Dear Members,

Your 2007 Board of Directors held its first regular meeting on January 11, 2007 and detailed minutes are enclosed. I want to update you on recent events related to two discussion items and highlight a few other items from the meeting.

Status of Lot 70 and the N/S Drainage Canal: Today the Flagler County Board of Commissioners met to consider whether or not to release lot 70 from a Conservation Easement that currently applies to the lot. After hearing testimony from representatives of the lot owner and from some nearby lot owners, the commissioners decided to postpone a decision until after a workshop is held on February 8 to discuss the floodwater management implication of releasing this lot for development. They also decided, thanks to arguments presented by Frank Carelli, to evaluate the functionality of and maintenance responsibility for the North/South Canal that runs from north of Sea Colony through our community to the drainage canal along Malacompra Road. The two issues are linked because the functionality of the canal could affect how floodwaters flow behind lot 70 and the fact that the Conservation Easement on Lot 70 also applies to land along the banks of the canal, thereby making canal maintenance more difficult. We will post any additional information about the workshop on our website and on the bulletin board by the pool.

Communication to you regarding major expenditures: The Board voted down the proposed bylaw amendment to eliminate the betterment account. However, we recognize that some members would like to have the ability to vote on significant betterment expenditures and you will see that a committee has been formed to develop a by-law amendment to that effect. In the meantime, the Board will continue to provide you detailed information on planned projects and provide opportunities for your feedback, including special member meetings if appropriate.

The Need for Volunteers: Throughout the minutes you will see several "cries for help" regarding projects that the Board will be working on this year and other activities regarding maintenance projects and planning social activities. As you consider if you can volunteer some time this year, please think only in terms of 2007 and do not assume that by volunteering now you have the job for life. Any time you can offer makes the association better and helps keep our costs low. You can contact the Board members mentioned in the meeting or just send a note to HBEHOA@yahoo.com and the Board will get it.

Finally, although we are required by law and our governing documents to follow certain procedures, we on the Board make every effort to do so in a informal, friendly, and neighborly way. If you have a question or don’t understand why the Board has or has not acted in some way, just ask us rather than speculating. If you want some information, give us a call or send an email and we will try to be responsive as our time permits.

Sincerely,

Paul Zacharias,

President.