1. The Board of Directors of the Hammock Beach Estates Home Owner’s Association met on Thursday, July 17, 2003 at the Hammock Community Center, Malacompra Road, Palm Coast, Florida beginning at approximately 7:00 p.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 enclosed with the minutes and by the posting of a notice on the community bulletin board, were also present: Karen Joyce, Harold Clarke, George DeMeglio, Anita Rohr, John Bonner, Frank Carelli, Joan and Lou Luceri, Gary Fairley, Carol and Joe Sermarini, Jean Mattson, Harriet Vandervliet, Joe and Robin Cotie, Rich Royere, Dave and Marie Miller, Hardy Sandland and Charles Vreeland.

2. Robert Thomason called the meeting to order at approximately 7:00 pm and asked everyone to introduce themselves to the group. The meeting was then opened to the floor. Joan Luceri asked about the road sign for Willow Place, which was originally printed incorrectly and has since been painted over. Harold Clarke asked what rights we had to a clean road around construction sites and what responsibility the construction companies have. Joe Sermarini brought up a concern about the cleaning of the pool bathrooms. Rich Royere asked about access road to the beach at the end of Armand Beach Road. Harold Clarke said that the county commissioner, Kanbar, said that we could write a letter to make the end of Armand Beach Road a parking lot. This was the end of the floor discussion and at 7:20 Robert Thomason called the Board of Directors meeting to order.

3. Robert Thomason presented the proposed agenda. The above additions were made to the agenda. The agenda was unanimously approved.

4. Minutes from the May 8, 2003 meeting were distributed to all homeowners and Board members through the mail. A call was made for any additions or corrections to the minutes. Members in attendance were corrected; Harriet Vandervleit was not in attendance and Hardy Sandland was in attendance at the May 8 meeting. Mike Joyce mentioned that Stan Rosenbaum had written a letter with corrections to be made to the minutes. Mr. Rosenbaum stated in his letter that he had spoken with Sara Clarke about the affiliate membership proposal and had told her he was in favor of the proposal relating to specific lots for the following reasons: We currently have a mixture of homes on Susan Place, Rosemary Place, Armand Beach Drive and Mahoe North Drive which are not a part of Hammock Beach Estates Homeowners Association (HBEHOA). A proposal to offer membership to these homeowners would make the community more aesthetically uniform as they would have to adhere to the Covenants and Restrictions (C&Rs). The cost would be approximately $9.00 per page to record the amendment. Sara Clarke said that what she stated in the May 8, 2003 minutes was accurate and no change should be made. Mr. Rosenbaum also addressed item number 11 about the maintenance of the retention ponds. He stated that he did volunteer to pay for a one time clean up but would not be maintaining the Stormwater Retention Ponds for the year 2003. Joe Bowen said that he had made an incorrect assumption when he reported this and that Mr.Rosenbaum was correct in his statement. The error came from the fact that Joe Bowen had received several estimates from companies that were based on a one year maintenance contract and assumed that this clean-up was based on this same information. He apologized for his misinterpretation of the information. The minutes were then approved.

5. Actions from Previous Meeting:

Letter to Mr. Herter written

Revised payment made to lawyer

Check received for indebtedness for 7 Laurel Drive

Susan Fairley will write a letter to Mr. Sawyer while continuing to search for an address.

6. Joe Bowen made a motion that a distribution of the Amendment for the annual meeting and the fining policy be made through a one-time mailing to all Association members. Sara Clarke seconded the motion. Joe Bowen, Sara Clarke and Susan Fairley voted in favor of the motion; Mike Joyce abstained.

7. A discussion of the distribution of future minutes was discussed. Mike Joyce proposed that we include a form in these minutes offering three choices for each member to receive the minutes via e-mail, website or US Post Office. It was unanimously agreed that the form would be included. You will find the said form included in this mailing.

8. Lou Ciasulli requested that funds be dispersed for the mulching of the north community Dune Walk. Money has been allocated in the budget for beach access maintenance. Joe Bowen made a motion that we spend approximately $260.00 to re-mulch the pathway leading to the Dune Walk. This motion was unanimously approved.

9. Joe Cotie had been asked to determine table designs and cost estimates for the area adjacent to the pool. He was prepared to make this demonstration. Harold Clarke announced that he had purchased two picnic tables through auction for $53.60. Joe Bowen made a motion to reimburse Harold Clarke for the purchase of these tables through the reserve funds. This was unanimously approved. Susan Fairley suggested that future expenditures be pre-approved before purchases are made.

10. Joe Bowen stated that HBEHOA received an A+ on the pool inspection for safety and appearances. He also said that we would need to replace the gutters and grates before the next inspection and this should be considered in the annual budget. Robert agreed to keep all inspections in the Board files which is kept in his home.

11. According to Article VII, Section VII of the Covenants and Restrictions there needs to be an appointment of an advisory committee for Ocean Dune Circle. George DeMeglio, Gary Fairley, and Joe Sermarini were nominated for this committee and agreed to serve on this committee. Sara Clarke made a motion that these three nominees be named as the advisory committee and that they be permitted to select their own chairman. This was unanimously accepted.

12. Joe Sermarini gave a summary of everything available on our new website. The site will cost approximately $90. a year and allows a form of communication for the community as well as information about the surrounding area through local links. Joe does this on a voluntary basis. The board thanked him for all of his hard work. (www.hbehoa.com)

13. New construction was discussed. Harold Clarke stated that he called Mr. Baggett to discuss the responsibility of the builder to erect silt fences and clean drainage from construction areas. Mr. Baggett talked with Joe Bowen and suggested that the Board write a letter to both the builder and Mr. Baggett stating their concerns. Mike Joyce reported that Stan Rosenbaum had called him when he could not reach Joe Bowen to report that he had talked to Mr. Baggett and would be taking corrective actions. Susan Fairley was directed to write a letter to Mr. Rosenbaum and Mr. Baggett asking for a response to the board’s concerns. This issue is in regards to four properties on the following roads: Willow, Cottonwood, N. Mahoe and Laurel.

14. Mike Joyce presented a Platt of the Hammock Beach Estates development, highlighting community access properties. A discussion was held on the liability and responsibility of homeowners for the use of all public access areas, including retention ponds with alligators. A decision will need to be made as to what the community wants to do in regard to the access areas. An information-gathering meeting was set for 7:00 pm, August 14 at the Hammock Community Center. Joe Bowen will call St. Johns River Water Management District and ask them to present information to the community. The Homeowners will also be asked to share their views on how the board should proceed with community access property. A board meeting was set for 7:00 pm on September 11 and this topic will be on the agenda.

15. Mike Joyce requested approval of plans for an addition to his home. The board reviewed the plans. Joe Bowen made a motion that the board approve the plans. The vote was unanimous with Mike Joyce abstaining from the vote. It was suggested that Mike Joyce take the plans to be reviewed by the developer.

16. The meeting was adjourned at approximately 9:15 pm.

17. The floor was opened to the community. Frank Carelli stated that Lot 2 is a part of Hammock Beach Estates and is governed by the Covenants and Restrictions of the Association. He stated that it could not be used for commercial purposes. He also stated that he thought the Board was in violation of the Sunshine Laws when they communicated with each other when not in an open meeting. Robert Thomason disagreed with his interpretation of the law and asked him to show specific evidence. Susan Fairley asked for an example of the violation and Mr. Carelli used the agenda item 19 where Susan Fairley and Mike Joyce collaborated on the “Affiliate” membership proposal.

Respectfully submitted,

Susan Fairley,

Secretary, HOA-BOD