GRAND VENEZIA COA, INC. *G. LANCASTER-PRESIDENT * E. KOVACS - VICE-PRESIDENT *

*H. JAZMINES, VICE-PRESIDENT/SECRETARY* *D. TSINOKAS- DIRECTOR* M. MCMANUS- DIRECTOR*

VÉÅÅâÇ|àç hÑwtàx NEWSLETTER #6

MAY 2010

jxÄvÉÅx axã bãÇxÜá

The Board of Directors of Grand Venezia COA, Inc. extends their warmest welcome to new owners. The best resource for general information about our community can be found on our web site www.grand-venezia.com. From this site you will also be able to access information about your Board of Directors, review and print the Important Contact list, read news updates and access our Management Company, PCS. Once in the PCS site you will be able to read our latest newsletter and have access to some of our Condo Docs. All official information will be sent to owners by PCS by US Mail. Meetings of the Board of Directors will be posted on the bulletin boards in each building and on the Grand Venezia and the PCS websites. Periodically, owners will also receive updates from lizkovacs@aol.com through email. Please feel free to contact Liz Kovacs, to be added to her email list. The Board of Directors look forward to your help to improve the quality of life for unit owners. It’s our hope that we can have a relationship where the lines of communication are open in both directions. Let’s work together to help everyone live the satisfying life that is so desired at Grand Venezia. Again, Welcome to Grand Venezia! It is our hope that you will enjoy your property. Sincerely, Your Board of Directors

T _xààxÜ yÜÉÅ à{x cÜxá|wxÇà? ]xÜÜç _tÇvtáàxÜ To All: As I wrote in the March 2010 newsletter, worked was stopped mid March. Prior to our 3/11/10 BOD meeting we were aware of P & R bills totaling $230,718.25 and had paid $171,128.58 of them. At the meeting they gave us additional bills totaling $178,068.16. Subsequent to the March meeting P & R gave us additional bills applicable to work done before the stoppage bringing the total to $453,267.74. All of this work was done on a time and material basis contract signed and monitored by Bill White. The fact that Bill White signed the contract on behalf of GV in no way absolves the BOD from our responsibility. After the work was stopped, we solicited bids from a # of contractors with P and R being the lowest bidder. On 4/22/10 we signed a contract with P and R totaling $309,221.37. Of the total, $201,221.37 is for the completion of the exterior of the building with $108,000 applicable to work done before stoppage. As of the end of May 2010 we have paid P & R $453,267.74 including $54,000 on the new contract. Additionally, we have paid other subcontractors approximately $18,000. Concurrent with the signing of P & R's contract, we contracted with Justin Vessey, holder of a general contractor's license, to act as GV's representative and monitor P & R's progress for a total of $3,750. Justin, Alex Mauro (P and P's project manager) and I meet on a weekly basis to discuss the project. Others frequently attend, including Chrisann and Darren Burd for the last month. Don Lang, original architect, also occasionally participates via phone. Currently most of framing and sheathing(covering of the studs) has been done and units 215, 227, 239, 211 have passed partial inspection. Per my discussion with Alex Mauro their goal is to have all of the units on the west side of the building pass inspection by the first week in June at the latest. When they pass inspection the interior work on the units can begin. It is important to note what the current fixed price contract does not cover. The interiors, stairwell, eifs (decorative molding/banding around building exterior), roofing, gutters, or roof flashing are not covered. Yes, all of these areas need to be addressed, but the exterior as determined by the architect and engineers is the most critical to complete to add structural support to the building. These other areas will be addressed as funds become available. Thank you all for your support as we work toward making building 2 whole again for its owners. Jerry Lancaster President

ZÜtÇw ixÇxé|t Uâá|Çxáá byy|vx axãá Well we have entered into the hot part of the year here at Grand Venezia and soon the rains will be coming our way on a daily basis. Although our northern homeowners have all gone north for the summer I look forward to seeing everyone again for the Annual Meeting scheduled for July 24, 2010.

On another note, I wanted to touch base on the method used to process monthly COA fees. It is set up as follows: Grand Venezia homeowners’ dues must be received by the 10th of the month in the PCS Accounting Office located in Naples, Florida in order to avoid late fees. We offer four payment methods: 1) Automatic Withdrawal 2) Credit card via PCS website or by calling the office 3) Electronic check payment through the website or by calling the office and 4) mailing a check to the office for processing. In every case we consider the payment made when we receive it at the PCS Accounting Office via our download from the bank or by pickup in our Naples PO Box. Please note that it is the responsibility of the homeowner to make their payment on the 1st of the month; however, there is a 10-day grace period for that payment to be transported to the PCS Accounting Office. I would like to thank all the homeowners that have been diligent in getting their payments in on time. Have a wonderful summer and again, I look forward to seeing everyone in July

GRAND VENEZIA BUSINESS OFFICE HOURS Mon. Wed. & Fri.

9:00 AM to 4:00 PM Phone: (727) 216 6123

Fax: (727 – 216 6106 Chrisann Cell: ( 352) 425 1748

VWW hÑwtàx Nothing at Grand Venezia comes easy and almost everything is complicated by "who owns what. At this time the “who owns what” issue continues to be related to the pool. Liz Kovacs, Mike McManus and Jerry Lancaster met with Tom Cloud at the Clearwater main Library on March 18th and brought up the issue of “who owns what” in regard to the pool. Unfortunately, the March 18th meeting could not be held because a quorum of 3 board

members was not present and the meeting could not be held. This would have been a very important meeting for our community.

It was to the March meeting that the CDD Attorney, Tom Cloud, brought the first draft of the Grand Venezia Easement Agreement for review. Jerry Lancaster had previously asked for this agreement. This agreement when signed will give Grand Venezia COA, Inc. the right to use the CDD property within our gates indefinitely. We would have unlimited use. This unlimited use may also impact on the pool.

It was also on March 18th that Jerry, Mike and Liz presented information to the CDD that indicated that the cool deck or at least part of it may be part of CDD property. This information was obtained from our attorney, Jonathan Damonte. The CDD attorney, Tom Cloud, was prepared to order a survey in March based on this information, but could not without the CDD Board's approval. The survey was finally ordered at the April CDD meeting.

Unfortunately, the May meeting of the CDD was not held because they could not obtain a quorum of directors to attend the meeting. Jerry Lancaster followed up with the CDD attorney about the survey and found that they are waiting for 3 bids before they can order the survey.

hÑwtàx VxÄxuÜ|àç UtÇ~ÜâÑàvç tÇw à{x TÅxÇ|à|xá The Board of Directors are all anxious to move forward with obtaining the amenities for our owners. The Board has been actively working on finding out more information about the status of the Celebrity Bankruptcy. Lately we have been researching information on what other communities are doing who are in a similar situation as we are with Celebrity Resorts. (See below) The research supports the need for immediate action rather than waiting until July. With that in mind, on May 26, 2010 at 2:30 PM, the Board of Directors, Jerry Lancaster, Liz Kovacs, Mike McManus and Dan Tsinokas, the Management Team, Bill White and Chrisann Orlando, met with Attorney Jonathan Damonte and his staff to discuss legal

issues relating to the Celebrity Bankruptcy. We reviewed the situation, revisited the information that Attorney Jamie Fowler Wiley obtained. The Board of Directors in attendance by conference phone, decided, after careful consideration, to hire the firm of Shutts & Bowen, to represent us. As of May 28th, a $7500 retainer was sent to Shutts & Bowen along with the contract signed by Jerry

Lancaster. We have also formally requested that the CDD not pursue any action regarding leasing of the pool and clubhouse at this time. This was an emergency meeting/time is of the essence. Unfortunately, Milo Jazmines was unable to attend. Since Attorney Jamie Fowler Wiley went to the creditors meeting in Orlando in on April 5th, the board has been considering different attorneys to represent us in the Bankruptcy case. Below are the names of attorneys considered for Grand Venezia COA, Inc., The attorney chosen by the Board, Andy Brumby with Shutts & Bowen, was on the list initially provided by Jonathan Damonte and was also the attorney recommended by Jules Cohen when he discovered that he had a conflict of interest and could not represent us. For various reasons the attorneys were eliminate, mostly because of conflict of interest.

Attorney Names: Jules Cohen and Michael Nardella -- Akerman Senterfitt; Roy Kobert – Broad & Cassel; Bill Porter – Lowndes, Drosdick; Rick Weber – Zimmerman; Tom Cloud – GrayRobinsonn

http://www.summitpacificinc.com/kauai-news/2009/10/hanalei-bay-resort-board-of-directors.html http://www.thetimeshareauthority.com/2010/04/28/updates-for-timeshare-owners-at-david-walleys-hot-springs-resort-and-spa-timeshare/ http://www.dwrinfo.com/Home_Page.html

VxÄxuÜ|àç UtÇ~ÜâÑàvç @[|áàÉÜ|v hÑwtàx On Monday, March 8, 2010 Celebrity Resorts Files for Chapter 11 Bankruptcy. Celebrity Resorts, LLC and 35 affiliates voluntarily filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court in Orlando, Florida. Celebrity Resorts was founded in 2003 and the group of debtors own and operate 13 vacation timeshare resorts in Colorado, Florida, Hawaii, New Jersey, Nevada, and Pennsylvania. In their bankruptcy pleadings, the companies claim that they have been "one of the fastest growing timeshare companies in the nation" since their founding. The companies blamed their bankruptcies on three primary factors:

1. General economic factors, which resulted in an "unprecedented decrease in revenues" for the timeshare industry beginning in September 2008. 2. Disagreements between members of the Meyers family who control the debtors regarding the companies' business model, which resulted in the termination of two family members - Neil Meyers (the father) and Steve Meyers (a son and the debtors' general counsel) and a lawsuit by Neil Meyers against several of the companies. A second son, Jared Meyers, remains as the chief executive officer

of all of the debtors. In the bankruptcy filings, the company's chief executive officer, Jared Myers, said he is owed $680,812 in unpaid compensation.

Fraud claim asserted by father (Neil Myers) against son (Jared Myers). Son was CEO of family-owned hotel chain, Celebrity Resorts International. The father allegedly sold the son $23M worth of business for just $3M, and gave the son the right to make a capital call on the father. According to the father, the asset purchase agreements and operating agreements were unconscionable, and allowed the son to make himself 99% owner of the business. The father requested that the court appoint a receiver to prevent fraud by the son, and also reinstate of the father's salary. According to the son, the father's plan was always to put the son in control, and the father's documents and behavior were consistent with that plan. According to the son, this was not a minority freeze-out or squeeze out, but a "mutiny hijack" by the father intended to disrupt the corporation, and the father did not have the best interests of the company at heart. 3. The declaration of a default on a loan owing to Textron Financial Corporation. The companies also reported that they collectively have approximately $12 million in unsecured debt and the following secured debt:

Fifth Third Bank - $2.9 million Jared & Kristi Meyers - $390,000 Textron Financial - $10.9 million RBC Bank (USA) - $1.5 million Farmington Bank - $5.5 million Resort Funding, LLC - $1.7 million

WxÄ|ÇÖâxÇv|xá tÇw VÉÄÄxvà|ÉÇá Many questions have been asked about collections. The question we hear most often is “When is a claim of lien filed and what happens to the money we collect?” When an owner is three months or more delinquent in their COA dues, a notice of intent to foreclose is sent out. This gives an owner another 30 days to pay their back COA dues. If the dues are not paid, then the association files for foreclosure against the unit whether it is owned by a private person, a corporation, or a bank. Below is an actual Claim of Lien letter that was completed by our attorney and filed with Ken Burke, Clerk of Court in Pinellas County. This form is the final step in the

Association’s attempt to collect back COA dues. The form identifies the Attorney, the legal description of the property, and the owner of record. These items have been blocked out to protect the person’s privacy.

There is a small chart on the page that identified the steps in the process of collections as well as the fees that the Association pays up front. In this case the association has been charged a total of $461.11. If and when this unit is sold on a short sale or if the owner decides to pay, the association will be able to collect the 17,456.42 and the $461.11 for a total of $17, 917.53. (See chart) As of February 2010 $17,456.42 ITEM DATE AMOUNT LINE TOTAL Pre-lien costs and Fees (this is what it cost to sent out the notice of intent)

July 2009 $90.74 $90.74

Attorney’s Fees February 2010 $325 $325 Recording Fees February 2010 $23 $23 Mailing February 2010 15.74 15.74 Satisfaction of Lien $14.50 $14.50 Total $461.11 TOTAL AMOUNT DUE $17, 917.53 If the unit is not sold on a short sale and the unit goes into foreclosure, then the Association will receive only 6 months of back COA dues based on the current laws and we are out the amount we paid the attorney up front. Recently, Grand Venezia owners were asked to contact governor Crist and ask him to sign SB1196 that would have increased the amount of money that the Association receives in a foreclosure.

The majority of the current Board of directors have made it their policy not to negotiate on the total amount due from units that are delinquent with their COA dues and have been criticized for it. It has been the Board’s position that once a consideration is given and less than the amount due is accepted, then the door is opened to on going subjectivity. Even deciding on a case-by-case basis makes these actions subjective instead of objective. The majority of the current Board of Directors feel that it is their fiduciary duty to make sure that the Association receives all the funds. By implementing a policy of constant negotiations with owners about delinquent dues, the Board would also be increasing their legal fees.

Each unit owner should make sure that they ask the candidates before the next election where they stand on the collections issue.

So far our law offices have collected over $725,000 dollars. (See the letter below) The amount includes all the money collected including the attorney fees. All of the money that is collected comes into accounting as income that is associated with the specific unit. For example, the information above would come in at $17,917.53 as income assigned to unit under which it was collected. The attorney fees are not separated out and credited back to the legal lines in the budget.

Board of Directors Grand Venezia COA, Inc.

Please be advised that I received today a check today in the amount of $14,811.66 from Wells Fargo. We sued Wells Fargo on behalf of the Association, and they paid in full, including all legal fees and costs. I am on my way to the bank to deposit this check so the Association will have it in its bank account today. If you have any questions, please give me a call.

Thanks, Charlotte Toth, CAM, CMCA 

TOTAL COLLECTED TO DATE, INCLUDING LEGAL FEES/COSTS

725,219.05

LESS LEGAL FEES/COSTS COLLECTED -37,017.60

TOTAL COLLECTED TO DATE, LESS LEGAL FEES/COSTS 688,201.45

 

 W|w lÉâ ^ÇÉã g{tà‹AA by Mike McManus

1. D.Y.K. that the board receives a Building #2 update on a weekly basis? 2. D.Y.K. that all owners can attend the Building #2 updates along with Justin Vessey, our point person, Jerry Lancaster our President, and Alex Mauro from P &R? Contact Chrisann for times, location, and dates. 3. D.Y.K. that Building # 2 is now wrapped with Tyvec and is ready for stucco.? 4. D.Y.K. that it is the rainy season in Clearwater? If you have a problem with water intrusion please contact Chrisann at 352-425-1748 or e-mail her at chrisannf@profcommservice.com 5. D.Y.K. that Chrisann is on site three days a week? To make the best use of her time try e-mailing her with your questions and concerns. 6. D.Y.K. that Landscaping Contracts are being bid out once again this year? If you have a great recommendation contact Chrisann. 7. D.Y.K. that with the updated gate cards, the guards are doing a better job of providing you security? Please contact Chrisann if you need your card activated. 8. D.Y.K. that there are garages available for rent? Contact Chrisann for details if you are interested. Do it now if you want to be sure to get one.

9. D.Y.K. new owners can join our Neighborhood Watch program too! Contact Mike McManus at mcmanusma@aol.com for more information. 10. D.Y.K. that less than 20 unit owners live at Grand Venezia on a year around basis? You can still be a Neighborhood Watch member by volunteering to serve during the times you are there.

g{x XÄxvà|ÉÇ cÜÉvxáá The election for a new Board of Directors will take place on July 24, 2010. The First notice of Annual Meeting of the Grand Venezia COA Inc. has been mailed to all owners. Already, a number of owners have declared their candidacy. It

looks like there may be as many as 12 candidates running for the 5 seats on the Board. The following piece outlines the procedures that will be followed as the election process starts. When do you need to have an election? If you have more candidates that there are vacancies for expiring terms in office, you may need an election otherwise no

election is required. I say “may,” because you need to have 20% of the association’s authorized voters participate, otherwise you don’t have an election and the “holdover doctrine” kicks in making the current board continue to exercise its powers until successor board members are appointed or elected. Who can or can’t vote? Obviously, unit owners can vote in accordance with the association bylaws. Voter certificates for multiple unit owners may be required and are required for corporations and trusts. Renters, individuals with power of attorney and proxy holders cannot vote in a regular election, nor can one unit owner vote for another unit owner. Associations can no longer cast ballots for units owned by the association at regular board member elections. How many ways can you vote? You do not have to personally deliver your ballot to the association. There are several ways to vote. You can mail your ballot, drop it off at the office, or give it to a neighbor to submit it for you. Or you can submit it at the election meeting. If for some reason you did not get a ballot or lost the one you did receive, you can get another ballot and the envelopes at the meeting. The association is required to

have some on hand and to allow you to vote in person. If you’re out of town and did not receive a voting package, you can prepare your own ballot with the candidates’ names, use your own two envelopes making sure the outside one has your name and unit number printed and your signature (these three items are key for getting your outer envelope validated and to have your vote counted). Mail it directly to the association or to a friend to bring it to the election for you. Who can run for the board? According to the statutes a person who has been convicted of any felony in this state or in a United States District or Territorial Court, or who has been convicted of any offense in another jurisdiction that would be considered a felony if committed in this state, is not eligible for board membership unless such felon's civil rights have been restored for a period of no less than 5 years as of the date on which such person seeks election to the board. Board member term expires at the annual meeting, but a board member can be reelected unless otherwise permitted by the bylaws. If the bylaws permit staggered terms of no more than 2 years, a board member can serve 2-year staggered terms if a majority of the total voting interest approves it. If no one is interested running in opposition to a board member whose term has expired, that board member is automatically reappointed to the board without having to stand for reelection. CO-owners of a unit may not serve as board members at the same time in condos of more than 10 units. A person who has been suspended or removed by the division is not eligible to be a candidate.

A unit owner delinquent in the payment of any fee or assessment for more than 90 days is not eligible to run for office. The notification and delivery procedures put the wheels in motion. Here is an easy way to remember all the election milestone dates. Remember this number sequence: 60-40-35-34 –14 and you have all the relevant dates of a regular election schedule. They are the dates of all the events that must take place before Election Day. 60 Days Before The Election: The FIRST notice of election is sent to the unit owners. It announces the date, time, and place of the election. A properly prepared notice provides the candidacy cut-off date, the candidate information sheet submission cut-off date, and instructions for completion of the information sheet. Included are the agenda of the meeting and the correct address to which to mail your candidacy. NEW: The 60-day election notice shall include a Candidate Certification Form provided by the Division attesting that candidates for board membership have read and understand, to the best of his or her ability, the governing documents of the association and the provisions of this chapter and any applicable rules. This form has to be signed and sent to the association by each candidate not less than 35 days before the election. 40 Days Before The Election- June 14, 2010 by 5:00 PM: This date is the cut-off date for submitting your candidacy. If you wish to be on the ballot, you have to make sure the association or the designated election agent receives it

before the cut-off date. Personally delivery it or send it by Certified Mail Return Receipt Requested. The association is supposed to give you a written receipt, but if it doesn’t, you still have proof of timely submission. 35 Days Before The Election – June 19, 2010 by 5:00 PM: That is the cut-off date for submitting your information sheet to be included with the ballot and the signed Candidate Certification Form. Send it in with your candidacy to make sure it gets there on time and that you have proof it did without incurring additional mailing costs. The rules on the information sheet itself are straightforward. You are allowed a one-sided 8.5”x11” sheet of paper. If you wish to give your message in two languages, it will cut your space in half. What you say is up to you. The association cannot change any of it, even if you misspell your name. Also, if it’s handwritten and nobody can read your handwriting, that’s the way, it’s going to be printed. If you and other candidates don’t use a full page, the association may ask your permission to combine yours with someone else’s, but the association can’t combine if you don’t agree. However, for economy the association can print different information sheets on two-sided paper. In fairness, however, the information sheet should appear in the same order as the names on the ballot, alphabetically by surname. Now the association has all it needs to prepare the election package. 34 To 14 Days Before The Election: The SECOND notice is sent to the unit owners. It can go out anywhere from 34 to 14 days before the election. Sometimes the association has everything ready to go and can ship early; sometimes they get information sheets on the last day and have clerical work to do with it and that places a delay on sending out the materials. For associations that have many non-permanent resident owners, it is wise to send the notice out early. The second notice should not contain any editorial comments for or against the candidates nor should it include any endorsements. The second notice package should contain the ballot, an outer envelope addressed to the person or entity authorized to vote with name, unit number, and a space for signature. Also included should be a smaller inner envelope to put the ballot in, candidate information sheets, meeting agenda, and optionally voting instructions in two languages where appropriate. The association is not required to provide voting instructions even though they are well defined in the FAC! Nor is the association required to provide an affidavit of mailing for the second notice, as it has to do for the first notice. What about the actual election? The annual meeting actually combined two meetings--the business meeting and the election. You can have one without the other. You need a quorum for the business meeting and you need 20% qualified voter participation to have an election.

Who conducts the election? An impartial election committee conducts the election. The rules on who can serve on that committee are simple. You have to be a unit owner. You can’t be a current board member, an officer, a candidate or a spouse of any of the above. The impartial committee has these basic responsibilities: validate the outer envelopes, count the ballots and record the election results. The impartial committee can perform pre-validation of ballots on hand on the same day of the election, before the election as long as it has been noticed and the membership can attend to observe. Otherwise, that task is performed at the election. At the election members should be allowed to vote up until the outer envelope validation process is completed, at which time the poll should be announced closed, just prior to opening the first outer envelope. Both the outer envelope validation process and the vote counting take place in the presence of the unit owners in attendance. If the election end in a tie for the last board vacancy (and there may be more than two candidates tied for the position) a runoff election is required unless the individuals involved in the tie are willing to withdraw from the election thus leaving a single candidate, then the single remaining candidate involved in the tie fills the vacancy. Otherwise, a runoff election is required. The association has seven days to send out a runoff election notice. Only the candidates involved in the tie can be on the ballot and their original information sheets are sent out again. The runoff election cannot be held for at least 21 days and no more than 30 days after the original election. It’s all handled the same as a new second-notice package. Election Records All election materials must be retained for one year. Unit owners can inspect them, on request. Book Source: Condo Board Election Revolt Summary By The Author: V.Lucier, Florida’s First Chief Election Monitor for Ombudsman’s Office.