GALLEON NEWSLETTER

BOARD MEETING January 15, 2007

NEW NEIGHBORS: Rental #1009 Mr/Mrs Pasik from Yalich

MANAGER’S REPORT ATTACHED

TREASURER’S REPORT ATTACHED

BUILDING COMMITTEE REPORT

On behalf of the Board and residents, Mr. Sipos thanked the current Board members for their service, especially those who have served for many years and have chosen to step down at this time: Mr. Brenner, Mr. Gardner, Mrs. Mallon, and Mr. Persiani.

The current major construction projects are the catwalk and the pool. The Galleon main contractor, C. A. Lindman is having serious problems with the subcontractor Carolina Metals, which is responsible for the manufacture and installation of the lattice. At this time C. A. Lindman suggests either replacing the lattice according to code, or switch to railing. This issue was discussed with the Building committee and the Board. Both groups are in favor of changing to railings. By changing from lattice to railings, a saving of between $300,000.00 and $500,000.00 could be realized. Mr. Sipos handed out pictures of the building with railings superimposed on the north and west sides of the building. Mr.Sipos invited the owners to comment on the subject. A lengthy discussion followed. Mr. Sipos indicated that residents would have the opportunity to vote for their preference by ballot which would be mailed to them.

Mr. Sipos reported that the pavers are being installed on the north side of the building.

SECURITY COMMITTEE REPORT

Mrs. Oppert reported that on December I9th around 7:00 PM a resident and his wife were out for the evening. They pulled up to the circle and parked their car, got out and the woman went to the trunk to get her groceries. A grey car pulled up beside their car and the passenger got out with a gun and asked for her purse. (The resident was wearing a fanny pack.)A struggle ensued. Evidently the strap broke and he grabbed the fanny pack and sped away. The Police were called and said they were the same two men who have been doing this on A 1 A from Miami north. The police know of six (6) similar incidents. A police report was filed. Since the incident, additional flood lights have been added to the circle area.

At the Security Committee meeting the committee met with Mr. Hank Gomez, a security consultant (reconstructed the Security at the Ocean Club) who shared his expertise, answered questions, and made the following suggestions:

*

Invite the Crime Prevention Unit of the Fort Lauderdale Police Department to survey the building and prioritize the things that need to be done to make the residents safer.
*

Have a seminar for the residents on personal safety and crime prevention.

Mr. Gomez submitted a proposal for his services to the Committee.

LAST OFFICIAL DUTY

Since I am not running for the Board in 2007, this will be my last Newsletter. I would like to thank every one for their support over the years. I only hope I was able to make some positive contributions to the overall lifestyle of the residents of the building.

Rose Ellen Mallon

Secretary Board of Governors

MANAGER’S REPORT

Pool- There was more work than expected. There are several leaks. When the contractor began working some of the steel was nothing more than dust as it had completely rusted away. Tiles must be removed, and the pool will be completely waterproofed creating one solid watertight unit, rather than patching which may result in leakage.

Engineer- The engineer reviews every bill before payment to the contractors, which has resulted in savings of well over $10,000. New bids for the pool were received at a reduced rate through the efforts of the engineer.

Catwalk Cement Repair- No cement work has been done for some time due to the problems with Carolina Metals. The general contractor has now picked up the slack.

TREASURER’S REPORT

FROM: DONNA OPPERT RE: TREASURER’ S REPORT JAN. 15, 2007

*
ALL RESIDENTS PAID THE JULY INSURANCE SPECIAL ASSESSMENT OF $180,000. {2006 DEFICIT FOR JULY SPECIAL ASSESSMENT INSURANCE IS. $37,117}

THE ASSOCIATION DOES NOT HAVE ANY RESIDENTS ASSIGNED TO THE ATTORNEY FOR COLLECTIONS.

* WILMA INSURANCE (ACCORDING TO BANK STATEMENTS)

$1,491,701.97 OPENED FIDELITY FEDERAL ACCOUNT SEPT. 2006 AT 5.5%

$1,343,415.90 BALANCE TO DATE

* CONCRETE SPECIAL ASSESSMENT (ACCORDING TO BANK STATEMENTS)

$891,688.06 BALANCE 1.01-07

-137,670.00 {CONTRACTOR’S PAYMENT 1-10-07} $495,011.00 CONCRETE REPAIRS TO DATE}

754,018.06 BALANCE TO DATE

3RD & FINAL PAYMENT CONCRETE INVOICES MAILED 1.12.07

LAST DATE TO RECEIVE PAYMENTS IS FEB.15. 2007.

MISTAKE ON BILLING INVOICE SHOULD HAVE READ “PAYMENTS DUE BY FEBRUARY 15, 2007″ NOT “2006″. IF YOU FOUND ERRORS ON THE MAILING ADDRESS PLEASE CONTACT THE OFFICE.

DICK DAVIS AND I ARE RE-CONSTRUCTING REPORTS IN QBOOKS FOR THE WILMA & CONCRETE ACCOUNTS.

*
ACCOUNTING

2007 Q/BOOKS PRO WAS INSTALLED JAN. 12″‘, 2007 WHICH UPDATES THE ACCOUNTING PROGRAM AND PAYROLL. WE ARE SEEKING AN ADMIN. / BOOKKEEPER. (LESLEY RESIGNED DEC. 12, 2006)

Q/BOOKS ASSISTED ADVANTAGE PAYROLL INSTALLED. {COST IS $99.00 A MONTH CREATES PAYCHECKS, HANDLES FED/STATE TAX FILINGS, TAX DEPOSITS, DIRECT DEPOSITS FOR EMPLOYEES

* CPA AUDITOR

I MET WITH ACCOUNTANT, CHARLES KRBLICH, TWO TIMES LAST WEEK. HE WILL PROCEED WITH 2006 AUDIT IN FEBRUARY. WE WILL MEET THIS WEEK WITH HIS ASSOCIATE TO DISCUSS AUDIT INFO & DETAILS. MR. KRBLICK IS PRECEDING WITH ALL 2006 STATE & FEDERAL FILLINGS AND PREPARES ALL W-2’s & ANY 1099.

AT PRESENT THERE ARE 16 EMPLOYEES.

TREASURER’S REPORT FOR DECEMBER 31, 2006

RECEIPTS FOR MONTH OF DECEMBER 2006…………………$212,819.50

DISBURSEMENTS FOR MONTH OF DECEMBER 2006……….$26,011.82

CAP ACCOUNT 101 $ 199,241.31

PAYROLL A/C 102 $ 16.852.91

SPEC. ASSESSMENT WILMA $1.343.415.90

SPEC. ASSESSMENT CONCRETE $ 891,688.06

ADJUSTED TOTAL………. $2, 451,198.18

GALLEON NEWSLETTER

Board Meeting December 4, 2006

MEMORIAL

Rose Ross apt 608 November 16, 2006

Thomas Manzo apt 810 November 28, 2006

MANAGER’S REPORT (ATTACHED)

Budget 2007

There was a lengthy discussion about the 2007 budget. The 2007 budget has increased by approximately 30% over the 2006 budget. The majority of the increase was due to an increase in the building insurance premium from $220,000.00 a year to $535,000.00 a year. ‘A roll call vote was taken on the budget with the following results:

P. Berman yes S. Brenner yes H. Gardner yes

E. Harwood no J. Hennen no R. Mallon no

D.Oppert yes V. Persiani yes R. Sipos no

The budget for 2007 was passed by a vote of 5 to 4.

TREASURER’S REPORT

A Motion was made to move the concrete assessment monies to New Fidelity Federal Bank & Trust at 5.5% interest. The motion passed unanimously. Mrs. Oppert reported that to date $4.434.09 in interest has been received from monies collected for the Hurricane assessment. The Hurricane insurance payment of$I, 491,701.97 is deposited in an account at Fidelity Bank & Trust at 5.5%. This account was established as of September 2006. Interest to date: $13581.00.

Operating Account Report

Beginning Balance as of October 1, 2006…$1,175,055.00

Receipts for Month of October 2006 … $347,910.00

Disbursements for Month of October … $264,780.00

Ending Balance October 31, 2006….$1,258,185.00

BUILDING COMMITTEE

Mr. Sipos introduced Mr. Alex Mikhelzon, a retired Engineer, who owns apartment 1406, who had some concerns about the cement work being done. There was a lengthy discussion. Prior to this evening Mr. Mikhelzon had attended a construction meeting with the Engineers and the contractors. He also had a personal meeting with the Head Engineer and the project engineer. He still had some concerns. Mr. Swan offered to arrange another meeting with the head engineer, however, Mr. Mikhelzon declined.

PRESIDENT’S REPORT

Mr. Persiani reminds everyone of the form they received regarding serving on the board. If interested, please, sign and return to the office by December 22nd during business hours.

SOCIAL COMMITTEE

The lobby will be decorated on December 9th. The Galleon Holiday Party will be held on December 15th. There will be notices in the elevators and the mail room.

Rose Ellen Mallon

Secretary Board of Governors

MANAGERS REPORT

CLOSING OF POOL The engineer informed us on Thursday November 30th that the pool had to be drained. The engineer and the contractors were concerned that the vibrations from the jack hammer, right under the pool may result in possible flooding etc. Therefore to minimize risk of damage (i.e. flooding the basement). The Galleon pool will be drained and closed until further notice.

I will be checking with Ocean Manor to see if we could use their pool. The Ocean Manor allowed us to use their pool when the concrete restoration was being done.

PRESIDENTS LETTER Mr. Persiani has sent out a letter to all owners updating them on the status of the building.

Parking: Parking right now is very limited. We are doing our best to accommodate all owners; however, if you have two cars and only one parking space, you may have a difficult time finding space for the other car.

GALLEON NEWSLETTER
Board Meeting October 23, 2006
MEMORIALS

Dorothy Edwards Apt. 1712, October 2, 2006
New Neighbors

Apt. # 302 Edwin Dunstall from Anthony Alphano

TREASURER’S REPORT

Beginning Balance on Sept 1, 2006 $1,239,574.47

Receipts Month of September 2006 391,707.40

Disbursements Month of September 456,227.78

Ending Balance September 20, 2006 $1,175,054.09

– 3rd and final concrete assessment due 1-15-07 (grace period to 2-15-07)

– July insurance special assessment due 11-15-06 (no grace period)

Insurance payment for Wilma received in amount of $1,491,701.97.

A business reserve account with Fidelity Bank & Trust at 5.5%, established on September 25, 2006. The new account was approved by the Board.

AUDITOR – The Board has approved the hiring of a new auditor, Charles A. Krblich, P. A. Our former accountant will no longer be doing that type of work.

Budget for 2007 workshop will be on November 6, 2006 at 7:30. Notice will be in elevators and the mailroom.

ENTERTAINMENT COMMITTEE

There are still no volunteers to chair the Entertainment Committee for the building. However, for the holiday season, there is a group which has volunteered to decorate the lobby and to organize the lighting party.
BUILDING COMMITTEE

Mr. Sipos, Chair, indicated that there is a meeting of key people in the building with representatives of the contractors and the galleon engineer to check on the progress of ongoing projects as well as quality control. Mr. Sipos thanked key people for their hard work on all projects to date. Mr. Paul Swan, Galleon Manager, was thanked for his leadership, foresight, and cost -saying methods. Results ®f payer selection and sidewalk materials were read into the record. Guitar shaped payers of orange, tan, and charcoal were selected for the driveway by a Board vote of 6 to 3. Brick shaped payers with a delineating tan border were selected for the sidewalks by a vote of 7 to 2.

MANAGER’S REPORT ATTACHED

SECURITY

Mrs. Oppert reported that a new security procedure was implemented in Sept. 2006. John Cahill, Chief of Security, is now available from 8:OOA.M. To 4:00 P.M. to supervise the guards and is responsible 10 training all guards.

Four (4) new guards were hired in the last few months: 3 full time, I part time. If anyone has a problem or has a question regarding security, submit it in writing to Mrs. Oppert. She will review the problem with the Chief of Security and the Board.

PRESIDENT’S REMINDER

Proposed meeting dates are, November 6, at 7:30 for the budget workshop; December 4h when budget will be adopted; and the regular meeting on January 15, 2007.

The Annual Meeting of the Association is February 1, 2007. Owners will begin to receive correspondence related to the Annual meeting on December 1st, 2006.
Rose Ellen Mallon
Sec’y of the Board of Directors
MANAGER’S REPORT

Ceilings

Ceiling in the lobby and the Armada Room is almost complete. Additional tile is needed for the hallway and it is anticipated that it will arrive by next week. Additional tile will be purchased for future use. Armada Room and Main Lobby

Drapes and sheers will be installed the week of November 5′. The painting is complete except for touch ups. Carpet in the Armada Room is ready and will be installed last.

Lattice

Lattice work is being taken out as fast as possible and the safety rails are up.

Concrete Restoration

The north ramp is scheduled to be completed by the end of January, including pavers. Parking in the north side of the basement garage will be available before that time. Please be aware that the entrance into the garage will change periodically until work on the circle is complete. Building Sign

The sign for the front of the building will probably be installed in January or February.

Water Tower

The City is requiring that a screen be set up around any water tower that can be seen from the road. This project can be delayed approximately until May.

Pets

There is a no pet rule in the building. Everyone is aware of this rule. Recently, owners were complaining about hearing a barking dog in the building. An investigation found not one dog but two dogs and a cat in a unit. The owner was told that the animals had to be out of the building immediately that evening.

GALLEON NEWSLETTER

Board meeting August 8, 2006

August 7, 2006

Manager’s report attached

Treasurer’s report attached

INSURANCE

The new Citizen’s insurance package was received Friday, 7-28-2006. Effective July 1st 2006 to June 30th 2007. The package was for $479,860.38. The same policy cost us $154,023.00 for 2006.

EMERGENCY INSURANCE ASSESSMENT

The shortfall for 2006 is $180,000. This money is not in the budget for this year. The Board passed an emergency assessment in the amount of $180,000.00. The vote was unanimous.

Invoices will be mailed out October 26, 2006 and due November 15, 2006.

Hurricane Guide

The Security committee has worked very hard to compile a hurricane guide for the owners’ convenience. It consists of a lot of very valuable information, plus emergency telephone numbers. The Board encourages anyone who will be in residence during the hurricane season to get one. Residents will find the guide to be a great benefit. Copies will be in the office.

SHUTTER MAINTENANCE

Check shutters to make sure they are in working order. A silicone lubricant is recommended. Do not use the WD 40 oil.

Communication report

Mrs. Oppert reported that http://www.the/ galleon.org is gaining momentum and can be very resourceful to the Galleon residents. Visitors can find Board meeting dates, agendas, newsletters, construction news, due dates for all quarterly maintenance and special assessments.

Photograph editor Loren Matthews continues to add new pictures to the history menu on the gallery. He has just added a picture of the original putting green that was on the pool deck. He is always looking for pictures to add to this collection.

SECURITY

There were statements from the owners regarding the guards. Certain residents felt that the guard service is not functioning at an acceptable level and that we need to review the guards and determine the future course of action (ie, additional training, change in personnel or simply more guards). The Security Committee has been asked to update the members of the Board with regard to the current guard performance in the September 2006 meeting.

The Security Committee is proceeding to address the following:

Guards Met with a local security management protection service to gather data for a handbook. Need to hire more guards. Some guards are still in training

Signs: Reviewing signs for basement guard area. Some feel it should be referred to as the “RECEIVING ROOM”.

Register: Guests and overnight guest’s vehicles. Security is requiring an automobile key for every resident’s vehicle parked on the property.

Absence: Hurricane season started 6-01-06 so it is here (Rule #38). If a resident is absent 3 days or more, all items must be removed from the balcony and/or catwalk. Close & lock all windows, shutters, and be sure to notify security of departure and return date. Florida law allows management the authority to enter an apartment to secure the shutters and area. However, the service fee is $100.00 per unit.

The security committee felt a six foot fence (6) should be installed at the entrance to the above ground parking area on both the north and south sides. The primary reasons for this recommendation are:
March 06 a stranger was found sleeping in the beach chair storage in the upper parking garage.

In the last several months there were eleven (11) people trespassing and asked to leave from the north and south parking areas. They were either walking, on bicycles, or parked in vehicles on the property.

A couple of weeks ago a Pepsi truck came up the North ramp by mistake, could not exit through upper garage area, and in turning around damaged the railing.

Three vehicles were broken into on the upper parking garage over the past several years.

These incidents were documented by security, and there may be others.

A motion was made to the board to install the fence and the motion was defeated five (5) to four (4).

The President said the recommendation and call for a vote is happening too quickly. The members of the Board have not been presented enough facts and circumstances to render such a quick vote. He felt the committee’s concerns are noted, however, more information is needed and the topic should be included on the next meeting agenda in order to properly call the issue to a vote. The number of incidences occurred within the last 10 years. What was the result of the incidences? The advantages and disadvantages of these gates. Once the data is assembled, the information should be shared with the Board, discussed and then proposed for a vote.

BUILDING COMMITTEE REPORT

Lattice Work. There was a vote of the Board, the Building Committee, and the Decorating Committee and the consensus is that the lattice should be coconut milk (this is a light cream color). They also felt the building should be coconut milk and taupe.

Pavers – The guitar design was reviewed, discussed and approved in the previous meeting; however, we continue to work on resolving the color. Mr. Sipos, the Building Committee chairperson, has secured several samples and is trying to coordinate the opinions of the members of the board and the two committees.

It appears that the construction permits are nearing approval and the contractor needs to know the color of the lattice, building and the pavers.

Rose Ellen Mallon

Secretary of Board of Governors

MANAGERS REPORT

The ceilings- still waiting for the permit. We applied for a permit in February. It has been rejected twice now. The second time is because the City would not accept UL (Underwriters laboratories) ratings for fire spread. We sent that back that was fine until it went to the next department and the electricians were not happy. We have to go through electrical, air conditioning, fire alarm and structural. The tile is fine the structure is fine I now there is a problem with the wiring. They will not put it through everyone and then give us problem areas, they each take it and send it back. I talked with Jim Haller who is supposedly the head of the building dept; He will attempt to expedite it.

The railing on the roof is going up now. They should be done probably in another week or so.

The west side of the south wall hopefully will be done the later part of this week. They will then start of the east side.

Shutters- I personally went up on the crane to check all the shutters and make sure all debris was cleaned out. They should all work now.

The sign for the front of the building is ready.

TREASURER’S REPORT Submitted by Donna Oppert

Since I took over as Treasurer Jack Hennen has been working with me side by side and with Paul in handling important financial issues. I want to publicly thank Jack for his support and willingness to help me and to continue in this endeavor.

#2 SPECIAL ASSESSMENT DUE 08.15.06 (NO Grace)

Of the 213 residents, we received 81payments to date. Dead line date is next Tuesday August 15, 2006.

#3 SPECIAL ASSESSMENT DUE 01.15.07 (Grace to 2.15.07)

Only 4 Residents have NOT paid Third (#3) Qrt. Maintenance

1. Had an address change 2. Out of the country but is sending it

( 2 Residents our Attorney is processing)

3. In foreclosure law suit ($12,045.) 4. Claim of lien has been filed

July 1, 2006

A $25.00 NSF is adopted for all returned checks.

The new Citizens Insurance package was received Friday, 7-28-06, being effective July 1, 2006 to 2007 for $479,860.38 ($154,023 policy in Jan 06).

In pursuing financing for the insurance package: Jack, Paul and myself met with 2 Wachovia Banking Directors, 2 Commercial Lending V.P.’s from Fidelity Federal Bank & Trust, and I contacted our present insurance lender, Banco Popular to submit a proposal. Another proposal was submitted from Premium Assignment Corp. Insurance premium was financed until proper consideration can be given to structure payment.

It is my recommendation we review and consider the proposals submitted from Fidelity Federal Bank and Trust.

Beginning Balance on June 1, 2006……………$782,243.49

Receipts for Month of June 2006…………………$192,266.04

Disbursements for Month of June 2006………..$159,706.46

Ending Balance June 31, 2006……………………$814,803.07

CAP ACCOUNT 101 $114,330.14

PAYROLL A/C 102 $20,032.40

SPEC. ASSESSMENT 106 $680,440.53

ADJUSTED TOTAL $814,803.07

GALLEON NEWSLETTER

Board meeting June 26, 2006

MEMORIALS
1607 Marion Besen, June 5, 2006

NEW NEIGHBORS

514 Olga & Lambros Ballas from Jill Ford

1210 Olga & Lambros Ballas from The Fete Estate

1508 David Merk from Ed Dunstall
1102 Rental – Denise Lavesque and Oscar Alci from Beydoun

TREASURER’S REPORT

PRESIDENT’S ANNOUNCEMENT
Mr. Hennen has requested to resign as treasurer; however, he would like to stay on the board. Mr. Persiani thanked Mr. Hennen for the outstanding job he has done over the years. The people in the audience agreed. Mr. Persiani also made the announcement that Donna Oppert agreed to take over as treasurer. The Board approved unanimously.

SECURITY & COMMUNICATION COMMITTEE
Mrs. Oppert has asked that you please register all guests and vehicles with security. PARKING The committee wants 100% compliance of all residents’ cars to have visible parking stickers. PARKING DURING CONSTRUCTION Management will post notices as needed regarding parking constraints during construction. CAR KEYS Management is checking to see if we have the automobile keys from all residents. This is necessary in case cars have to be moved and residents are not available. During emergency cars may have to be towed if we do not have access to the keys. (Rule # 18-d)

WEB SITE
The new Galleon web site was launched live on May 26, 2006 at the galleon.org. The committee is using this tool to keep residents informed of community updates. Photographs taken by a resident, Loren Matthews, will be available on the gallery of exterior and interior construction updates. If you would like to receive web site information or have any questions please send your email address to: Manager@thegalleon.org or Security@thegalleon.org .

BUILDING COMMITTEE REPORT
Mr. Sipos talked about the pavers that we will be using for the driveways. He feels once the colors of the building and the lattice have been finalized, we can take a good look at the pavers. Right now it looks like it may be beige and some sort of brown.

MANAGER’S REPORT (attachment)
Many owners were concerned with the problem of our guards. The experienced guards have left and the new guards seem to be getting older. Paul Swan is looking into the problem. They have posted ads in some churches. There was a lengthily discussion on ways to try to solve this serious problem. Paul did say that one of the guards he just hired has potential. John feels the same way. The new guard seems to be able to think: for himself. Mr. Persiani said if anyone has any suggestions on how to recruit new good guards he/she should see Paul. PRESIDENT’S REPORT

BEACH PATROL

Nothing has yet been finalized. There are one or two buildings that have not consented joining. We were told at the beginning that if we do not get 100% they will not be able to continue. The Galt Mile association is off for the summer. We won’t know anything until September.

PLEASE NOTE VERY IMPORTANT Once the contractors start working everything must be removed from the catwalk and the doorways. Advance notice will be given, however, one week before the contractors start, any item that we have to collect and dispose of we will have a collection charge of $32.00. Remember anything we have to collect will be thrown away. The Board, at this meeting, has approved unanimously the collection charge of $32.00 and the disposal of all items that we collect.

SHUTTERS
In the meeting of October 2002 there was a vote that said any apt on the catwalk is excluded from the mandatory requirement of shutters. We would love to have people on the catwalk get shutters, however, lets be realistic, and you cannot find anyone to put shutters on right now. After the lattice is erected we can then take another look and see if we feel the apartments on the catwalk should have shutters on their doors and windows. At that time we will decide what we want to do. Right now the only thing we can do is turn the problem over to the Bldg Committee. If anyone has a suggestion for Mr. Sipos drop him a note. We will table until we see the final design of the lattice and then we can decide if we need to install shutters. LOBBY CEILING We are still waiting for the permit. I am sure we would all like to see the lobby ceiling tiles installed. Once work is started the lobby will look like a construction site with equipment and lumber all over the floors.

Drapes

Mrs. Mallon reported that the boards from the decorator showing two different fabrics for the lobby and the armada room, and the carpeting for the Armada room, appeared in the lobby. Owners that saw the two made their preference known. A motion was made to accept the burgundy color drapes the champagne colored sheers and the design and color of the carpeting. We will work with the designer to finalize the benches. The motion was voted unanimously by the Board. Also the wallpaper in the armada will be removed and will be painted. The decorator has a sample of the paint color.

LATTICE

The color of the lattice will be postponed until we see the [mal sample of what the look of the lattice will be. One of our owners felt that if the lattice is too dark it will affect how much light will get through. We could investigate to see what the lattice will look like. Anything up to 42inches will have to be according to code. After 42 inches the Contractor said does not have to be according to code. We could have the top part with less metal.

PAVERS The color of the pavers will depend on the color of the building. Because of not receiving the permits from the City, the work was not able to start on June 15th.
We still do not have the permits.

INSURANCE

Our insurance company has gone bankrupt it will be insured by Citizens (which is part of the state). Citizens is the only company that is writing insurance. It is going to cost us $399.600 for wind storm and a commercial package. We will get a $80,000.00 refund of the premium that was paid. Our old premium was $154,000.00 which means we are going from $154,000.00 to $399.600.00. We are not the only one. Citizen is the only Company that is writing insurance. Since our building is worth $39,000,000.00, Citizens is able to write a new contract. If our building would have been worth $25,000,000.00, Citizens would have been able to use our present contract. Our insurance now runs from July 1, 2006 to June 30 2007. Because of the quick decisions by the state and the insurance company, we had to come up with $73,000.00 by July 1st. Mr. Persiani said the real problem is that we are talking about $399,600.00. In the budget we have $154,000. We are now pushing over into next year’s budget a $200,000.00. allocation that we have to cash flow today. We are trying our best to manage your money and not to have to come back for more. Ultimately it will come out of our pockets, but we want to take it out later rather than now.
FUTURE BOARD MEETINGS

Please mark you calendars. The purposed meeting dates will be August 7, September 18, October 23, December 4, and January 15, 2007.

Rose Ellen Mallon Secretary of Board of Governors

(Attachment of June 26, 2006)

MANAGER’S REPORT
PERMITS
First Demo permit rejected due to safety issue. It will be resubmitted next week. We are still waiting for the ceiling permit. It has been sent to our engineer.

ROOF
Railings and debris should be removed. The new railings are due late this week or next week.
CATWALK
The last three doors will be installed this week. When that is completed, the door company will be back to adjust all the doors.
BREEZEWAY
The breezeway is finished; the hatches will be installed today. We must wait 28 days for the stucco to cure before we can paint.
SOUTH WALL
The work is continuing on the south wall. There is a lot more work than we expected. I had our Engineer come out to confirm the amounts and he will authorize the payments.

GALLEON NEWSLETTER

Board Meeting April 18, 2006

New Neighbors

Apt. 207 Darlene & John Seachrist from Robert Piccolo

312 Joseph T. Scuderi from Betty Sheldon

511 Henry & Janice Overton from Hildegard Renalducci

1414 Sandra and Lawrence Yalich from the Carpenters

There were Owners at the meeting that felt they do not know enough about the assessment and progress of the major projects.

Mr. Persiani explained that the biggest problem was setting up appointments with the contractors and securing permits from the City. Because of Hurricane Wilma everyone in South Florida is trying to do exactly what we are trying to do, get our buildings and homes back to where it was before Wilma.

To start from the beginning we are working with Engineer Mr. Stan Swaysland of Spec Engineering. Mr. Swaysland attended our meeting in January. He at that time told of the work that had to be done. He asked for questions and there were several, not a lot. Also at that same meeting Mr. Hennen, advised us of a future assessment. He told us the approximate monies and dates payments would be due. He told us what the money would be used for. This information all appears in the January newsletter. At the February meeting there was also information about what had to be done. That information appeared in the February newsletter.

Due to the hurricane, prices increased from October to February. It has been a rough four months.

We started with seven contractors narrowed it down to three. There were many people involved, including our Attorney, who had to review the contract as well as do a check on the contractor. If we are able to secure all the work permits, work on the catwalk and basement should be started by the middle of June. The project will take eleven to thirteen months to complete.

Present lattice will be duplicated according to new code update. Included in all the contracts was a temporary structure that will be put up after the present lattice is removed. The temporary structure will be hurricane resistant. They will use tension posts from ceiling to floor, steel cable placed horizontally, plastic screening.

Another Owner wanted to know where the money was going for selling the scrap metal from the lattice. The Manager explained that that was all a part of the contract. The scrap metal that comes out of here today will sell for fifty to fifty five cents a pound. The Company that is doing the lattice gets that. That’s a part of taking it away, etc. If we want to sell it they will jack up the price of the new railing. Also we would have to pay someone to haul it away.

Our Attorney has the contract, which has not as of yet been signed. After he reviews, he will recommend any changes or tell us it is ok to sign.

Assessment

The assessment will be 2.7 million to 3 million dollars depending on the overage. The insurance will pay approximately $1.000.000.00. And the $600,000.00 deductible was paid in December. We have to pay for the concrete restoration, the catwalk, the driveway on the north side, the circle, and the basement. Our Engineer stated that the concrete restoration work will only be guaranteed for five years. Periodically we could have to do additional work.

A motion was made to approve assessment by Phil Berman and seconded by Mr. Harwood, and approved by the Board unanimously. Payments will be May 15, August 152006 and January 15, 2007.

Building Committee

Bob Sipos stated that Paul Swan has worked very hard to put together the seven companies that we were considering.

The names are: Commercial Concrete, Caceres Professional Corp. Contracting: Specialists, C. A. Lindman. Restoration Technology, Southern Construction. and Structural Specialists.

We finally settled on C. A. Lindman. As Mr. Persiani said we have been working very hard, but there is a lot being held up due to not being able to get the permits from the City.
Treasurer’s Report

Report attached. Mr. Hennen also explained the problems we had with the quarterly maintenance, the change with office procedures, the new Secretary, etc. There were 80 bills that went out with credits that were in error. They were for charges for the 1st quarter maintenance that were never put into the system but were paid, i.e. storage etc. Since the charge was not in the system the payment went in as a credit. Sixteen were large errors and new bills were sent out.
Manager’s Report

Work completed-Water tower, latches on the catwalk doors. The breezeway is a work in process and waiting for the permit Also once we start working there will be limited parking spaces. We are asking everyone who has a spot to please park there. We are anticipating a serious problem in the parking department. The roof will not be open for the Air Show since the railings are not up.

Perhaps it will be ready for the 4th of July so you can watch the fireworks.

Communication Committee

We are in the process of implementing a website for the Galleon. This should be ready for release by next month, hopefully. The Committee members are: Donna Oppert, Chairperson, Rose Ellen Mallon, Loren Matthews, Debbie Capone and Paul Swan.

Rose Ellen Mallon

Secretary Board of Governors

GALLEON NEWSLETTER

Board Meeting February 13, 2006
New Neighbors
Richard & Marie Lee, Apt. # 305 from Steven Jerke Francesco Carmelia Scalia, Apt.# 404 from V. Gibson

New Meeting format
Before the meeting was called to order Mr. Persiani explained the new format. Residents will have a chance to speak on any issue; however, once the meeting is called to order, the President will not acknowledge comments from the residents.

Building Report
Mr. Sipos stated that we were evaluating the effects of the hurricane. We have to consider the other work that has to be done. i.e. The catwalk concrete restoration and waterproofing of the basement. We apologize for the slow progress as contractors are busy due to the massive amounts of Hurricane damage. We are doing the best we can to move forward.

President’s Report
Mr. Persiani stated that a majority of the building concrete restoration work will be done and financed through assessments; thereby, hitting us in our pockets. We received a few bids for concrete restoration but did not have adequate time to evaluate them. We will have another meeting as soon as possible to discuss and pass an assessment. We are in no way prepared to discuss or pass an assessment at this time. Our goals are to fix the catwalk spalding and lattice or rail work, repair the expansion joints in the basement and repair what ever needs to be repaired to make our building sound.

We will poll the residents to determine the position on repairing or replacing the lattice. A letter will be written to all residents. Cost is not a concern as the building insurance should cover this expense. Our goal is to determine what the unit owners want in the most efficient means possible. Mr. Persiani made a motion to repeal the January 16, 2006 motion and vote to replace damaged lattice with newly manufactured structure. The motion passed 7 to 1.
Mr. Persiani also asked for volunteers to chair the social committee. If anyone is interested they can give their name to the Secretary in the office.

Organizational meeting

The organizational meeting was held Feb. 2006 and the following officers were elected:

Vincent Persiani – President

Ed Harwood Vice – President

John Hennen – Treasurer

Rose Ellen Mallon – Secretary

Rose Ellen Mallon,

Secretary Board of Governors

GALLEON NEWSLETTER
Board Meeting January 16, 2006

MEMORIALS

Apt. # 1008 Jacob Groisman 12/18/05

NEW NEIGHBORS

Yves Simard, Apt. # 1706, leased from Benjamin
Andrew & Robin Bonds, Apt. # 1411, leased from Schlessinger

CATWALK
Paul Swan introduced Stan Swaysland, Engineer. Mr. Swaysland discussed the various materials which could be used to replace the grill work on the catwalk, which was destroyed during the hurricane. Mr. Swaysland explained that glass was one alternative, however anything higher than 4 ft would be very uncomfortable in the warm weather. Mr. Harwood also mentioned that glass gets dirty and would have to be cleaned every day. Some residents wanted a shorter structure than we now have, however, most felt that their safety would be in jeopardy if the full screen was not replaced. Mr. Swaysland said that to replace the entire screen it must be done according to code. Since damage was due to hurricane Wilma, the insurance Company well be responsible for replacing current grid work. Our contract with the insurance Company states that they will bring all replacements up to code.

Mr. Hennen , made a motion to install a lattice type aluminum screen on the entire catwalk that would replace the present screen, due to damage during hurricane Wilma. The screen would be 8 ft high from floor to ceiling approx 4000 ft in total length, built in accordance to current codes and cost an estimated $650,000. The motion was seconded by Mr. Persiani and following a long discussion was approved by the governors.

ASSESSMENT
Mr. Hennen stated that the Board will be considering and assessment in the amount of approximately $2,100,000. that would be paid in three installments, May 15, 2006, August 15, 2006 and December 15, 2006. The assessment is for concrete work on the catwalks, work on the north and south driveway of the building, and the circle to eliminate the water leaks in the basement, concrete beams in the basement, pavers etc. When all bids for the work are in, the amount will be finalized and the billing will be determined.

SOCIAL COMMITTEE
Mr. Maliska reported that their happy hour function was a success. There was a 50/50 drawing plus a door prize.

Manager’s Report
We are still in a recovery mode. Some of our biggest problems are getting contractors out to get bids on damage. The larger the job the easier it is to get bids. We have bids on the ceiling in the lobby and Armada room. We have had decorators out to give proposals on the drapes and some wallpaper. The Glass Company keeps promising to be here “soon”. I have had 2 companies look at all the catwalk doors but don’t have any numbers yet. The ventilation fans on the roof are due to be delivered next week and will be installed as soon as they get here. The railings on the roof will probably be done at the same time as the railings on the catwalk. We have signed for the repairs on the breezeway. They will gat started as soon as they have their permits.

Rose Ellen Mallon

Secretary Board of Governors

OPERATING $108,437.00

PAYROLL 12,225.00

SPECIAL 633,125.00