GULF DUNES CONDOMINIUM OWNERS ASSOCIATION, INC.

BOARD MEETING

SEPTEMBER 16, 2009

MINUTES

Board Members Present: Ken Rand, Vice President

Jim Blaha, Treasurer

Board Members

Via Teleconference: Marty Burdick, President

Charlie Hudson, Secretary

David Heath, Director

Austin Carroll, Director

Robert McAdam, Director

Brooks and Shorey Representation: Ron Shorey, Association Manager

Bill Treon, General Manager

Scott Schaeffler, General Manager

Dan Lee, Maintenance Supervisor

Stasia Pavlich, Executive Assistant

Emerald Coast CPA: Robert Anderson

CALL TO ORDER

President Marty Burdick called the meeting to order at 9:30 a.m.

ESTABLISH QUORUM

A quorum was established with seven (7) Board members present.

PROOF OF NOTICE

President Marty Burdick advised that the Notice of the meeting was posted in accordance with the By-Laws and Florida Statutes.

DISPOSITION OF MINUTES

Ken Rand motioned to waive the reading and to approve the meeting minutes of July 22, 2009. Jim Blaha seconded the motion. The motion passed unanimously. Marty Burdick stated in reference to the Special Meeting held on June 26, 2009, a letter was sent to the buyer and to date we have not heard anything.

FINANCIAL REPORT

Financial Reports: Financials were discussed.

Assessment Collection Status: Assessment collection status was discussed. Options from the Association attorney to collect unpaid assessments were discussed. 1) Amend condo docs to allow Association to collect rent from tenants occupying delinquent units. Must include language stating that collected funds will be applied to delinquent accounts e.g. FL statutes and that the Association can assume “landlord” authority/rights (in order to evict a tenant) in the event a tenant becomes delinquent on rent. 2) Appoint a receiver to collect rent funds on delinquent units. (Requires legal action). Ron Shorey recommended that the Association pursue these amendments. This item shall be reconsidered at the November Board meeting.

MANAGER’S REPORT

Rental Income Rebate Program: Scott Schaeffler stated the total 2% rental income is $11,110.00 as of August 31, 2009. The budgeted amount through August is $11,700.00.

Project Status/Action Item Checklist:

a.  Windows: Scott Schaeffer stated Shephard Painters has offered to clean and scrape the windows at a cost of $15.00 each (72 windows).

b.  East Walkover foot wash is complete. Scott Schaeffler stated the east walkover foot wash has been completed and is working great.

c.  Tennis Court: Dan Lee stated the new tennis court net would cost approximately $200.00, which includes installation. Dan Lee stated the contractor would make a recommendation on repairing areas on the west side of the tennis court.

d.  Phase 1 pool heater: Scott Schaeffler state the Phase 1 pool heater has been installed and is working.

e.  FLCAJ Subscription: Scott Schaeffler stated after the organizational meeting that follows the annual meeting, Scott will subscribe to FLCAJ at a cost of $56.00 for the whole year for all Board members.

f.  Leveling and replacement of tile in front of unit 401 is in progress. Scott Schaeffler stated the leveling and replacement of tile in front of unit 401 is in progress.

g.  Uniform Elevator Key Program: Scott Schaeffler stated the funds have been obligated for the installation of the elevator key and the Association has the keys.

h.  Fitness center: Scott Schaeffler is working with Gold’s Gym to sell daily ($5.00 per visit) use of the gym for guest and owners would have free access to Gold’s Gym.

UNFINISHED BUSINESS

Association Management Contract: Marty Burdick stated that all the Board has received a copy of the Association Management Contract. Ken Rand motioned to accept the Association Management contract as written. Jim Blaha seconded the motion. The motion passed unanimously. Marty Burdick would sign the new contract when he arrives and announce the renewal at the annual owners meeting.

Newsletter Content: Scott Schaeffler asked the Board to submit any articles that they would like for the next newsletter. Marty Burdick recommends an article for the newsletter that request owners to please return their proxies for the annual meeting. Scott Schaeffler stated Jane Bengier; owner of unit will hold a Yankee Swap at Gulf Dunes, which will give owners the opportunity to clear out unwanted items from their units.

NEW BUSINESS

Insurance Committee Report: Marty Burdick stated a letter needs to be mailed to the owners with the following: 1) Owners must name the Association as an additionally insured. 2) Special Assessment coverage can be no less than $2,000.00 and 3) the owner must copy the Association showing proof of insurance (Declaration Page). Ken Rand would write the letter to the owners.

2010 Budget: The proposed 2010 budget was discussed. Jim Blaha recommends management recast the budget in line with the break even numbers, which won’t require any increases to the 2010 budget and if there are opportunities next year to try and reduce cost.

Annual owners meeting preparation: Ron Shorey stated the second notice of the annual meeting would be mailed approximately eighteen days before the annual owners meeting. Ron Shorey stated one proxy item would be the rollover of excess funds. Marty Burdick stated is an audit of the financials required this year? Robert Anderson stated the audit of the financials is required every three years at a cost of $7,000.00. Robert Anderson stated Carr, Riggs and Ingram completed an audit of the Gulf Dunes 2008 financials. Austin Carroll motioned the limited proxy would have the following two items: Roll any residual income to 2010 and not to perform an audit of the 2009 financials. Jim Blaha seconded the motion. The motion passed unanimously.

Shutter policy: Scott Schaeffler stated the Association’s policy is that the closure of shutters in preparation for a storm is the owner’s responsibility. Owners should coordinate with their management company to close their shutters.

Policy Recommendation: Insofar as is possible, Association management will ensure all unit shutters are closed prior to any government directed evacuation of Okaloosa Island. Unit owners will be charged $7.50 for this service, if their shutters have not been closed by the owner or their management company. Additionally, we will service the shutters twice yearly for owners who request it. Cost is $15.00 per servicing. Once requested, we’ll continue to do it until told to stop. Austin Carroll stated the straps for his shutters have disintegrated. Scott Schaffler has straps on hand to sell. Ken Rand stated the straps could also be purchased at Lowe’s.

Owner Suggestions/Request: No discussion

·  Ken Rand state there are shrubs with huge thorns that can be purchased to form a hedge on the east side of the building and this would certainly stop any egress from our property to the public access and this would be an inexpensive fix compared to installing a fence.

NEXT BOARD MEETING:

Budget Adoption: Friday, October 09, 2009, at 9:30 a.m. at Brooks and Shorey Resorts

Annual Meeting: Saturday, October 10, 2009, at 9:30 a.m. at the Emerald Coast Conference Center

ADJOURNMENT

Ken Rand made a motion to adjourn the meeting. Jim Blaha seconded the motion. The meeting was adjourned at 11:20 a.m.

Signature:______Date:______