MINUTES FROM HOA BOARD MEETING JULY 25,2009 All three board members were present at the meeting: Jaana Ponzio,Jerry Petty and Dan Dimovski The May 29,2009 HOA Board meeting minutes were reviewed and approved. The Financial status of Las Palmas as of July 2009 : Balance in Operating Account: $ 84,270.63 Balance in Capital Reserve Account: $129,262.96 Balance in Operating Reserve Account: $ 25,354.07 2009 (Jan-June)Expenses- Actual: $314,958.00 Budgeted: $370,119.00 Savings: $55,161.00 Impact Fee Collected (Jan-June) : $31,210.90 Delinquent Fees As of July,09: $71,418.22 (SBPH Group=$36,346.56 + Villas= $22,296.75 + Condos = $12,774.91 Note: Over half of the Delinquent accounts come from SBPH Group: Bo-701, 702, 703, Villa 16 & Villa 1 The HOA has an agreement with this group and the Rental Company to divert a substantial percentage of rental income towards outstanding HOA fee balance The Board reviewed the status of the Las Palmas cost saving program for first six months of 2009. Our Onsite Management report by Francisco has shown very positive results. To date, we have been able to save $55,161.00 on very aggressive cost saving program implemented by the Board. Kudos to Francisco and his team. HOA staffing numbers decreased from 25 as of January 1,09 to 20 employees through attrition and still continuing to meet operational needs. Negotiating a savings over 40% by switching Las Palmas Insurance Policy. Negotiating savings on Pool Chemicals, by Contacting Mexico National wholesaler in Monterrey City which provided better prices. Negotiating saving on cleaning supplies by Contacting Major Wholesaler in Hermosillo. Controlling our General Water Consumption. Partial Payments with City Water Co. Controlling Common areas Power Bills. Coordinating the use of Club House A/C with occupancy levels. Negotiating a savings of 8% with Propane Company Note: As of July 1,2009 Las Palmas 2009 HOA expenses are $55,161.00 below our budgeted projections . Will make every effort to continue saving on expenses for the remainder of the year. The Board reviewed the possibility of shutting off service to serious delinquent owners. The Board members are unanimous in exercising our option under the C.C.R’s to shut off common area services to any owners delinquent with fees in excess of three months. This option will have serious impact on the habitation of the unit and the board is making every effort to reach out and work something out with each individual owner in this position prior to shut off. The number of units in this position are minimal however action is necessary to prevent spreading the financial burden of this few to the rest of the community. The board will keep on top of their status. Board has agreed and approved Dolphin Rental on a move forward basis to sub lease their current office space to a Real Estate Agency as a dedicated non-exclusive on site service for all Las Palmas Owners. In the Agreement Las Palmas owners are not obligated to use this service. The HOA will receive a 1% income from every sale the Real Estate Agency makes from Las Palmas owners. HOA Board members approved monthly payments on dues / assessments without late fees with the understanding that if any of the monthly payments are late the late fees and penalties will be charged for the entire quarter (three months) Board has approved Posting electronically the Project Documents / C.C.R’s provided by the Developer on our official HOA website. The Las Palmas HOA Board has been speaking with the rental company going on ways to make our property more competitive for renters. The rental company dropped prices and is investing in promoting our resort along with Rocky Point in general. The board approved a temporary decrease in the HOA impact fee charged by the Dolphin Rental company specifically for the sole purpose to make our rental rates more competitive and increase rentals in a the current very price sensitive market. It appears to be working. The July rentals have been very promising. Old Impact Fees per day: Villas/ Houses- $20.00 3 Bed. Condos-$15.00 2 Bed. Condos-$13.00 1.5Bed.Condos-$10.00 1 Bed. Condos-$8.00 Long term rentals through the rental company in excess of one month have had no distinction from short term rental and it is my understanding that the rental company has been charging the daily impact fee appropriate to the unit. Effective June 27,09, temporary impact fee structure per day. Villas/ Houses- $15.00 3 Bed. Condos-$12.00 2 Bed. Condos-$10.00 1.5Bed.Condos-$7.00 1 Bed. Condos-$5.00 In addition, long term rentals in excess of one month will have a distinction and be treated separately. The board has approve the following impact fee structure per month for any leased agreements through the rental company in excess of one month. It is as follows: Villas/ Houses- $150.00 ( $5.00 Per day) 3 Bed. Condos-$125.00 ( $4.17 Per day) 2 Bed. Condos-$100.00 ( $3.33 Per day) 1.5Bed.Condos-$75.00 ( $2.50 Per day) 1 Bed. Condos-$50.00 ( $1.67 Per day) The Board will review these fees from time to time and has reserved the right to change them to reflect the interest of the HOA and the owners in general. The board revisited the January 31,2009 general assembly meeting due to recent e-mails and other communication with one or more villa owners contesting the voting results during this meeting sighting voting process irregularities not consistent with our C.C.R’s. All the Board Members support the outcome, the voting results and agreed to work on a solution. The Board continued talks on how to address and resolve this developing situation. Based on communication from one of the Villa owners there is only one item that is being contested. The results of the vote on the proposed HOA fee structure based on average square footage. After ongoing serious and careful consideration along with legal consultation , the Board passed a motion to hold a vote on this item only . The board decided the vote will be held on 10am Saturday September 12,2009. The location will be the Las Palmas club house. Letters, proxies etc. to be sent out asap. Meeting adjourned.