HAMMOCK BEACH ESTATES HOME OWNER'S ASSOCIATION, INC.
Board of Directors Meeting, Thursday, March 25, 7:00 p.m.
Hammock Community Center, Malacompra Road, The Hammock

1.     The Board of Directors of the Hammock Beach Estates Home Owners' Association met on
Thursday, March 25, 2004, at the Hammock Community Center, Malacompra Road, Palm Coast; Florida. The following Board Members were present: President Robert Thomason; Vice
President; Sara Clarke; Treasurer, Peggy Steele; Secretary, Anita Rohr, and Operations
Coordinator, Joe Bowen. The following homeowners, all invited by notice enclosed with the
minutes and by the posting of a notice on the community bulletin board, were also present: John
Bonner, Dorothy Drexler, David and Marie Miller, and Bob Rohr.

2.     Robert Thomason called the meeting to order at 7:05 p.m. The floor was opened to discuss the agenda and/or other concerns or comments. Bob Rohr called attention to the fact that the letter to homeowners containing proposed amendments did not contain a proposed amendment approved by homeowners at the Annual Meeting. The subject of the proposed amendment was to eliminate the developer's unilateral right to amend the C&Rs until the last developer owned lot is sold. Bob stated that the developer, SimPar, owns Lot 85 and has been informed that the developer has no intention to sell the lot. Robert deferred further discussion on the issue since the subject was listed as Item #14 on the meeting agenda.

The Board then discussed the value of having input from homeowners at the beginning of the meeting rather than at the meeting's conclusion. The Board decided to allow discussions only at the beginning of the Board meetings.

3.     Robert asked for any changes or additions to the minutes of January 15 and March 4, 2004. Anita Rohr called attention that she had been contacted by Mike Joyce prior to the meeting to inform her that he had no knowledge of the previous pool housekeepers quitting as was reported in the previous Board meeting minutes. Since the issue was not discussed at the previous meeting, the minutes were approved as written.

4.     Robert reported on the status of the vote on the proposed amendments to the HOA By-Laws. As of March 25,2004, owners of only 64 lots have responded. Robert suggested that Board members contact the local lot owners and the Secretary will send a letter signed by all Board members along with a ballot to out-of-town lot owners. A self addressed stamped envelope will be enclosed. It was decided that Robert would contact those on Ocean Dune Circle, Sara would contact those on Solee Road, Joe would contact those on Mahoe, Peggy would contact those on Laurel and Anita would contact those on Cottonwood Trail

5.     Operations Matters. Joe checked out the ponds and was pleased with the appearance. He stated that the grass area by the pond on Solee Road was damaged, perhaps caused by someone parking a vehicle there to fish the pond. He stated that the pond signs prohibiting fishing etc. should be installed without delay.

Joe has contacted the Lake Doctors again. Their contract is the same as last years with regard to pricing for services. Joe mentioned he would like the Board to review the contract as well as aeration apparatus for the larger pond between Mahoe and Ocean Dune Circle. If the Board decided against a contract with Lake Doctors, Joe proposed that affected pond frontage homeowners could purchase apparatus to control the algae and pollen buildup on the pond. Equipment cost would be approximately $1,200 each to the affected homeowners. Robert believes that it is HOA responsibility to maintain the ponds but he would like to have the St. John's Water Management people explain in detail exactly what needs to be done in order to maintain the ponds. Joe was asked to contact Mr. Baggett at the St. John's Water Management and ask that he
meet with the HOA. Sara said that if anyone wants to get rid of the pollen all that is necessary is to pull it away using a fish net and then dump the pollen on their property and it will dissipate into the ground with the help of water sprinklers.

Sara indicated that all five Board members should be present to vote on the stormwater retention- area maintenance issues. Robert said that the Board would make every effort to deal with this matter when all 5 members are present. If a Board member must be absent, the member would be given every opportunity to express their opinion and/or vote by either e-mail, snail mail, or telephone.

Joe made a motion to invite Mr. Baggett of St. John's Water Management and a Mr. Danley from
Lake Doctors to attend a special HOA meeting (either April 22 or 29) to discuss the results of past
pond inspections and provide recommendations for retention area and canal maintenance. The
Board unanimously approved the motion.

Signs for the ponds as noted on the agenda were approved. Board authorized the purchase of the signs, two for the pond on Solee and Cottonwood and three double faced signs for the larger pond.

The pool area lawn will be maintained by Joe's Operations Committee. The Board approved an Operations Committee petty cash fund in the amount of$l00 to cover the cost of materials required to maintain the pool area and take care of other Operations Committee functions. The cost of pool area lawn maintenance is approximately half the price quoted by Fla. Pest Control ($25 versus $50).

6.     Status of Committees for 2004

Operations Committee: Joe Bowen, Chair, Harold Clarke, John Bonner and John Lahti. Fining Committee: Frank Carelli, Dorothy Drexler and Donna De Meglio
Social Committee: Debbie Mazanec volunteered to be on the Social Committee and a letter will be sent to her welcoming her to the committee. Karen Joyce and Susan Fairley were asked to be on the committee but declined.
Newsletter Committee: Darcy Araya and Susan Fairley will co-edit the next edition of the newsletter. Darcy and Susan will decide about editing future editions after doing this one. Volunteers are sought for future editions.
The Architectural Review Committee: Mike Joyce was asked to establish a working group. Robert stated that Mike said that he was willing to work on the committee but was not willing seek other members due to other personal commitments.

7.        Armand Beach Drive extension. Robert received a petition from residents on Armand Beach Drive and streets off Armand Beach Drive with regard to the removal of the barriers existing and potential paving of the extension area. Robert volunteered to write a letter to Flagler County Commissioner, Mr. Blair Kanbar, forwarding the petition and indicating Board understanding that the area in question is a dedicated county road. The Board understands that the barriers were placed by the developer and that the HBE HOA Board may possibly not have any authority to remove the barriers. Robert will also send a letter to Mr. Charles Durkee (author of the petition) delineating Board action. Robert would tell the commission that the HBE Board would be willing to facilitate and host a meeting of all concerned parties if they so desired.

8.       Letter from Mr. Amuso requesting Board action with regard to barking dogs. Sara investigated the allegation by interviewing several community residents particularly those that reside near the alleged barking dogs and those that live by Mr. Amuso. In his letter, Mr. Amuso states that the C&Rs state that 'no barking is allowed". C&R Amendment Nine states that the following actions, inter alia, are specifically prohibited: "Allowing any animal to emit long, continuous, loud and raucous noises, such as barking, howling, yelping, or screeching." Residents interviewed have not heard any dogs barking to the extent prohibited in the Amendment. In his letter, Mr. Amuso was not specific as to times and dates dogs were barking. He also indicated in his letter that he was told
of a barking dog located in a resident's garage. He claimed that he found the dog on a resident's back patio. Sara called Mr. Amuso's attention to trespassing law. Robert will draft a letter to Mr. Amuso indicating his complaint was noted and since after interviewing several residents, he has been identified as the only complainant that he should refer further complaints, if any, to the Flagler County Sheriff's Office. Anita Rohr called attention to the fact that Flagler County Code takes precedence over community C&Rs.

9.       Architectural Review Requests. The Board acting as the Architectural Review Committee considered the requests for fences submitted by the Espositos and the Ponces. A motion was made to accept the proposals and was unanimously approved by the Board.

10.      Willow Drive Street Sign. Robert received a letter from Mr. Rosenbaum on January 27, 2004 stating that a street sign was ordered and the defective sign would be replaced. The replacement has occurred and a letter will be sent to Mr. Rosenbaum thanking him for the sign replacement and his future cooperation with HOA matters.

11.      Annual Audit of Financial records. Norman Humphreys and Bob Rohr did an informal examination of the financial records of the HOA. They agreed that the records appear to be consistent with bank records. A motion was made to accept the informal audit and all board members agreed.

However, the auditors made a number of recommendations. A recommendation was made to eliminate monthly HOA dues payments and change current dues payment policy to a single or semiannual payment. In discussion, it was noted that it is extremely time consuming and inconvenient for the Treasurer and/or Bookkeeper to collect dues on a monthly basis and very difficult to adequately audit. A motion was made to collect HOA dues on an annual basis starting in 2005. Dues not paid by January 15 would be subject to current late fee policy. Exceptions to this policy would be considered on a case by case basis. The Board unanimously agreed to the motion.

The next recommendation from Bob dealt with the C&R requirement regarding the collection of $100 from each lot owner upon the purchase of a property. As best that could be determined by the Board, money has never been collected. Joe suggested and Robert agreed that this is past history and water over the dam. The Board agreed that collection of the fee in accordance with the C&Rs would have established a workable base in the HOA account. Action should be taken to eliminate the requirement from the C&Rs.

The third recommendation dealt with the C&R requirement of a $50 fee for the Architectural
Review. This fee, like the previous fee, to the knowledge of the Board has never been collected.
Robert's feeling is that this should be looked into as the Board looks into the architectural review
process. This item will be referred to ARC working group when established to define that process.

The next recommendation had to do with Lot 2. The status of Lot 2 was on the agenda as Item
#16.

12.      Title search of all Association Properties. Bob Rohr, a licensed State of Florida Real Estate Broker, volunteered to do the title searches at no cost to the HOA. Bob will get together with  Robert to ascertain what documents, if any, should be copied from Flagler County Couthouse Records. All property deeds of transferred property should be accounted for in HBE HOA files.

13.      Transfer of all documents/records from Developer to Association. Robert and Anita will seek the documentation held by the developer and/or past Boards.

Time did not permit discussion on agenda Items 14, 15 and 16 and they will be placed on the priority list for the next board meeting.
Routine Reports

Homeowner's are encouraged to visit the HOA Website that contains among other things the Treasurer's Report. The Operations Committee report was previously provided by Joe. The Community Newsletter is in process. Sara reported no C&R violation items came to her attention other than the dog barking issue complaint from Mr. Amuso. The Social Committee would welcome new neighbors on a quarterly basis. Robert suggested a dessert and coffee at his house with the Board members and newcomers. Another suggestion was to have an informal mixer at the pool and include all the neighbors to welcome the newcomers. Time did not permit further discussion.

The meeting was adjourned at 9:15 p.m. The next meeting has been scheduled for May 20,2004.
Should the By-law amendments pass, the Board will appoint a nominating committee at the next
Board meeting.

Respectfully submitted,


Anita Rohr, Secretary