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

Call to Order: The meeting was called to order at 6:00 p.m.

Minutes: The Minutes of the December 10, 2003 meeting were approved as written. The Minutes of the Executive Meeting from December 10, 2003 were approved as written.

Financials: The financial statement for the period ending December 31, 2003 was accepted subject to audit.

Delinquency Recap: There are no delinquencies at this time.

Maintenance: John Marsh reported that work was starting on wood replacement prior to the painting project.

Landscape: Ed Abeyta reported that he and Kathy would be walking with California Conservation Corp for the brush management in the canyon. The Board reviewed several proposals from Weststar Landscape for drainage in several locations. The Board requested that PPM discuss the bids with Weststar and provide more information at the next meeting. The proposal for reworking the landscape at [] Oakleaf was approved and will be taken from operating. The estimate for the retaining wall by [] Edge Park for $2,495.00 was approved and will be taken from reserves.

Clubhouse: John Marsh reported that Silver Carpet had been out and had the carpet on order. John indicated that there were some electrical problems in the clubhouse. The Board authorized BC Electric to work with John to get the work done.

Pool and Spa: No action needed.

Architectural: No requests were submitted this month.

Web Page: Ed Abeyta reported that the web site was getting more use each month

Parking: No action needed.

Homeowners Forum: Several homeowners were present but not items were discussed which needed Board action.

Old Business: Skip Kruszona reported that he was working with Paradise Roofing to renegotiate the contract for roof cleaning and maintenance.

New Business:
Painting Contract

The Board reviewed the contract for Matthew Vidosh for the next ten buildings and have agreed to table the decision until they have replaced the broken tiles reported by homeowners. PPM is to contact Mr. Vidosh.

Earthquake Insurance

The Board reviewed the proposal for renewal of the policy, and upon motion made, seconded and carried, agreed to the increased premium and its renewal at a cost of $28,108.46, $1,083.18 more than last year.

Ed Abeyta Resignation

The Board regrettably accepted the resignation of Ed Abeyta and expressed their appreciation for all the work he had done for the Association during his tenure on the Board. Ed volunteered to finish off the canyon clean up project with Kathy Michaels and the Board authorized him to do so.

Next Meeting: The next meeting will be February 11, 2004 at 6:00 p.m. at the recreation building.

Adjournment: The meeting was adjourned at 6:50 pm to Executive Session to discuss legal matters

Respectfully Submitted,