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

Call To Order The meeting was called to order at 6:05 p.m. by Greg Smutko, Vice President.

Minutes The Board reviewed the minutes of the May 10, 2006 Board meeting. Upon a motion made and seconded (Kruszona/Marsh) the minutes were approved as corrected. Motion passed unanimously.

Financials Ray Kruszona provided an overview of the financial statements for the period ending May 31, 2006. Management to follow up with clarification on variance on the Income Statement, as requested by Treasurer, Skip Kruszona. Skip also reported with recent payouts for the roofing, the Association is only $35,000 ahead of budget at this time. There being no further questions, a motion was made and seconded (Kruszona/Marsh) to approve these financial statement, as presented and subject to independent audit. Motion passed unanimously.

Outstanding List The delinquency list as of May 25, 2006 was next reviewed. Management recommended the following collection activity:

Pay or Lien Notice to be sent to account [] whose recent payment was returned for non-sufficient funds and once the deadline has been reached, the Lien is to be placed on this account and also [] (pay or lien was previously authorized by the Board of Directors).

Motion was duly made and seconded (Kruszona/Marsh) approving management's recommendations. Motion passed unanimously.

Architectural

• [] Rimpark Lane - patio cover has not yet been removed. A letter has been sent to the owner requesting status of the owner's plan to make the cover free standing. A three week deadline for response was requested.
• [] Pine Knoll Lane - patio cover has an existing corrugated plastic over it and understands this type of material is not approved. A letter has been sent requesting status of this removal as well, again with a three week deadline for response.
• [] Edgepark Way - owner has requested permission to install anodized bronze colored recessed vinyl windows at the unit. Owner provided a sample of the frame to be used at the meeting. A motion was made and seconded (Marsh/Allen) approving this request. Motion carried unanimously.
• Gary Reming - provided his Architectural Request for replacement windows for his home. As there were questions if the windows are of recessed type or not, Skip Kruszona volunteered to verify this with the Alex Moore, who did the research on the window qualifications for the Community. A motion was made and seconded (Allen/Marsh) to approve this request pending Skip's verification that the correct window type will be installed. Motion passed unanimously.

Insurance

Elliot Katzovitz of the Katzovitz Insurance Agency made a presentation to the Board on his insurance proposal for the community. At this time Villa Monterey does not have earthquake insurance. Although the number of carriers who offer earthquake insurance for Associations has been drastically reduced, the costs have risen substantially. Traditional insurance will cost approximately $85,000 per year with a 5% deductible and an insurable value of approximately $22million. Mr. Katzovitz can offer a layered protection where the owner obtains the maximum coverage under CEA first (California Earthquake Authority) and then the Association can layer on top of this for minimal savings. Management was requested to obtain a current bid from Travelers for Board review.

Homeowners Forum
A Homeowner Had Several Questions And Requests As Follows:

• Will the Association be having the gutters and downspouts on the E models cleaned and flushed?
  Skip Kruszona clarified there is no specific Association policy for the cleaning of downspouts and gutters. It is done periodically by homeowners.
• The homeowner inquired if there is any plan to clean the sidewalks where they have blackened. She noted several areas in the complex that need cleaning.
  Ms. Leu asked for a list of these areas that can be viewed on the next walkthrough. Any areas that may be a hazard will be addressed by maintenance.
• The homeowner then requested new umbrella stands with cylinders, so the umbrellas will not tip over when in use.
  It was clarified that the Association already has a new type of umbrella stand that tips intentionally to provide additional shade at the table.
• The owner thanked the Association for the small replacement plants by her patio gate and requested status on her previous requests.
  Ms. Leu responded she had contacted Creative Pools and verified nothing further can be done to sound proof the pool and spa equipment area. The area cannot be enclosed due to ventilation needs of the equipment. Further, a letter has been sent to her neighbor requesting the remove or replace the balcony bamboo shades that are in disrepair or moldy.
• Another homeowner requested the status on the wood repairs for his home on Park Crest Lane. He verified the maintenance supervisor has viewed the area, but no further work has been done.
  Ms. Leu verified that the needed repairs are beyond the scope of what the maintenance person handles. It was noted the request has been sent out for bid. Management to follow up.

Landscape

The Board next reviewed the summary from the May 26, 2006 property inspection. Skip Kruszona thanked Julie Allen for all her efforts in getting the water costs reduced for the entire community. He noted that in working closely with Ms. Smutko, there was a significant difference in the water usage. Ms. Allen explained however that there are several areas of stressed grass that were due to the spraying of a weed pre-emergent, reduction of water and the recent heat spell. Resident's patience in getting these areas back up to standards is requested. No further action required at this time.

A complaint regarding the landscape company's utilization of a homeowner's water was next reviewed. Ms. Leu has contacted Weststar Landscaping to ensure this practice stops and suggests that the homeowner can "lock down" his plumbing at his own cost, if he so desires. Board concurred. Management to so notify homeowner.

Long Term Planning Committee

Julie Allen reported that the next meeting will be on Saturday, June 17, 2006 at 9:00 a.m.

Maintenance

The Board next reviewed termite reports for 9926 Pine Knoll Lane and 5275 Rimpark Lane (clubhouse). Motion was made and seconded (Kruszona/Allen) to approve these proposals. Eradication is to be done for the common area termite infestations. Management to process paperwork.

The Board also reviewed the monthly maintenance log. No further action required.

Patrol

Julie Allen reported on two recent incidents of vandalism at the pool area. A bid for a video cameral installation as well as bids for patrol monitoring of the pool area on an on-call basis and for motion sensor lights at the pool. Board agreed the video camera bid seemed expensive at this time, however Skip Kruszona may have a lead on a more cost effective system. The contractor will contact Ms. Allen.

After some discussion, it was agreed to hold off on additional motion sensor lighting for the pool area. Management to work with Ms. Allen in obtaining new signage for the pool. Ms. Leu to obtain costs from Metro Safety Services for on-call service, 2 trips per night to view the pool area, a weekend afternoon drive by and negating the open/close of the pool area. It is hoped service will be in place for the 4th of July weekend.

Steve Huddleston provided his report on recent parking violators noting fines to be instituted for residents on Pine Knoll and soon for certain residents on Quemado.

Rules And Regulations

Julie Allen noted she was unable to work with the Rules and Regulations Committee due to time constraints. Steve Huddleston and John Steffan, who volunteered for the Committee, will co-chair and come up with recommendations to the Board for the next meeting.

Correspondence

The Board reviewed homeowner and violation correspondence since the last meeting. No further action was directed.

New Business

The Board then discussed further action on the new Welcome program and set Saturday, August 26, 2006 at 10:00 am as the first meeting for this. Notice will be placed in the newsletter and all are welcome to attend.

Adjournment

The next Board of Directors Meeting will be held on Wednesday, July 12, 2006 beginning at 6:00p.m. There being no further business, the meeting adjourned at 7:50p.m.

Respectfully Submitted,