Minutes of the Regular Meeting of the Board of Directors

Bay Indies Homeowners Association

Friday, December 9, 2011

The President asked to start the meeting early due to a large agenda and the fact that he is just back from surgery and would like to adjourn early.

The meeting was opened at l:25 with Roll Call as follows: Paul Larsen, Bill Métier, Joan Sass, Richard Welch, Anthony Pin zone, Carl Kruse, Pat Weis, Hank Curran. George Alexander was absent with a medical excuse.

The minutes of the November l1th meeting were approved after a correction on the first page, paragraph 6 first line was corrected to read FMO, rather than HMO. The Executive Board minutes were approved as presented.

Treasurer’s Report: Mr. Kruse reported the CD account balance of

$101,916.43, the Money Market account balance of $25,916.04,

which included a transfer of $7,000.00 to the checking account.

The Checking account balance is $6,131.23 leaving a grand total of all accounts as of Nov. 30, 2011 of $133,963.70. A motion to accept the Treasurer’s report was made by Pat Weis and 2nd by Paul Larsen. The motion was carried.

Membership Report: Carl Kruse reported 67 households have paid for a total of $2,680.00 to date. Mr. Pinzone reported that as of Dec. lst there are 177 homes owned by ELS which includes empty lots, rental homes occupied, and unoccupied homes.

Correspondence:

Mr. Pinzone reported he got a newsletter from our legal firm and that really was all information on condos.

Another piece of information was passed on to Charlotte Nichols regarding shows that she may communicate to Coordinating Council.

Office of Housing and Community Development Sarasota County Government Affordable Housing Committee is being reestablished and Mr. Pinzone has been asked to serve again (as he was on the previous committee). He said it would be discussed in Executive session and then brought back to the public meeting.

At the November Board meeting there were two new residents

and they wrote a letter to the Board. Jack and Rosie Blanton of Zacapa thanked the Board for all they do for the residents and they were really impressed. Mr. Pinzone asked Mrs. Sass to send them a thank you note. There were four additional notes sent anonymously with complaints that the rents are going up and services are less.

The Committee Reports were postponed due to the number of residents in attendance and their concerns about liability insurance. This was done with the exception of the Service Committee report of their meeting yesterday with Camille, Steve and the Regional Manager. Mr. Welch chaired the meeting in Mrs. Sass’s absence. The new Maintenance Manager was introduced and they have a new letter going out to Park residents regarding the maintenance on their homes especially those who go north in the summer and do not have anyone caring for their properties. They have contracted with Ameri -Pride to do the maintenance work if nothing is done within a certain time period. The homeowner will be billed for this work. The Spa at Indies Hall is nearing completion within the next few weeks.

With no objection by the Board the meeting went to the New Business portion of the Agenda.

Mr. Pinzone stated that on Dec.12th the first letter to the residents relative to the 2012 membership drive will be distributed. This will include a membership form to mail or drop off at Carl Kruse’s house. The weekend before January 9th, a second reminder letter to solicit residents for dues will be distributed before the January 9 membership drive. Mr. Curran put forth a list of assignments of solicitors to each Board member. All solicitors must be contacted and Mr. Curran must be informed no later than the 19th of December with their updated list of solicitors. There will be a solicitors meeting on January 9th at the Bay House to distribute the envelopes for dues collection. All work must be completed by January 23rd.

It was stated by Mr. Pinzone that All Clubs Day will be January 11th and the table for BIHOA must be manned. The Membership Committee will be responsible for the BIHOA table.

Mr. Pinzone then asked the Board to further amend the agenda and add as No. 1 – Liability Insurance. Mr. Pinzone briefly gave some background of a meeting held by the Networking for Progress Group. ELS representatives and some 200 residents of ELS owned parks were present at the meeting. The meeting which was planned by 2 women who took two hours for their questions. The audience was asked to submit questions on paper and one of the questions came up regarding liability insurance. Brad Nelson, Senior Vice President of ELS said “we have liability insurance to protect the residents of the park for those clubs and activities that we sanction in the park but our liability does not cover non residents. If you have clubs and activities that involve non residents- you may be held liable for any occurrences that result in injury.” Mr. Pinzone then gave some examples of policies that possibly could be purchased by clubs. He gave some examples of what could occur which would cause a club to be sued for injury.

Mr. Pinzone stated that he sought the advice of BIHOA’s attorney. The attorney specifically said a liability insurance policy that is a comprehensive liability insurance policy will cover residents and non residents and individual and collective individuals. If the HOA purchases a Comprehensive Liability policy it would be individually named as additional insurers and the HOA will be the primary carrier. On advice of BIHOA attorney we have no legal right to purchase such a policy covering clubs and their activities. He also said if Coordinating Council wanted to be the entity who took out the policy for the Clubs they would be responsible and would be the first line of responsibility. He further stated that the HOA is not legally responsible to sanction clubs and activities and it is not within the scope of their responsibilities under statue. There is nothing in the statue that allows the HOA to sanction clubs and activities.

He further brought up BIPS and Chorus as examples and people from the outside who participate in shows and sell tickets to outsiders. He did point out that ELS says “we are not forcing you to buy insurance”. Carl Kruse called our insurance agent and got a quote from the Key Insurance agency, owner Eric Fogo, 460-1207. Event insurance policy can be obtained for the year. Cost $250.00 to $400.00. It is our understanding that no one in the Park, including Camille and Steve knew about this. ELS have never made it clear to us or to management about this. Mr. Pinzone then said he would recommend that you should consider going after ELS for negligence in not informing their parks about this if something were to happen. A question from several that Hal Bates proposed of Tony was where house guests come into play. An example of injury in your home (covered by your homeowners policy) BUT an injury outside your home in the park probably would be covered under ELS. Another example was a loose hand rail outside Indies Hall and a non resident falling trying to use the loose rail. The insurance agent said HOA would probably be sued but ELS would be held negligent for lack of maintenance.

Pat Weis said she had been told that sidewalks are provided but if you decide to walk through the grass and trip on a wire or stone that would not be covered by ELS insurance. She also said when she was injured taking mail to the office when she worked for ELS, it did not come under Workman’s Comp and she was not paid by ELS. She stated that she still has some effects from that fall. She stated that she should have sued ELS.

Carl Kruse said he has been told that ELS may be self insured.

Mr. Pinzone said that if any club chose to buy insurance the policy must include ELS as additional insurers.

Joan Sass questioned the clubs that may be more liable for injury, i.e. woodworking, stained glass, etc. she heard they have been required to sign a disclaimer document. Mr. Prosser said he could attest to the disclaimer document that dismisses all rights to sue ELS in the event of an injury that the Woodcarvers Club members were asked to sign.

Mr. Pinzone then said he would never sign a disclaimer giving up his rights. He was advised years ago when he was employed in a School system when he asked students for such waiver when going on field trips. He was advised that you cannot sign any waiver giving up your rights.

Audience questions: Mr. Prosser spoke about conversation he had with Colony Cove – their HOA covers all events, they have no Activities Director. In the case of BIPS- they could afford to buy the insurance BUT it would hamper next year’s production expenses. He further said that the small clubs that have no income at all, what do they do? He expressed concern that a fear factor could take effect and begin to disband those clubs who cannot buy insurance. He further stated that those clubs have no officers and no income.

Mr. Pinzone mentioned that in the past, the Bocce club after an executive meeting decided not to allow a former resident of BI to continue to be a member after they moved from the Park. It is up to the particular club and circumstances to decide if outsiders should participate. He said he does not know the answers to all of the questions. Mr. Pinzone stated that he is recommending to this Board to spend $726.00 for a comprehensive liability policy to protect the Board and the individual members of the Board. The attorney said that by statue

Board members are protected when they are functioning within the realm of their responsibility.

The attorney advised that they should have Liability Insurance.

Gerri Pare questioned her Movie Night and if she and the residents attending would be covered in the event of any emergency? Mr. Pinzone said that if ELS set up the chairs and the screen etc. it would be covered as an ELS function as residents of this park.

Hal Bates said according to Sheilla if you have overnight guests they would be covered by ELS.

A question was asked how much would a blanket policy cost?

The Board has no legal right to sanction clubs and activities

by statue therefore Mr. Pinzone said he could not answer the question. Another question was asked about clubs sponsoring activities off Park premises, i.e. the Jetty picnics--what is the legal responsibility

in that case? What about alcohol at the function? If you are sponsoring an activity with BYOB or supplying it are you are responsible for that activity and set yourself up for a suit if anything happens. Mr. Pinzone said he was informed that the insurance policy which you apply for does not include any alcohol for a policy up to $400.00 or an event policy. The price goes up with alcohol. He stated again ELS says “we are not saying you must carry insurance”. They are putting you on notice regarding the Clubs vulnerability to be sued.

Joan Sass said it is not clear to her: if it is a club function and we bring our own liquor,- would we have to have a policy to cover alcohol even though there only park residents in attendance. Mr. Pinzone said you would be liable without a policy.

Mr. Pinzone called the meeting back to order. He said he gave them as much information as possible. He gave the name of a contact and number of the Key Insurance Agency for the clubs to call. He repeated: Eric Fogo, 460-1207 Key Insurance. E Mail: . The agency is located in Englewood. Dick Welch said at the service committee meeting Camille and Steve said they needed to get things cleared up in their minds. Sheila was asked to put in the Bay Indian a clarification of ELS’s policy on liability insurance.

Mr. Pinzone said that if there were no further questions, he would close this section of the meeting and proceed with our regular agenda. He suggested a motion be made for the HOA to purchase a Comprehensive Liability policy at a cost of approx. 726.00. It would cover the BIHOA Inc. and also individual members of the Board. Hank Curran made a motion approving the recommendation that HOA purchase this policy, Mrs. Sass seconded. The motion was carried.

Hal Bates before leaving, thanked the Board, especially Mr. Pinzone for all his efforts and information.

Mr. Pinzone asked if the Board would waive all of the committee reports. He added one committee assignment to Hank Curran to continue to attend the Condo’s meetings to keep abreast.

Pat Weis was asked about the decals for the homes of members.

She was given some suggestions as to where to go.

Mr. Pinzone asked Hank to contact the Membership committee to cover the table at the All Clubs Day.

Residents: Michael Valletta of 915 Nogoya West said he spoke to one of the Board members about a neighbor that walks his dogs and lets them do their duty near his unit. This person claims he has the right because he was given special permission.

At this point the person in question, Tony LaSpada of 904 Posadas

Avenue West introduced himself as the person with the special permission. A back and forth conversation between the men took place and Mr. Pinzone cut them off explaining that Mr. Valletta should pick up a complaint form in the office—fill out two copies, one to the office and one to Joan Sass.

A resident spoke of people hanging beach towels all over their

lot next to her and something should be done. She was also advised to go to the office and fill out a complaint form in duplicate and get a copy to Joan Sass.

At this point, Hank Curran made a motion to adjourn the Public Session to go into Executive Session. Pat Weis seconded the motion. The motion was carried. The meeting was adjourned at 3:10 p.m.

The Public Session resumed at 4:23 p.m.

A motion was made by Pat Weis, seconded by Dick Welch to appoint Mr. Pinzone to serve as BIHOA representative on the Sarasota County Office of Housing and Community Development and Affordable Housing Advisory Committee. Mr. Curran will serve as an alternate. The motion was carried.