KULA KAI VIEW ESTATES COMMUNITY ASSOCIATION

PO BOX 7210, OCEAN VIEW, HI 96737

Kula Kai Home

ANNUAL MEMBERSHIP MEETING

FEBRUARY 16, 2008

OCEAN VIEW COMMUNITY CENTER

1:00 PM

 

Call to order by Karen Kudlo at 1:15pm

Karen introduces officers and directors:

Present:  Don Coons, Ron Hawkes, Rex Brumley, Paul Myers

Officers:  Barb Capocy, Secretary, Karen Kuldo, President/Treasurer

 

Absent:  Ken Simon, Al Bowler, Rod Frost. 

Larry Hayes present via telephone during director vote.

Members Present:  Ric Elhard, Rose Herrera, K.., Ted Stanton, Gary Kneeland, Carol Simms, Elias Padilla, Dean and Karen Hanson, Helen Donovan, Russ Appleyard, Patricia Zura, Johnny and Beth Waller, Kathy Hawkes, Georgia Murphy, Earl Kemmer, Laura Brown, Karen Ingraham, David Williams, Bruce Dunlavy, Danny and Carolyn Zook

 

Quorum established.

 

John Wilson – States that this is his very first meeting as a new owner and he hopes that we will all experience respect for one another which results in grace and sharing in Kula Kai.

 

K.. – “Aloha People of Kula Kai” – see attached excerpt.

 

Secretary’s Report

Approval of last years membership meeting minutes:  Last year’s minutes were unavailable.  If anyone has any changes to the minutes that were sent out last year, be sure to let us know.

 

Barb read a report listing the tasks that she has completed and difficulties encountered in her short tenure.  It has been a hectic few months filled with collecting files and paperwork, typing minutes, reviewing laws, sending letters, and attending meetings.  Keeping up with members current addresses and email addresses is a challenge so if there is an error, please let her know.  Much time has been spent trying to gather all the files pertaining to the secretary position as they seem to be scattered in at least three different places.  The association has not had an official secretary since Ric Elhard resigned last June. 

 

Treasurer’s Report:

Karen states we have two bank accounts – Bank of Hawaii (at the end of January is $12,350) and a State Farm CD Account is $35,000.  Karen says we have three people checking the mail and she also has checks that Barb just gave her from memberships that need to be deposited.

 

Don asks who is on the signature card for the bank.  Karen says she is on it, Johnny Waller, Al Bowler, and Paul Myers.  Barb asks for a copy of the corporate resolution stating when the current people were put on the signature card.  She says there is nothing in the files.  Discussion about why at the January meeting did Karen state Paul’s name was not on the signature card and  since then we have cancelled checks that have Paul’s name on them.  Karen said she did not know when Paul’s name was put on the signature card; she does not know who is on the signature card. 

 

Questions raised about a $3,000 check written at the end of the year to Arleen Myers which had no documentation attached.  Karen said that was for reimbursement for postage and mailing out the minutes.  Karen said everything is somewhere in the files.  Questions arise from the membership regarding the financial statement that does not have the $3,000 to Arleen broken down into categories.  Karen says this is a mistake on the financial report as she did not prepare the report - Arleen Myers did.  Clarification was made that Arleen Myers was not secretary for the year 2007; she was authorized by the board to send out one mailing.

 

Ron Hawkes volunteers to bring a new financial statement to the board for review after he receives the check registers, as he is the CPA that does the association’s taxes.

 

Don motion to have a committee review and double-check the checks written for fiscal year 2007.  John Wilson seconded.  Vote:  all Yes,  Opposed – none.  Motion Passes.

 

Karen Ingraham asks why the board has two insurance policies.  Karen Kudlo explains the differences between the two policies.

 

Don asks why the $1,500 retainer that the board did not authorize was sent to an attorney that the board did not authorize hiring.  Karen said because attorney David Lacy retired.  Don said we have a form from Lacy’s partner who is taking over the firm that says all we need to do is sign a form and our files will transfer.

 

Karen said that she has not received any correspondence from members except for a letter complaining about easement blocking.

 

Barb says she has not received any correspondence from the board to any members or from the board to the attorney.  Karen says Barb should talk to Arlene about that.  Barb says that someone else obviously needs to talk to Arleen as she has been asking since December for the materials and she has not received them.  Karen says she has asked her several times also.

 

Rex discusses the road easements.  He says he was asked to look into the easement issue of the first two roads at the top of the subdivision.  He says four easements exist, A&B, and C&D and they are for the exclusive use of the property owners of lots 1 through 6 since they can’t gain access to their lots any other way.  There are six lots, Lot 1 has easement over lot 2 and 3 to gain access to their lot, Lot 2 has access across lot 3.  He says the blocking of this easement on either side of Kona Kai Blvd is illegal. 

 

Rex makes a motion “That the secretary or board of directors designee shall notify by way of registered mail return receipt requested the owner of record of lots #8 that they are in violation of covenants paragraph 2,3,5,6,7,8,10,12,14 and have ten days to remove all obstructions placed on or across easement roads a&b and cease using the easement.  The letter will further state that non compliance will result in the board removing said items at the owners expense and immediate legal action for any further infractions as allowed by the covenants paragraph 16.”

Discussion:

Don says that he doesn’t understand why it is our jurisdiction to enforce anything on a private road.  Rex says that yes, they are private property easements, but as the board had received a formal complaint from the owner of lot #1 stating that the person on lot# 8 which has no legal access to the roads was blocking her access we must pursue the issue.

 

Karen reads letter from Rhonda Doyle, owner of lot 1 dated December 7, 2007:  “I, Rhonda Doyle, owner of KKVE lot #1 do hereby state that I have never granted easement access to K.., who owns an adjacent lot in our subdivision.  There have been some barriers for highway use placed on the easement.  They look tacky and I did not give permission for them to be placed on the easement.”  Barb states this letter is not asking the board to do anything.

 

 

Ric states the barrier is on lot 2 and K.. may need permission from them to use the easement, not from Lot 1.

 

K.. attempts to speak on her own behalf but Rex and Karen state she has not provided documentation to the board that she has a valid contract of sale.  Don and Barb state they have seen the documentation – a valid contract of sale, along with a letter saying K.. has a contract of sale.  Rex and Karen ban K.. from speaking even though she is a member of the community association.  Rex says that if Don and Barb had indeed seen a valid contract for sale why would a letter be needed saying it.

 

Rex stated in great detail what he considered a "valid" contract including reference to HRS§502-83.  All deeds, leases for a term of more than one year, mortgages of any interest in real estate, or other conveyances of real estate within the State, shall be recorded in the bureau of conveyances/ Principles & Practices of Hawaii Real Estate / Kula kai View Estates Covenants paragraph 14 and followed by an attorneys legal opinionHe feels that that lot #8 where K.. resides is in violation of just about every covenant we have in no way demonstrating a member in good standing and agrees with a legal opinion that K.. is not allowed to participate in board functions.  He feels it supercedes regular membership standing and Karen states we will follow it because it is a legal opinion.

 

Barb restates the motion and declares she does not understand the motion; she asks for a simpler way to state the motion.

 

Ric asks for an explanation of the other issues included in Rex’s motion.  Rex reads the covenant violations corresponding to the numbers in the motion.  Ric asks why he is rolling all that extra stuff into this motion about the barrier and easement – he feels it is extremely inappropriate for the membership to be voting on this.  Don says there is obviously more to this than the road easement and he can’t believe that K.. is not being allowed to speak.  He says he is ashamed at this entire thing.

 

Rex moves that the secretary or the board of directors designee shall notify in writing by way of registered mail return receipt requested the owner of record of lot #8 that they are in violation of covenants paragraph 6 and have 10 days to remove all obstructions placed on or across easement roads a or b and cease using the easement. The letter will further state that non compliance will result in the board removing said items at the owners expense and immediate legal action for any further infractions as allowed by the covenants paragraph 16.”

Paul seconds.

Discussion:  Barb reads Number 6, the Nuisance Section, of the Covenants which reads: “No noxious or offensive activity shall be carried on upon any lot, nor shall anything be done thereon which may be or may become an annoyance or nuisance to the neighborhood.  No barn, shed, doghouse, or other structure to house poultry or animals shall be erected within 50 feet of any property line.”  She goes on to say that one complaint does not a neighborhood make.  She has 20 years experience in enforcement of codes, including public nuisance issues and says an issue affecting one person does not constitute a public nuisance. 

 

Don states this is being declared a public nuisance on a place that the public cannot even go.  Don says this is an issue that should be discussed amongst the owners themselves and the board should not have anything to do with it.  Johnny Waller says to be fair we need to include Lot #5 in with this motion.  Rex amends his motion to include Lot #5.

 

 

 

 

 

 

 

Motion now reads: “The secretary or the board of directors designee shall notify in writing by way of registered mail return receipt requested the owner of record of lot #8 and #5 that they are in violation of covenants paragraph 6 and have 10 days to remove all obstructions placed on or across easement roads a or b and c or d and for lot #8 cease using the easement. The letter will further state that non compliance will result in the board removing said items at the owners expense and immediate legal action for any further infractions as allowed by the covenants paragraph 16.”

Vote:

Motion carried via yes (35), no (18.5).  Motion passed.

 

 

Karen introduces new insurance quotes for the next year that she just found.  She says it’s pricey and hopes the new board shops around.

 

Rex explains K..’s copyright issue via an attorney’s opinion.  It appears that the attorney says she cannot copyright her name.  Don and Barb have seen the copyright paperwork from K...

 

Old Business:  Road and Signage Repairs.  Work will be done as a community association project.  Date will be posted.

 

Speeding:  Keep to the speed limit.

 

Picnic Area:

Discussion regarding selling the association lot up on the top of the hill, to purchase a lot or two open space/picnic space.  Don reports that the CCH board is in agreement in looking to help purchase open space for a picnic area in conjunction with the KKVECA.  Karen says the new board can continue working on that.

Don moves that a committee be assigned to look into the issue of a park.

Seconded.

Vote:  No one opposed.  Motion Passed.

 

Gate Camera.  Ted discusses issues regarding gate camera and installation.  Rod Frost is going to install the new light for $110.00.

 

Abandoned Vehicles – Don clarifies.  He says 6 vehicles remain, all on Carol Simms property, left before she bought the property.  He said he has proposed a motion to help people remove cars from their property that were abandoned there before they bought the property.  It would cost 60.00 to remove each vehicle.  John Wilson seconds it.

Carol thanks Don for taking an interest and says she is planning on taking care of it and would love to find out who was offering the cheap price Don found.  She said the association did not have to pay for it.  Don withdraws the motion; John withdraws the second.

 

Rex explains that “Standing Rules” are general rules that a board follows that are in accordance with the general membership and suggested voting on all of them as a block, explaining further that any owner at any time can ask for one or more rules to be isolated for an individual vote.

Rex read off a block of proposed rules as a motion.  Seconded and then second withdrawn.  Seconded again for discussion.  Patricia Zura points out that these rules in some cases violate or change our bylaws.  People at the meeting suggested either having a committee to look into these things or to be mailed all the suggestions.  The room feels the issues are too large to vote on without review.  Late fees are already addressed in the bylaws.  Bylaw changes require a 60% approval of the membership.  John Wilson says standing rules are more appropriate when one has a large staff who are hired by the organization.  Rex withdraws the motion.

 

 

 

Don moves we move the standing rule matter to committee.  Seconded.  Majority of the room votes in favor.  Motion Passes.

 

Fire Prevention:  Be careful with fire.

 

Non Profit Donation Yearly Contribution:  KKVECA has in the past given $1,000 to the Volunteer Fire Department.

Ted moves that the board make a donation of 500.00 to the Fire Department and 500.00 to the Boys and Girls Club of Ocean View.

Second:  Paul Myers

Ron clarifies that the KKVECA is not forced by law to make donations due to the nonprofit status.

Don amends the motion:  750 to the Fire Department and 250 to Boys and Girls Club.

Ted restates his motion to ask the board to give $750 to the Fire Department and $250 to Boys and Girls Club of Ocean View.  Vote:   Unanimously in favor.  Motion Passed.

 

Election for the 2008 Board of Directors

Ron clarifies that 421J may not apply to our organization as we are set up as a non profit organization, not a planned community.  It may be that we are a combination of it and 501.

 

Don makes a motion that the full membership decide now whether to open the nominations again or not.  Seconded.  Vote:  36 in favor, zero opposed.  Motion Passed.

 

Ted Stanton nominates entire current board.  Rod Frost has said he does not wish to stand for re-election.

 

Director nominees each stand and tell a little about themselves.

 

Karen delegates three people to serve as tellers to count the votes.

 

Don asks for a vote of confidence from the membership to allow Larry Hayes to vote for directors using his proxies via telephone as he is visiting his grandchild on the mainland.  Majority vote in favor of calling Larry Hayes.  (33 yes to 17.5 no)  Karen makes the phone call and adds Larry’s votes to the total.

 

Results:  Carol Simms      64.5

               Ron Hawkes      60

               Rex Brumley     57

              Ric Elhard         52

               Don Coons        48

               Bruce Dunlavy  43

               Larry Hayes      38

 

The above individuals constitute our new Board of Directors for 2008.

 

Other vote recipients:

Al Bowler           26.5

Gary Kneeland   25.5

Paul Myers         24

Ken Simon         16.5

 

 

 

 

 

 

Gate Code:

Ted will change the gate code today

 

New Web Site: 

Need volunteer to update and maintain association website.

Rex makes a motion to form a committee to find someone to maintain website and a committee to update bylaws.  Motion passed. 

 

Karen Kudlo announces her resignation as President of KKVECA.

 

Meeting Adjourned at 5:00pm

 

Submitted by

 

 

Barbara Capocy

KKVECA Secretary