The regular meeting of the San Lorenzo Village Homes Association Board of Directors was held Thursday, April 15, 1999 at 7:38 p.m. in the auditorium with President Jim Spears presiding over the meeting.

1.2 SALUTE TO THE FLAG - President Jim Spears led the Board and the audience in the pledge of allegiance.

1.3 ROLL CALL - Directors Jim Spears, David Sherman, Dorothy Partridge, Jim Sherman were present, Millie Arieta was absent.

2.0 COMMENTS FROM PUBLIC AGENCIES - President Spears asked how many people were present due to the Business Development Committee. Director Partridge explained that there was incorrect information in newspaper and editorial. The Business Development Committee has not officially presented its proposal to the Board and thus they will not be voting on it until next month's meeting. Director Partridge stated that if the audience had any comments to make this evening the Board would be happy to hear them.

2.1 Alameda County Sheriff's Department - Deputy Terry Bartholomew spoke on behalf of the Department and handed out the monthly crime report to the Administrator and Board members. He stated that he wanted to warn all residents that the Sheriff's Department is citing people who park in the red zone in front of the Wells Fargo building. He also stated that he and Deputy Shindelus would be sitting on a billboard in Castro Village in front of Starbucks to raise funds for the Special Olympics project they are involved in. He invited residents to come and show their support. Deputy Bartholomew thanked the Bohannon Organization for helping to clean up the dumping that occurred in the old Mervyns' parking lot when the Big Brothers and Sisters drop-off van was removed.

Director Partridge asked him about the business in the Cherryland area called the Dungeon on East Lewelling Blvd. She stated that the owner is upset because he feels his rights are being denied because the Sheriff's Department tore down a banner in front of this business advertising sadomasochistic activities. Director Partridge stated that the owner is going to court on April 30, 1999, for creating a public nuisance and possible parole violation. She reminded members of the audience that this owner was convicted of running a brothel at this same location last year. The business is not open yet, but the owner's intent is to have people pay to be chained and whipped according to the newspaper article. She stated that the Cherryland Association contacted her regarding the Board's support in fighting this type of business in the area. Director Partridge did not know whether a letter to the judge would be appropriate or whether individuals should show up at the court hearing in opposition of this type of business opening in our area. She pointed out that this business is near three schools and children may pass the business on their way to or from school. Director Partridge announced that she had a sign-up sheet for any residents who are interested in going to the court on the day of this hearing and/or want further information on this issue.

It was questioned as to whether the District Attorney was involved with this issue and could shut the business down should it open. Director Partridge pointed out that the District Attorney was involved and used the signs as "public nuisance" in order to justify pulling them down. She stated that it is unclear there is an ordinance that would allow the D. A. to shut down any business of this type. Director Partridge noted that the owner is on probation and one of the conditions of this probation was that he be a "good citizen". The opening of this business could be in violation of that. Director Partridge stated that it is important for the Board to show its support to the Cherryland Association because this affects not only their community, but children who live in San Lorenzo as well.

The consensus of the Board was to support the Cherryland Association opposing this business and its owner doing business in the area.

2.2 CHP Department - CHP officer from the Castro Valley office was here representing Officer Tuazon who was unable to make the meeting. He reported that the complaint program is still in full force and residents can call the office's 800 number to report traffic or parking problems. He stated that it is important for residents to get a description of the vehicle as well as the license plate so that the officers can follow up with residents by mailing them letters of warning. He announced that another bike rodeo will take place this Sunday at Edendale School, starting at 9:00 a.m. He also announced again to residents that they need to be aware of the federal grant received by the CHP to target speeds around schools. This program is now in full force and residents should be seeing more officers during school hours.

The statistics for the Month of March included both Cherryland and the San Lorenzo areas; there were 43 traffic collisions, 676 citations, 51 DUI arrests 81 parking citations for registration and parking violation.

The Administrator stated the local number to call for CHP complaints is 510-581-9028. A resident reported that he has seen multiple vehicles run the red light at the intersection of Paseo Grande and Hesperian, stating that he sees at least one car per day in violation. Another resident wondered if radar will be used at Channel and Bockman by the school. She sees many vehicles speeding through this intersection. The officer stated that the county has recently given them authorization to get radar at that intersection, but are still working with the county at other intersections near schools to get the areas radar certified. The Administrator suggested that neighbors who are concerned with speeding in their area get a lot of signatures regarding the problem and forward this document to Bob Preston, County Traffic Engineer.

2.3 Supervisor Gail Steele - Reported that next Friday, April 23, 1999 the county is encouraging private and public agencies throughout the county and throughout the country to fly the American flag and the Children's flag at half mast in memory of those children killed by violence. Supervisor Steele will be participating in a ceremony on that day, where the names of children killed by violence in our county will be read and engraved on the memorial wall at the County Administration Building.

Supervisor Steele also announced that the Business Development Committee will be going on a tour of shopping centers in the area on May 1, 1999. She thanked Pat Piras for getting the bus for the event and said the tour will be four hours in length. The purpose of this tour is to see what residents like and don't like in shopping centers, to get ideas for the Village Square area. The Administrator stated that the Business Development Committee members would have first priority, then the Board members. There would be approximately 15 to 20 additional seats for anyone else who is interested. She said that persons who wanted one of these seats should contact the Association office. Supervisor Steele stated that she is picking up the costs for this event.

3.0 MINUTES OF THE PREVIOUS MEETING -

3.1 Approval of Minutes of Meeting No. 1018, Thursday, March 17. 1999 - Director David Sherman made a motion to approve the minutes, with a second by Director Jim Sherman the motion passed unanimously.

4.0 FINANCIAL REPORT -

4.1 Approval of February 1999 Expenditures - Director David Sherman moved with a second by Director Jim Sherman, that the Board approve the expenditures for March 1999. The motion was passed unanimously.

4.2 Discussion of Significant Variances - The Administrator said that there were no significant variances to report.

5.0 LIEN AND VIOLATION REPORT - The Administrator reported that there have been two (2) Liens prepared since the March meeting. The Association currently has 154 cases open.

Violation Report:

Inoperable/Unlicensed vehicle in
front or side yard area:                     16

Recreational vehicle in front or
side yard area:                               5

General Maintenance of property:             19

Vehicle parked on lawn or other
unpaved area:                                 0

Others:                                       0

Total Number of Letters Sent in March 1999   40

A resident questioned how often a drive-by is done by the Association to address violations. She was questioning fencing material, which she sees throughout the area. Specifically the fences that are cyclone with the slats in them. The Administrator stated that these fences have been approved by the Board due to the fact that the CC&R's were created over 50 years ago, a number of things stated there are not enforceable and the Association tries to keep up with the times. The cyclone fences with the slats have become acceptable material for many Associations. The Administrator invited any resident who sees these types of fences with broken slats to report them to the Association office. She stated that the Association does drive- bys at least once every 3 months for an area, if not more. When anyone calls the office to complain, that complaint is looked at within the week. The office has been criticized in the past for missing things on drive-bys, but it is often very hard to catch everything when you are driving, taking notes and looking for violations in a specific neighborhood.

6.0 ADMINISTRATOR'S REPORT -

6.1 County Budget FY 99-99 - The Administrator stated that for the last five years she has sat on the County Budget Committee, and she was asked to sit again this year. The committee had an initial meeting wherein it was reported that every year the county receives million dollars less than it should because the state took the money and transferred it to schools. This year there will be a 13 million deficit however this deficit should not affect San Lorenzo a great deal. The Administrator reported that the Sheriff stated that he would take a cut for his department this year.

6.2 Other informational items - The Administrator announced a class on the history of San Lorenzo at the Adult School conducted by Doris Marciel. It will run on Thursdays in May from 1 to 3 p.m.

The Administrator stated that the Association is now officially on the web and can be reached at slvha.com. It is just a start. The history of the Association is on the web as well as the minutes. The agendas will also be posted on the web.

Motion by Director Jim Sherman Seconded by Director David Sherman to approve the Administrator's Report. Motion carries unanimously.

7.0 OTHER BUSINESS -

7.1 Final Budget Approval FY 99/2000 - The Administrator reported that the draft budget along with the reserve study was mailed out after the last Board meeting to each homeowner and resident in the Village. The Administrator did hear from one resident who had some questions regarding the budget. She did meet with that homeowner and addressed the questions. Resident Kathy Ready had questions regarding the fines revenue where there was a 70% decrease for this past year. The Administrator stated that most of the fines that are still outstanding have been taken to court and are going through litigation. Another resident noted that she sold a house that had a $3,000.00 fine for vehicle storage on the property. Is that fee collected and considered a fine. The Administrator stated that any outstanding court fee that is not paid is collected by putting a lien on the owner's house and collecting at the time of sale of that house. Any fees collected from the court are considered court fees and not fine fees.

Ready questioned the newsletter expense and how much the Association gets from the advertisements that are posted in the publication. The Administrator pointed out that a full page ad is $500.00, a half page is $250.00, etc. Ready questioned how this revenue was figured into the newsletter cost on the budget. The Administrator pointed out that the revenue from the ads is figured into the total cost of the newsletter on the budget. Resident Howard Beckman stated that he is also concerned with the enforcement of fines for violations in the village. He stated that this should be a high priority for the Association. The general perception in his view is that the Association does not enforce enough. He questioned why fines are down, legal reimbursements are up and legal expenses are down. What does this all mean? The Administrator stated that she felt that she had already answered the question with respect to fines and noted that if a homeowner does not pay the fines, he or she is taken to court, and fees are collected or liens are placed on homes whose owners do not pay. She stated that she would look into noting the lien amounts that are outstanding and noting them on next year's budget. Beckman stated that if fines are down due to the fact that people are not paying the fines and the Association has to take them to court, then why would legal fees be down as well? The Administrator stated that the Association enforced 742 violations. This has been about the average for the past few years. In terms of legal costs she stated that there are some cases that she has tried to resolve without taking them to the attorney, where fees can be in excess of $10,000. Beckman questioned whether the budget reflects vigorous enforcement or not. The Administrator stated that vigorous enforcement would be sending someone out on a daily basis. This issue was brought before homeowners 2 years ago as to whether homeowners wanted to put more money into the CC&R's, and the homeowners did not want to put more funds into this enforcement. The county has also passed a new Neighborhood Preservation Ordinance and is getting additional money to enforce it. The Administrator will be utilizing the county on some issues that they can handle more quickly, thus saving the Association time and money.

Director Partridge stated that the main purpose of the Association is to enforce the CC&R's and to keep the neighborhoods up. She stated that she wished the Association had the money to hire someone to go out on a daily basis, then the Association could do more. However, this job is shared by the employees in the office who have other jobs besides enforcement of the CC&R's.

Kathy Ready stated that the Association is paying on average $42,700.00 per year to five employees. She stated that not all employees are getting this amount, that it may be just a few are benefitting; however she did not see why the Association could not hire an enforcement officer, given the current salaries expended in the budget. Another resident stated that it does appear that the Association can hire an enforcement officer. The Administrator stated that anyone can call and meet with her regarding the salaries. It has been board policy to publish the salaries as a whole, and if they want to change this, she would comply with its request. She further pointed out that the office does salary surveys every 2-3 years of all the positions in the office as compared to county and city positions of the same description. She stated that the salaries for employees of the Association are consistently much lower than those in county or city offices. She would be happy to conduct another survey to show to the Association.

Another resident questioned what part of the covenants can be enforced. Can the CC&R's be updated to include fences and other issues? The Administrator stated that the Association tried to change the CC& R's several years ago, and it was very difficult. In order to update the CC&R's a 75% agreement is needed from each of the tracts. Until the Association can get this percentage, the CC&R's cannot be changed. The Administrator stated that the Association took the CC&R's to court over the "whites only clause," and the judge would not throw the clause out of the CC&R's. Subsequently, HUD sued the Association and it took a lot of time and energy to deal with the issue.

Director Partridge made a motion to approve the Final Budget FY 99/2000 with a second by Director Jim Sherman. The motion passes unanimously.

Resident Barry Weiss stated that $160,000 in salary and retirement is not a lot of money for five full time employees. Taking 12% out for retirement, this leaves an average of $28,028.00 per employee. He pointed out that the median income in San Lorenzo is $54,000.00 and stated that these salaries are obviously lower than that.

Ready stated that she had read that the covenants can be changed 25 years after January 1979, which would be in the year, 2005. Do any changes at this time still need 75% approval? The Administrator stated that she would need an interpretation from the attorney to adequately answer the question. Frances Nelson from the Bohannon Organization asked whether different tracts had different provisions in the CC&R's. She felt that there were some tracts which required 100% approval. The Administrator stated that the Association did an analysis of tracts and with an exception of development that was completed within the last 10 years, the differences in tracts were very minor.