Oso Valley Greenbelt Association

December 28, 2005

Dear Neighbors:

 This letter is intended to inform you of a conflict within our association. The situation is important and affects our services to you, the homeowner.

As you may recall the result of the election in May 2005, our membership voted in 8 separate increment elections. William Quinton #1, Jeannie Ultimo #2, Jennifer Stonebarger #3, Grace Hayes #4, Andy Mordy #5, Dan Stone #6, Theresa Clark #7, and Tom Hunter #8. There was a tremendous turnout for this election as all 8 increments exceeded quorum requirements and 8 candidates won by overwhelming majorities.

 As customary, those delegates elected a new Board of Directors which included the following five people: Tom Hunter, President from Increment 8; Gary Lenzner, Vice-President from Increment 4; Andy Mordy, Treasurer from Increment 5; Jennifer Stonebarger from Increment 3; and Jim Farber from Increment 7.

However, Nancy Howell, who lost in this year's election and her husband Hamid Tavakolian, have allegedly formed a Board of Directors which has filed a lawsuit to overturn the 2005 election. He had previously challenged the 2004 election and lost the lawsuit. We expect the same result with the current lawsuit. This year they are claiming that she and her husband hold seats on the current board. They have presented themselves to our financial institutions as board members. As a result, association assets have been frozen.

 What this means for us homeowners is that all efforts to beautify and improve our neighborhoods must be reduced until funds can be released. We had sent out notices that we would be trimming trees beginning in October, but this can no longer proceed. Coastal Mirage Landscape is currently performing our landscaping with their own funds and have reduced crews to minimize expenses. We have negotiated with the water company and other service providers to keep service active until funds become available.

 The only way we know to get through this crisis is to proceed legally arguing this case in court. We are hoping for a resolution in January 2006.

Please believe us when we say that we are just as, if not more, frustrated as you are. We are asking for your patience and understanding in this time of crisis. Please remember that we are simply concerned homeowners like you who have volunteered our time to serve on the Board of Directors to help improve our community. In return we have all been personally named in the lawsuits. We have been summoned to depositions, which we have completed by giving up work and personal time. We are not being compensated in any way for our time or service. We have jobs and families and responsibilities just like you.

 Be assured that we are doing as much as possible legally to rectify this situation. You will be updated as soon as a judge decides this case or if some other event occurs.

 Tom Hunter   Gary Lenzner Andy Mordy    Jennifer Stonebarger   Jim Farber

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