Key Royal Condominium Association, Inc.

Special Meeting of the Board of Directors

December 8, 2009

Minutes of the Special Meeting of the Board of Directors

Date of Meeting: December 8, 2009

Time of Meeting: 7:00 P.M.
Place of Meeting: Key Royal Clubhouse, 8204 Key Royal Lane, Naples, FL.
34119

Call to Order

Vice President Sharon Stites called the meeting to order at 7:00 P.M.

Roll Call

Vice President Sharon Stites and Secretary/Treasurer Joseph Kalinowski were

Present. President Ken Stephens was out-of-state at this time, but present via
telephone.

Also present were Susan L. Bedyan and Steve Rodeiro; Property Managers.

Introduction

Sharon began the meeting by clarifying the purpose of the meeting; the
presentation of the 2010 budget.

Steve Rodeiro certified the mailing of the notice and budget was completed 14
days prior to the meeting.

Sharon opened the floor to any questions that anyone may have.

Secretary/Treasurer Joe Kalinowski presented his “report”.

Sharon re-addressed the line item questions mentioned in Joe’s “report” for
personnel expenses and custodial expenses, stating that the figures have been
covered over and over and over again that those figures reflect the total costs of
clerical and custodial, including insurance and taxes.

Steve Rodeiro provided further clarification about the inclusion of base salary,
Fica, taxes, workman’s compensation, health insurance (where applicable) as a
whole comprised within the Personnel & Maintenance salary figures.

Steve also clarified the past and current hourly rates paid for maintenance
personnel.

A discussion regarding line items and contracts ensued between the Board and
Presidio.

Ken addressed some items brought up in Joe’s report; clarifying some of them.

Sharon informed the audience that a lot of research, preparation and work was put
into the budget and agrees with clarifying the salaries of personnel.

Questions from Owners

Sharon then opened the floor to any residents who had questions.

John Foiles agreed with Joe’s statement about breaking down the salary
information for personnel to reflect salary and the separate items included.

Sharon stated that there were still some vendors whose contracts have not been
decided on as of yet and that final decisions regarding security or landscaping.

Steve added that the budget is just a guideline, there is no law that says the Board
can’t go above the proposed amounts as long as there is are reasonable expenses
that need to be addressed. The budget can also be revised midway through the
year; especially with the condition of the economy.

Susan King asked to address the delinquencies and what John Goede is doing to
collect from the delinquent units.

Sharon adds that we are in very good shape as compared to other Associations in
this economy.
Steve explained how John handles collections on delinquent units and how he is
able to collect almost 100% when the banks only have to pay 6 months or 1% of
any equity and John has been going into the foreclosure lawsuits to check for
errors and then contacts the banks and threatens to sue do to the errors.

John has been very successful and does not charge us any money up front.

Steve also mentions that we are not out of the woods, but have stabilized
financially.

Al LaFemina asks about the foreclosure proceeding and the time frame involved.

Steve explains that once a unit becomes delinquent for one quarter, the file is sent
to John to initiate the collection procedure, by forwarding a letter to explain that
we are filing a lien by supplying a 30 day notice.

Linda Huffman asked about what the owners are doing to prevent lower rent
people from renting in the Association which in turn are bringing the values down.

Sharon explains that every incoming renter is interviewed by the Board and every
document is examined prior to approval of residency being issued.

Sharon and Steve also added that all owners must be current with their assessment
and water bill payments prior to any applications being submitted for rental
consideration and that there have been several tenants evicted from the property
due to repeated violations of the Condominium documents, the most recent being
yesterday.

Several conversations regarding collections, delinquencies and foreclosures began

between the Board, Management and audience at this point.

Motion For Adoption of Budget

Ken makes a Motion for Adoption of the Budget for 2010 as presented.
Sharon seconded the Motion.
Joe opposes.

Vote 2:1
Motion carried.
Adjournment

Sharon makes a Motion to adjourn the meeting.

Ken seconded the Motion.

The meeting was adjourned at 7:41 P.M.

Board Meetings are open to all Key Royal Residents

Participation is reserved to Owners only.