Present: Patty Werdowatz, President; Steve Huddleston, Vice President; Skip Kruszona, Treasurer; John Marsh, Secretary; Charles Kachadoorian, Director; Julie Allen, Director and Marysia Leu, Curtis Management Company. Alex Moore, Director was unable to attend.

Call To Order The meeting was called to order at 5:30 p.m. by President, Patty Werdowatz.

Minutes The Board reviewed the minutes of the March 8, 2006 Board meeting. Upon a motion made and seconded (Marsh/Huddleston) the minutes were approved. Motion passed unanimously.

Financials Ms. Leu provided the financial statement for the period ending February 28 , 2006 from San Diego Preferred Property Management. The preliminary March 31, 2006 Financial Statement was also provided at the meeting, however it was noted that these are preliminary since the information from S.D. Preferred Property Management was not complete. The information will be forwarded to Treasurer, Skip Kruszona, once received and reports rerun. A motion was made and seconded (Kruszona/Marsh) to approve the March, 2006 statements, pending Treasurer's review. Motion passed unanimously.

Outstanding List The delinquency list as of March 31, 2006 was next reviewed. Management recommended the following collection activity:
A lien to be placed on account [].
The Board also reviewed a request from a homeowner for removal of a late fee.

Motion was duly made and seconded (Kruszona/Marsh) approving management's recommendations and to remove the late fee. Motion passed unanimously.

Audit The audit was mailed to all homeowners. No further action at this time.

Architectural Julie Allen noted that the window installation at [] Edgepark Way was now completed. Ms. Leu reported she met with the owner of 9936 Pine Knoll Lane who had existing corregated plastic as the patio cover, and was requesting approval for replacement corregated plastic. The owner now understands this type of material is not approved and will be investigating screening for the patio cover. Ms. Leu to monitor for follow up.

Insurance Ms. Leu has confirmed the earthquake insurance for Villa Monterey H.O.A. was not previously renewed, as of February 1, 2006. Ms. Leu will attempt to get it reinstated or get a price for renewal.

Landscape The Board next reviewed the summary from the March 27, 2006 walk through. No further action required at this time. The Board did review a request from Weststar Landscape to pay for a gas line repair they were charged for by San Diego Gas & Electric. In repairing damage done by SBC in a common area planter bed, Weststar damaged a gas line that was improperly marked. SDG&E repaired the line and is charging Weststar for the repair. Ms. Leu suggested this be denied and Weststar be informed they should forward this to their own insurance company to subrogate against SBC. Board concurred.

Legal The legal opinion on the association's responsibility for costs when homeowners do not report repair and maintenance issues in a timely manner, was tabled for the next meeting.

Long Term Planning Committee Julie Allen confirmed that the next committee meeting will be May 6, 2006 at the Clubhouse, beginning at 9:00 a.m.

Maintenance The Board reviewed a list of open maintenance items needed at the complex. Motion was made and seconded (Marsh/Kruszona) to begin using Andy Atwood Maintenance for such repairs, on a limited basis (20hours per month). Mr. Atwood's labor charge is $29 per hour. Motion carried unanimously.

The Board next reviewed a termite report for interior garage steps and confirmed this would be an individual homeowner's expense. Ms. Leu to notify the owner.

Ms. Leu reported that the lighting along [] Lemonwood Lane did have a short in the wiring and that B.C. Electric would complete excavation and repair at a cost not-to-exceed $750. Motion was made and seconded (Huddleston/Marsh) approving the work. Motion passed unanimously.

Pool Ms. Leu reported that the Jacuzzi heater gauges were calibrated properly and the thermometer was replaced. All is working properly now.

Projects The Board reviewed bids for the deck repairs and mold remediation needed at [] Oakleaf Point. Due to the length of time these problems have been on-going, a motion was made and seconded (Kruszona/Marsh) approving Kenco, Inc. for both repair processes, this one time only. Motion carried unanimously.

A letter of negotiation to [], Inc was also reviewed. Motion was made and seconded (Kruszona/Kachadoorian) approving this be sent and payment withheld for work done since January, 2006. Motion carried unanimously.

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

New Business The draft Welcome Program letter will be reviewed by Board members for further revision and reported on at the next Board meeting. Ms. Leu was also directed to confer with the Villa Monterey C.O.A. Board if they would like to participate in a community-wide garage sale. Julie Allen will locate the chairperson of the last garage sale to see if she is available to assist with this project this year.

Adjournment The next Board of Directors Meeting will be held on Wednesday, May 10, 2006 beginning at 6:00p.m. There being no further business, the meeting adjourned at 6:28p.m.

Respectfully Submitted,

Quorum Marysia Leu, Curtis Management Company certified that ninety-seven units (97) were represented either in person or by proxy. Quorum had been reached.

Call To Order The meeting was called to order at 7:15 p.m. by President, Patty Werdowatz.

Introductions Patty Werdowatz welcomed all in attendance and began the meeting with an introduction of the current Board of Directors and their duties. She also noted several projects that were on-going for the community and that the Board was currently working on. She encouraged homeowners to get involved with the community and participate on committees and workshops, such as the Long Term Planning Committee, Parking, Landscaping Committee, etc. Patty also noted that a Rules and Regulations Committee is being formed and volunteers to update these, are needed. She then noted special thanks to the many volunteers that assist with the clubhouse and pool, such as Joyce Bliss and Frank Toto.

Minutes Minutes of the 2005 Annual Meeting were provided to all in attendance via handout. A motion was made and seconded (Marsh/Toto) approving the minutes as presented. Motion carried unanimously.

Treasurer's Report Skip Kruszona provided an overview of the Association's standing financially. He noted the Association faced rising expenses such as increases in water rates, wood replacement needs for the buildings and gas and fuel prices skyrocketing. These are some of the problems the Board is faced with in the continued maintenance and upkeep of the Association, which is getting older, and will require a proactive approach in resolving them to keep property values up. Skip also explained the Resolution to Transfer Excess Operating Funds to Reserves (at the end of the fiscal year) and asked the general membership for approval of same. A motion was made and seconded (Kadlec/Steffan) to accept this resolution. Motion passed unanimously.

Election Of Directors Patty Werdowatz then introduced the candidates for election and each provided a brief synopsis on their interest for being on the Board of Directors. Ms. Leu explained the voting procedures and called for any nominations from the floor. Hearing none, a motion was made and seconded (Smutko/Steffan) to close nominations. Motion passed unanimously. Ballots were cast and collected. Volunteers were selected to count the ballots and moved to another room to do so, while Homeowner's Forum was held.

Presentation Julie Allen from the Board was introduced as Landscape Committee Chairperson and in turn, introduced Rose Smutko, with whom she has been working to reduce and maintain water costs for the complex. Ms. Smutko provided a very insightful presentation on water conservation for the community as a whole, and what individuals can also do to conserve water. Rose is with with San Diego County Water Authority and works with organizations to develop water conservation techniques for increased savings in water consumption and costs. At Villa Monterey, the landscape committee is working to develop increased savings, save on the amount of water used and yet keep up the ambiance of the lush landscaping throughout the community. A free water audit was done, which looks carefully at the current irrigation system and how it is utilized. There are over 6 ½ acres of landscaping in the 23 acres of Villa Monterey H.O.A. Few people realize that while our homes are one of the most valuable assets a person can have, 20% of the value of the home is landscape. Conservation is needed not only for the rising costs for water, but in case of drought, which is a fact of life and that our population is outgrowing our water supply. Treatment plants were built for the number of people there are, within Southern California.

There are short-term suggestions, such as adjusting existing landscape sprinklers to avoid water run-off, repairing broken heads and allowing for shorter sprinkler times and long-term suggestions, such as hiring landscape architects to make recommendations how to further revamp the irrigation system and use of more drought tolerant plantings.

Rose also mentioned rebate programs and incentives offered by the Water District to help with water conservation efforts. A brief question and answer period by the homeowners present, then followed.

Election Results Patty Werdowatz announced the election results, congratulating Ray Kruszona, John Marsh and Greg Smutko on their election to the Board of Directors.

Adjournment There being no further business, the meeting adjourned at 8:25p.m.

Respectfully Submitted,

Attendance Patty Werdowatz, Greg Smutko, John Marsh, Charles Kachadoorian, Julie Allen, Ray Kruszona and Marysia Leu, Curtis Management Company.

Call To Order The meeting was called to order at 8:40 p.m. by Patty Werdowatz.

Board Positions After a brief synopsis and discussion of Board duties, a motion was made and seconded (Kruszona/Marsh) for the following slate of Board officers:
∙ Patty Werdowatz - President
∙ Greg Smutko - Vice President
∙ John Marsh - Secretary
∙ Skip Kruszona - Treasurer
∙ Charles Kachadoorian - Director
∙ Julie Allen - Director
∙ Alex Moore - Director.

Motion carried unanimously. John Marsh volunteered as Architectural Chairman, Alex Moore will remain as Pool Chairman, July Allen will work as Landscape Committee Chairman and Rules and Regulations as well. All Board members are working on the Long Term Planning Committee.

It was noted that Steve Huddleston stated he will continue with the Parking Enforcement Committee and will volunteer for the Rules and Regulations Committee as well.

Meetings will continue to be held on the second Wednesday of the month, beginning at 6:00p.m. with Homeowners Forum at 6:30p.m. at the clubhouse.

It was suggested that the new Board meeting informally next Tuesday at 6:00p.m. to discuss the [] contract negotiations.

Adjournment There being no further business, the meeting adjourned at 8:50p.m.

Respectfully Submitted,