Present : Patty Werdowatz, President; Skip Kruszona, Treasurer; Alex Moore, Secretary; Charles Kachadoorian and John Marsh, Directors; and Kathy Michaels represented Preferred Property Managers (PPM).

Absent : Steve Huddleston, Director.

Call To Order : The Meeting Was Called To Order At 6:00 p.m.

Minutes: The September 8, 2004, Board of Directors Meeting Minutes were approved as written.

Financial: The Board reviewed the financial statement for the period ending September 30, 2004. The Board accepted the financial statement as submitted, subject to audit.

Skip Kruszona requested that PPM pull out all invoices paid to Top Notch Construction and the roofing contractor. It was agreed that all reserve expenditures paid from the operating account would be refunded from the reserve fund account to the operating account, by writing a check from reserves to operating for the total amount. Also, the Board requested that PPM put together a cash flow analysis for the balance of the year to determine where they will be by the end of the year.

Delinquencies: The Board reviewed the delinquency recap sheet and no action was required.

Budget: The Board reviewed the revised proposed budget for 2005. Upon motion duly made and seconded, the Board unanimously approved the budget that included an increase of Association Dues to $182.00 per month, and a Special Assessment of $114.00 per unit, payable in March ($57.00) and September ($57.00). The approved budget and Budget Information Advisory letter will be mailed to owners by November 15, 2004.

Landscape:
Walk Through List:

The Board reviewed the walk through list from the walk through held on September 22, 2004 and no action was required.

Tree Proposals:

Two bids for tree maintenance were submitted and reviewed by the Board. The Board requested that PPM contact both contractors and ask if they could possibly lower their bid dollar amount. It was noted that tree maintenance costs would be included in the cash flow analysis.

Clubhouse:
Clubhouse Cleaning Bids:

PPM is in the process of obtaining bids for cleaning the clubhouse, and at this time has only received one bid. Discussion for this was tabled until the next meeting.

Revised Clubhouse Rental Agreement:

The Board reviewed the revised clubhouse rental agreement, and upon motion duly made and second, the Board unanimously agreed to accept the revisions as submitted. The revisions included,

1. Charging a refundable security/damage deposit of $150.00 for each rental use, in addition to the rental fees previously charged, and
2. Charging $25.00 if the Association removes trash from the clubhouse after use (homeowner required to remove trash after use).

The revised Clubhouse Rental agreement will be effective November 1, 2004, and the new agreement will be provided to the Clubhouse Manager.

Pool/Spa:
New Pool Lock System:

Alex Moore presented a proposal from California Commercial Security to change the existing lock system on the pool gate to an electronic system. After a lengthy discussion, the Board requested that Alex obtain more information for the next meeting.

Pool Area Concerns:

Kathy reported on the meeting she had with Mike (pool technician) of Creative Pool and Frank Toto. The Board requested that PPM follow up on three items:

1. verify how the emergency shut off system is set up. It needs to be determined if the system can come back on without a technician having to come out to the property to turn it back on if it accidentally shuts off,
2. obtain bids to change the system from a timer to a photocell, and
3. obtain three bids to re-plaster the pool.

Architectural:
[] Guinda Court:

The owners submitted an Architectural Request to install an air conditioning unit outside of their unit. The Board requested that PPM receive additional information on exactly where they wish to install the air conditioner, and also check where other air conditioners have been installed around the building.

Parking:
Parking Log:

The Board reviewed the parking log from last month and agreed that at this time, the parking system appears to be working much better than previously.

Old Business:
Top Notch Cancellation:

Kathy advised the Board that they had sent a cancellation letter effective September 30, 2004.

Painting - Wood Replacement:

PPM met with one of the superintendents for Top Notch, and John Marsh, to discuss wood replacement prior to painting. Top Notch will evaluate six of the buildings that are on the upcoming list and formulate a list of materials and costs to complete the work, and advise PPM accordingly.

Painting Schedule:

Kathy advised the Board that the painting work is scheduled to begin the week of October 25th, and will be in progress for four weeks. After this work, a break will be taken during the holiday, and work will begin for an additional two weeks starting December 2, 2004.

Roof Tiles:

PPM met with Brent Dils of Dils Roofing. Brent recommended removal of all tiles on one building verse the eyebrows on a number of buildings. PPM is to follow up with Carlos Stance from Monier Lifetime Tiles and request two additional roofing contractors, and will discuss the same issue with them prior to the next meeting.

New Business:
Water Billing:

PPM submitted a Water Billing Summary that indicated water usage and costs for the past two to three years. The Board requested that an updated Water Billing Summary be included in the monthly Board packet.

City of San Diego Landscape Survey:

The City of San Diego submitted a Landscape Survey to the Association. Several Board members were impressed with this report and requested that PPM make sure Weststar Landscape receive a copy of the survey so that they can evaluate the survey, and then attend the next Board meeting to discuss what action they can take to cut back on the amount of water being used by the Association.

Entry Sidewalk Repairs:

Weststar Landscape provided a proposal to fill in the cracks in two sidewalks. The Board requested that PPM obtain a bid from Top Notch Construction for the same work.

Insurance Renewal:

The Board reviewed the invoice submitted by Phil Glorioso of Insurance Management Services for renewal of the Association's insurance effective October 11, 2004. The Board approved renewal and payment for the insurance renewal. The Board requested that PPM obtain several bids next year prior to the renewal for the 2005/06 policy period.

Garage Sale:

Two homeowners volunteered to initiate a community garage sale in the fall, and requested it be held on November 1st. The Board felt that this did not allow enough notice for residents and agreed to have a community garage sale on November 6th. PPM will advise the two volunteers about the approved date.

Patio Covers:

Kathy advised the Board that there were three patio covers made of similar product on the buildings that are coming up for painting. The Board requested that PPM contact Top Notch Construction and have them evaluate the condition of each patio cover and find out if the patio covers could support the weight of the painters. If not, they would need to advise homeowners about other alternatives to support the painters. (Owners may need to pay for scaffolding to allow the painting contractor to paint the area on the side of the building that has the patio covers.)

Correspondence: The Board reviewed the correspondence from the month and no action was required.

Next Meeting: The next meeting is scheduled for Wednesday, November 10, 2004. at 6:00 p.m., at the Association's clubhouse.

Adjournment: The regular business meeting adjourned at 7:30 p.m. The Board moved into an Executive Session to discuss legal matters.

Respectfully Submitted,