MINUTES OF ANNUAL MEETING OF

INNER HARBOR VILLAGE CONDOMINIUM ASSOCIATION

JUNE 22, 2004, AT THE BAY CLUB

President Barber called the meeting to order at 4:05 p.m.

The meeting was attended by 39 members of the Association.

President Barber introduced and welcomed new members who joined us during the past year: Mike & Joan Baroumes, Robert Bethea & Joan Anthony, Linda Karp, Gary & Robin Mueller, Brett & Susan Oemichen, Jon Olsen & Barbara Landi, Roger & Carol Records, and Gene & Gennie Thompson.

The following Board of Directors were introduced: Mason Rothenborg, Dotty Brice, Kees Bouterse, Bob Force, Judy McKay and Dorothy Miller. On behalf of the membership, President Barber expressed appreciation to the four members retiring from the Board for their efforts on behalf of the Association. President Barber also introduced Janet Force, who is in charge of keeping accounting records for IHVCA, and thanked her for her work for us during the past years.

ANNUAL REPORT

Income and Expenses. President Barber discussed the expense allocation for Fiscal Year 2003‑2004 as it related to the various budget items. Our expenses this year were higher than the amount budgeted.

Roof Repairs. A listing of all disbursements from money received at the June 23, 2003, Settlement Meeting with Olympic Property Group for roof repairs at 70 & 90 South Chandler Court ,iias made available to members.

AUDIT WAIVER

President Barber explained that our books are open to any owner desiring to inspect them, and that the estimated cost of a formal audit would be an unnecessary strain on our finances. There were 2 votes in favor of an audit. The audit was waived by a vote of 34 members.

COMMITTEE REPORTS

Hospitality/Beautification. Dorothy Miller. Hospitality provides a welcome to Inner Harbor with a personal call and presentation of a gift to new residents. Beautification focuses on the care and upgrading of landscaping at the Bay Club in conjunction with SBCA and the club management.

Insurance. Mason Rothenborg. We are insured with Community Association Underwriters and have been pleased with the company's service. Wide coverage is available. Rates are influenced by replacement costs and will probably increase about 5% to 7% next

Landscaping. Kees Bouterse. Repairs to our aging sprinkler system and a drainage problem necessitating the installation of a curtain drain were responsible for additional landscaping expense this year. Kees asked homeowners to contact him regarding any sprinkler or drainage problems, and in addition would welcome input from homeowners about overgrown trees in their areas.

Maintenance & Repairs. Bob Force summarized work accomplished during the year, indicating the success or failure of certain solutions to our problems of dry rot, drainage at a crawl space, and replacement of driveways and stair coverings. He recommended the formation of a standing committee of volunteers to help us find solutions which reduce maintenance cost in the future. State condominium laws and our own CC&Rs require us to maintain our buildings in order to maximize home values.

To promote community spirit and involvement and to provide relief for the Board maintenance chairman, Judy McKay asked homeowners to assist in the work of building maintenance and repair by volunteering for routine tasks. Forms were available outlining details of the duties necessary to carry out these responsibilities.

BUDGET

President Barber detailed the individual items of the Fiscal Year 2004‑2005 budget, which includes a 5% increase in the annual assessment. The budget was approved by 30 votes with 5 dissenting.

PRESENTATIONS

Framed Certificates of Award were presented to retiring members Dotty Brice, Judy McKay and Dorothy Miller in appreciation of their years of service with the Board of Directors.

ELECTION OF DIRECTORS

Nominees to serve on the Board of Directors for the coming year were introduced: Kees Bouterse9 Bob Force, Margie Garcia, Pegi Graham, Gregg Hupp, Jack McKay and Mason Rothenborg. There being no nominations from the floor an election was held. All candidates were elected by a majority of 33 votes to serve on the FY 2004‑2005 Board.

Relative to the sagging roof problems at the two duplexes at 70 & 90 South Chandler Court, Bob Force read a prepared statement outlining events from the initial discovery to the ongoing repair of the roofs and threat of litigation at the present time.

The meeting was adjourned at 5:30 p.m.

Submitted by

Dotty Brice, Secretary