PRESENT: President Brian Osgood, Treasurer Gary Callahan, and Directors Carolyn Ancheta, John Riggins, and Carol Smith. Director Marlene Lemke arrived at 7:05 p.m.

The Attendance Sign-In Sheet for homeowners and guests in attendance will also become a part of the meeting file.

EXCUSED: Vice President Gregory Peterson

ABSENT: Secretary Kevin Lum

GUESTS: General Manager Warren Wegesend; and Office Manager Claire Loo-Hoy.

I CALL TO ORDER

There being a quorum present, President Osgood called the meeting to order at 7:00 p.m.

Director Smith motioned, and it was seconded, to add "Resolution for Paula Loring" to the agenda under New Business. Motion carried unanimously.

II APPROVAL OF THE MINUTES

A. Director Smith motioned, and it was seconded, to approve the minutes of the Board of Directors Meeting of November 28, 2001 as amended. Motion carried unanimously.

Section II.A., Correct the first sentence: President Steve Loring tendered his resignation as President, as he....

Section II.C., The vote should be reflected at 0 to 7.

III REPORTS

Homeowner Comments - Mr. Rick Piva of lot 5-164 expressed his interest in the vacant board seat.

General Manager's Report - Mr. Warren Wegesend answered questions about his written report, which will become a part of the meeting file. Following are items on which he reported and on which there was discussion:

Termite treatment for Rec. Center completed.

HCDCH sent letter to the City's Department of Transportation regarding 4 way stops at various intersections throughout the villages.

Another letter will be sent to those owners who have not responded on the encroachment agreement.

A revised policy to include homeowners discussion and deliberation at Board meetings was presented and will become a part of the meeting file.

Director Riggins motioned, and it was seconded, to adopt the Policy for Homeowners Participation at Board Meetings as presented. Motion carried on a vote of 5 to 0. Director Ancheta abstained.

Treasurer's Report - Treasurer Callahan reported on the November 2001 Financials.

Director Lemke motioned, and it was seconded, to approve the November 2001 Financials as circulated. Motion carried unanimously.

Civic Action Committee - No report given

Traffic & Safety Committee - President Osgood gave an oral report on the following items:

Requested 4-way stop signs from the State at various intersections

General Aviation flights over the villages-no progress being made by State.

HCDCH - No report given

Member Relations - Director Smith gave an oral report as well as provided a written proposal which will become a part of the meeting file.

Director Smith motioned, and it was seconded, to accept the proposed guidelines for "Talk Story with Your Board" nights. Motion carried unanimously.

The first date for "Talk Story" will be 2/13/02 and will be advertised in the newspaper and on the sign boards.

IV UNFINISHED BUSINESS

Board Vacancy - President Osgood led the discussion.

Director Smith motioned, and it was seconded, to make the appointment of a temporary board member in the next meeting, after using the February newsletter to obtain letters on interest from members interested in filling the vacancy. Motion carried on a vote of 5 to 1. Director Ancheta voted no.

Resolution for Steve Loring - A proposed resolution thanking Mr. Loring for his services to the community was presented and will be included in the meeting file.

Director Smith motioned, and it was seconded, to adopt the resolution for Mr. Steve Loring as presented. Motion carried unanimously.

Director Smith motioned, and it was seconded, to appoint the Treasurer, Gary Callahan, as Plan Administrator of the 401(k) Plan, and if possible, paperwork to be prepared in advance of next resignation. Motion carried unanimously.

Director Smith motioned, and it was seconded, to set July 24, 2002 as the next Annual Association Meeting date. Motion carried unanimously.

Director Riggins motioned, and it was seconded, to have the next election of directors by ballots by mail. Motion carried on a vote of 5 to 0. Director Ancheta abstained.

Special Projects Ad Hoc Committee - As Mr. Loring was the other member who volunteered to serve on this committee besides Mr. Rick Piva, further solicitation was made for additional volunteers.

Director Riggins motioned, and it was seconded, to appoint Mr. Richard Piva of Lot 5-164, and Mr. Terrence Slattery of Lot 2-308 as members of the Special Projects Ad Hoc committee. Motion carried unanimously. With no objections from the Board, Director Callahan also volunteered and will serve on this committee.

Resolution for Paula Loring - Director Smith lead the discussion.

Director Smith motioned, and it was seconded, that a proposed resolution of thanks also be written for Paula Loring and presented for adoption at the next meeting. Motion carried unanimously.

There being no further business, Director Riggins motioned, and it was seconded, to adjourn the meeting to Executive Session. Motion carried unanimously.