1. The Board of Directors of the Hammock Beach Estates Home Owners Association (HOA) met on Thursday, February 20,2003, at the Hammock Community Center, Malacompra Road, Palm Coast, Florida, beginning at approximately 7:10p.m. The following Board Members were present: President, Robert Thomason; Vice President, Sara Clarke; Treasurer, Mike Joyce; Secretary, Susan Fairley; and Operations Coordinator, Joe Bowen. The following homeowners, all of whom were invited by notice in the minutes and by the posting of a notice on the community bulletin board, were also present: Harold Clarke, Anita Rohr, John Bonner, Frank Carelli, Norman & Dorothy Humphreys, Harriett Vandervleit, Joe Sermarini, Jean Mattson, and John Lahti.

2. Robert Thomason called the meeting to order and presented a proposed agenda. The following additions were made to the agenda: Anita Rohr, suggested that a community yard sale be held and Robert Thomason shared a letter from Richard Herter with concerns about a pool heating system constructed on the dunes and the lack of uniformity of application of restrictions on the placement of satellite dishes.

3. Minutes from January 30, 2003 had been distributed to all homeowners and Board members. A call was made for the additions and corrections to the minutes. There were none and the minutes of the meeting were approved.

4. Joe Bowen asked John Bonner and Harold Clarke to give the pool repairs report. All repairs have been contracted and the repairs are in process. Materials have been ordered and as they come in the repairs will be completed. Joe Bowen will write a long-term projected pool expense report to be presented to the board.

5. Joe Bowen reported on the storm water retention ponds. Lake Doctor reported the condition of the ponds as fine. Lake Doctor will charge $155.00 a month to keep the retaining ponds in a healthy and functioning condition. Several homeowners have been maintaining the ponds up until this time. The board took the following actions concerning the retention ponds: 1.) Joe Bowen will contact Sea Colony and the Agricultural Center in Bunnell to determine the best plan for maintaining the ponds. 2.) Robert Thomason has been unable to get his calls returned by St. John's River Water Management District but will continue to pursue that contact to determine what was done at the time of inspection of the ponds, the policy for turning them over to the HOA and their advice about what is needed for continued maintenance and 3.) an Ad Hoc Committee was formed to develop a plan for the healthy maintenance of the ponds. Joe Bowen will chair the committee; Harold Clarke and John Bonner are members of the committee.

6. Mike Joyce reported on the transference of the deeds to the retention ponds. Several questions remain regarding the transference of the deeds. The following actions were taken: 1.) Mike Joyce will continue to follow-up with the transferring of the deeds, and 2.) Robert Thomason will research to determine what, if any, action indicating acceptance is required when a developer deeds property (such as the pool, retention ponds, etc.) to the HOA.

7. Robert Thomason reported for the Social Committee that flowers had been sent to Richard Royere in memory of Joan Royere.

8. Susan Fairley and Robert Thomason will jointly write the amendrnent allowing for the change of the annual HOA Meeting by the next Board Meeting.

9. In addressing the establishment of an Architectural Review Committee (ARC), home owners access to Ocean Dune Circle, transfer of records and the replacement of street signs the board took the following action: 1.) Robert Thomason, Susan Fairley and Mike Joyce will write a letter to the developer addressing the above concerns. A written response will be requested from the developer prior to the next scheduled board meeting. 2.) Mike Joyce will draft a framework for the development of an ARC.

10. Following a discussion of policy for collection of delinquent dues the following actions were taken: Mike Joyce will confirm the existing policy for delinquent payment of dues and during the budget process in the fall the policy will be considered.

11. Mike Joyce suggested that Norman Humphreys  had some excellent suggestions in regards to election procedures and these should be noted for future elections. This item is on the agenda which we have not yet addressed.

12. Larry and Vera Amuso removed their request for the ARC pertaining to a greenhouse. Joe Bowen and Mike Joyce will meet with the Amusos to determine whether the plans need to be brought before the ARC.

14. Rules for the imposition of Suspensions and Fines by the Fining Committee proposed by the Association Attorney on June 28,2002 was discussed. Action Taken: Fines will be first on the agenda for the next BOD meeting.

15. A description of Assistant Treasurer/Bookkeeper Duties, which had been prepared by Joe Sermarini, was distributed. With strong affirmation of his work and appreciation for his service, the Board unanimously approved Joe Sermarini for continuation in this position.

16. A bill for the legal fees of the HOA attorney, Robert Taylor, were submitted. There is a question as to the amount. Action taken: Robert Thomason will write a letter to the HOA attorney to request the legal fees be reduced.

17. Mike Joyce reported a discrepancy in the amount charged for Liability and Indemnity Insurance for the BOD. Mike will follow up with Hayward Brown to clarify cost of this insurance.

18. The need to maintain all HOA records was addressed. The following action was taken: Robert Thomason will purchase a filing cabinet for the HOA and all records will be maintained in this cabinet. The filing cabinet will be kept at Robert's home for the year 2003.

19. The possibility for affiliate memberships was addressed. Susan Fairley will write a proposal to address this matter to be presented to the board at the next meeting.

20. Robert Thomason shared a copy of a document provided by the HOA Attorney for assignment of rights by the developer to the Association. It was agreed that although, the HOA Attorney has advised that such a document should be executed, until a resolution of what those rights are between the developer and the Association, we can not proceed.

21. Robert Thomason reported that he had talked with Alma Nemrava, a member of the Sea Colony HOA Board, about the fence on our north property. She states that a vote is currently underway to determine whether the HOA will be responsible for the replacement of the fence or whether contiguous lot owners will be responsible for their portion. When that vote is completed, Sea Colony hopes to replace the fence and will have a survey done to insure that it does not encroach on Hammock Beach Estates property.

22. A suggestion was made that future meetings end at 9:00. This was unanimously agreed upon. The other agenda items were deferred until the next meeting. The meeting was scheduled for Thursday, March27, 2003, at 7:00 p.m. The next meeting was later rescheduled for Thursday, April 3, at 7:00 p.m. The meeting was adjourned at approximately 9:20 p.m.

Respectfully submitted

Susan Fairley,  HOA-BOD, Secretary