NOVEMBER 3, 2005
(Budget)

The following Board of Directors were present:

Mike Zimmerman

Ron Cooper

James Call

Also following homeowners were present: Ed Enders

A quorum being present, the President, Mike Zimmerman, called the meeting to order at the hour of 6:05 PM

The Managing Agent presented a financial report and explained the proposed 2006 budget. A brief discussion was held regarding the window washing and scheduling of them for once a year, the Managing Agent felt that twice may be too much, the Board would like to have them washed twice a year. While on the topic of cleaning, Ed Enders gave a presentation to the Board of the progress of the Cleaning Company. In his opinion, he felt they are not completing our contract agreement. Such as mopping the lobby floors, cleaning the elevator platforms and other contracted job descriptions. He would like the Board to look into other janitorial companies. The Board asked the Managing Agent to obtain janitorial bids. The Board unanimously approved the proposed 2006 budget.

The October financial report were reviewed. A credit amount in the line item of insurance was questioned. The Board tabled this issue for the next meeting and would like the Managing Agent clarify the billing of the insurance. Also, the Board asked the Managing Agent to obtain a building appraisal from the insurance company.

The Board reviewed the check register report. A check written out to AAK Business for tiles & wallpaper supplies was questioned due to the high cost of materials. The Board would like to clarify the extent of the project only to the 1^st floor lobbies not the whole building. The Board would like to discus the issue with Joe Fisher who is heading the project.

Discussion regarding the sprinkler system assessment was held. The Board would like to bring three options to the annual meeting for the owners to make a vote on. Ron Cooper’s suggestion was to start collecting for the project now. Mike Zimmerman suggestion was to collect amount of $25,000 (twenty-five thousand dollars) per year for the next ten (10) years. Ron Cooper moved for the options listed below. James Call 2^nd the motion. The motion was approved.

The Board has approved three options:

1.                   Assessment of $25,000 (twenty-five thousand dollars) to the owners for at least one year to start the collection process.

2.                   Full assessment based of percentage (%) of ownership in the amount of $300,000 (three hundred thousand dollars). Have the homeowners make a lump payment to the Association.

3.                   Amortized type of payment plan for the next ten (10) years with one lump payment or balloon payment towards the end of the ten (10) year mark.

The Board feels that option two is the best solution and preferred choice. The homeowners have more options of obtaining the funds from a lender, refinancing or getting a home improvement loan. This will maximize safety and lower insurance premiums. The savings may add up in the years to come.

The Annual meeting is scheduled for January 5^th, 2006 at 7:00 pm. Second floor conference room.

Being no further business to come before the Board the to discuss at this time, the meeting was adjourned at the hour of 7:26 PM.