hearings, revisited 18 homeowners with violations, and handled over 20 email responses from the neighborhood this month. 2

The committee goes out its way to work with homeowners to resolve any issues identified during inspections. Please note, before anyone is fined, they are given a substantial amount of time to correct their violations. Those being fined have refused to take corrective action to improve their violations or provide a written plan on how they intend to correct the violations. There are currently (February) 89 active violations which represents a 25% decline over the prior month. The committee closed 45 violations. There are 22 homeowners being monitored to ensure that correction plans and improvements are completed to resolve their violations. There were 12 new violations this month. There were nine owners invited to the attend the next hearing. Following the last hearing, eleven fine letters were issued. The complete REC monthly report is posted on the web site. Nominating Committee Members - Tom Sprott (Nominating Committee Chairman) provided a status summary. The committee has established a weekly blast update on the election status. In addition, an Election Flyer providing the election details has been delivered to all homes in the community by volunteers. Tom introduced the members of the committee and thanked each for their service. He also introduced the ten candidates for the five open board positions. They are: Mike Wiesinger John Lochner Bob Robey Bill Nisley Larry Hanline Bob Page Don Gibbs Gary Dake Alan Stevenson Kevin Smith There are three forums established for the community to talk to the candidates. These locations and times are: Monday February 25 1:30 PM Clubhouse Main Dining Room Tuesday February 26 7:00 PM Clubhouse Main Dining Room Sunday March 3 3:30 PM Clubhouse Main Dining Room These are also posted on the website along with candidate information sheets for all candidates. Casting your ballot is easy. 1. Mail it in the sealed envelope or, 2. Drop the sealed ballot into the MPCA lockbox slot at the front gate guardhouse, or 3. Bring it to the meeting and submit to our Association Manager, Karen Gowen. All this election material is posted on the web site and has been sent out as Blast email messages. 3

Remember your ballot will make a difference for the future of Magnolia Point. Every ballot counts!! Unfinished Business a. New Remote Policy There remains additional research required, and further action was tabled for action at a future Board meeting when the detail questions and issues have been resolved. b. Election Schedule The election will be conducted at the Annual Meeting scheduled for March 12th, 2019. The details supporting this election were discussed in detail under the nominating committee report above. First notice of the Annual meeting, including dates, location and candidate forms is scheduled for this week. The second notice including all ballots, proxies and candidate information was mailed to all homeowners this week. The election is proceeding as required. c. Turnover Update Helen provided a status of turnover activities. Significant progress has been made. She has identified clear titles for association property through Phase VIII including the transfers of ponds where required. The developer has no access to bank accounts and all documents being maintained by the Association have been audited and are complete and available. This status will allow the Turnover documents to provide a full grant to the Association. The reported operational losses reported in several audit reports were discussed. Helen indicated that these losses were probably not recoverable based on the Covenants wording and the character of the loss. She will continue to look at this issue to see if it makes economic sense to continue any action. The activities are proceeding as required to support the formal turnover at the annual meeting. New Business a. Review quorum survey A discussion of the quorum issue was conducted. Our counsel has completed a review of all the Association documents and has concluded that the Board has the authority to change the quorum requirements to match that FL Statute 720 requirements (30% - or 291 properties) for the election. The By-laws presently specify a majority of the homeowners (50% or 484 properties) are required to constitute a quorum. This quorum is applicable for only the validity of a member meeting and election. It does not impact any requirements in the existing covenants. The Board sent a survey requesting the opinion of the community on reducing the quorum requirements from 50% to 30% of the property owners. 4

The survey was sent to the 732 email addresses contained in our data base. A total of 342 responded and voted. A total of 56.7% of the respondents agreed that the quorum should be reduced to 30% while 42.9% would rather maintain the existing 50% quorum. b. Vote on quorum Wally made a motion to reduce the quorum in our By-Laws to 30%. The motion was seconded by Bill and approved unanimously. Adjournment With no further business to discuss, Wally made a motion to adjourn and Bill seconded. The motion passed unanimously, and the meeting was adjourned. The Annual Meeting will be held on March 12th at Clay High School at 6:00pm. The next regular Board meeting is scheduled on Monday April 8 th at 1:30 pm. The location will be at the Clubhouse. 71 people attended including board and staff. 5