Minutes of Port Royale Annual Meeting – November 2006

1. Jim Alspaugh reviewed some budget highlights.

A. Budgeted $5,000 in driveway repairs for 2007.

B. Mentioned no dues increase for 2 years and no increase needed for 2007.

C. Budgeted $15,000 for building repairs in 2007 – don’t know if it will be needed, but we need to budget something for repairs every year.

D. The budget was approved by the residents.

E. Jim indicated the reserve account being about $39,915.48. The intention of the reserve account is for future roof repairs or any major repairs needed in the future. We continue to add to the reserve on a regular basis to ensure we have adequate funds for future renovations or repairs.

2. Elections were held and Sheila Benson and Bill Blair were elected to 2 year terms.

A. The Board and residents thanked Jim Alspaugh for his service as President as his term now comes to an end.

B. Also Charlie Roth was thanked for his service as his two year term now comes to and end.

3. The new president took office right after the meeting. Joe Krashin is President for the coming term, which runs through the Annual meeting in 2007.

4. Jim reviewed delinquency procedure. Basically, any resident delinquent after one quarter will be sent a late statement monthly until paid. 30 day after 2^nd quarter is due a notice to pay indicating that foreclosure could take place if invoice is not paid is sent to the homeowner. After 3 quarters of non payment, we turn it over to our lawyers, and all legal fees are charged to the homeowner.

5. Jim reviewed the Leech delinquency and explained that we are undertaking foreclosure proceedings and a sheriff’s sale will take place – we didn’t have a date on the sheriff’s auction.

6. Jim reviewed sewer treatment issue. The developer constructed the current septic system too small for our complex. We are undertaking actions in an attempt to force the developer, at his expense, to upgrade the septic system. The current septic system is rated for about 7,000 gallons a day. When the additional 10 units are built at the top of the hill the system needs to be rated for about 22,000 gallons a day. The Department of Natural Resources (DNR) has approved the engineering drawings from the developer for an upgrade to the system. Sheila Benson helped follow-up with the DNR who indicated that if the developer starts building the additional 10 units without doing the sewer upgrade then the DNR will issue an order to stop work. It was mentioned that we need to stay on top of the developer so that we can get the work done at the developer’s expense.

7. Open discussion – we discussed the water damage in Smith’s condo and everyone was puzzled as to what caused it. Larry Benson was going to keep an eye on it and see if he could figure out what was wrong.

8. The question was asked if the board had the condo insurance reviewed annually. We are in the process of getting bids.

9. There has been a concern about dock 4 not having a railing along the stairs. Jim explained that we are getting bids for a railing on dock 4.

10. We discussed the possibility of changing the 2007 annual meeting to September. The reason this is being considered is to ensure better attendance.