Karen Furnish provided the proof of notice and the certificate of quorum. Fifty-six proxies were received and eight homes were represented in person. The quorum requirements were met.

IV. READING OF PREVIOUS ANNUAL MEETING MINUTES

A motion was made by Dan Shepherd, seconded by Gerry Chudleigh to accept the 2003 Annual Meetings Minutes as provided and to waive the reading. The motion carried.

V. REPORTS OF OFFICERS

President Roger Smith summarized the accomplishments during the past year which included working with Selleck Properties. Work began this date on the grading of the hill. The height of the hill will remain the same on Kelly Park’s side of the hill. A landscape agreement with Selleck Properties includes the grading of the slope, fences at the sidewalk and planting of the hillside. Selleck Properties will maintain the plantings for the first 90 days and then it will be turned over to the homeowners association.

Roger Smith stated that 2004 has been a smooth year with little major expenditures. The installation of the solar heating for the pool decreased the energy bills this year and next year the association will be purchasing new pool furniture.

Treasurer Gerry Chudleigh addressed the dues increase of $50 which will allow for additional funding in the Reserves to address upcoming needs and improvements. He reviewed the financials for the month ending October 31, 2004 with the membership present.

Director Dan Shepherd stated that the pool restrooms have moisture issues that need to be resolved this upcoming year and that the Board has been looking at installing an outdoors shower and capping off the inside showers to eliminate the moisture problem inside the restroom areas.

A motion was made by J.C. Simmons, seconded by Dan Sheperd, to adopt the IRS Ruling 70-604. The motion carried.

VI. ELECTION OF OFFICERS

A. Nominations

There were no nominations from the floor and none received by the management company. Therefore, a motion was made by J.C. Simmons, seconded by Dan Shepherd to close nominations. The motion carried.

B. Results of Election

A motion was made by Gerry Chudleigh, seconded by Roger Smith, to accept the nominees by acclimation. The motion carried and J.C. Simmons and Joe LaMartina were elected to the Board of Directors to serve a two year term.

VII. NEW BUSINESS

A. State Farm Insurance

State Farm agent Steve Smith asked for a homeowners listing so that he could send each homeowner information about State Farm should they wish to obtain additional coverage through his company. The Board agreed that a listing should not be provided to the agent for solicitation purposes.

B. Truck Parking

J.C. Simmons asked the Board for a letter to the City and to the Police regarding the no parking areas that are not being enforced and is being used by trucks at nights and on the weekends. The Board believed that because this area was some distance from Kelly Park, that the Board did not wish to be involved and encouraged individual homeowners to contact the City and the Police themselves.

VIII. HOMEOWNER DISCUSSION

Bill Kohler asked if anyone had any recommendations for a contractor to install a wood fence at his property. A list of suggested vendors will be sent to him.

Marge Lanni asked if anyone could recommend a landscaper and a list of several suggested vendors will be sent to her as well.

It was mentioned that two to three large commercial vehicles park at the end of Jerome and Hays which makes visibility around the corner difficult. Letters will be sent to the owners regarding this matter.

IX. ADJOURNMENT

The meeting was adjourned at 7:50 p.m. and the Board members asked to remain behind to appoint officers.

The Board appointed the following members to the following positions:

President Roger Smith

Vice President J.C. Simmons

Treasurer Gerry Chudleigh

Secretary Joe LaMartina

Director Dan Shepherd