Minutes

Tall Ship Board of Directors Meeting

February 15, 2005
Whitewater Room, Activity Center

Present: Tom Schill, Sharon Luria, Donna Federico, Barry Stuart, Mike Ferrato and Cathy Bell of Goldsmith

Absent: Roy Reese

I. Call to Order: The meeting was called to order at 9:00 AM by Mr. Schill.

II. Approval of Minutes:

With the minutes of the January 18^th meeting and the Board meeting having been distributed to the board for comment no corrections or additions were in order.
ÿ                                    Motion: The minutes of the January 18, 2004 meeting are approved as distributed.
Moved:            Mike Ferrato      Seconded:       Donna Federico
Vote:               Unanimous           01.02.05

III. Motions approved by e-mail:

Phoenix Landscaping removed the existing plantings from the area in front of Cutter and agreed to proceed with finishing that area and delaying our payment to them.

ÿ Motion: The Board approves the continuation of the landscaping in front of Cutter as soon as possible.

Moved: Sharon Luria Seconded: Roy Reese

Vote: Unanimous 02.02.05E

Debbie Alphin is attempting to purchase Unit #124 before it goes to foreclosure auction. She has requested that the Board reduce some of the back charges currently covered by our lien on the unit. If the unit is auctioned the Association may get all or none of these moneys. The Board feels that we can reduce the amount owed by forgiving the late charges and interest owed.

ÿ Motion: The Board agrees to accept $6,750.00 plus the entrance fee in consideration of waiving the right of first refusal should Debbie Alphin successfully negotiate a sales agreement with the owner of Unit #124.

Moved: Donna Federico Seconded: Roy Reese

Unanimous 03.02.05E

A copy of the letter to Debbie Alphin with our proposal is attached to these minutes.

IV. Officer/Committee Reports:

A. Treasurers Report:

There is one change in the reporting format, which should make the financials read a little more clearly. The income will be reported quarterly and the expenses monthly. This is the way our money is generated and Cathy thought it would make our reporting more realistic.

Not to confuse, but the exceptions to the above are in Insurance, Elevator Maintenance Contract, and Fire Alert Maintenance Contract. They either bill quarterly, semi-annually, or in a 10-month sequence. As long as the items are per contract, they will not be mentioned.

The one area that continues to be over budget is our Repair account. This was because we removed the stump behind Ketch, solved the downspout drainage problem at all buildings, solved a drainage problem beside Schooner, pressure cleaned the concrete walkways and entrances and completed the light bulb project in all the buildings. The good news is that these should not be recurring expenses and because we are under budget in areas like window cleaning, we are financially sound.

Another area of concern is our balance in the Delinquency Report. The good news is that most of homeowners are only 30 days overdue; the bad news is that we will have to lien two more properties and continue our foreclosure on the Hester property.

We might want to consider changing to a semi-annual billing system. This would decrease the work for Goldsmith and perhaps get our money up front.

There was a misunderstanding between the Board and the bank regarding our loan the terms of it. The present loan has a floating interest rate. With rising interest rates we need to lock in a fixed amount. The bank agrees to a 7% rate over 5 years. They need our proposed repayment plan. A proposed budget is presented for the years 2005 through 2010.

ÿ Motion: The Board approves the projected budget as presented by the Treasurer.

Moved: Sharon Luria Seconded: Mike Ferrato

Unanimous 04.02.05

ÿ Motion: The Board approves applying for the fixed rate loan as presented by the Treasurer.

Moved: Sharon Luria Seconded: Donna Federico

Unanimous 05.02.05

B. Planning Committee Liaison:

Tom Schill and Sharon Luria went to the forum. A one per cent entrance fee has been proposed. Sharon Luria said that the KKPOA Board feels that Tall Ships is on board for this fee. Neither the Tall Ship Board nor the Association has taken any position on the KKPOA proposal.

C. Marketing Committee:

Mike Ferrato reported that Beacon Homes is building spec homes on two properties, but is pulling out of 15 similar projects.

In 2003 there were 188 properties sold and in 2004 that number was 262. That is a 77% increase so it appears that this committee is having a positive effect.

At 9:30 AM the Board went into a closed session for an update from the attorneys handling our litigation with Fordco. This session ended at 11:00 AM

D. Condo Insurance Committee:

There is nothing new from this committee this month.

E. Social Committee:

Barry Stuart reported that the committee has scheduled a luncheon and tea at the English Garden Tea Room in Walhalla for March 2 at 12:30 PM. There is a shuffleboard activity set tentatively in April. The annual Kentucky Derby Party is scheduled for May 7, and a cocktail party will be held at the picnic area adjacent to Clipper on June 1.

F. FORDCO Lawsuit:

The Board met earlier this morning with our attorneys to discuss the case. Because of attorney/client confidentiality requirements nothing else can be made public at this time. We must be sure that this ongoing litigation is in our Disclosure Statement.

G. Tall Ship Repair Program:

1. Condensate Drains:

This work has been completed except for a final inspection.

2. Decks:

There is nothing new at this time. Work is almost complete at Clipper. The weather has caused some delays.

3. Interior Modifications:

This work has been completed with a total cost of approximately $2,000.00.

4. Building Ends and Bow Windows:

This matter was discussed during the meeting with our attorneys.

H. Electricity Usage:

The report this month reflects the colder weather and the additional electricity needed to heat the elevator rooms. We will compare this to last year.

We need to get an immersion heater to heat only the hydraulic fluid in the tank as opposed to heating the entire elevator room. We will get one unit and compare the costs. This unit will be installed in the Clipper elevator room.

V. Managers Report:

A. Project Status:

1. The new janitorial service will begin on March 1 and the current service will end on February 28. This will provide a cost saving of $225 per month.

2. The landscape maintenance is also under review. Phoenix and LDG have submitted proposals. Phoenix is finishing the new landscape installation at Cutter and the River Birch there was removed on February 10. The type of replacement must now be determined.

B. Elevator Lighting:

We will purchase enough egg-crate panels to evaluate in one elevator. We will try to standardize on the widths needed.

C. Elevator Carpet:

The carpet will be placed in Cutter this week for evaluation.

D. Bank Legal Fees;

We will get a breakdown on these fees for our reference.

VI. Unfinished Business:

A. Parking Space Signs:

Mike Ferrato brought a proposed coated aluminum material that could be curb mounted with letters attached to it. After the Board said it thought this was worth pursuing, Mr. Ferrato said he would get a firmer price.

B. Gauthier Memorial Improvements:

There is nothing new. The location of underground irrigation will need to be determined.

C. Master Key System:

Due to the absence of Roy Reese, this issue will be put off until the next meeting.

D. Foyer Floor Coating:

Roy Reese had e-mailed a proposal from Precision Epoxy Products that originally installed it. This proposal did not cover any repairs. The owner of the company has not been here to look at it yet. We need a second proposal, particularly from the company who worked on it several years ago. Perhaps we could do one building for evaluation.

E. Landscaping – Cutter:

Done

F. Parking Lot Light Study:

Donna Federico said she and Mike Ferrato had visited each parking lot after dark. Their recommendation is to pattern the lighting of all lots using Cutter as a guide. Also we need to add similar lighting to each side of the driveways that turn in from Tall Ship Dr., perhaps on shorter posts. They will study the drawing of the grounds and try to determine the location of future lights, the number needed and a cost for the project.

G. Access Door Repair:

The doors accessing the crawl spaces from the outside continue to deteriorate. This could permit animals to gain entry to the crawl spaces. We had a previous quote of approximately $1,700.00 to repair them. Goldsmith will get an updated quote.

H. Unit #326 Foreclosure:

The letter has been sent to Debbie Alphin and is attached to these minutes.

VII. New Business:

A. Wi-Fi (DSL Internet Service for the 120 Units of the Tall Ships):

Based on the response Carlos Luria has had so far, the Board feels this is not

something we want to get into at this time.

B. The Beacon:

Due to the short period between the Annual Meeting and the deadline for this issue, the Board decided to delay the next issue until June.

C. Association/Homeowners Maintenance Responsibility:

After reviewing the guidelines in the South Carolina Horizontal Property Act the Board deemed it advisable to adopt that policy.

ÿ Motion: The Board adopts the maintenance responsibility guidelines encompassed in the following legal opinion:

All space and improvements lying inside the undecorated or unfinished surfaces of any common wall, floor or ceiling constitutes a part of the unit owned by the homeowner and is not common area. The maintenance lies with the individual. The space and the improvements lying below the wall, ceiling, and floor (including exterior walls) are common or limited common area and the homeowners association has the responsibility for maintenance.

(I) through (v) pertain to dedicated ducts, pipes etc. to each unit and

should still be the unit owner’s responsibility unless there is

incidental damage during the construction renovation.

Moved: Sharon Luria

Seconded: Donna Federico

Unanimous

06.02.05

D. Future walkthroughs need to be scheduled. Cathy Bell will be doing one this afternoon.

VIII. Resales:

Unit 105 Schooner $255,000 Closing February 25, 2005

Unit 337 Yawl $240,000 Closing February 25, 2005

NOTE: Due to new privacy policies instituted by the South Carolina Real Estate Commission the selling prices cannot be divulged until after the sale has closed. Your Board will accept these policies but will keep the owners advised in some timely manner.

ÿ Motion: The Board waives its right of first option for these units.

Moved: Barry Stuart

Seconded: Sharon Luria

Unanimous

07.02.05

There being no further business, the meeting was adjourned at 1:25 PM

Respectfully Submitted,

Barry Stuart

Secretary

Attachment

2/11/2005

Ms. Debbie Alphin

502 Shadowood Ct.

Simpsonville, S.C. 29681