Annual Meeting of Members and Organizational Board of Directors Meeting (November 7, 2007)

ANNUAL MEETING OF MEMBERS

November 7, 2007

The Annual Meeting of Members of the Oaks North Marbella Homeowners Association was held on Wednesday, November 7, 2007 at the Oaks North Community Center, pursuant to the notice thereof sent to all members.

It was determined that a quorum of owners was present, with the receipt of 135 ballots. There were also 14 units represented in person.

The meeting was called to order by the President, Karen Wiley at 2:06 p.m.

Directors present: Karen Wiley, Jim Coote, Marilyn Tipler, and Maurice Nahum.

Also present: 9 homeowners, and Wendy DeVuyst.

PRESIDENT’S REMARKS … Karen Wiley

A. The members of the Board were introduced, along with the Recording Secretary, Wendy DeVuyst. Larry Allen, our Vice President, was unable to attend as he was out of town.

B. Welcomed everyone and expressed condolences to those six owners who lost their homes in the recent fires. Our Board is working with the Oaks North Community Center Board to give these owners as much help as possible in rebuilding their homes. These owners will have to get ARC approval for the homes that are built. They must conform to the homes in Marbella. We will monitor this process very closely.

FINANCIAL REPORT … Maurice Nahum

A. A copy of the financial statement ending 10/31/07 was distributed to those in attendance and reviewed. We are under budget year-to-date by about $1846 in our operating expenses, but that will probably catch up before the year end.

B. The 2008 budget was mailed out with the last newsletter. Due to the need to fund our Reserves in accordance with the Reserve Study and increases in our operating costs, the quarterly assessment is going up to $170 per unit, per quarter, effective 1/1/08.

MAINTENANCE REPORT … Karen Wiley

A. Damage to Common Area Landscape - We did sustain fire damage to our Common Areas, but it was very slight. The two areas that received the most damage were along Paseo del Verano Norte and the citrus grove area. There is some damage to the irrigation system, some plants, and the fire burned a portion of the wrought iron fence. The cost of repairs to the landscaping and irrigation will be about $3000. We had an arborist out to review the palm trees at the entry. About 15 were damaged by fire. The arborist feels that about 80% of them will survive. It will take 6 months to a year to see if they will survive. We are waiting for a bid on repairs and repainting of the wrought iron fence. We are working with the insurance company to see what they will cover in these costs.

B. Possible Relandscaping Work in the Greenbelt – This has been an on-going problem keeping the greenbelt looking good. It costs more and more to maintain and water this area. There is also the possibility of water rationing by the City. The Board has asked our landscape contractor to review the greenbelt to convert portions from grass to plantings. We would do the work in six stages. The initial estimate for all the areas is $215,000. Our Bylaws prohibit the Board from changing out any turf without a vote of the members.

Oaks North Marbella Annual Meeting

Nov. 7, 2007

Page -2-

Maintenance Report (continued)

The biggest problem in the Greenbelt is in the Aceituno area. We have had the soil tested, we have done aeration and re-seeding, added irrigation, but still have brown areas. We would only remove the turf in the center area, where it is now brown. We would create a planter using drought tolerant plantings and rock. The Board feels that this would enhance the appearance of the greenbelt. We would try to utilize the existing irrigation so that it would keep the costs down. The cost of this first area would be around $25,000.

We are adding an extra valve in one area next year that may give us better water pressure and provide better coverage. This will cost $3000 and is budgeted for next year.

ELECTION RESULTS … Marilyn Tipler

A. A total of 136 ballots were received. Larry Allen and Karen Wiley were elected to the Board for the next two years. There were two write-ins.

B. New State law requires that the ballots be counted at the Annual Meeting. Thanks to Jan Moon and Roland Kramer for counting our ballots.

QUESTIONS AND ANSWERS

A. Mike Klaric asked about majority requirements for quorum purposes. It was stated that only a 25% quorum requirement is needed.

He also feels that we should hire a landscape architect to give us a professional opinion on any relandscaping project. Karen Wiley stated that approximately 5 years ago the Board researched this matter and got quotes from landscape architects. Their costs were around $8000 at that time. She does not feel that it would be financially prudent and feels that our landscape contractor has the expertise and experience necessary. Mr. Klaric would like to see what the cost savings will be in water to recoup the cost. He is not opposed to the relandscaping work, but just wants to be sure that the area looks good. Jim Coote stated that before we proceed with anything, we will have detailed plans of what the relandscaped areas will look like and get input from the owners. It would then go out for a vote of all owners.

Mr. Klaric asked if the Oaks North Community Center Architectural Committee (ARC) will be overseeing the re-construction of the homes that were burned. He is concerned that they will not require the rebuilt homes to match the homes in Marbella. Karen Wiley stated that the rebuilt homes must be in harmony with similar structures, according to our CC&R’s.

Ms. Wiley stated that the ARC is looking for people to serve. Mr. Klaric feels that we should have our own ARC. Ms. Wiley stated that this would increase our liability and create more work for the Association.

B. George Kaplinsky asked if the initiative to change the voting requirements for the CC&R’s passed. Karen Wiley advised that the initiative did pass.

Mr. Kaplinsky also suggested that we get a second bid on the proposed landscaping so we have options. He thanked the Board for all their hard work.

C. Karen Wiley announced that the next Board meeting will be on 11/14/07 at 10 a.m. for this month. This was changed due to the holidays.

With no further business to be brought before the members, the meeting adjourned at 2:51 p.m.

Respectfully submitted,

Wendy DeVuyst, Recording Secretary

ORGANIZATIONAL BOARD OF DIRECTORS MEETING

November 7, 2007

The Organizational Board of Directors Meeting of the Oaks North Marbella Homeowners Association was held on Wednesday, November 7, 2007 at the Oaks North Community Center, immediately following the Annual Meeting. It was determined that a quorum was present and the meeting was called to order by the Acting President, Karen Wiley at 3:00 p.m.

Directors present: Karen Wiley, Jim Coote, Marilyn Tipler, and Maurice Nahum.

Also present: Wendy DeVuyst.

ELECTION OF OFFICERS

A motion was duly made by Marilyn Tipler and seconded by Maurice Nahum to keep the same Board positions as follows:

President ……………………….. Karen Wiley

Vice President …………………. Larry Allen

Secretary ……………………….. Marilyn Tipler

Treasurer ………………………. Maurice Nahum

Director …………………………. Jim Coote

Motion carried.

OTHER BUSINESS

A. Next Board meeting will be on 11/14/07.

B. We have bids totaling $3060 for fire damage repairs. Discussion. A motion was duly made by Maurice Nahum and seconded by Jim Coote to approve the $3060 for these repairs. Motion carried. We will attempt to get insurance reimbursement for these costs.

C. Karen Wiley would like to have the cell phone numbers for Board members.

D. We will send a letter to the owners who lost their homes and provide them copies of the Bylaws and CC&R's, remind them about getting ARC approval, and that structures should be in harmony with similar structures in the neighborhood.

E. It was decided not to serve refreshments at the next Annual Meeting.

With no further business to be brought before the Board, the meeting adjourned at 3:15 p.m.

Respectfully submitted,

Wendy DeVuyst,

Recording Secretary

NEXT BOARD MEETING: Wednesday, November 14, 2007 at 10:00 a.m.