Coronado Shores Condominium Association #6

24th Annual H.O. Meeting

CORONADO SHORES CONDOMINIUM ASSOCIATION #6
TWENTY-FOURTH ANNUAL HOMEOWNERS MEETING

Minutes of April 23, 1999, Annual Meeting

We held the twenty-Fourth Annual Meeting of Coronado Shores Condominium Association #6 in Roeder Pavilion Friday, April 23, 1999 at Coronado Shores Roeder Pavilion.

President , Yvonne Barnum, called the meeting to order at 5:30 P.M.. Other Board Members present were Vice President, Chloe Moore, Secretary, G. Mike Welch, Treasurer, Farhad Kamani and Director, Howard Eddy. Also present were Sonnenberg & Company Auditor, Tom Hamand, Building Manager, Owen Johnston and Building Engineer, James Kurzendoerfer.

The Secretary verified the notice of the Annual Meeting sent to all Homeowners March 19, 1999.

We read the minutes of the preceding adjourned annual meeting of April 15, 1998 and reconvened annual meeting minutes of May 15, 1998. The minutes were approved as read.

PRESIDENT'S REPORT
The President introduced the Board of Directors and Mr. Tom Hamand of Sonnenberg & Company, CPAs.

The main project that has been on going since last year is bringing all homeowners better TV Reception. During the first part of 1998, we tested all connectors for loss of signal, bad connections and wiring. It was found that the existing cable and connectors are old and have leaks (loss of signal). This project has continued with the replacement of cable to the living room TV outlet in the 08 stack from the top floor to the terrace. We have rewired the 08 stack, installed new connectors and splitters. This new cable and wiring have increased the television reception signal. The building staff will continue with this project until all living room connectors and cables are upgraded. This satellite dish will make it possible for homeowners to sign up for Direct TV.

The Board voted to rent part of our roof space to ATT Communications Corporation for one year. The leasing of roof space for pager antennas will net the association between $6,000 and $7,000 per year.

The staff painted the roof with an overcoat at a cost of $5000. This will prolong the life of La Playa's roof.

Staff inventoried and cleaned the bicycle rooms. Eighteen unclaimed bicycles were identified and donated to a local Coronado not for profit organization.

In December, the emergency generator's electrical end failed. We rented a emergency generator until the new electrical end of the generator could be installed and tested. The cost for the new electrical end of the emergency generator was just less than twenty thousand dollars ($20,000) and was instaIIed in January 1999.

We discussed problems of water over flowing from sinks. The building cleans all drains once a year. The building is trying to educate all homeowners on the proper use of building drains. The use of low suds' detergents, flushing lines by running the cold water before and after garbage disposal usage and taking care of what goes into the drains prevent drain blockages. Residents need to ensure that all drains under sinks; wet bars; kitchens and bathrooms' sink are maintained periodically. When pipes are disconnected, we must plug or stop them off to prevent water flowing into homes. These types of problems are part of living in a high rise. Homeowners need to keep their own homeowner's insurance policy in good standing.

A question was asked about why we do not have earth quake insurance. The Board votes each year on insuring the building and over the last four years it has been voted down unanimously. The premiums would be between forty-five thousand ($45,000) and seventy-five thousand dollars ($75,000) per year for a $2,000,000 policy.

FINANCIAL REPORT
The Treasurer discussed the 1998 Financial Report and the First Quarter Financial Report for 1999. Operating Fund Balance for 1998 was forty-four thousand three hundred thirty-one dollars ($44,331.00). The Operating Fund Balance for the first quarter 1999 was fifty-two thousand forty-three dollars ($52,043.00). The Reserve Fund balance for 1998 was two hundred ten thousand three hundred sixty-three dollars ($210,363.00). Reserved Fund balance for the first quarter 1999 was two hundred seven thousand fifty-three dollars ($207,053.00). We have one hundred thousand dollars ($100,000) invested in a Certificate of Deposit at 5.4% interest rate until November 1999. He also reported we are currently operating under budget for operating expenses.

REPORT OF OFFICERS AND COMMITTEES

BEACH CLUB COMMITTEE
Lew Barnum has asked for a replacement to serve on this committee. The Beach Club operated under budget for 1998. The committee has scheduled more informative programs that have been well received. The past year dinners and social functions have been very successful.

CABLE SERVICES COMMITTEE
G. Mike Welch reported that the Shores Cable TV group is looking at updating the basic equipment and lines with the future in mind. In an attempt to bring faster access to the computer on-line network, and to prepare for the future electronic advances where Television-Computers and Telephones are likely to be combined. As this research project continues, the committee has made no final upgrade decisions. The Committee is meeting April 27th to discuss adding new channels. Programs that homeowners have suggested are: PAX, Cooking Channel, Independent Film, Odyssey, Fox Sports and others will be considered.

The president reported briefly on the wiring of our building for Direct-TV. This wiring is being done in-house, stack by stack, by our engineering staff. We anticipate a "satellite dish" installed on our roof for Direct-TV reception within the next two weeks. It is estimated homeowners who opt for the direct system will incur some three hundred dollars ($300.00) in setup costs plus monthly fees.

ENFORCEMENT COMMITTEE
Farhad Kamani reported the committee addressed and completed the following items:

Discussed amendments to the Amended CC&R's. The Committee voted not to make amendments to that document.

The committee retained Leonard Veitzer to prepare working drawings to remodel main kiosk on Avenida de las Arenas. The final plans will be presented to the Committee on April 21, 1999 for approval. Projected cost: $40,000.00

Retained Dennis Webb for twenty-four thousand five hundred thirty dollars ($24,530.00) to make repairs to the roadway bomonite. Bomonite replacement areas have been cut. We are waiting for a stamp to be finished. At that time the bomonite concrete roadways will be removed and patched.

Made repairs to the bridge on the pond in the center of the complex. All timbers were planed and replaced with new hardware. The new lights are on order and will be installed by the end of April 1999.

Appointed Doug Crane, Larry Kaufman, Bill Hippaka and Perry Koon to serve on an Ad Hoc Committee to obtain and disseminate information to all Associations concerning proposed additions to the Hotel del Coronado. The Landscape & Recreation Committee appointed Yvonne Barnum and Malcolm Danoff to the Hotel del Coronado Ad Hoc committee.

LANDSCAPE AND RECREATION COMMITTEE
At year end, Landscape and Recreation was under it's 1998 budget by seven thousand five hundred dollars ($7,500.00). The 1999 budget has been set at one million two hundred thirty-one thousand seven hundred sixty-five dollars ($1,231,765) which is a 2.75% or thirty-two thousand nine hundred thirty-five dollar ($32,935) increase over the previous year. The increase is do mostly to labor cost increases and more maintenance is required each year as the complex ages.

Last year a new treadmill was added to the Health Spa, a new heater installed for the Roeder Pool
and Landscape and Recreation funded the cost of entertainment at dinners for the Beach Club. The remodel of the El Camino Pool and Beach Club bathrooms were approved. The repairs to the Beach Club deck were made and a new water proofed deck protects the women's bathroom in the Health Spa. Refurbished Roeder Pavilion by replacing all windows and water proofed the copula.

INSURANCE COMMITTEE
G. Mike Welch gave the following report:
All master policies for the Shores were renewed. A year ago the committee had made an extensive survey of the insurance programs and recommended some changes with underwriters in which some twenty thousand dollars ($20,000) in premiums was saved with essentially the same coverage. Mr. Welch did elaborate on the need for each Homeowner to carry their own Homeowner Condominium Insurance for the personal contents of their unit. The building's insurance does not cover contents within individual units in the event of flooding, wind damage, fire, etc. A question from the floor was asked if La Playa Tower had earthquake insurance coverage. The President responded that the Board of Directors review the need for earthquake insurance ever year. Last year the board again voted no on this issue. It was also pointed out that individual owners could choose to purchase earthquake insurance for their personal property.

NEW BUSINESS
Glad Herbert, Adelaide Bailey and Vivian Eddy, homeowners of record, were appointed to the Ballot and Inspection Committee. The Ballot Committee reported sixty-nine ballots or proxies are required for the necessary quorum. The ballots were counted and verified. The number of ballots or proxies submitted was seventy-one creating a quorum. Having a quorum, all incumbents were re-elected as the 1999-2000 Board of Directors. Also, the Internal Revenue Service resolution to transfer excess Operating Funds to the Reserve Replacement Fund passed unanimously with seventy-one votes for approval. A total of twenty-nine homeowners were in attendance.

There being no further business the annual meeting adjourned.