Inner Harbor Village Condominium Association
Regular Board of Directors Meeting, December 6, 2005, South Bay Club

Unofficial Report

Meeting called to order by Interim President, Pegi Graham at 1:00 p.m.

Members present: Pegi Graham, Bob Edelblut, Dan Quail, Bev Rothenborg, and Jack McKay.  Guest: Margaret Isher and Mike Derrig

1. Minutes for November, 2005. Motion by Edelblut, second by Quail to approve the November 2005  minutes, Passed

2. Management of IHVCA: Mike Derrig reviewed the proposed management agreement between IHVCA and Derrig Associates.  Motion by McKay, seconded by Edelblut, to enter into a contract between Derrig Associates and IHVCA, starting July 1, 2006. Passed

Background: The IHVCA Board of Directors, over a two-year period, has carefully studied alternatives of how to manage the daily affairs of our Village. There are four primary reasons that the Board has determined that a "management" company would be beneficial to the overall operations and maintenance of the Inner Harbor Village and your investment. The will continue to be a Board of Directors with overall responsibilities of IHVCA.

1. Improve landscaping, maintenance and repair services for IHVCA members.
2. Reduce the costs of landscaping, maintenance, and repair projects.
3. Reduce the responsibilities for daily supervision, coordination of activities, and follow-up of contracted activities (landscaping, repair, and maintenance of common areas) currently undertaken by Board members.
4. There are few property owners who wish to assume the responsibility and time that it takes to be a member or officer of the IHVCA Board.

(Representatives of the IHVCA Board to meet with Bestscape about termination of the contract before June 30, 2006.)

3. Financial Report by Rothenborg:  November income and expenses along with "YTD" summaries were reviewed.  Motion by Quail, seconded by Edelblut that the financial report for November be approved.  Passed.

(Representatives of the IHVCA Board to meet with the accountant about monthly and annual reports.)

4. Loaning Reserve funds to Operating Budget: Reviewed cash flow and possible need to transfer funds to cover December expenses.  Revenues/dues will be in January. Motion by McKay, seconded by Quail, that $10,000 be moved from the Reserve Account to the Operating Account and be paid back, with interest, to the Reserve Account by February 2006. Passed.

5. Landscaping Report: Edelblut and Quail reviewed shrub plantings and tree removal projects.

6. Maintenance Report: Graham reviewed projects relating to roof tile replacements and power washing projects.

7. Update on Reserve Study: Rothenborg reported that necessary papers have been forwarded to Associates Reserve for study.  Estimated cost to be $2600.

8. Update on Audit: The member voted on audit will be completed in January. Estimated cost $3,500.

9. Update on CC&Rs: Edelblut reported that a clarification of "limited" and "common area" is now under study by the IHVCA attorney.

10. Christmas Decorations: Moved by McKay, seconded by Edelblut, that up to $200 by allocated for repair and purchase of new holiday decorations by approved.  Passed.

11: Adjournment:  Motion by Edelblut, seconded by Quail, that the meeting be adjourned at 3:10 p.m.  Passed.

Secretary,  Jack McKay

12/6/05