The Board of Directors of Summerhouse Beach and Racquet Club Condominium Association, Inc

MINUTES OF BUSINESS MEETING OF BOARD OF DIRECTORS OF

SUMMERHOUSEBEACH & RACQUET CLUB

CONDOMINIUM ASSOCIATION, INC.

April 17, 2010

The Board of Directors of Summerhouse Beach and Racquet Club Condominium Association, Inc., held its regular meeting on Saturday, April 17, at the offices of the Association. President Bob Mericle called the meeting to order at 9:00 a.m. Secretary Wendy Crothers took roll call and declared a quorum.

Directors present were: from Phase I, Maurice Brown, and Tom Freeman; from Phase II, Garrett

Beck, Dick Harmon, and Anne Zickus; from Phase III, Wendy Crothers, and Bob Ford; from Phase IV, Bob Mericle, Ed Presson, and Bob Wheeler. Absent, from Phase III, was Harry Ballance.

Anne Zickus made a motion to accept the minutes of the last Board meeting. Seconded by Dick

Harmon. All approved.

President’s Report: Bob Mericle commented on Keith Jones’ contract which is set for end of

month. All reports on his job have been favorable and Keith has met the criterion of being a

“hands on” General Manager. Wendy Crothers was appointed to the election committee. Mr.

Mericle reminded everyone that he would appreciate receiving any items of interest that

could go in the newsletter. Bob Ford requested that the Board members be reminded by e-mail

of events to come.

Vice-President: No report.

Treasurer’s Report: Don Coker could not attend the meeting so Bob Wheeler presented the

report which basically states that we are running on budget. Bob Wheeler made a motion to

accept the report. Seconded by Tom Freeman. All approved.

Secretary: No report.

General Manager’s Report: Keith Jones said that the Phase IV walkover has been refurbished and the in-house maintenance staff will move on to the other walkovers which should be done

by the end of the year.  Lawns are being resodded and should look great in about a month’s

time. WIFI antennas and routers have all been installed on the oceanfront and the installer will make adjustments when necessary. The check for $12,800 was received from Comcast, which will install new digital boxes in May. Over the past couple of months, we have had serious problems with leaks. Most seem to be from sliding doors and front doors, and most of thoseproblems have been solved.

Rental Report: Dianna Domitz reported that we have been advertising for summer rentals.

We have placed coupons in Ocala magazine and Gainesville Today for $100 off on any reservation, the costs of which will be split between the Association and the homeowner. We will begin accepting three-night rentals starting June 1 and continue the practice through the middle of August.

Landscape Report: Since Landscape Chairman Gary Vaneman was not present, Keith Jones reported in his place that 40 bushes will be coming in next week for planting.

Architectural Committee: Bob Mericle said that we will be going ahead with the screen door

project. Garrett Beck said he has been in contact with a company called Prestige Columns

regarding a new type of material for screen doors. But, it was agreed, more information is needed as to how we should proceed with making Association-conforming screen doors available.

Insurance Committee: Chairman Ed Presson had no report at this time. But Bob Mericle brought up the question of how we should continue helping to providehealth insurance for the Summerhouse staff. Norm Breen volunteered to spearhead a committee to acquireinput from Thompson Baker Agency on the ways in which Obamacare will affect our coverage.

Long term Planning and Finance Committee: Bob Mericle reported that the Committee

recommended the following action: (a) The Board of Directors should select an engineering

firm from the three companies that Keith Jones researched, each of which has submitted bids, and begin negotiations as soon as possible for the scope of the work. (b) The scope of the project

should include a comprehensive survey ofall the buildings and a written request from the chosen engineering firm to suggest maintenance procedures for lengthening the life of the reconstruction. Bob Wheeler made a motion to accept the recommendation of the Finance Committee. Seconded by Bob Ford. All approved except Anne Zickus. After much discussion about the relative qualities of the three engineering firms, a poll was taken of the five committee members as to their individual choices. Bob Mericle, Dick Harmon, Maurice Shashuma, and Keith Jones favored Atlantic Engineering in Jacksonville; Garrett Beck favored LP Engineering out of Ormond Beach. Tom Freeman made a motion to accept the bid of Atlantic Engineering Services. Seconded by Bob Wheeler. All approved except Anne Zickus and Garrett Beck. Bob Wheeler made a motion that the cost for the engineering firm should be paid out of the painting and waterproofing part of our reserve structure. Seconded by Bob Ford. All approved.

New Business: At present, Summerhouse does not charge a transfer/administration fee as do

most other condominiums. Since this is a commonly applied source of revenue, Keith Jones suggested the Board implement it at Summerhouse. A motion was made by Tom Freeman to charge a $100 fee for every condo unit that sells and changes ownership at Summerhouse. This transfer fee would apply at closing and would begin immediately. Seconded by Bob Ford. Seven agreed; two opposed. Bob Mericle mentioned that the banning of vehicles from the beach south of the Matanzas ramp might cause a problem for Summerhouse this summer. Keith Jones said he would like to hire a security person from 10 a.m. to 6p.m.daily during peak summer season to patrol the beach walkways and show a physical presence from pool to pool. This security guard would be in constant contact with the office and be available for any emergency. The cost, Mr. Jones estimated, would be roughly $600 a week. Bob Ford made a motion to empower the General Manager to take whatever action he deems appropriate,at a cost he considers appropriate, to forestall any problems caused by the crowding of the beach near Summerhouse, and furthermore to ask him to report back to the Board at our next meeting about the actions he has taken and whether he thinks they have been sufficient or whether more action is required to secure the property. Seconded by Garrett Beck. All approved.

Action Items: We now have a roof repair log, so we can keep track of ongoing roof work.

Communications: Keith Jones and Bob Mericle received e-mails from Carl Carothers of unit 246 complaining about leaks in his kitchen over a three year period. A professional inspection company was brought in to check the water intrusion. It was found that the two townhouses over unit 246 and the two townhouses over unit 249 had significant leaks in their front doors and their sliding glass doors. The owners were contacted and agreed to make the necessary repairs. Bob Mericle received a letter from Barry Henry, a representative of the owners of unit 137 disputing the insurance company’s decision to deny their claim and requesting a further review of the assessment of water intrusion during 2008 and 2009 which the Association failed to evaluate.The insurance company stood by their decision to deny the claim.Anne Zickus had raised the issue of reports of Chinese drywall being used in many homes in the South. In response, Keith Jones contacted Belfor(the corporation that performed restoration of Summerhouse buildings after the hurricanes of 2004), which sent a form from the drywall company attesting that all the drywall used in the Summerhouse reconstruction was manufactured in the United States.

The next Board meeting will be held on June 19, 2010, at 9:00a.m.

The meeting adjourned at 11:25a.m.

Respectfully submitted,

Wendy Crothers