Financial Snapshot Month End 7-31-10

Assets (Checking/Savings): $214,072.43

A/R: $28,025.11

Budget Overage/Underage: $20,265.48 under budget

Alarm Monitoring

Dear Resident,

Please see the below email from the Master Association. It will be the recommendation that the provision in question be deleted.

Should you have any comments as it relates to this subject, please get back to us by close of business on Friday August 13, 2010.

We hope you are enjoying your summer.

Regards,

The Greens Board of Directors

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Please be advised that your representative to the Master Association will be asked to cast an important vote on the community’s alarm system at a special meeting to be held in August. This vote should be with the guidance of your Association’s Board of Directors because it will involve amendment of Article 6.19 of the Master Declaration that requires each UNIT in the community be equipped with a centrally monitored electronic security system. The amendment to be voted on in August will propose that Article 6.19 be deleted in its entirety.

Here is the situation giving rise to this amendment. Early this year, the Palm Beach County Sheriffs Department advised the Master Association that pursuant to Palm Beach County Code, the Master Association’s security system, which from its inception has been monitored at the gate, would now require an outside backup monitoring system to be in place by year end. Since receiving the notice, the Executive Committee of the Master Association Board has explored all options it has to meeting this requirement. The options included consideration of the feasibility of installing its own backup monitoring system, interviewing and receiving proposals from several outside firms that provide backup monitoring services, and in consideration of the low current usage of the system by residents, eliminating gate monitoring altogether. Only about one third of the residences in the community are currently hooked up to the gate for monitoring.

Each of the backup monitoring options explored would be expensive. If the Master Association were to install its own backup monitoring system, it would have to hire or engage a specially licensed electrician who would be available on a 24/7 basis. It would also have to purchase and install expensive new equipment to do the backup monitoring. Both the existing and new backup systems would have to be continually maintained. The costs related thereto would significantly increase the Master Association’s annual budgets. As a result, the per unit charge each of the individual associations pays to the Master Association would also increase significantly.

With respect to engaging an outside firm to do the backup monitoring; of the several firms contacted, the prices received for providing the service ranged from $5.99 to $10.99 per unit, per month, plus tax. These rates would only be guaranteed for three years, and all 936 residences would be required to be hooked up to community system. Depending on which firm was selected the new annual cost impact on the Master Association’s budget would range from $67,280.00 to $123,440.00 plus tax, per year. Additionally, all these firms would require access to every unit in the community to inspect the alarm system, and if needed, repair or upgrade the unit’s alarm system at the unit owners’ expense. Depending upon what is needed, this could cost unit owners as

much as $250 - $500 or more in additional expenses. It would also preclude any unit owner from making a decision to use another alarm service of their choosing in place of the community system, and make it necessary for the Master and Local Associations to establish a participation enforcement mechanism adding even more cost for this option.

Finally, the elimination of gate monitoring altogether was also considered as it would have no impact on the Master and Local Associations’ annual budgets -- an important consideration in these challenging economic times. It also recognizes that only one third of the units in the community are currently hooked up to the gate for monitoring, and that those unit owners who have chosen not to be hooked up may currently have their own alarm monitoring services, or they may not want any services and have made other provisions for unit monitoring when they are not in residence. Also, elimination of the gate centralized monitoring would not prevent unit owners who wish to engage a security monitoring service from doing so. And, Unit owners would still be able to call gate security if needed, or they could call 911 directly if they need police, fire or ambulance services. The response time would likely be faster with a direct call to 911. Liability of the Master Association for alarm services would also be eliminated as would the ongoing costs for maintenance and repair of the current system.