Minutes 5/16/09

Pebble Beach Homeowner's Association, Inc.
Board of Directors Meeting
Oceanfront Clubhouse
May 16, 2009

MINUTES

I.CALL TO ORDER AND ATTENDANCE:

The meeting of the Board of Directors of the Pebble Beach Homeowner's
Association, Inc. was called to order on May 16, 2009 at 8:36 a.m. by President, Andy Gauzza.

The following board members were present: Don Barnes, Carol Osika, Kurt Svendsen, Doug Bare, Leon Conover, and Shawn Barakat.

Also present were: Rebecca Smith and Larry Smart of Bluewater GMAC Real Estate.

Andy Gauzza stated that a quorum was established and started the meeting. Attached is a copy of the Agenda for the meeting.

II.APPROVAL OF MINUTES:

Andy Gauzza asked for a motion to approve the minutes as written of the
February 14, 2009 Board of Directors Meeting. Doug Bare made a motion to accept the minutes of the February 14, 2009 meeting. Kurt Svendsen seconded the motion and it was unanimously carried.

III.FINANCIAL REPORT:

Don Barnes presented the Financial Report. See attached Financial Report. Leon
Conover asked if First Citizens had reversed the on-line banking charges as the board requested at the last meeting. Rebecca Smith informed the board that First Citizens agreed to reverse the fees and would waive the fees for six months. Mrs. Smith stated that it would be addressed again at that time. Kurt Svendsen made a motion to accept the Financial Report. Leon Conover seconded the motion and it was unanimously carried.

IV.GROUNDS REPORT:

Rebecca Smith read the Grounds Report as submitted by Gail Miller and Janet
Geisler. See attached Grounds Report. Kurt Svendsen stated that the vegetation work that had been done over the past ten (10) years had paid off as the amount of vegetation that had accrued was one of the factors that had a positive impact on the Town of Emerald Isle allowing the construction of the oceanfront gazebo/ramp/steps project.

Larry Smart asked the board if he could replace the caution tape at the edge of the dunes with a more attractive rope and sign stating "keep off the dunes". The board agreed that it would have a better appearance and asked Mr. Smart to proceed. Mr. Smart also stated that the sand fence would be re-installed.

Kurt Svendsen made a motion to accept the Grounds Report. Andy Gauzza seconded the motion and it was unanimously carried.

V.REPAIR/RENOVATION UPDATE

Andy Gauzza thanked Kurt Svendsen for the hard work and dedication he had put in
to the overlook project. Mr. Svendsen informed the board that the work on the overlook started approximately eight (8) years ago and that after numerous delays with blueprints, permitting, and other priorities, the project construction started in April 2009. Mr. Svendsen stated that he was very pleased with all of the work that had been completed to date.

Kurt Svendsen reminded the board that the roof on the overlook had been discussed in the February 2009 board meeting. Mr. Svendsen stated that the Emerald Isle Permitting Office required that a roof be constructed and shingled as part of the permit approval. Mr. Svendsen further stated that there had been discussion with the contractor about the roof and while the contractor agreed to construct the roof, he would need assistance from the staff. Mr. Svendsen stated that the staff would assist but that they did not have expertise for the roof. Rebecca Smith informed the board that the staff was not allowed to construct the roof (on ladders) as this would create a liability issue for the Association as well as Bluewater. Mrs. Smith stated the staff could assist the contractor with cutting of boards and similar tasks. (After the board meeting, Kurt Svendsen discussed the roof issue with the contractor and the contractor agreed to construct 100% of the overlook roof).

Kurt Svendsen informed the board that at the last meeting, there was discussion that there may be additional funds needed to cover the roof requirement. Kurt Svendsen made a motion that due to the roof requirements from the Emerald Isle Permitting Office, engineering fees, and expense of materials to replace stringers on the existing walkway, an additional $5,000 be approved to finish Phase I of the project (excluding lights). Shawn Barakat seconded the motion and it was unanimously carried.

Larry Smart stated that he was also very pleased with the walkway and overlook and that most of the owners he had talked to were pleased, even those who were not pleased before the project started. Mr. Smart further stated that he hoped to have the rails completed by Memorial Weekend if the weather cooperated. Mr. Smart also stated that the roof should be able to be completed as well.

Kurt Svendsen informed the board that the lights that had been installed on the ramp and walkway were only temporary lights and that permanent fixtures needed to be discussed by the board at a later date. Rebecca Smith asked about how the lights would affect the sea turtles. Larry Smart stated that a switch would be installed so that the lights could be shut off during nesting season.

Rebecca Smith informed the board that two letters had been received from homeowners who had concern about the construction of the overlook. The letters were read and discussed. Copies of the letters are attached.

Carol Osika stated that she wished that owners with positive reactions to the overlook had been submitted. Kurt Svendsen stated that he had received a positive e-mail about the steps that he wanted included with the minutes. Shawn Barakat asked if the roof of the overlook was going to be higher than the clubhouse roof which would impede on the view from some units. Carol Osika

stated the overlook roof was higher. Kurt Svendsen stated that it may look higher prior to the roof going up but it was actually 2-3 feet lower than the clubhouse roof.

Carol Osika stated that she had been on the deck of D203 and felt that the roof will block the view of the ocean. Doug Bare stated that the view was not impacted from his unit (D208) but it was in a different location. Mr. Bare stated that he thinks the overlook is a positive amenity to the complex.

VI.MAINTENANCE/OTHER ITEMS:

A.Rebecca Smith informed the board that one heat pump unit at the oceanfront clubhouse had quit and needed replacement and one unit needed the coil replaced, which was under warranty. After review and discussion of the quotes received, Kurt Svendsen made a motion to approve the repair/replacement of the two HVAC units at the clubhouse not to exceed $6,500.00. Don Barnes seconded the motion and it was unanimously carried.
B.The board reviewed the maintenance list with Larry Smart. Mr. Smart informed the board that the staff had been working on the walkway and overlook and that landscaping had not been attended to as it should. Mr. Smart informed the board that the siding repairs to Building G would begin after Labor Day and upon completion, the staff would begin repairs on Building H. Repairs and painting of both buildings are to be completed prior to May 31, 2010.

Discussion followed about the priority of maintenance items. Shawn Barakat
stated that safety items should be first and beautification second. After discussion, the board and staff agreed that the summer priorities would be as follows:
1.Completion of overlook
2.Landscaping - mowing, weeds, completion of diseased plant removal & replacement at the Quad
3.Completion of repairs to oceanfront shower
4.Clean stairwells buildings A-E
5.Repair and painting of garbage gates
6.Indoor pool windows & wood work - after Labor Day
7.Remodeling of indoor bathrooms - after Labor Day
8.Asphalt patching

Don Barnes asked if the irrigation was working properly. Larry Smart
responded that all irrigation and pumps were working properly.

The board discussed the indoor pool bathroom remodeling and repairs. While the work will not be completed until after the summer season, Carol Osika asked if she could purchase items now and have them stored on the premises. Kurt Svendsen made a motion for $3,000.00 be approved for the remodeling of both bathrooms at the indoor clubhouse. Leon Conover seconded the motion and it was unanimously carried.

C.Don Barnes stated that he had done research on lighting possibilities for the Quad. Larry Smart stated that he would like to see a solid decision made about the lights. After much discussion, Kurt Svendsen stated that lighting throughout the property had been discussed for years but there had never been any money collected and funded for the project which may be a considerable expense.

Mr. Svendsen further stated that Board should request a professional to prepare a study of the complex and then a recommendation made to the board. Kurt Svendsen stated that he would like to have money allocated for a study at the next board meeting.

D.Owner Vincent Kosich (D104) presented a drawing of proposed locations for the movement of outdoor HVAC units to the ground at Buildings A and D. The board discussed and agreed that the approved Resolution (see attached Resolution) regarding the movement would remain in place.

Shawn Barakat stated that HVAC units at Building "B" had been allowed to be moved to the end of the building and that it is noisy. Andy Gauzza asked that the discussion be tabled until the next board meeting. Mr. Barakat agreed.

E.Rebecca Smith informed the board that she had received a quote for asphalt patching. Mrs. Smith stated that the quote encompassed all issues with cracks and damages throughout the property. Mr. Gauzza stated that at this time, only a quote for two areas was needed and asked that Mrs. Smith have the vendor re-quote and to seek out another vendor as well. The board discussed that if the quote was too high, there may be a portion of the repair that could be completed by the staff.

VII.WASTEWATER TREATMENT PLANT REPORT:

Andy Gauzza read the Wastewater Treatment Plant Report as prepared by
Committee Chairperson, Becky DeHaven. See attached Wastewater Treatment Plant Report.

Andy Gauzza informed the board that the new operator had brought the plant back into compliance but that it was temporary. Mr. Gauzza further stated that the Association continues to put forth money to try to keep the plant compliant but when the plant has to work its hardest during the summer, it will not meet the requirements of the State. Mr. Gauzza stated that a large amount of the work that the new operator has done has been corrective issues from the previous operators.

Andy Gauzza informed the board that along with Becky DeHaven and the plant operator, Don O'Mara, they will look at two more systems, talk to operators, and other Homeowner Associations to look at the systems they have as well as their costs. Mr. Gauzza stated that the Association had to start looking at funding the project regardless of what type of system is decided upon.

Kurt Svendsen stated that the replacement of the wastewater treatment plant must be done and that there was no choice as the State could shut down Pebble Beach. Mr. Svendsen further stated that while there was no option on the replacement, the members of the Association
would have to vote on the replacement. Mr. Svendsen stated that he was concerned that the replacement was coming during a difficult economic period and felt that the replacement needed to be completed over a period of time (suggested three years). Mr. Svendsen also stated that he felt that a qualified wastewater treatment plant Engineer was needed to assess the plant and to provide the Board with a written recommendation of a new wastewater treatment system that will best serve the needs of Pebble Beach. Mr. Svendsen suggested that the financial burden of this new wastewater plant be shared between the homeowners and the Association. Mr. Svendsen

asked Mrs. Smith to research some possible bank financing alternatives for the Association's portion of this project.

Doug Bare made a motion to move forward with replacing the aging wastewater
treatment plant within the next three (3) years. After a recommendation from the Wastewater Treatment Plant Committee, Operator, and Engineer, the board will move forward with obtaining a vote from the membership as well as financing options in accordance with the Association's documents.

VIII.SCHEDULE OF NEXT MEETING:

The next board of directors meeting is scheduled for August 22, 2009 at 8:30 a.m. at
the oceanfront clubhouse.

IX.ADJOURNMENT:

There being no further business to come before the meeting, Andy Gauzza asked for a
motion to adjourn. Don Barnes made a motion to adjourn the meeting. Carol Osika seconded the motion and it was unanimously carried. The meeting adjourned at 1:25 p.m.

_______________________________________
Carol Osika, Secretary

_______________________________________
Rebecca Smith, Recording Secretary

APPROVED:

_______________________________________
President