Board Members Present: Susan King, Patti Place, Chris Cook Presidio Realty, Inc.: J. R. Wear, Sheila Ullmann The meeting of the Board of Directors of Key Royal Condominium Association, Inc. was called to order at 6 pm by President, Susan King. Susan King introduced the Board Members and Presidio Realty representatives to the homeowners present. Susan King thanked the maintenance crew for cleaning up after Hurricane Wilma and Sheila Ullmann for a great job today. Sheila, Susan and Danny Carranza walked the property today and Sheila took pictures of the damages from Hurricane Wilma. She also explained that the meeting tonight was just for the Budget for 2006. A motion to accept the minutes of the September 28" meeting was made by Patti Place and seconded by Chris Cook. Motion passed. J. R. Wear announced that there would be no increase in maintenance fees for 2006. The Board and Presidio had two finance meetings before this one, The budget was reviewed extensively. The operating budget is our best estimate. Main concerns were insurance with an 8% increase before Hurricane Wilma, and the trash removal, which was unbudgeted in the original budget. The points of concern were Valet Waste, and dumpster rental and pick up security services and water/sewer were under budgeted on the original budget. J. R. Wear explained that there was a large savings on the management fees. J. R. Wear asked for the Board's approval. Susan King asked for a mation to accept the budget for 2006. Patti Place made a motion to accept the 2006 budget, seconded by Chris Cook. Motion was passed. ‘Susan King explained to the homeowners present exactly what is covered by the quarterly maintenance assessment. She informed everyone of the money being saved by the work done by Danny Carranza. J. R. Wear explained about the reserves. On November 15" there will be special meeting for passing the reserves. The State of Florida requires the homeowners vote to have reserves funded or not. The items would be for pavement resurfacing, roof replacement, painting/exterior walls, covered carport spaces. He explained what a special assessment is. Mailing on November 1* will have a copy of the budget statingthere is no increase. If the reserves were funded, the maintenance assessment would be $617.17 rather than $545.79, and increase of $71.38 per quarter. ‘Susan King asked if there were any questions. Charlie Miller asked if the covered carport spaces were common property. In the documents it states that the unsold carports become a common element. Patti Place stated that anyone can park in the carports that are not sold; first come, first serve on non reserved spots. Vinnie Zasa complained that someone was always parking in his reserved spot. He suggested that the reserved spots have “reserved” painted on them in large yellow letters. He complimented Danny and Gerarldo for the excellent work they do and for the clean up after the hurricane. Patti Place was pleased that we came through so well after seeing other communities in Naples. Patti thanked J. R. Wear and Steve Rodeiro for doing such a great job with the budget. The meeting was adjourned at 6:25pm. Respectfully submitted by, bebe UMbaltnn— Sheila Ullmann Office Administrator Key Royal Condominium Association, Inc.