The Bay Banter - August 2001
NEXT BOARD OF DIRECTORS MEETING
The next meeting of the Board of Directors will be held at 7:00 p.m. on Monday, September 10, 2001 at the Anderson residence, 241 Monarch Bay Drive. A homeowner forum will be held at the beginning, to provide the homeowners with an opportunity to discuss issues directly with the Board.

BEACH CLUB UPDATE
The Association is continuing to pursue all legal remedies in the prosecution of our case against CPH. We are in the discovery phase of our case with depositions and interrogatories. We will continue to update you as more information becomes available.

We became aware of vandalism that occurred at the Beach Club during the weekend of August 11-12. The Monarch Bay Association does not condone such activity and encourages each resident to report any acts of vandalism to the Sheriff's Department.

We also encourage residents to document any disturbance or nuisance arising from Beach Club operations by submitting a written compliant via mail, fax or e-mail to Progressive Community Management. We also suggest that extra-ordinary noise disturbances be reported to the City of Dana Point's Code Enforcement Officer, Angela Duzich at 248-3565.

We are already in receipt of numerous complaints of noise nuisance, improper access attempts at the front gate, and various other concerns. We appreciate hearing from you if you experience this so that we can maintain proper records.

COMMUNITY WATCH
There has been an outbreak of vandalism within the Monarch Bay Association which must be stopped. If you observe destructive conduct, please call the Sheriff's Department at 425-1800.

The Community must prosecute, to the fullest extent possible, this unacceptable juvenile activity before it gets out of hand. Parents are urged to be aware of where and what their children are doing.

Please remember the Association's rules:
Traffic #3 - Prohibits minibikes and motorcycles.
Traffic #4 - Un-licensed drivers may not operate motorized vehicles, including golf carts, on Monarch Bay streets.

The law provides that parents are financially liable for the misconduct of their children up to $25,000 (Civil Code 1714.1).

We want to maintain the reputation of Monarch Bay as a wonderful place to live and appreciate your help in keeping it that way.

LEASEHOLD UPDATE
Thank you for coming to our very successful meeting on August 4, 2001 to vote on the Cal Western Home Financing Sublease. We are pleased with the tremendous turnout and the final vote of 188 in favor, 1 opposed and 1 abstained.

Our successful purchase of Cal Western's interest in the All-Inclusive Sublease between Cal Western and AVCO Community Developers, means that we have become the landlord for all of Monarch Bay and that the Association is responsible for collecting the quarterly rent payments. We expect that all homeowners will make their sublease payments promptly so that the Association will not have to carry the burden for those who do not pay on time.

You as a homeowner will be paying the same amount of rent you would otherwise pay. The only amount you will be paying above existing rents is a fee of $10.00 per month per residential lot.

You will be notified soon, to make your rent payment to PF Consulting, who is collecting rents on behalf of the Association.

One benefit of this purchase is the Association will have the right to enforce the declaration of subleasehold restrictions, the same as other homeowners associations traditionally do.

Another benefit is control over the Monarch Bay Club. In particular, by acquiring the sublease, we have become the landlord of the Beach Club. Paragraph 4 of the Beach Club sublease contains a use limitation as follows:

"USE OF PREMISES. During the term of this Lease, Lessee shall use the leased premises solely for the conduct of its business as a private beach club and for such purposes which are commonly and ordinarily associated therewith. Lessee shall not use or suffer or permit any person to use said premises, or any portion thereof, or to disturb the neighborhood or occupants of adjoining property, or to constitute a nuisance, or in violation of any public law, ordinance, or regulation in anywise applicable thereto." (Emphasis added.)

As landlord, MBA will have the direct contractual right to enforce this use limitation. We are sure you can appreciate how important this right is given what St. Regis is proposing for our Beach Club.

ANNUAL MEETING OF THE MEMBERS
The 2001 Annual Meeting of the Members will be held on Saturday, October 13, 2001 at the South Shores Church. Registration will begin at 8:30 a.m. and the meeting will convene at 9:00 a.m.
This date differs from that published in the 2001 Membership Directory, due to scheduling challenges. Please mark your calendars now. More information and proxy/ballots will follow in mid-September.

The Nominating Committee is seeking interested candidates to run for the Board of Directors this year. There are 3 directors terms which expire this year; however, in an effort to maintain continuity, all three directors have agreed to run once again. Other homeowners who are interested in running for the Board are encouraged to contact one of the following Nominating Committee members: April O'Connor, Norman Powell and Jess Marlow. Thank you for your consideration.

MONARCH BAY ASSOCIATION
c/o Progressive Community Management
27405 Puerta Real, Suite 300, Mission Viejo, CA 92691
(949) 582-7770, FAX (949) 582-7796 or by e-mail at lisak@progressivecm.com

TRAFFIC STOP SIGNS
We urge each resident to strictly adhere to the stop signs within our community, as they have been installed with your safety in mind. The California Driver's Handbook states: " When there are STOP signs at all corners, STOP FIRST; Yield to the car which arrives first or to the car on your right if it reaches the intersection at the same time as your car." We thank you for your cooperation.
TABLE OF CONTENTS

NEXT BOARD OF DIRECTORS MEETING

BEACH CLUB UPDATE

COMMUNITY WATCH

LEASEHOLD UPDATE

ANNUAL MEETING OF THE MEMBERS

TRAFFIC STOP SIGNS

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