President Ben Givens called the meeting to order at 8:45 a.m. Board members present were Bob Burwell, Ben Givens and Lars Warn.

Minutes of the November 28, 2001, meeting were approved as presented.

The December 31, 2001, Financial Report was reviewed by Secretary/Treasurer Bob Burwell. He reported a positive cash flow of $19,730.77 for calendar year 2001. He further highlighted some of the variances from budget for the year. Two owners were delinquent on their monthly assessments and five owners were delinquent on late charges. Ben Givens instructed Rampart Properties to follow the Declaration of Condominium for Sunwatch XII Assessments Section 1. which states "All payments on the accounts shall first be applied to interest, then to any administrative late fee, then to any costs and any reasonable attorney fees incurred in the collection, and then to the delinquent assessment."

Kay Strehle reviewed the December Management Report.

There were no notes from the Suggestion Boxes.

Vince Vincent #309 -Sent a letter with advice from his past experience regarding reserve requirements. He also stated his objection to using a professional firm for a reserve study as he felt the management company should review the reserves. He further requested hot water at the pool shower and a soap dispenser. The Board stated that the reserve study issue will be addressed under New Business. The hot water issue was rejected several months ago as too costly. Kay Strehle was instructed to place a soap dispenser by the pool shower.

Sheron Nichols #809 - Sent a letter dated January 24, 2002, requesting the Board's policy to parking control and garage usage. Bob Burwell stated that he had sent a letter of reply stating that the Board has no policy with regard to parking control and garage usage. Automobiles may not be towed by law unless signs have been placed on the property warning that automobiles not parked in the correct spot will be towed. The Board had decided several months ago that towing signs would not be posted as there did not seem to be a major parking problem that could not be resolved between owners. If an automobile is parked blocking an entrance or exit, an attempt should be made to contact the owner of the vehicle and if no result contact the management company.

The following application for sale was approved:
#905 David J. and Loretta A. Fulda

Landscape Committee - Jo Warn reported on their activity with Rampart Properties and Practical Gardening.

Emergency Committee - Tim Wukie reported that they are short one committee member. A request for a volunteer will be placed in the newsletter.

Newsletter Committee - Susie Thatcher requested additional funds as their kitty is almost depleted. It was moved and seconded to provide the Newsletter Committee with $200 for publishing the newsletter. Motion carried.

Kay Strehle stated she is working with the painting contractor and paint supplier to repaint outside doors that are showing rust.

The Landscape Committee was requested to work with Kay Strehle in coming up with a proposal for a location and type of flagpole.

Bids from All South Lightning Protection, Inc. ranging from $19,500 to $34,565 were discussed. Kay Strehle was instructed to obtain more information on the bids and investigate other alternatives.

The Board held a discussion on the three proposed reserve studies. It was moved and seconded to accept a bid for $2,350 from GAB Robins North America, Inc. for a one time reserve study. Motion carried.

Bob Burwell stated that an insurance appraisal for insurable reproduction costs which excludes below ground foundations, excavation, site work and below ground pipe work was completed February 10, 2000. It was moved and seconded to update the February 10, 2000, appraisal by IPA Insurance Appraisal services, Inc. for $150. Motion carried.

A bid from Answer 911 Solutions for $149.95 to place a telephone in the pool area and $24.95 per month to monitor the telephone was discussed. Kay Strehle was instructed to contact our telephone provider, Verizon, for a bid for a telephone in the pool area with limited access only to 911.

It was moved and seconded to accept a bid for $395 from Coastal Service and Supply, Incorporated for a one year inspection/service agreement for our Domestic Water Booster System. Motion carried.

Kay Strehle was instructed to see that the leak in the SPA be repaired.

Kay Strehle was instructed to replace the sign by the SPA limiting usage by children in accordance with laws and regulations.

Kay Strehle was instructed to change the timer on the SPA from 30 minutes to 15 minutes.

It was moved and seconded to require a $200 security deposit before an owner moves in and before an owner moves out, to be fully refunded if no damage is sustained. Motion carried.

The next meeting is scheduled for Monday, February 25, 2002 at 9:00 a.m.

There being no further business, the meeting was adjourned.

Robert A. Burwell, Secretary/Treasurer