Present: Patty Werdowitz, President, Scott Linek, Vice President; Skip Kruszona, Treasurer; Alex Moore, Steve Huddleston and John Marsh, Directors; Kathy Michaels represented Preferred Property Managers.

Call to Order: The meeting was called to order at 5:45 p.m.

Minutes: The Minutes of the March 10, 2004 meeting were approved. The Minutes of the Executive Meeting from March 10, 2004 were approved.

Financials: The financial statements for the period ending March 31, 2004 were accepted subject to audit.

Delinquency Recap: The Board reviewed the delinquency recap. No action was needed.

Audit: The Board reviewed the audit and authorized PPM to mail to all homeowners.

Clubhouse: John Marsh indicated that the tables in the clubhouse needed to be refinished. The Board authorized a price not to exceed $700.00 to have the tables refinished.

Architectural: The Board reviewed a request from [] Rim View Way for removal of an existing patio cover. The request was approved.

Old Business:
Painting Contract:

The Board reviewed the contract with Matt Vidosh Painting for painting of the next ten buildings. The bid for $28,400.00 was approved pending confirmation by PPM that all broken tiles will be paid for by Matt Vidosh. The Board authorized Paradise Roofing to inspection the roofs prior to and after each building is painted to look for any broken tiles.

New Business: The Board appointed Charles Kachadoorian to replace Ed Abeyta to serve on the Board until the 2005 annual meeting.

Next Meeting: The next meeting will be May 12, 2004 at 6:00 p.m. in the Clubhouse.

Adjournment: The meeting was adjourned at 6:10 pm.

The Annual Membership meeting of the Villa Monterey Homeowners Association was held at the Villa Monterey Clubhouse located at 5275 Rimpark Lane, San Diego, CA. Registration of members began at 6:30 p.m. and the meeting was called to order at 7:00 p.m. Kathy Michaels, Preferred Property Managers, announced that a quorum was present.

President Patty Werdowatz introduced the current Board members to the membership. She reported that there were a number of projects that the Board had been working on were completed in 2003: frontages, fence replacement, upgrade of lighting, canyon cleanout, clubhouse carpet replacement and painting the next group of buildings.

Minutes: The minutes of the April 9, 2003 Annual Meeting were approved by the membership.

Financial: Skip Kruszona advised the membership of the increase in insurance premium and the cost of the projects completed in the last year.

A tax resolution suggested by the Association's Auditor was read to the membership present. Upon motion made, seconded and carried, the following resolution was adopted:

The Villa Monterey Homeowners Association and it's general members hereby resolve that the Board of Directors shall be provided the authority to transfer any excess funds, on an annual basis, to the Association's reserve funds for future repairs and maintenance, and shall restrict the use of such funds for reserve expenditures as stated in the Covenants, Conditions & Restrictions which govern the Association's members. (Such transfer to reserves are to be considered exempt from income taxes and are made under the acknowledgment of Federal Internal Revenue Rulings which are considered case precedent.)

Nomination/Election: There were two seats on the Board of Directors, which expire this date: Scott Linek and Patty Werdowatz. There were no nominations from the floor. Only Scott Linek and Patty Werdowatz were running for the two open positions. Upon motion made, seconded and carried, the slate of candidates was accepted by acclamation. Their terms will expire April 2007.

Committee Reports:
Pool Committee

Alex Moore reported on a new pool rule enforcement committee being formed to oversee the pool area. Volunteer would be called upon to calm or break up large out of control parties in the pool area. Alex asked for volunteers to contact Preferred Property Managers.

Maintenance

John Marsh reported on the work done throughout the community especially the replacement of termite ridden or dry rotted wood. John presented a short slide show on the work.

Acknowledgements

Patty Werdowatz thanked Audrey Lee (Landscape) and Janet Le Rossignol (Newsletter) for their service during the past year.

Homeowners Forum: Discussion and questions from homeowners related to the pool area problems and the recent fire and how the Association's insurance coverage would affect them. The Board suggested having the insurance agent come to a board meeting to answer homeowner questions.

Adjournment: There being no further business to come before the membership, the meeting was closed at 7:50 p.m.

Respectfully Submitted,