The Pelican Condominium of New Smyrna Beach, Inc South Atlantic Avenue New Smyrna Beach, FL Board of Directors Meeting

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1 The Pelican Condominium of New Smyrna Beach, Inc South Atlantic Avenue New Smyrna Beach, FL Date: August 12, 2011 Time: 10:00 am to 12:00 noon Place: New Smyrna Beach Regional Library 1001 South Dixie Highway New Smyrna Beach, FL Board of Directors Meeting 1. Roll Call: Board members Archie Williams, Frank Armetta, Ed Pantalone, Estie Keyes, John Kelley, Bob Kosar and Susan Simmons and Manager Steve Simpson were present. A quorum was established and the meeting was called to order at 10:00 am. Owners Present: A306 Don & Kim Sullivan C304 Madge Baker A404 Margaret Strade C306 Sharon Armetta A405/301 Edie Pantalone C506 Mark Simmons B305 Bette Long D103 Georgia Schuller B606 Alecia Williams D106 Al and Sandy Hokanson C102 Barry Morris D201 Norma Daniels C201 John Venis E101 Claudia Putney C203 Bob Strade E305 Marty and Gayla Page 2. Approval of Minutes of June 11, 2011 Board of Directors Meeting John Venis noted that his last name was misspelled in recent minutes. Bob Kosar stated there was discussion but no decision on dedicating the North pool as adults only. Ed Pantalone made and Estie Keyes seconded a motion that the minutes of the May 14, 2011 Board of Directors meeting be accepted with the noted corrections. The motion passed unanimously. 3. Consideration of Correspondence Copies of all correspondence are attached. Ed Pantalone made a motion to accept the correspondence as submitted. Bob Kosar seconded the motion and the motion passed unanimously. 4. Elections and Resignations None 5. Reports of Officers a. Treasurer s Report Frank Armetta reported the accountant is finalizing the yearend results and there may be some adjustments to the numbers and the following is a brief summary: Income is up 2.8% over last year, Rental Income is up 9%, Repairs and Maintenance up 5%, Utilities up 8.8%, Payroll up 17.2% was offset by a 25% decline in Contract Management, Insurance down 2.2%, Total Expenses down $6,000. Frank stressed that expenses have been down the last two years, not up as some owners have 1

2 implied. Frank stated the Reserve Fund balance is about $530,000 plus $99,000 in the Insurance Deductible account. b. Manager s Report Steve Simpson reviewed the attached Manager s report and the following comments were made relative to the Manager s Report: Frank Armetta noted we need to do something with the beach gate fencing to make it higher and extend to left and right. He said there were reserve funds for fencing to cover the expense. It was also noted that to the left of the beach gate, paint was peeling of the existing fencing. Frank made a motion to pursue the project and get quotes for fencing at the pool house step area and a marina style beach gate. Ed Pantalone seconded the motion and the vote was unanimous. 6. Committee Reports a. Finance Committee John Kelley confirmed he checked the reserve account balance online the evening before the meeting and they agree with Frank s report. He said the last time Bob Crittendon was in town, he met with the Finance Committee and the Smith Barney representative to make sure the reserves were in investment grade funds. He also reported that $100,000 of the reserve funds were in municipal bonds at 5%, the rest in CD s expect $60,000 was in a money market account for easy access. b. Building Maintenance Bob Kosar reported that Jim Elsevier is doing a good job and has the maintenance staff operating proactively to address issues. Currently the maintenance staff is in a good spot with the recent completion of the restoration and painting project. c. Landscaping and Grounds Steve Simpson reported that there had been an irrigation issue with a zone not cutting off properly on the west side of the property and the irrigation water, including the beach shower, had been cut off until a break in the line could be located. The failure underlies the need to update the west side irrigation system. As of Saturday morning, the break had been found and the system should be operational soon. d. Storage Committee No report. e. Social Committee Alecia Williams reviewed the attached Social Committee Report. There was discussion as to how to pay for the Annual Owners Dinner Party. A show of hand indicated the majority in attendance supported the decision for the association to pay 50% and owners attending the dinner pay 50%. Ed Pantalone made and Estie seconded a motion that the dinner be funded 50% by the association and 50% by those attending the dinner as the majority of owners present supported. The motion passed unanimously. Alecia reported the pool furniture should start arriving in 5 to 6 weeks, hopefully in time for the Annual Owners Meeting. She said there are 22 chairs and 65 chaises (42 in good condition and 23 with broken straps or bars). It was suggested to keep the chairs at the Pel house and that the chaises be made available to owners at $25 per chair. f. Marketing Committee Ed Pantalone reported that he had talked with many owners and all would like to improvement in our marketing of the Pelican. Ed said the committee would investigate what can be done in support of Sandy and the Rental Committee with the soon to be up and running PayPal program to take deposits and the use of other websites to display our units. 2

3 g. Rental Committee Sandy Hokanson presented the attached report. Sandy noted that last year the largest issue was cleanliness of units; however, thanks to the staff and cleaners, there have been almost no cleaning issues this year. It was suggested by Bob Kosar, that each owner review and audit the information about their unit as soon as the rental system is in operation. Estie Keyes read the attached letters to the board from Pat Hunt, Kathy and Tim Crannell and Margaret (Sis) Strade. Archie Williams thanked Margaret for her background work and giving us much more information than we had before so that, now, we could tighten the issues down to the specific needs of the Association. Sandy agreed to take the recommendation list back to the committee to trim the list down to specific questions/issues for the association s attorney. It was agreed to table the discussion until further investigation by the committee. 7. Old Business a. Westside Restoration Project Ed Pantalone reported that an update meeting was held on August 3 rd with the Engineer and Architect. Ed stated the committee is working with the engineer on a need list which includes repair of the storm drain system as soon as possible; evaluation of water shutoff valves and evaluation of access to dumpsters via Hill Street. The estimated cost for the storm drain repair is about $60,000; however, it will be put out for bid and is expected to take about two months to complete. Frank Armetta pointed out the storm drain repair estimate did not include parking lot resurfacing, just patching where a 10 to 12 trench will be dug. Ed stated that we want to know areas in which we may be grandfathered per code so the board can evaluate the best course of action. John Kelley reiterated that there are three immediate issues at hand: 1) repair of storm drain system, 2) evaluate/replace shutoff valves, and 3) Hill Street access by the garbage truck to dumpsters. John Kelley made a motion to use up to $60,000 of Parking Lot reserve funds and up to $30,000 of Major Repair reserve funds to cover the storm drain repairs and shut off valves. Ed Pantalone seconded the motion and the vote was unanimously in favor. Ed stated that additional progress reports will be given at the Annual Owners Meeting. 8. New Business a. Identification of Agenda Items for Annual Owners Meeting Frank Armetta noted that the association is required to have an audit of the 2011/2012 financial reports because it must be done at least every three years. He indicated that the owners will not have to vote to waive that requirement this year at the annual meeting since the audit will be done and the expense will be budgeted in 2012/2013 fiscal year. Edie Pantalone requested that the wording on the proxy for borrowing reserve funds to cover operating expenses, such as payment of insurance premiums, be reviewed since last year s wording was different from prior years. b. Minutes Estie Keyes stated that the normal process on the board minutes was for Steve to develop a draft document which she reviews using the tapes and recorder to make sure nothing is missed. Then the document is sent to all board members for review prior to distribution to all owners. 9. Adjournment There being no other business to come before the board, Frank Armetta made a motion, seconded by Bob Kosar, to adjourn the meeting. The motion passed and the meeting was adjourned at 1:38 p.m. 3

4 Respectfully submitted, Steve Simpson, Manager Next Board Meeting: Date: September 10, 2011 Time: 10:00 am to 12:00 noon Place: New Smyrna Beach Regional Library 1001 South Dixie Highway New Smyrna Beach, FL

5 <P0// Fellow Pelican Owners and Board members, I have had the opportunity to observe the management of the Pelican for two years now and have attended many of the board meetings. I recently became a co-owner of C-506. In my view, the Pelican is one of the nicest beach front properties in the area. That being said, I feel obligated to present my observations to the board of directors and the many owners that either choose to not attend the monthly board meetings or are precluded from attending due to the location of their permanent residence. Our out of state and out of country owners typically do not have time available to enjoy our property and to personally witness the day to day events. For the benefit of the owners and the board I will be brief. 1. Quite often the minutes of the monthly board meetings are edited to exclude controversial questions or comments, requests for clarifications regarding decisions made outside of the board meetings that affect all owners and any challenge regarding the authority of the President. In one recent case, a letter written to the board was not read at the board meeting at the sole direction of the president. I would suggest that those who cannot attend the meetings keep this in mind when reading the minutes. 2. Fellow owners and several board members have asked many questions about the relationship between Steve Simpson, our 2 hour a day property manager under contract with the Pelican, and the Sea Action company that he is also employed by full time. This issue was again one of those many subjects where a straight answer could not be obtained at the board meeting. For the record, and to the surprise of many fellow owners, Steve Simpson is currently on the official Board of Directors for Sea Action according to the state's public records. This was not included in the monthly meeting minutes. 3. It has been observed by several owners, that the monthly Board meetings are run with an emotional iron hand who terminates discussions (with gavel in hand) that are contrary to his agenda, or challenge his authority, and most importantly inquiries regarding significant monetary expenditures clearly unrelated to essential maintenance needs or day to day operations of the property are squelched and explained as the "property managers decisions". In a recent board meeting the president "gaveled" out Susan Simmons, my wife, and a 7 year board member and 11 year owner, to be silent when she asked a simple question regarding who is the Liaison between the board and the property manager and his staff and when was this voted on? When the "school yard bullying" of Susan Simmons was over, I removed her from the meeting. This also was not included in the meeting's minutes. 4. I find it oddly coincidental that our upgraded 2/2 unit in the C building has not had one single summer renter booked through the Pelican office over the past two (2) years! Many owners have voiced this same frustration. They have also told us that they appreciate my wife's dissenting votes on excessive spending issues brought before the board. I personally know of two other long time Pelican owners that have bright and clean rental units not being rented through the Pelican office. They too are not afraid to speak up against the heavy-handed authoritative management practices of the Pelican president, when they are in town and able to attend the board meetings. They too are not getting rentals through the Pelican rental program and have been told their unit is not "suitable" for the rental program. They could not even get a rental for the 4th of July holiday! I have personally seen these "un-rentable units" and they both are very nice, bright, beachy, updated condos and I would recommend them to anyone. With all three of these units, is this Coincidence or just being "blackballed" for speaking up? 5. As a brief summary of July fourth events: Like every holiday weekend at the Pelican parking is a challenge and it requires patience and flexibility by all. Equally important is a simple plan with supervision and coordination of the plan. I witnessed first-hand the patience and flexibility of our many guests, but on site supervision and coordination was clearly absent. Many guests started arriving on July 2nd after the office was closed and were unable to obtain a parking passes for the few spaces that were remaining. As the evening progressed guests continued to arrive and all on-site parking places were full. The security guard on duty did an outstanding job trying to accommodate all of our guests holding back his frustration for the benefit of our guests. I asked

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7 The Pelican Board. August 7, 2011 Heather and I would like to express our appreciation to the Board for the restoration and beautification of our 5 buildings, courtyard and pools, and also, for continuing on with the improvements to the West side of the property. For a number of years we had seen the Pelican deteriorate from lack of maintenance and attention. Supervision by management was non-existent. The grounds were in a deplorable state. Many plants and shrubs were in poor condition. Cigarette butts littered the grounds, and the gardens were full of asparagus fern, weeds and thousands of stones. The paint was very tired, and there was dissension of the office staff. It was a depressing scene. We have owned at the Pelican for 33 years, and it is our home away from home and a wonderful family Pelican home at that. Since 2009 new life has been pumped into the Pelican. We have seen a vast improvement over the past 2 to 3 years. Thanks to Archie and the Board s direction and foresight, we now have a long- term program to continue the improvements over the next several years. For a business this is very important. The Pelican is a million dollar business and should be treated as such. In order to allow a company to work properly, one must look at the broad picture. It must not keep dwelling on the past and thinking that things are good enough. They aren t. There is a lot of competition up and down the beach, and the Pelican must be bought upto-date and kept up-to-date. We must continue to improve our image. Our Little Piece of Paradise has been behind far too long. The Ocean side has had a wonderful face lift. Most of the owners I have spoken to are pleased with the changes and are excited about the restructuring of the West side. It will take hard work and money to see the project through to completion. We have an excellent architect to oversee the visuals and an excellent engineer to look after actual refurbishment of the West side. This project will be completed to give the same wow effect as beach side. It is, in a way, more important than the beach side as it is the first impression that the renters and owners have of the Pelican. There are a few nay sayers about the spending of money for the improvements. Many of the improvements involved bringing up the equipment to satisfy the local codes. If inspections had been made by the authorities, the Pelican could have been closed down, pending the elimination of deficiencies. The roof and fire protection are just two examples of the deficiencies.

8 Anyone, who has been an owner for longer than a year, will appreciate the improvements made in the housekeeping and the general appearance of the Pelican. For this we can thank Steve, our manager and Jim Elsevier. We now have a good maintenance team that takes pride in its work. There are a few owners who cannot see the large picture and seem to want to keep the status quo. Heaven help us. We all need to work as a team, with no petty back biting in and out of the board meetings and no airing of dirty laundry in front of the renters, and also, no interference with the board members during the meetings. Get the facts straight before mouthing off. After all it is better to keep one s mouth shut and be thought a fool than open it and remove all doubt. During the past few years a small group of owners has been upset with its loss of control of the board and management. In their selfish ways they been working towards having Steve fired and Archie off the Board. They have worked together and spread their agenda to a few other owners and also renters. We are most disappointed that this type of behavior is still going on. Many of us know who you are. You are not interested in the good of the Pelican, only in your own agenda. This behavior has been a great disappointment to us. The business of the Pelican is better run now than it has been for the past number of years. There is no need for the board to be micro managing the Pelican. That can be left to the Manager. We hope that the large majority will continue to support Archie and the need for continued improvements to the property. He deserves our support. Thank you. Heather and Geoff Cox B203

9 Comments from Don Sullivan at the August 13, 2011 Board Meeting (in lieu of written correspondence) Don Sullivan asked if he could make a few comments which the board agreed. He said he did not expect answers to the following questions: 1) Who is responsible for the minutes? 2) Has the board edited/changed the minutes after approval? 3) Why does Steve Simpson being on the board of Sea-Action create a problem for our community? 4) With 80 units in the Pelican rental program, only a handful of owners are not focused on the association. Why? 5) Why are we sending renters to outside agents? 6) Who benefits from the rental program? Don stated that Mark Simmons letter was focused on personal issues, not association issues. He said his responsibility in his business career is rallying the troops, constantly pulling together the associates for better performance and we at the Pelican must do the same! Don also stated that he intends to run for the board.

10 The Pelican of New Smyrna Beach, Inc. Manager s Report August 13, Summer Rental Activity Rental activity for the summer (May through August) started very strong with revenues for May and June up 17% over 2010 and up 12% over However, revenues for July and August were down 14% over 2010 and up 12% over For the four month period, revenues were down 4.5% from last year and up 12% over We ve surveyed several condos along the beach and found that some began to experience the year over year rental decline in May and the others in June. Everyone was down in July and August. The management fee collected is down $1,375 versus last year which means we will monitor expenditures versus budget very closely going forward. 2. Maintenance Project List Fall 2011 a) Pool area a. Acid wash tile on outside of pool beam b. Unplug pool scuppers c. Repair loose tile on north pool d. Repair north pool filter e. Repair pool ladders f. Install adapter to secure pool lights b) Pressure wash buildings, walkways and stairways c) Clean dryer vents d) Install childproof locks on all rental unit sliders e) Replace at least two more sets of mailboxes f) Install walkway and foundation to accommodate the north section of the wind fence g) Install faucet with hose on beach deck to eliminate need for shower at beach gate Note: The north pool will need to be closed for 24 hours while some of the work is being done. A day with a limited number of guests on-site will be targeted. 3. Electrical Panels Inside Units Over the last two weeks, there have been problems with the electrical panels in two units and there have been sporadic issues in other units over the last couple of years. Two electricians evaluated the situation and both recommended replacement of the bus bar and circuit breakers in the electrical panel box inside the unit. They indicated that age and exposure to salt air has caused the bus bars and circuit breaker contacts to deteriorate to the point that

11 connections are failing. The cost to replace the bus bars and circuit breakers will run between $450 and $500 per unit. They recommended that owners replace the bus bar and circuit breakers if they have not already done so. 4. Pool Area Fencing A quote for safety fencing around the pool house steps has been obtained. Now that the patio area and walkway is closer to the pool house, the steps become more of a safety issue for our guests. The fencing would match in design and height the fencing around the pool area. The first quote was for $1,600. If this is something the board wants to pursue, we ll obtain additional quotes. Marina styled gate fencing has been evaluated for the beach gate area. There have been issues with the gate s operation this summer and part of the issue is someone crawled over the gate at different times. Attached are various concept drawings at different prices. Replacement of the existing gate with a similar gate will cost between $1,200 and $1,500.

12 Pelican Summer Rentals Pelican Base Rental Revenue By Month Four Month May June July August Total 2011 $35,233 $106,067 $206,124 $29,497 $376, $29,638 $90,868 $238,253 $35,749 $394, $36,278 $89,814 $175,296 $34,352 $335,740 Year Over Year Change Four Month May June July August Total % 16.7% -13.5% -17.5% -4.5% % 1.2% 35.9% 4.1% 17.5% Pelican Management Fee By Month Four Month May June July August Total 2011 $4,840 $15,279 $29,988 $4,005 $54, $3,776 $12,670 $34,218 $4,821 $55, $4,892 $12,845 $25,287 $4,630 $47,654 Note: August 2011 rentals as of 8/12/11.

13 SOCIAL COMMITTEE REPORT AUGUST 2011 Since our last meeting, we had a wonderful 4 th of July party on Sunday, July 3 rd. The weather co-operated and we had a large turnout of both owners and renters. We decided to let Winn-Dixie do the cooking this year so we ordered 600 pieces of fried chicken. There were very few leftovers. Guests furnished the sides and desserts. DJ, Scott Toth did a great job with the music and the kids enjoyed Hula Hoop contests. We also had a 50/50 raffle for the Wounded Warrior Project, headquartered in Jacksonville. We collected over $400. A renter won $200 and we sent the Warrior Project $213. Everyone enjoyed listening to the Farrell s (D104) granddaughter, Katie sing our national anthem.the new courtyard really worked out well with the large crowd. There was more room for chairs and we easily had patio space for our five picnic tables. Our new tents were appreciated by the food and the DJ. We also had three samples of our proposed new patio furniture on display. A lot of valuable feedback was gained when we asked the guests their opinions. Speaking of the furniture, after receiving about 70 responses from owners, we have ordered aluminum frames with taupe straps for the patio area. There will be 50 new chairs and 60 new chaises. Also10 small side tables and new tops for our 3 existing PVC tables located beachside. They should be delivered before our October 8 th Owner s meeting. This will be the finishing touch to our new courtyard. Several owners have expressed a desire to purchase the old furniture. We will discuss this at our meeting today and get back with you on the details. This year our annual Owner s Dinner will be held at Hidden Lakes Golf Course. It is a lovely facility and should be a lot of fun for all who attend. We will be sending out more information later. Hope to see many of you at the Owner s Meeting here in Paradise! Thank You, Alecia Williams B606

14 Rental Committee Report August 2011 As a result of a meeting held on July 11, 2011, the Rental committee asks the Pelican Board of Directors to consider the following recommendations: Recommendations: 1. The association needs to reinforce the policy of requiring all guests, (renters, guests, family and friends of owners) to register with the office. This policy was adopted in the Pelican Rules and Regulations in the case an emergency and it makes sense that the office would know which units are occupied and which are not. We should also seek legal advice as to the rights of the association to require a copy of the rental/agent agreement between the owner and the renter for liability purposes. 2. The committee recommends the Board seek legal advice on our options to protect the association from potential liability costs, and increased maintenance and operating expenses that occur because of above average guest capacity (rental units not in the Pelican rental program). Questions for our Attorney s would include the legality of charging fee s to defer costs? Is an amendment to our documents needed? Although the service fee of $25 is appreciated, it does not cover costs associated with servicing renters and the activities provided renters. What rights does the association have to assess fees for renter activities and services on owner or agent rentals outside of the Pelican Rental Program?. 3. In the case of units shared by the Pelican Rental office and an outside agent, the committee recommends the owners pay a 9% commission rate for those referred by the owner or agent but processed by the Pelican Rental Office and 15% commission if the rental is procured by the Pelican office or website. 4. The committee recommends the owners of units: A201, A404, A506, B206, B406 be grandfathered at a 4% commission rate for 6 months on all rentals handled by a realtor. After the 6 months, the rate will be 9%, the standard commission for rentals referred by owners. 5. It is recommended the wording of our Rental Agreement with our owners be clarified to read as follows: I authorize the manager of the Pelican Condominium to act as my rental agent within the scope defined below and authorize them to deduct a commission of 15% of the gross rent, subject to the rules of the rental committee. In the event I rent my own unit, or utilize an outside agent, the commission to the Pelican will be 9%. Currently, our rental commissions contribute $140,000 a year to the Pelican operating budget. If every owner participated in this program, the income from rentals would increase substantially. The Board, in the last 3 years, has funded the improvement of our website and reservation program. We are very close to implementing an updated rental program that will allow online reservations and payment. Our office personnel have been diligently promoting the Pelican though their exceptional customer service. We have improved our cleaning staff and provide one of the best winter social programs on the beach. The last recommendation to the Board is that an official Marketing and Website committee be appointed to focus on targeting rental markets thereby increasing our rental income.

15 MEMORANDUM TO THE BOARD OF DIRECTORS We have been informed, as a result of our query to Manager Steve Simpson and our office staff, that a number of our condo units are regularly being rented outside our Pelican rental program. Ten units have thus far been identified, with possibly more. Of the 10, only one owner (2 units) abides by our rental rules and allows the Pelican its 9% commission on owner arranged rentals. One other owner pays a token $25 for full Pelican service on their rentals, while the remainder completely dodge the system. We collect nothing. This situation robs the Pelican (all of us) of thousands of dollars annual revenue and must not be allowed to continue. What we find most disturbing is that at least 4 of these no pay units also remain in our own rental program and on our website and thus are rented out by our office in direct competition with those of us who abide by the rules. Even more disturbing is that many of those rentals are totally handled by Realtor Melynda Sachs who happens to be currently employed by the Pelican to create and install our new rental program software. Talk about a conflict of interest! She also undercuts our commission rate by 3%. Our Pelican rental program is our second highest source of revenue at over $140,000 per year in commissions. Even if as little as 5% is siphoned off in this way it can easily cost us up to $7,000 annually. If left unchecked it could likely double as the trend increases. It is quite reasonable to predict that other owners be tempted to follow suit should these practices appear in any way to be condoned or even tolerated. How can we deal with this? Here are a few suggestions: Owners, in order to participate in the rental program already must sign and submit an owners rental agreement annually. The bold font sentence In the event I rent my own unit should include the words or rent through an outside agent, the commission to the Pelican will be 9%. Those not accepting this or those found not in adherence will be dropped from our rental program. Those opting out of our rental program and renting on their own or by other means are still subject to the 9% commission. This is implied but not properly stated in our rules. The Board must resolve this via a motion at the meeting and perhaps inclusion in our condo bylaw documents. Item 13.6 clearly gives the Board this authority. The condo bylaws state that all owners and residents (including all visitors) must register with the office upon arrival or ASAP. For safety, security, fire or other emergency issues Pelican staff must be aware of all units being occupied. This item should be the basis for a stated policy where advance notice is requested plus arrival check in where guest pool tags and temporary parking passes are issued to all visitors. These must be returned upon departure. Owner pool and parking tags are for owner use only. New, different color (green?) pool tags may have to be issued and their number recorded. Wearing of pool tags must be enforced. Finally we suggest that the check-in document containing rules etc., that each guest must sign contain the following last line: Is any compensation being paid for the use of this unit yes no Signature of guest. We recognize that Pelican owners are free to market the rental of their units by whatever means they chose, but appropriate commissions must be paid to the Pelican. Period. Failure to adhere to this policy is not only unfair to the Pelican owners as a group, but also a major threat to the honesty and integrity of our overall rental operation. We urge the Board to direct management to adopt these measures plus whatever is felt necessary to curtail this damaging trend. Respectfully submitted, Peter S. Mulkins and Margaret C. Mulkins Owners A-203 PELICAN

16 August 9, 2011 The Pelican of New Smyrna Beach, Inc S. Atlantic Avenue New Smyrna Beach, FL Re: Requiring the Pelican Owners to Pay a Commission or Service Fee Dear Board of Directors, I have read Ms. Strade s letter to this Board dated July 11, 2011 wherein she expressed her position against the Pelican charging owners a fee if the owners decided to use an outside agent. I write to tell you all that my husband and I agree with her position. It is unethical and unlawful to require a real property owner of The Pelican of New Smyrna Beach, Inc. to pay a commission or service fee for a Guest meaning any patron, customer, family member, lodger and tenant, without an executed exclusive property management agreement between the owner of the real property and rental property management company, such as the Pelican. We have been in the Pelican rental program for years. Quite frankly, it has underperformed consistently. The people running it are pleasant and helpful, but there is something seriously wrong with the Pelican program when it fails to rent the units. Despite efforts to change it, nothing really has. So, for many, the only recourse is to hire an outside agent who knows how to market the property. I would urge this Board to operate in a manner that is beneficial to all the owners. If hiring an outside agent is the owner s preference, why should this Board interfere? In fact, it is a legally dangerous position to interfere with an owner s business of renting his/her property. I know first hand that such conduct is actionable. I don t want to see this Board get sued over such a stance. All of us end up paying that legal defense bill and no one wins. Sincerely, Kathy and Tim Crannell Owners of A-506 Pelican Condominium

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