Dave Zeemont, President, proceeded with his welcoming remarks while the last few people signed in. Steve Bailey, Secretary, announced that a quorum had been established and the meeting was officially called to order.

Bob Crowley, Treasurer, presented the 2012 Budget to the group and answered questions from the floor. He noted that he had filed the proper tax reports. This year, the Treasurer will be sending out the assessment bills electronically for the first time.

Bob, also the Erosion Control Chair, continued on with a report from that committee. We spent around $26,000 on erosion control this year — mainly on three flumes feeding the Barcelona arroyo, extensions from Academy Court island area, and on the transportation of dirt (dirt removal from the west end of Constitution and the use of dirt to rebuild parts of the Barcelona arroyo.) He stated that the west end of Constitution is holding up fairly well where he and Kelly Dickson resculpted the hillside. We need to rock the hill eventually , which will cost approximately $10,000; however, we are holding off to see if we can collect the money Picacho Mountain has promised us for the project. If it begins to fail, we will have to rock it and worry about getting the money later. There are also some water issues where water is skipping its "assigned" ponds and continuing down the road. This will be looked into this year.

Some discussion was heard on what we as an Association can do about preventing wind blown soil from certain lots. The CC&Rs do not give us much power to enforce this type of erosion but Steve Bailey, Bylaws Chair, said his committee will look into the possibilities of enforcing and/or changing the CC&Rs to help. He mentioned that nothing keeps the affected homeowner from taking the lot owner to court, but he was told it was extremely difficult to prove. That is precisely the problem the Association has.

Larry Felhauer, Road Resealing Chair, reported that we are looking to two weeks in May for the treatment of Phase 2 roads. Lots 47 through 86 will be directly affected. Plenty of notices will be sent out with the details of how to handle the traffic problems caused by the resealing project. A round of applause was given Larry for all the hard work and efficient work plan for the resealing of Phase 1 in 2011.

Regarding the need for future funding for the resealing projects, Larry stated: "It is the Board's intention, given what we know today, to eliminate special assessments for street maintenance and to fund this effort through regular contributions from the general budget. How quickly we can achieve that depends on numerous factors including other expenses that might not be known to us today, the long term rate of inflation and the residents' willingness to gradually increase the regular assessment in accordance with our bylaws. It is our hope to be able to eliminate the special assessment for street maintenance in 2013, but there is no guarantee that circumstances will allow that."

Dave Wright, Gates Chair, reported that he does not anticipate any major repairs to the gates this year. There was some discussion about remotes being a little "touchy" and sometimes failed to open the gates until the last moment (especially the Barcelona gate.) Dave said that many things affect the remotes, such as radio signals and does not see a solution to the occasional problem. There were some comments that the displays at the kiosks were difficult to see, especially at night. Dave will look into it. Larry Felhauer added that he was trying to reduce the number of unused gate codes out there because we are now being charged per code. The amount is small, but every bit adds up.

Steve Bailey, Bylaws Chair, gave a brief explanation of the proposed addition to the CC&Rs to protect any money set aside for road repairs/resealing from any other use. Steve, also acting as Nomination Chair, conducted the nominations for the three offices up for vote this year. Since no other nominations were entered other than from the

Committee's (this year the Committee was everyone in CR) a motion was passed to elect Dave Zeemont, President; Bob Crowley, Treasurer, and Larry Felhauer, Director at Large, by acclamation.

The group took a short break to vote. The results were: Vote to increase annual assessment by $35 and to place that amount into the Road Repairs/Resealing Account passed with 95% in favor. Vote to institute a Special Assessment for 2012 in the amount of $165 per lot for the Road Repairs/Resealing Project passed with a 93% YES vote. The vote to insert wordage into the CC&Rs to protect funds that were, or will be, dedicated to the Road Repairs/Resealing Account, passed with a 93% YES vote.

Ronnie Wright, Audit Chair, reported that the audit had been conducted and that there had been no major problems with the accounting for 2011. She handed in a written report on their findings.

Kathy Mayer, Welcoming Chair, stated that she had welcomed 6 new homeowners to CR this past year. To avoid spending any Association money, she asked for volunteer donations of items that people would be interested in. This past year, Doug Eddings and Mike Elizalde of Ump 88 donated gift certificates, the Allens donated theatre tickets, and Steve Bailey donated writing cards with his art work on them. Anyone who would like to donate some items for this year can please contact Kathy Mayer. It was also noted that the Holiday Party in December was a huge success; in fact maybe too huge. Kathy stated that they would have to rethink things for next year because things got a bit crowded this year. As Webmaster, Kathy reported that the neighborhood website, www. coronadoridge.com, had been revised to eliminate all passwords. It is now much easier to access board and membership minutes. The website also contains covenants, an event calendar, announcements, board members, points of contact, gate information, and links.

Barbara Rose Farber, Landscaping Chair, was unable to attend due to a last minute illness. Steve Bailey reported that the results from the feedback effort were for the most part all positive. People seemed to like what was being done with the gates and islands and like the idea of replacing dead plants and/or adding new plants that do not require water. There were a couple comments on weeds, etc., but we are having an early spring and weeds pop up everywhere now. This will be mentioned to the landscaper.

An advisory discussion was held on whether or not it would be a good idea to place a couple speed limit signs within the neighborhood. Everyone seemed to be in overwhelming support of the idea. The Board of Directors will take the ideas presented and follow through with some signs.

Dave Zeemont announced that, following the meeting, he would conduct a short meeting for people affected by the high water pressure problem experienced lately.

With no further business, the meeting was adjourned at 7:30 pm.

Respectfully submitted,

Steve Bailey

Secretary CRNA

January 28, 2012

520-0668