Minutes of the Meeting of the Members

Saturday, August 14, 2004

10:00 A.M.

Norman Salisbury, President called the meeting to order.

Residential Trustees present and participating: Norman Salisbury, Irene Link, John Patton and Sandra Lee Sterns

Commercial Trustees were excused. The commercial owner was present by proxy as his ballot had been received prior to the meeting.

Quorum Requirement: It was determined that over 500 votes had been cast and therefore a Quorum had been established.

Counting of Ballots: Voting was declared closed. Ballots were collected and turned over to management to be counted.

Election Results: It was reported that Mike Gravitz was elected as a Residential Trustee by a majority vote of 397.26 residential votes and that Steve Tester was re-elected as Commercial Trustee by a vote of 88.93 commercial votes.

Earthquake presentation: Ed Lin presented the results of his two years of study of earthquake provisions of our Declaration and insurance policies.

Litigation Update: Our attorney Tom Karrenberg reported on our property rights dispute with Hamilton Partners, the status of a lawsuit which they have filed against us, and the status of settlement negotiations.

The next Meeting of the Board of Trustees was scheduled for Thursday, August 26, 2004 at 5:00 p.m.

Adjournment: The meeting adjourned at 11:30 a.m.

Respectfully submitted by Sandra Lee Sterns