January 19, 2002

CHATEAU HEIGHTS COUNCIL OF CO-OWNERS, INC.

ANNUAL MEETING

Location: Sheraton Four Points

Date: Saturday, January 19, 2002

Time: 10:00 A.M.

The meeting was called to order by President, Roy Robles, at approximately 10:10: A.M.

Roll call indicated that the following seventeen (17) homeowners were in attendance: 24, 31, 11, 18, 29, 22, 7, 10, 20, 3, 16, 2, 26, 25, 6, 27, and 32. Proof of notice of meeting was presented by Ted Miller.

Previous minutes from Annual meeting dated May 5, 2001 were read, reviewed, and several corrections were noted. A motion was made by Roy Robles to make these corrections and approve amended minutes. Motion was seconded by Darrell Bryan and unanimously approved.

Ted Miller presented the 2001 Financial Report to homeowners. A motion was made by Roy Robles to accept the financial report as presented. Motion seconded by Roger Moreno and unanimously approved. A motion was made by Roger Moreno to direct the auditor to specifically account for legal fees collected from homeowners. Motion seconded by Darrell Bryan and unanimously approved.

The Management Report was presented to Homeowners by Ted Miller. A motion was made to accept Management Report as written by Roger Moreno and seconded by Darrell Bryan. Motion was unanimously approved.

A brief Officers Report was presented by Nancy Sheldon in which the Board expressed gratitude to Ted Miller for his diligence during the past year.

There was no old business to discuss.

Gary Hendrickson presented and explained the proposed amended By-laws of the Council of Co-Owners of Chateau Heights. A motion to approve the amended By-laws was made by Roger Moreno and seconded by Nancy Sheldon. All homeowners present voted in the affirmative and signed to verify such.

There was much discussion concerning the present roofing situation and various solutions to this problem. A motion was made by Roger Moreno to hire a consultant to prepare preliminary bid specifications to present to approved roofing contractors for proposals. Upon receipt of proposals a Homeowner meeting would be convened to consider the proposals. This motion was seconded by Edgar Alvarez and unanimously approved.

The 2002 Budget was presented by Ted Miller. A motion for approval was made by Roy Robles, seconded by Nancy Sheldon and unanimously approved.

Homeowners discussed the setting of the assessment rate for the following year. A motion was made by Roger Moreno to leave quarterly assessment rate a $525.00, seconded by Mr. McCormick, and unanimously approved.

The floor was open to nominations for the Board of Directors positions that were to be vacated. Mr. Miller explained that the three-year term of Roy Robles was completed and was up for election as well as one year of Nancy Sheldon’s term as she will be moving away. He also informed the group that the By-Law amendment just passed provided for a four member Board, so another person would need to be elected to a two-year term. The following Homeowners were nominated to serve on the Board of Directors:

Galen Graham- nominated by Mr. McCormick for two years

Roger Moreno – nominated by Edgar Gurza for one year

Darrell Bryan – nominated by Roger Moreno for one year

A motion was made to cease nominations by Roger Moreno, seconded by Roy Robles, and unanimously approved. Since there were three positions available on the Board, a motion was made by Roy Robles that these nominees be elected by acclamation, seconded by Nancy Sheldon, and unanimously approved.

A motion was made by Roger Moreno to accept the proposed date of January 18, 2003 for the 2003 Annual Meeting. Seconded by Mr. McCormick and unanimously approved.

A motion for adjournment was made by Nancy Sheldon, seconded by Mr. Leo, and unanimously approved.

Meeting adjourned at approximately 1:20 P. M.