In May, the Developer approached the board with an offer to rent the pool to the POA. Before making that offer he furnished some information.

A party that was interested in purchasing the golf course, including pool and clubhouse, never made a firm offer. Two additional parties have shown an interest in the golf course, including pool and clubhouse. The Developer is not interested in selling the pool to the POA or any other parties, except as a complete package, which includes the golf course and clubhouse.

The Developer has proposed renting the pool to the POA. After a number of discussions a rental fee of $4000 per month would be an amount agreeable to the Developer and the Board. His operating costs would average out to $2800 per month. These are higher operating costs then at the present as the pool would be heated to a higher temperature and for longer periods. Maintenance of the pool area, Tiki bar and exercise room would be improved. His operating costs do not include major component replacements which need to be replaced every few years. .

The rental terms would include the following:

All Seminole Lakes residents and their guests will have access to the pool from 7am to dusk. The Tiki Bar and exercise room from 7am to10 pm.

Outside memberships will be excluded.

Food and drinks cannot be sold from the Tiki Bar but residents can bring their own beverages and food. Group gatherings may be held and tickets can be sold for entertainment and food .Not being able to sell alcoholic beverages directly to residents should not be considered a problem as it would be difficult and expensive for the POA to obtain a liquor license. Inventorying alcoholic beverages would also pose a problem.

Pool water will be heated to 82 degrees except when nighttime temperatures fall below 60 degrees. When that happens pool heaters will be turned off. (This will be explained later)

All pool furniture will be maintained. The pool area, exercise room, Tiki Bar, and restrooms will be cleaned on a regular basis.

The Developer carries liability insurance. The POA would have to add the swimming pool rental to our existing liability insurance policy. This is common and should not be a problem. Our insurance committee will be requested to investigate the costs. Normal costs for pool liability are under $1000 annually.

The initial rental agreement will be for a 6 month period subject to cancellation by the POA if the terms are not met. The effective date depends on how soon the developer can meet our terms for additional tables and chairs, Tiki Bar equipment and repairs to bathrooms and Tiki Bar.

The agreement will provide an option to enter into a one-year agreement period without a higher cost.

Cars and golf carts will be able to use the restaurant parking lot and some spaces will be reserved for the POA use. During the height of the golf season and when the restaurant is open, the golfers and restaurant users will have the priority for parking. This is not considered a problem as the parking lot is rarely filled up.

The existing electric heat pumps are designed to take heat from the surrounding air and deposit it into the pool water. They cannot perform this function when nighttime temperatures fall below 60 degrees. In the past, the developer shut off the heaters for this reason. Somehow, this was not communicated to the residents. If the initial rental period looks like it will be successful, then a study will be conducted to determine the costs to switch to propane heaters. This type of heater can heat the water in the winter months to 80 degrees. We believe that with the cost of propane today, this would be very expensive.

However we plan to explore this option.

The Board believes renting the pool is in the best interest of the community. This will be a place to have social gatherings. Residents can take their grandkids and friends there without charge and not have to worry about the pool police. Many more will join water aerobics classes and use the exercise room.

For those residents that presently do not use the pool or exercise room, you will reap the physical benefits of being active by starting now..

If an agreement can be reached with all our terms and conditions, the Board will establish a pool committee to write rules, take care of private party reservations, monitor developer’s performance and receive all complaints and recommendations. They will also be in a position to recommend to the POA how the Board should proceed before the initial agreement expires.

The initial five months of the agreement will be financed by using money from the current budget. There will not be any assessment to the residents.

If the Developer does not agree to our terms including additional pool deck furniture, Tiki Bar equipment, cleaning of bricks, then we will not have an agreement. At this stage the Developer has verbally and e-mailed agreed and al to these things.

Our plans are to make the agreement effective August 01, 2006 thru January 31, 2007. This will depend if the Developer will do the repairs and purchase additional equipment and furniture by August 01, 2006.

A motion will be made to enter into this rental agreement and before a vote is taken, residents can give their input.

July 10, 2006