Present Patty Werdowatz, President; Greg Smutko, Vice President; Ray Kruszona, Treasurer; John Marsh, Secretary; Julie Allen, Director; Charles Kachadoorian, Director and Marysia Leu, Curtis Management Company. Alex Moore, Director was unable to attend. Several homeowners were also present.

Call To Order The meeting was called to order at 6:03 p.m. by Patty Werdowatz, President.

Show Cause A Quemado Court owner had been asked before the Board due to their tenant's repeated abuse of the parking rules of the community. As there was no homeowner response and the owner did not attend, a motion was made and seconded (Kruszona/Marsh) to fine the owner $100 but hold it in abeyance for 6 months. Should further violations occur, the fine will be levied and the vehicle towed. Motion passed unanimously.

Minutes The Board reviewed the minutes of the July 12, 2006 Board meeting and Executive Session. Upon a motion made and seconded (Kruszona/Marsh) the minutes were approved as presented. Motion passed unanimously.

Financials Ray Kruszona provided an overview of the financial statements for the period ending July 31, 2006. The Association is under budget greatly, as earthquake coverage is still pending. Mr. Kruszona suggested a bank transfer of $50,000 from Union Bank to be placed in the Smith Barney Reserve Account. A motion was made and seconded (Kruszona/Allen) approving the bank transfer. Motion carried unanimously. There being no further questions, a motion was made and seconded (Kruszona/Smutko) to approve the financial statement, as presented and subject to independent audit. Motion passed unanimously.

The delinquency list as of July 31, 2006 was next reviewed. Management recommended the following collection activity:

• Account [] - Lien has been placed on the account. Board authorized a Warning of Default to be sent to the owner by legal counsel.
• Account [] - Lien has been placed on the account. Board authorized a new Pay or Lien letter to be sent to the new owner.

Architectural

• [] Lemonwood Lane - Owner attended and requests for installation for new vinyl windows and sliding glass doors and a new air condition/heating unit with compressor on the patio. Owner also requested to replace patio gate boards to extend them to the ground and an 8' freestanding patio awning with swing. Having provided correct materials for the windows and there being no further questions, a motion was made and seconded (Kruszona/Smutko) approving these requests provided that the a/c unit is installed with rubber mountings for noise and vibration reduction and that the awning must not be attached to the house. Motion passed unanimously.
• [] Edgepark Way - Owner went to have her patio fencing waterproofed but the contractor "stained" it by mistake. Owner requested permission to keep the color as is allowing time to "weather and lessen" the stain. It was suggested that the Association painters power wash the fence to lessen the stain when the painting project is done. If this is still not satisfactory, the Association's painters can redo the fence with all costs being billed back to the homeowner. Board concurred.

Insurance The Board reviewed cost information on the earthquake coverage from Travelers Insurance. After some discussion, a motion was made and seconded (Kruszona/Smutko) approving the cost of $23,288.18 for the annual premium. Motion carried unanimously.

Homeowners Forum A homeowner questioned if most individual insurance agents offer earthquake coverage. Ray Kruszona responded that most do not, but agents do offer to sign up individuals through the California Earthquake Authority.

Another homeowner reported that his son's truck had recently been stolen from the community. It will be so noted in the Newsletter. This owner also provided a copy of rules suggestions regarding parking to the committee chairperson. John Steffen asked that a copy of the revised rules be provided to all Board members for review once completed.

Another homeowner, who is new to the community, volunteered to serve on any committee that needs assistance.

Lastly, a landscaping status report was requested. Julie Allen reported that the landscape committee is working with Weststar Landscape in greening up the areas that were previously burned due to preemergence application and heat. Most areas are already showing signs of recovery and there is no additional cost for this as the landscape company is absorbing it. Julie also reported that bids for a landscape architect have been obtained however at $20,000 to $30,000 the bids are not being considered due to budgetary constraints. The landscape committee will continue to work to improve irrigation and water conservation while maintaining the Association's aesthetics.

Landscape The Board next reviewed the summary from the July 28, 2006 property inspection. No further action required. Julie Allen noted that the arborist walk through will take place next month for the fall tree work.

Legal The Board completed the checklist from legal counsel regarding current election practices. This will returned to legal counsel for them to generate the new election rules for the community in compliance with the new State laws.

Maintenance Ray Kruszona reported that the wood inspections for 10 buildings will be done Thursday, August 10th at 9:00 a.m. An outside inspector, along with two Board members and the maintenance supervisor, will be looking at the buildings for a repairs list and scope of work for wood replacement. All Board members are welcome to attend this walk through.

Painting bids were provided to the Board for review. These were placed on hold until the wood inspection has been completed.

Proposals for the new clubhouse air conditioner were then reviewed. Motion was made and seconded (Kruszona/Allen) for a final revised bid to be obtained identifying a different a/c manufacturer and allowing Ray Kruszona to review both bids for approval prior to the next meeting. Motion carried unanimously.

The Board next requested Management to obtain a price from Agricultural Pest Control for a building fumigation at [] Rimpark Lane. This needs to include the roofing guarantee against tile breakage.

Pool It was again requested that homeowners around the pool area be allowed to call the patrol service for action against clubhouse party abuse and noise at the pool area. After some discussion that these homeowners may not be covered under the Director and Officers insurance, which could lead to a possible liability to the Association. Julie Allen suggested a Task Force meet to brainstorm solutions for these problems. A meeting was set for Monday, August 28th at the clubhouse beginning at 6:00 p.m. Homeowners are welcome to attend and participate.

Correspondence The Board reviewed homeowner and violation correspondence since the last meeting. No further action was directed. Management was requested to remind all Board members of the August 26th budget meeting (8:30 a.m.) and new homeowner meeting (10:00 a.m.) at the clubhouse.

Adjournment The next Board of Directors Meeting will be held on Wednesday, September 13, 2006 beginning at 6:00p.m. There being no further business, the Board adjourned to Executive Session at 7:40p.m.

Respectfully Submitted,

Marysia Leu
Acting Recording Secretary