1. 1 Parker Ranch Homeowners Meeting Welcome September 14, 2008

2. 2 Agenda - Introduction - Introduction - 2007-08 Board Goals and Accomplishments - 2007-08 Board Goals and Accomplishments - End of Summer Picnic - End of Summer Picnic - Financial Report - Financial Report - 2008 Election for Board of Directors - 2008 Election for Board of Directors - Q & A - Open Forum - Q & A - Open Forum - Vote Counting (Optional to stay) - Vote Counting (Optional to stay)

3. 3 Introduction Board Of Directors: Pam East – President Shawn Mawla – Vice President Hank Lawson – Secretary Ajit Goel – Treasurer Drew Perkins – Member at Large Architectural Control Committee: Ken Sternberg – Chairperson Members: Missy Coy and Gloria Janac Nominating Committee: Shawn Mawla – Chairperson Members: Carol Greenleaf and Leslie Hay Picnic Committee: Shawn Mawla – Chairperson Members: Missy Coy and Judy Hart CC&R Committee: Shawn Mawla – Chairperson Members: Pam East, Ajit Goel, John Greenleaf and John Heindel

4. 4 2007-2008 Board Goals & Accomplishments: 2007-2008 Board Goals & Accomplishments: - Organize files and update financial records of PRHOA. - Organize files and update financial records of PRHOA. - Maintenance of PR (remove debris, retaining wall painting). - Maintenance of PR (remove debris, retaining wall painting). - Maintenance & Security of the Open Space. - Maintenance & Security of the Open Space. - Apply CCR's to all homeowners fairly and evenly. - Apply CCR's to all homeowners fairly and evenly. - Improve communication with our members, develop a website. - Improve communication with our members, develop a website. - Update the CCR's to be in compliance with Davis-Stirling Act. - Update the CCR's to be in compliance with Davis-Stirling Act.

5. 5 The Davis Stirling Act: Initiated by Gray Davis and Larry Stirling The Davis-Stirling Common Interest Development Act is the common name of the California Civil Codes 1350 - 1376 which govern Associations and other common interest developments in California. This act supercedes the CC&Rs, the Bylaws, the Articles of Incorporation, Rules and Regulations, and any other actions taken by the Board State Law overrides CC&Rs, which are specific to each property. Likewise both State Law and CC&Rs override rules that an Association has enacted. That is why it is so important to update our CC&Rs and the Bylaws to bring them into compliance with the state laws.

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7. 7 CC&R and Bylaws Proposal: The board is reviewing a proposal from Dave Van Atta (CC&R Attorney) to prepare amendments to the existing CC&R and bylaws which will update the CC&R and bylaws for the legal requirement under the Davis Stirling Common Interest Development Act and other matters that need to be revised to comply with current laws. The goal is to use the existing documents as the base documents and prepare amendments which will address these legal issues that need updating. We do not want an entirely new document that depart extensively from the framework of our existing documents. Proposed fees would not exceed $3,500.

8. 8 At 12:00 PM on Sunday, September 21st. At Drew and Ellen Perkins -12329 Vista Arroyo Ct. GREEK Menu Mediterranean theme It will be a lot of Fun Summer Picnic

9. 9 Parker Ranch HOA Meeting Treasurer’s Report September 14, 2008

10. 10 Parker Ranch HOA Financial Review September ‘08 Outline Outline 1. Income and Expense, Profit and Loss (2002-2007) 2. Year End Cash Balance (2002-2007) 3.Annual Dues History (2000 – 2008) 4.Income and Expense (2007-2008) & Proposed Budget (2009) 5.Expenses as % of Yearly Income (2007-2009) 6.Summary

11. 11 Parker Ranch Homeowners Meeting September 2008 2002 - 2007 Income and Expenses, Profit/Loss

12. 12 Parker Ranch Homeowners Meeting September 2008 Year End Cash Balances $

13. 13 Yearly Dues History Parker Ranch HOA Financial Review September 2008 $ Increased 16.6% over last 8 years Average: 2.1% annual increase Average: 2.1% annual increase

14. 14 2007-2009 Income and Expense Statement & Proposed Budget Parker Ranch HOA Financial Review September 2008

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16. 16 Parker Ranch HOA Financial Review September ‘08 Parker Ranch HOA Financial Review September ‘08 Other expenses include postage, bank fee, property taxes and misc charges

17. 17 Summary Summary Gradual erosion in cash position – borrowing from savings every year Gradual erosion in cash position – borrowing from savings every year Deficit in 2009 projected to be $7.5K Deficit in 2009 projected to be $7.5K Monthly security expenses increased by 30% starting August 08 Monthly security expenses increased by 30% starting August 08 Cleaning of dry brush and fallen trees etc in open spaces requires attention and expense Cleaning of dry brush and fallen trees etc in open spaces requires attention and expense Dues for 2009 to increase by 5% to $386 Dues for 2009 to increase by 5% to $386 Parker Ranch HOA Financial Review September ‘08 Parker Ranch HOA Financial Review September ‘08

18. 18 Election of Directors: There are two (2) vacancies on the Board of Directors at this time and each Homeowner gets two (2) votes. As specified in the Parker Ranch CC&Rs, cumulative voting may be used in the election. You may allocate your two (2) votes among the candidates as you wish. 1. Ajit Goel 2. Shawn Mawla 3. 3. (Name of Write-In Director 1) (Name of Write-In Director 1)4. (Name of Write-In Director 2) (Name of Write-In Director 2) I abstain from voting - You ca abstain on one or both of your votes (Many Thanks to Pat Weber of The League of Women voters. Pat will count our Ballots for us).

19. 19 Parker Ranch Homeowners Meeting Q & A Open Form September 14, 2008

20. 20 Parker Ranch Homeowners Meeting Thank You Meeting Adjourn September 14, 2008

21. 21 Vote Count (Optional to stay)

22. 22 Back Up

23. 23 SUMMARY OF NEW LAWS PASSED IN 2006 Following is a summary of the new laws that were passed in 2006. Some of them took effect in 2006 and others started on January 1, 2007. For more information about these laws, go to "Newsletters" at www.davis-stirling.com/newsletter.html. www.davis-stirling.com/newsletter.html Granting Exclusive Use. Giving individual owners the exclusive right to use any portion of the common areas now requires approval of 67% of the membership. Civil Code §1363.07 Membership List. Starting July 1, 2006, boards can no longer withhold the membership list even if it provides an alternate means for communicating with members. However, individual owners may opt out of the sharing of their name and address by notifying the association in writing that they prefer to be contacted by the alternative process. Civil Code §1365.2(a)(1)(I) Inspection of Records. Associations must now produce records for inspection by the membership within specific time frames: Civil Code §1363.05(d) and Civil Code §1365.2 Associations must now produce records for inspection by the membership within specific time frames: Civil Code §1363.05(d) and Civil Code §1365.2 Electronic Records. Associations may now deliver records in electronic form, provided the records are in a format that prevents the records from being altered. Civil Code §1365.2 Proxies. Previously, anyone could act as a proxy holder. Members can only designate other members to attend in their place. Proxies must now be on 2 pages, the first with the authorizing language, the second page with the vote. Civil Code 1363.03(d)

24. 24 SUMMARY OF NEW LAWS PASSED IN 2006 Reserves. Boards must now include in the Association’s budget (i) the current deficiency in reserve funding expressed on a per unit basis, (ii) a statement indicating whether the board decided to defer repairs or replacement of a major component, and (iii) a statement indicating whether the association has any outstanding loans. Starting January 1, 2009, a summary of the reserve funding plan must be distributed to all members. Civil Code 1363.5 Assessment Collection. Boards are now required to be actively involved in the collection process. Boards must include with pre-lien letters (by certified mail) a notice of an owner's right to “meet and confer” with the board. Boards must authorize the recording of a lien by a majority vote at an open meeting. The vote must be recorded in the minutes of the meeting. The minutes may not disclose the name of the delinquent owner and can only refer to the address by its lot/tract number or the assessor’s parcel number. Boards are allowed to record a lien but may not start foreclosure until the amount is at least $1,800 or the delinquency is at least 12 months old. Foreclosure cannot commence until the board authorizes it in an open meeting and records the decision in the minutes. Notice of the board’s decision must be personally served on the owner if the owner resides in the unit or by first class mail at the most current address in the association’s records provided by the owner. Civil Code §1367.1(a) Architectural Committee. Architectural committees must make written decisions and explain why the proposed change was not approved, and provide a description of the procedure for reconsideration of the decision. Associations are now required to annually mail a notice to all homeowners describing the association’s architectural application process, including the procedure used to review and approve or deny changes. Civil Code §1378 American Flag. Associations may not restrict members from displaying the U.S. flag on their own property or exclusive use common area.