Seminole Lakes Property Owners Association
Board of Directors Meeting
January 10, 2011
Minutes

Prior to the meeting, Fire Chief Robert Hancock, accompanied by Ray Briggs and Jennifer Molinar, gave a presentation focusing on the flood elevation markers.

Call to Order: Bob Toth called the meeting to order at 10:45 AM, at the Burnt Store Presbyterian Church.

Establish a Quorum: A quorum was established with the following present: Bob Toth, Fred Eyrich, Linda Huber, Al DiSessa, and Bill Murphy.

Also present, was Sherry Danko, from Star Hospitality Management.

Proof of Notice: The meeting notice was distributed and posted as per the Association Bylaws and Florida Statute 720.

Disposal of Minutes: With no additions or corrections, the November 8, 2010 minutes were considered accepted.

President’s Report: Bob Toth thanked everyone who attended the meeting and encouraged owners to e-mail their thoughts regarding the flood elevation markers to the Fire Chief.

Treasurer’s Report: Al DiSessa reported that November closed with a surplus of $13,354.68 and December closed with a deficit of $1,134.34. Al DiSessa further reported the overall financial position continues to be very strong. The pre-audit surplus for 12 months totals $56,179.53. Al DiSessa moved, and Bill Murphy seconded to transfer the operating surplus into the reserve funds. Discussion followed regarding the pros and cons of this proposed action. Al DiSessa preferred not having the monthly fee increase and decrease each year. Linda Huber did not agree the fee would have to increase automatically following a decrease. Bill Murphy agreed with Al DiSessa and felt the looming inflation would cause a significant increase in replacement costs in the reserve items. Bob Toth stated that the reserves were properly funded and we are following the Florida Statue requirements for annual funding, which is reflected in this year’s budget. One owner asked if the Reserves were properly funded and Al DiSessa said yes they were. Another resident stated that if the Reserves were properly funded at this time, they would prefer to have a monthly reduction now and the audience agreed with applause. The vote was called, and the motion failed 2 "yes" votes to 3 "no" votes (Linda Huber, Bob Toth, and Fred Eyrich).

Committee Reports:

Election: June Toth reported two positions were up for election as the terms for Bob Toth and Fed Eyrich were expiring. Owners were encouraged to consider running for the Board. Please contact Galen Price. The first notice would be mailed on January 13. The cut-off to submit your intent is February 2^nd. The candidates’ forum will be held February 14^th at 9 am immediately preceding the Board meeting.

Creative Arts: Gayle Morris noted the holiday decorations were put up and taken down for the holidays. They were enjoyed by all. The volunteers were thanked. On March 27^th, there is a trip to the Broadway Palm Theater to see the Unsinkable Molly Brown at a cost of $45. Call Joy Scott at 637-1967 for reservations.

Activities: Joyce Kraut reported on the Holiday Party which was a success and the Bloody Mary Party held on New Year’s Day. Bingo will be held on Tuesdays at 4 PM beginning January 4^th at poolside. Upcoming events include a Cinco de Mayo Party. Volunteers are needed to help plan fun events for the community.

Management Report: Sherry Danko reported on the current accounts receivable (11 owners owe for more than one month and 54 owners owe for January). There were 5 AVOs and 7 work orders submitted to Greenscapes. They returned 8 responses which were forwarded to the applicable owners. Sherry Danko also gave an overview of violation letters mailed since the November Board meeting (33 letters) most of which were for dirty roofs, dirty mailboxes and/or mailbox posts, lights and/or light posts, and homes in need of power washing or painting.

Burnt Store Road: Bob Toth reported there may be a possible major change in the scope of the project as the railroad company and the County were in a dispute regarding the relocation of the tracks at the intersection of Route 41 and Burnt Store Road. A new wire fence was installed on Burnt Store Road near the 18^th tee where the old fence was removed. Burnt Store Road (from Acline Road to Highway 41) is still scheduled to be closed as of April 2011. Bob Toth reported that he attended some of the weekly update meetings to stay current with the project. He will report further at the February meeting.

Tree Pruning Update: Bob Toth announced that 12 oak trees at the front entrance and one near the pool were pruned by Greenscapes to meet the City request. Two oaks near Acline and 18 palms behind Arrowhead were also trimmed in response to members’ request. As the negotiated cost exceeded $500, Bob Toth moved, and Linda Huber seconded to approve $624 for the additional oak tree and palm trimming. The motion carried.

Architectural Review: Fred Eyrich presented the following:

26234 Stillwater: request approval to paint exterior with same color. Fred Eyrich gave preliminary verbal approval.

26071 Seminole Lakes Blvd: request approval to paint driveway brick on white. Fred Eyrich gave preliminary verbal approval.

26018 Seminole Lakes Blvd: request approval for exterior paint colors-brown with beige trim. Fred Eyrich gave preliminary verbal approval.

26430 Feathersound: request approval to paint exterior with same color. Fred Eyrich gave preliminary verbal approval.

26025 Seminole Lakes Blvd: request approval for new exterior paint color and same trim color. Fred Eyrich gave preliminary verbal approval.

26448 Feathersound: request for approval to stamp concrete design. Bob Toth gave preliminary verbal approval. Caution that neither the landscape company nor the POA will be responsible for chipping.

10209 Windsong: request approval for paint colors to paint exterior. Bill Murphy gave prior approval.

26077 Seminole Lakes Blvd: request approval to install a satellite dish. Prior approval was given

26077 Seminole Lakes Blvd: request approval to paint the driveway the same color.

26310 Stillwater: request approval to replace front door.

26331 Stillwater: request approval for paint colors. Bob Toth gave preliminary approval.

By general consensus, all ARB requests were approved.

Front Entrance Lights: Bob Toth advised that annually, the POA does a complete change-out of the lamps at the front entrance and also replaces defective ballasts, if any. This was accomplished in late December. Bob Toth moved, and Bill Murphy seconded to approve the $585.30 expenditure for the lamp change-out. The motion carried.

Foreclosures: In response to resident questions, Bob Toth prepared an overview of the foreclosures within the POA. In 2010, nine homes were in the bank foreclosure process. Five were finalized. Four of these are owned by the banks and are on the market, and one additional home has already been sold. In 2010, the homes in foreclosure represented 2%, and now represent 1%. This is much less than other communities; some of which range as high as 15%. In 2010, the POA collected approximately $8,000 in back assessments, interest, and attorney fees. Additional fees are expected from three of the banks owning the homes. The statute limits the first mortgage holder’s exposure to the lesser of 1% of the mortgage or 12 months of fees. The POA currently has four homes in the foreclosure process, three of which are occupied by the owners. The attorney has sent letters to the bank attorneys telling them to move forward with the foreclosure or we will file for case management with the courts. With case management, the judge may develop a schedule to complete the foreclosure. City of Punta Gorda now requires banks and mortgage companies to register with the City when they foreclose on a property. The expectation is that the bank will subsequently maintain the foreclosed property or be in violation of the City ordinances. The Board will be reviewing some of the specific cases to determine if the POA should pursue additional collection action.  Foreclosure Report

Mailbox Replacement: Linda Huber reported that one of the frequent violations involves the mailboxes and mailbox posts. Due to the age of the property, many are in poor condition. Linda Huber asked the Board to consider a community-wide replacement project. A group discount could be obtained. It would also create continuity with mailbox replacements as they age again. Bill Murphy thought this was a worthwhile proposal but suggested waiting as the Post Office is considering changes, one of which may be a cluster mailbox for all owners at the entrance. Fred Eyrich felt this was an owner responsibility, and suggested a stronger letter to owners with mailboxes in bad condition. Bob Toth stated that there was nothing in our governing documents that would allow us spending money on repairs to resident’s properties. An article in the Grapevine was also suggested.

Investment Proposal: Al DiSessa gave an overview of the various CDs and money market accounts housing the reserve funds in four different banks. Interest income has dropped significantly in recent years due to the drop in interest rates. Al DiSessa recommended a new approach to garner the best interest rates possible and minimize the need to run from bank to bank to maintain account levels under the FDIC limits. Al DiSessa moved, and Bill Murphy seconded to open an account at Merrill Lynch, start moving reserve monies into FDIC insured Merrill Lynch accounts, and establish an investment committee to develop a written investment policy to recommend to the Board. There was considerable discussion. Comments included the following: suggest modification until investment committee is in place and has made recommendations; what is Al DiSessa’s relationship with Merrill Lynch (he has a personal account there); check with other firms in the area; look at terms and conditions of the agreement; etc. Bill Murphy suggested amending the proposed motion to first establish the strategic investment committee to bring information to the Board. Al DiSessa modified his motion as follows: move to establish an investment committee made up of residents with some experience in financial investments and the Treasurer (there was discussion on the size but ultimately no limit was specified as part of the motion), to research various local investment firms, to help formulate an investment policy of where and how to invest the reserve monies, and to report back to the Board.　 Bill seconded the motion, and the motion carried.

Next Meeting: The next Board meeting will be February 14th at 10:00 AM preceded by the candidates’ forum at 9:00 AM.

Comments for Future Discussion: An owner suggested the Grapevine be e-mailed to save money. Linda Huber responded that approximately 115 residents receive the Grapevine by email but the majority remains in hard copy delivered to the tubes. In 2010, advertising revenues more than covered the printing costs.

Adjournment: With no further business to come before the Board, the meeting adjourned at 12.07 AM

Submitted by,

Sherry Danko

For Linda Huber, Secretary