STO�ELAKE ASSOCIATIO�

SPECIAL EMERGE�CY BOARD OF DIRECTORS MEETI�G THURSDAY, JULY 29, 2010 AT 4:00 P.M.

STONELAKE CLUBHOUSE

3000 RIPARIAN DRIVE, ELK GROVE, CA 95757

5746.01/381989.2 Page 1 of 2 07-29-2010

I. CALL TO ORDER / ESTABLISH QUORUM

The Special Emergency Board of Directors Meeting was called to order by Director

Mihalko at 4:03 P.M. A quorum of the Board of Directors was established.

Directors Via Telephone: Director Mihalko

Director Sidhu

Director Tosi-Smith

Directors Absent: Director Li

Director Allen

Management Present: Rachel Corona, Community Manager

II. HOMEOW�ER OPE� FORUM

Stacey Dolby, the Association's Facility Director provided telephonic access to members

for the Special Emergency Board Meeting.

III. OLD BUSI�ESS

Proposed Community Rules & Regulation Changes

The President of the Board of Directors called the Special Emergency Board Meeting to

vote on the proposed changes to the Association's rules and regulations as circumstances

that could not have been reasonably foreseen, which require immediate attention, and in an

effort to avoid further litigation and attorneys fees. The Board of Directors is voting on the

proposed changes to the Association's rules and regulations that were mailed to the

membership for the 30 day review and comment period on April 19, 2010.

Resolution: That the proposed changes to the Association's rules and regulations as

submitted to the members on April 19, 2010, shall not be adopted. Further, management is

directed to post the following notice on the Association's website:

"A lawsuit was filed against the Association regarding the proposed changes to the

Association's rules and regulations. The Board had less than 24 hours to respond before

attending a hearing in the Sacramento County Superior Court. Because circumstances that

could not have been reasonably foreseen which required immediate attention, and in an

effort to limit litigation costs, the President called a Special Emergency Board Meeting on

July 29, 2010 at 4:00 PM to take action on the proposed changes to the Association's rules

and regulations in advance of the August 12, 2010 Open Meeting.

The Board of Directors took a vote and passed a resolution not to adopt the proposed

changes to the Association's rules and regulations as mailed to the membership for the 30

day review and comment period on April 19, 2010. The Board will continue the discussion

DRAFT MI�UTES

STO�ELAKE ASSOCIATIO�

SPECIAL EMERGE�CY BOARD OF DIRECTORS MEETI�G THURSDAY, JULY 29, 2010 AT 4:00 P.M.

STONELAKE CLUBHOUSE

3000 RIPARIAN DRIVE, ELK GROVE, CA 95757

5746.01/381989.2 Page 2 of 2 07-29-2010

on parking issues along with the other rules at the Board Meeting scheduled for August 12,

2010."

Action: Motion: Director Tosi-Smith

Second: Director Sidhu

Vote: All Directors voting in favor of the motion.

IV. �EXT MEETI�G

The Board Meeting scheduled for August 12, 2010, will be held at 6:00 P.M. at the Elk

Grove City Counsel Chambers.

V. ADJOUR�ME�T

The Special Emergency Board Meeting was adjourned at 4:45 P.M. by Director Mihalko.