Attendance Patty Werdowatz, President; Greg Smutko, Vice President; John Marsh, Secretary; Ray Kruszona, Treasurer; Charles Kachadoorian, Director; Julie Allen, Director; Marysia Leu, Senior Community Manager and DeWayne Frost, Community Manager from Curtis Management Company. Alex Moore, Director was absent. Several interested homeowners also attended.

Call To Order The meeting was called to order at 6:06p.m. by President, Patty Werdowatz.

Show Cause A homeowner was asked before the Board for continued parking violation by her tenants. There was no response from the owner, however, no further parking violations were noted. Therefore, it was suggested continued monitoring of the area be done. Board concurred.

Minutes The Board reviewed the minutes from the Board Meeting and Executive Session held August 9, 2006 which were previously tabled. A motion was made and seconded (Marsh/Kachadoorian) to approve the minutes as corrected. Motion passed unanimously. The Board also reviewed the minutes from the Board meeting of September 13, 2006. A motion was made and seconded (Marsh/Kruszona) to approve the minutes as corrected. Motion carried unanimously.

Financials Skip Kruszona provided an overview of the Association's financials. He again reminded the Board that the insurance payment was not reflected on the financials yet and therefore, assets seemed overstated. He asked management to research why office expense seemed high this month to report at the next meeting.

A motion was made and seconded (Kruszona/Smutko) approving the financials subject to independent audit. Motion carried unanimously.

Outstanding List The Board reviewed the delinquency list for the month. A lien had been placed on an account last month and management requested Board approval for a new lien to be placed on the account as the owner has again changed. A motion was made and seconded (Kruszona/Smutko) approving a new lien to be placed on account []. Motion carried unanimously.

Insurance The Board next reviewed renewal costs for the master insurance policy. A motion was made and seconded (Kruszona/Smutko) approving the insurance renewal with Travelers and Zurich Insurance at a premium cost of $42,390. Motion passed unanimously. Skip Kruszona requested another insurance agent be contacted to review the coverages to ensure adequate coverage for the Association.

Landscaping Julie Allen reported on the recent property inspection completed on September 29, 2006. The bid from One Tripp Tree Service was re-examined and the tree list prioritized for the work that needs to be done this fall. Management to provide competitive bids for the necessary tree work to be done this fall. This work is estimated at approximately $7,000.

Julie Allen also resigned as Landscape Chairperson stating that Rose Smutko, has graciously acquiesced to accepting this position. Julie cited Rose's experience and knowledge as assets to having Rose as the Landscape Chairperson. Skip Kruszona acknowledged Julie's efforts and hard work in working as the landscape chairperson and everyone thanked Julie for her contribution. Rose was accepted warmly as the new landscape chair. Property inspections will continue on the last Friday of the month, except for November and December (it will be the third Friday) at 8:45a.m.

Ms. Leu then addressed the letter from the City of San Diego Water Department, which has assigned the maintenance responsibilities for the Association's backflow devices, back to the Association. Ms. Leu's research yielded that the original developer had negotiated for the City Water Department to manage the maintenance for the devices, which the Association (actually) owns. The concern however, is that the backflow devices are all below ground, which is not to current code. As it is very expensive for these to be changed to above ground, the water department should grandfather these in place or bring the backflow device installations to code, prior to the Association taking over their maintenance. Board concurred. Management to write to the City Water Department asking that they grandfather the backflow installations as is, or bring them to current code prior to the Association taking over the maintenance.

Janitorial Joyce Bliss reported that Hutchinson Commercial is working out much better and in her opinion, no change in vendor is needed at this time. This will continue to be monitored.

Homeowners Forum A homeowner requested her husband's name be taken off the monthly dues billing as he has passed away. Management to follow up. This homeowner also spoke on a service she recently had done to her plumbing by NuFlow. This is where the plumbing pipes are coated from within the pipe in an effort to prevent slab leaks. It takes one night where the water is turned off to the residence and all the pipes are coated with an epoxy material on the inside of the pipes. This is done without disturbing the placement of the pipes. There is a ten-year warranty and the cost is between $6,000 - $7,000. The company would be willing to come speak to homeowners at the clubhouse or provided several homeowners are interested in the service, offer a discount for the work. Notice will be provided in the next newsletter.

Another homeowner questioned why there is going to be a rate increase in the dues. Patty Werdowatz and Skip Kruszona both responded, citing the age of the buildings and needed repairs to the exterior siding and painting in order to keep the buildings in good condition and water-tight. In addition, roof work is also being planned and there are the continual needs of the landscaping and maturing trees. This does not include the rate increases over which the Association has no control, such as insurance costs and water rate increases.

A homeowner asked the status of the upcoming fumigation in her building as she has noticed subterranean termites now, outside her home. Ms. Leu responded that the fumigation is tentatively scheduled for November 3rd. However, she is awaiting the contract for the roof addendum so it may be signed by the Board. Once this is signed (which provides that Agricultural Pest Control will responsible for any roof tiles they break in setting up the tenting or removing it) notices will be sent to the four residents setting up the necessary meeting with the termite company. She also noted however, that tenting will not exterminate subterranean termites, but will make sure the inspection for those is done as well.

Maintenance And Repair Skip Kruszona requested that a bid for the wood repairs and painting be sent to Jon Wayne Construction. Management will follow through as requested by the Board. Proposals are in progress at this time.

The Board next reviewed requests for localized or spot treatment for termites to be done at [] Pine Knoll Lane and [] Lemonwood Lane. A motion was made and seconded (Kruszona/Smutko) approving this work. Motion carried unanimously.

A motion was made and seconded (Kruszona/Marsh) to approve the proposal from Urbach Roofing for replacement roof work at [] Quemado Court. Total cost is $2,887 (to include resloping the flat roof over the garage). Motion carried unanimously.

Correspondence The Board reviewed miscellaneous correspondence sent to and received from homeowners since the last meeting. No further action was directed by the Board.

New Business Ms. Leu introduced the new property manager, Mr. DeWayne Frost. Although new to Curtis Management, Mr. Frost has been in Association management both here in California and in Texas for 17 years. Greg Smutko requested DeWayne's contact information for inclusion at the website.

Adjournment There being no further business, the meeting was adjourned at 7:25p.m.

Respectfully submitted,

Marysia Leu
Acting Recording Secretary