The following homeowners, all invited by an e mail message, by notice enclosed with the minutes and by posting of a notice on the community bulletin board, were present: Bob Rohr and Steve Steele.

Before calling the meeting to order, Sara called upon those present to voice any concerns or to have any item placed on the agenda. Bob Rohr said that he has had no response to a letter he sent concerning the signs posted on properties that are "for sale". Sara said that there is no letter of complaint. The board is trying to uphold the current C&Rs until the review and revisions have been completed. Concerns involving the C&Rs are tabled until January 2007 and will then be discussed. Bob is also concerned that the meeting which was supposed to be held in September concerning the revisions of the C&Rs was cancelled. Sara said that it was cancelled because it was too close to the time that Paul Zacharias was leaving the country and it wasn’t fair to him or homeowners to have the meeting. Joe said that the issues would be addressed to a full board. Bob also asked that his concerns about Amendment 9 be on the agenda for the annual meeting to be held in December. Bob is also concerned about unilateral expenditures by the Board and asked that this issue be placed on the agenda for the annual meeting. Joe asked Bob what exactly he meant by unilateral expenditures. Bob said that improving the pool area with gazebos and landscaping (instead of a pavilion) without the vote of homeowners was an example of unilateral expenditure. Karen said that the Board has a right to do this as a betterment.

With no more discussion, Sara called the meeting to order.

1. Agenda: With no other items to be placed on the agenda, the proposed agenda was adopted.

2. Approval of minutes. Sara asked for any changes or additions to the Board meetings of August 17 and October 3, 2006. There being none, the minutes were approved as written.

3. Social Committee: Peggy said that plans were in place for the holiday party and Kathy McMorrow would be putting the menu together. FLYERS WILL BE DISTRIBUTED TO ALL HOMEOWNERS WITH DETAILS ABOUT THE HOLIDAY PARTY WHICH WILL BE HELD ON DEC 10, 2006 at the VFW Hall in Palm Coast.

Karen asked about having another wine and cheese party before the holiday party using a surplus in the money budgeted for social activities. Sara said that perhaps have one in early spring, then another in September or October. Peggy said that any surplus money might be needed to help cover the cost for the holiday party . Sara said there is no problem having another wine & cheese party, but we will wait and see as to timing.

4. Operations Committee: Joe has the signs that were previously approved and hopes to get them up within the next few days. The Board agreed to put the "no outlet" sign on Armand Beach Drive near the entrance to Hammock Beach Estates and with permission from John & Pat Olivet, the "To A1A" sign will be mounted on the street sign at the corner of Armand Beach Drive and Mahoe Dr.

Joe has received information from the company who installed the Chattahoochie rock on the pool deck. Mr. Dibling, who originally did the work , has sold the company and Joe has been in contact with the new owner. The warranty will be honored. There is one section of the pool deck that needs repair and the rust marks need to be removed..He warned Joe that bleach should not be used to try to get the stains off the deck as it will deteriorate the sealant for the rock. Joe has investigated further into the care of Chattahoochee rock He finds that two years is a little too long before resealing. It should be done about every eighteen months as the sun is drying out the sealant because there is no cover over the pool. The cost for the work to be done this year will be $1116.00. Steve (our bookkeeper) said that the pool deck could be done anytime before the end of the year if necessary and it would require only a couple of line item changes . Sara asked for a motion to have the pool work done as quickly as possible, at a cost of $1116.00 and have required maintenance done every eighteen months instead of every two years. The Board approved the motion and Joe will proceed with getting the deck resealed and repaired.

.Joe said that he has talked with the pool maintenance man and asked him to try to get the tiles around the edge of the pool cleaned. The water level will be raised to reach the area in question and the chlorine should help in keeping it clean.

Joe said the plans drawn up by Steve Steele, from sketches by "Southern Restoration" are ready to submit to the county for permits to build the "gazebos" on the pool area, as phase one of the Pool beautification project. Joe has the information necessary and will attempt to submit the plans, instead of Steve Giannetta, owner of Southern Restoration, as Steve Gianetta is currently out of the country.

Joe asked board members to take a look at "gazebos" that are already erected and are shown at "Ace Hardware" on US 1, south of St. Augustine. These "ready made" structures require a different permit and it may be easier and less costly to proceed in this manner. Board members agreed to take a look at the gazebos, making sure they are about the same size as planned. (The original size planned for the gazebos is 9 X 11). Joe said he would like to see the structures in place by the end of the year if possible. The board will look into this possibility and report their findings to Joe before he applies for any kind of permit. Sara asked Joe to get a price on the ready made structures before the next scheduled meeting which is Nov. 16.

5. Treasurers report: Karen said that at the end of September we are right on track with the budget for 2006.

Note: (It was noticed that wrong dates were shown on the agenda under "treasurers report" The dates shown as Sept 30, 2005, should read as Sept 30, 2006 and the anticipated budget performance for 2005 should read 2007. The Required: discussion and approval of proposed budget should read 2007 instead of 2006. These corrected dates have been noted on the agenda.)

Karen distributed a draft of the proposed budget for 2007 to be reviewed and revised as necessary, by members of the board. After discussion and a few changes, the Board agreed on a 2007 budget to submit for Association member review. (See Attached: Proposed Budget for 2007) The Board will vote on this budget at its next meeting on November 16. Any association member with questions about the budget should attend the meeting or communicate their questions or concerns to any Board member prior to the meeting so such concerns can be discussed prior to the Board members vote on the budget.

The following are the key items discussed during the Board members review of the draft budget. The budget is presented based on dues for 2007 increasing $50.00 per lot for a total amount of $225.00 per lot. Each operating expense line item for 2007 was discussed.

6. Architectural Review Committee & C&R Enforcement: Sara said that there are no issues pending nor was any action taken or pending. Karen asked if property management for rentals in the area are required to give information to renters concerning C&Rs. Sara said that all renters should be informed and given a copy of the current C&Rs. Karen also asked if the Board should be given any information about the renters and Sara said that the owners are responsible if any violations occur.

Karen asked about fencing in her backyard . Sara said to submit the plan for the fence to the architectural committee for approval.

7. Other items added to the agenda: With no other items added to the agenda at the start of the meeting, the meeting was adjourned at 8:15 PM.

The next meeting is to be held on November 16, 2006 at 7 PM at the Community Center on Malacompra Road.

Respectfully submitted,

Peggy Steele, Sec.