KULA KAI VIEW ESTATES

BOARD OF DIRECTORS

MEETING AGENDA

 

JANUARY 5, 2008

3:00PM

AT THE OLD MISTER BELL’S RESTAURANT

 

CALL TO ORDER

Karen calls the meeting to order at 3:00pm.

 

ROLL CALL

Directors Present:  Don Coons, Paul Meyers, Rod Frost, Larry Hayes, Karen Kudlo, Rex Brumley, Ron Hawkes, Barb Capocy, Arleen Meyers, K.., Alice Moon, Helen Donovan, Gary Kneeland, Rich Bradley

Officers Present:  Barb Capocy, Larry Hayes, Karen Kudlo

Directors Absent:  Ken Simon, Al Bowler

 

Barb passes a sign up sheet for everyone to sign in.  Everyone at the meeting introduces themselves.

Welcome to Rex Brumley and Barb Capocy, new director taking Johnny Waller’s place and new secretary, replacing Ric Elhard/Arleen Myers.

Karen thanks Arleen Myers for all her work.

 

STATEMENT ON AGENDA ITEMS (Open to all residents)

Karen asked the visiting residents if they had any items to add to the agenda.  No items added at this time in the meeting.

 

APPROVAL OF MINUTES OF DECEMBER 12, 2007

Minutes of December 12, 2007 meeting were passed out by Barb Capocy.  General agreement among all directors was that the minutes were lengthy and they wanted time to read them before approving them.  Karen requested any comments or corrections be sent to Barb.  Changes that affect meaning will be discussed at the next meeting.  Karen motions for reading the minutes at the next meeting.  Approval of minutes was set for the next meeting.

 

DISCUSSION OF WRITTEN COMMUNICATIONS

Karen asks if anyone has any letters sent to the board.  No one else has any letters.

Letter from Rhonda Doyle submitted by Karen.  Karen gives the letter to K.. and asks if she has any comments.  K.. responds no.

Don submits a copy of the violation letter sent to Mike Florez signed by Karen.  This letter was discussed at a previous meeting when it was said that he was not sent a letter of violation. 

 

Letter from Mike Florez submitted by Don about Paul Myers’ TRO against him.

Paul says “this is ridiculous” about Mike’s letter.  Karen explained the letter from Mike and suggested the association send a letter to Mike saying it is a private matter.  Paul said it is not a private matter.  Karen said she will send a letter maintaining it is a private matter.  Rod said he has spoken to Mike and said it is a private issue between Mike and the Meyers and it has nothing to do with the Association as a whole.

Don reports he explained to Mike this was a private matter between him and Paul Myers, but Mike wanted him to bring the letter to the board anyway.

 

REPORTS

Secretary. 

Karen asks for Barb Capocy to tell everyone what she has been working on since elected.  Barb reports that she has been busy transcribing the December 12, 2007 meeting minutes and getting the agenda printed and posted for the current meeting.  She has been collecting the secretary files from Johnny and Ric and working on making sense of the membership listing and creating a label-ready list.  Ron said he has such a list compiled.

Karen suggests a deadline for items to go into the annual letter.

Don brings up the problem of not finding the tape recorder in the secretary’s files.  He suggests purchasing another one.  Karen says she thinks we need two.  She asks how much tape recorders cost.  Don reports we paid 60 dollars for ours but we need one we can download to a laptop computer.  Karen asks if Don and Barb want to go shopping for a new tape recorder.  They agreed that they would.

Don made a motion to purchase two tape recorders for meetings since we cannot locate the association’s.  Karen repeated the motion changing it to “All in favor of Barbara Capocy to purchase a tape recorder able to download information to a laptop computer and using her good common sense by not spending a thousand dollars and then Don Coons will donate this one as a back up”:  passed unanimously.  Karen directed Barbara to go get a tape recorder and said if it is a little pricey she would purchase it with the association checkbook. 

 

Treasurer.  Don asked where we stand on the 2007 dues.  Karen said we need a hit list of those who haven’t paid.

Karen asked Arleen where we were on delinquent dues for 2007. Arleen said a second notice needs to be sent for those who haven’t paid.  Barb told Karen she has a check from K.. for dues.  Karen said Arleen, Barb, and her need to get together to go through who has paid and not and who needs to get a letter. 

 

Don asked how much money we have on hand.  Karen reports we have a checking account and a State Farm CD investment account.

$21,000 on hand in checking account, CD is roughly $33,000.

 

OLD BUSINESS

Gate Camera.

 Arleen reports Ted has the gate camera and is waiting on some software.  Karen asks how much the camera cost.  Arleen reports it cost $1,300 for camera, about $300 for stuff to put it together.  Karen asks if this was the camera that was voted on.  Arleen reports that the camera was voted on in 2006 (up to $3,000); with a vote of confidence in 2007.  There was another vote at the annual membership meeting regarding a camera system (which included the already purchased $500.00 camera).  Ron reports that one camera was originally purchased for $500.00 in 2006.  It was declared not sufficient for the job and another camera was suggested for purchase and installation so the view would be adequate from two cameras; one was to be looking forward at the cars and the other looking at the back of the cars.  Arleen said there were two separate votes and it was in the minutes.  Arleen said the vote of confidence for the cameras and a vote for Ron’s system  of multiple gate codes (each person having their separate code) was on March 12th at annual meeting last year and the board asked Ron to get written costs.  Arleen reports Ron said he and Ted said they would install for free; Ted reportedly disagreed that he installs for free.  Ron said the system costs $2800 for the system and the gate clickers would have taken it over $3000, but the gate clickers were to be sold back to the people so that wasn’t really an issue.  Ron said he thought that was voted on and approved at the annual meeting.  Then he said all the sudden he was told he needed to go get a bid to have it installed.  He did not have the quote on the costs in writing.  Ron said that nobody discussed the installation costs originally; he had simply said that he could get it installed for free.

 

Karen asks where the $500.00 camera is.  Arleen said that they have it.  Karen said she would be interested in buying it.

 

Rex clarifies that we have two issues.  One is the security camera and the other issue is that we have numerous people in the subdivision that nobody knows and added security was wanted in terms of an updated keypad. 

 

Karen said that we now have the cameras but we need more information on the keypad.  Ron said he turned that in a long time ago.  Karen asked if anything on a gate code system was found in Ric’s files.

 

Arleen said she wrote Ted a check for $1700.00 which covered the camera and installation but did not get an invoice.  Ron asks for an invoice.  Arleen said there is not.  Karen said we shouldn’t have paid for the installation.

 

Ron said he heard the discussion on buying the cameras, but had never heard anyone vote on paying someone for installation.  He said he would volunteer to install them.

 

Rex made a motion that the Board no longer pay any outstanding bills without a proper and valid invoice.  Don seconded.

 

Discussion ensued.  no invoice, no check” was the gist of the discussion.  Individuals should not be paying and then getting reimbursed; the money should come from the KKVECA directly.  Karen said that sometimes we can get discounts for being a non-profit, and that everything that gets purchased needs to go through the treasurer and secretary and that everyone needs to know what’s going on.

 

Rex clarified that when someone makes a motion, the secretary records the motion, the secretary then reads the motion back and there is a vote on the motion.

 

Vote

Yes:  Don and Ron and Rex

Abstain:  Rod and Paul

Motion Passed.

 

Paul states he wants to go on record that he objects to this motion, saying in a written official quote a lot of companies require pre-payment.  Further discussion ensued.

 

Discussion about who was signing checks:  Karen, Arleen, Johnny, and Al Bowler were the names on the checking account.  K..© comments that she has a check that was signed by Paul Myers.  Karen and Arleen say that is not possible.

 

ROAD REPAIRS

Don asks what Paul Myers fee is to use his backhoe for the roadwork.

Karen discussed a volunteer day to fix the potholes, with Paul’s backhoe available for 30.00/hour.  Karen said there is a hit list for the roadwork and the really bad ones fixed first.  Sign to be up on the bulletin board asking for volunteers.

Karen said we need to discuss a date for fixing the potholes, with the deadline for the work being done February 15th.  Don said that weekends are best.  Paul said it has to be dry weather, and that we need an asphalt rake.  It takes 24-48 hours for asphalt to dry.  Larry will check on the availability of a contractor with an asphalt rake for a Saturday between now and February 15th.  When a date is set, a notice will be put on the bulletin board to ask for volunteers.  Larry pointed out that we would have to block off the areas that are asphalted to keep people from running over it.  Arleen discussed the previous estimates/costs of $8,000. 

Rex said he has never sat on a board that didn’t have a limited discretionary fund.

Rex moves that we authorize the president to pay up to an additional $1,000 for all associated miscellaneous costs involved in patching the roads before March 1st, 2008.  Rod seconded.  Vote: 

Yes:  all directors present.

 

Visitor Rich Bradley arrives.  Karen asks if he has any additional agenda items to discuss.  Rich says not at this time.

 

Ron asks that at every meeting a copy of all previous minutes should be available to aid in discussion and decision making.

 

ATTORNEY UPDATE

No new attorney at this time, reports Paul.  Rex suggested an attorney friend of his named Frank Jung; he will talk to him some more to see if he would be appropriate.

 

PICNIC AND PLAYGROUND AREA

No new report on the playground/park issue.  Don gave a recap for those who hadn’t heard about it previously.  The Association owns lot 3, but it is partly outside of the gate and not really suitable for a park/playground.  He noted the idea of selling that lot to buy one or more lots further down the subdivision in a more appropriate place.  Don recapped the idea of taking this idea to the Cave Conservancy of Hawai’I to see if he could get approval to join with the Association to purchase a lot or two for this purpose. Don noted that the Conservancy purchases lots to create greenspace and protect the caves of the subdivision.  Rod stated that there were TWO children in the subdivision (actually two children and a visiting child).  Rex said that with few children in the subdivision, a playground would not actually be something benefitting the whole subdivision.  Rex also brought up the liability issue and said we need to be cognizant of the fact that the Association has assets that could be put at risk.  He suggests another way to describe the project such as a community association pavilion or such.  Karen suggested that the word “playground” be deleted from the project title.  Rex suggested we table the idea until it is decided whether it will be a joint venture with the Cave Conservancy of Hawai’I or if it will be an association project entirely.

 

Discussion evolved into the CCH kiosk issue.  Don stated that the Conservancy believes it is in full compliance with the Covenants.  Kiosk and sign law to be placed on the next agenda.

 

Rex said the subdivision was for single family residences.  Don pointed out that we are not zoned residential, we are zoned agricultural.  Rex stated concern about commercial activities taking place in the subdivision.

 

REQUEST FOR DIRECTOR RESIGNATION

Ron Hawkes and Larry Hayes discussed their reasons for requesting the resignation of Paul Meyers.  Larry explained that Paul seems to be the forefront at the less than amicable resolutions that seem to be eminating from the board.  Ron said that two issues Paul has been involved in are the personal issues with Mike Florez and more recently with the Reyes/Padillas.  Ron said he went to talk to Mr. Padilla and sent a thoughtful, friendly way to the board for distribution to Mr. Padilla.  He said he immediately received a reply from the Myers that he “didn’t understand the issues”.  He also said that Paul reported that he is “64 years old and in ill health” and he wrote Paul an email that said he should consider resigning. 

Rex interjects that he thinks the issue is not with a particular director, but Ron clarifies it is indeed with the way an individual director is pushing the board’s business.  He says the issues get out of hand before anyone really knows what is going on. 

Don reports that Johnny Waller did not resign due to Mike Florez, he said there were many reasons Johnny resigned.  Ron said he had the same conversation with Johnny Waller.  Paul starts recapping the speeding incident with Mr. Padilla and how Mr. Padilla called Karen and “harassed her”.   Paul continued by bringing up the previously discussed issue about how he wanted Barbara Capocy to write a letter he was dictating about how Mr. Padilla had said to Karen that he could “speed or do whatever he wanted to do in the subdivision”.  Barb interjected that yes, everyone has seen the emails about the fight we had about the letter and the demand to dictate the letter and such.  Karen reports that he said he will continue to speed until someone with a badge tells him to slow down.  Karen asked if it was proper for a board member to write the letter or should it come from her.  Rex said he has sat on a lot of boards and that Paul and Arleen have a lot of experience to add to the board.  Ron replied that he has also sat on a lot of boards and that they change board members periodically because new blood is needed.  Karen said she’s going to go to Mr. Padilla’s house and talk to him whether he likes her or not.  Barb says that when Rex was concluding what the request for resignation was about, Larry was shaking his head and so therefore he should be allowed to speak about what his reasons are.  Larry reiterates what he said at the beginning of this discussion and explains that he is tired of the confrontational attitude of Paul on almost every issue.  Don asked for Paul’s response to this request for resignation.  Paul replies that Mr. Padilla still needs to get a letter.  Don reiterates that there is a request for Paul’s resignation.  Paul replies “no”.   Rex said in the organizational structure the president is the boss and needs to take charge.  Rich Bradley interjects a Call To Order and requests to get on with business.

 

 

PAUL’S MOTION

Paul’s motion is for Barbara to resign due to the Padilla letter incident.  Karen said this motion was sent as an email motion and received no second.  Karen asked Paul if he wants to restate his motion.  Paul says his motion is for Barbara to resign because of her refusal to write the Padilla letter and he said he thinks her response was “not correct in any way shape or form.”  Karen said it goes back to what Rex had previously stated about the Organizational Structure and who is supposed to do what.  Karen said she wanted to make sure that Paul’s feelings were heard and that he received closure.  No second. 

 

SPEEDING IN KULA KAI ESTATES

Alice talks about the speeding of the Padillas.  Alice says she never complained about him and is upset that someone was saying the complaint came from her.  Rich questions why Karen is going to go talk to people on behalf of the board.  Don clarifies that if she goes to talk to anyone as the president, that is an ok thing for her to do.  Rich also speaks about 35 mph being, in his opinion, rather slow for a rural road.  He said he would rather see it be 55, with 45 mph as a nice compromise, to save his brakes from excessive wear.  He said people should not be walking in the middle of the road, they should be walking on the shoulders and always face traffic.  He also said that it is a police enforcement issue.

 

Rex said that the 35 mph was brought up at the last annual board meeting and voted on.  He suggests that Rich bring it up at the annual meeting if he would like a vote on changing it.

 

Don said that it would be nice to put this speeding issue to bed, as it was discussed at the last meeting to send out a letter but never voted on.  Since the meeting, there have been two letters submitted via email addressing the speeding issue to the board to be voted on, one came from Ron Hawkes and one came from Paul and Arleen.  The letters read radically differently.  The decision needs to be made if we are going to send a letter, are we going to send one of these letters, or what we are going to do.

 

Rex moves that if we have speeding issues in the subdivision in the future, that the president appoint the proper person to send the offender a letter.  Seconded.

Paul talks about at the annual meeting it was discussed whether the speed limit would be 25 mph.  He also said we were not talking about a little above the speed limit, we were talking about going 60, 70, or 80 mph. 

Amendment by Rex includes: “After full review of the board”.  Don seconds the amended motion.

Don amends the motion to say that if we have issues in the subdivision in the future, that the president will appoint the proper person to send the offender a letter, after the letter is reviewed and approved by a majority of the board.  Rex seconds.  Vote is unanimous in favor of the motion.

 

Karen said a reminder regarding the speed limit will be sent in the annual letter.

 

Paul motions that Mr. Padilla be sent a letter.  Rex seconds.  Karen discusses that she will write the letter and personally deliver the letter.  Vote:  unanimous in favor.

 

NEW BUSINESS

New Gate Code

New gate code will be in the annual letter and will be in effect after the annual meeting, 2/16/2008. 

 

Annual Meeting Letter and Location

Letter needs to go out next week.  Barb will receive emails by Monday relating to what should be in the letter.  Barb said she will draft the letter and finalize it with Arleen and Karen’s input.

 

CPA Year End Books

Ron said the deadline for the CPA work will be determined after we decide if there is going to be any compensation for the officers.  Karen asked why that was.

Ron declares he doesn’t want to do the CPA work if he isn’t getting paid.  He said he doesn’t want to volunteer if the other officers are getting money.  Ron said he has done the tax work for free for two years.  Arleen said the board is prepared to pay him $700.00 for the work but he said he didn’t want compensation.  He said the Board should go get bids.  Karen suggested that it was up to Ron if he wanted to charge the association or not.  Don said he was not aware that Ron had done the work for free, and that he recommended that Ron do bill the association for the work he is doing.

 

BUILDING GUIDELINES REVIEW

Ron passed out his interpretation of the CC&Rs.  He said he hasn’t changed the words, just tried to get a uniform interpretation.  Karen asked everyone to review them for another meeting; Barb will put them on the agenda.  Paul said he does not believe we can do this without a legal opinion.  Don said we need a 60% majority of the membership to change the bylaws.

 

 

Unassigned Proxy Vote Procedures

Annual letter will contain the official proxy form.  Karen said she will walk everyone through the proxy procedure.  Rod says this is just out of 421 J.  Arleen says the only change on the form is the option to have the proxy used for quorum purposes only.  She then outlined the choices that appear on the proxy form.

Don said he hopes the confusion that existed at the last meeting regarding proxy votes is eliminated at the annual meeting.

Karen said that 421 J is going to be followed strictly.  She said that everyone will be given a copy, it will be posted at the meeting, and it will be explained so there are no doubts.

 

Annual Payments to Officers

Ron said in his opinion that under no circumstances is the money given to officers at the end of the year an honorarium.  Ron said that if you are volunteering you should not be receiving compensation.  Rex said the bylaws state that we can pay the officers. 

Ron wanted to make the motion that officers not be paid.  Rex said that he cannot make that motion at this time.  Don states that we can pay our officers, and he said what is really unusual for this organization is that our officers cannot vote.  They do all the work and they can’t vote.  Don went on to say that he thinks they deserve some sort of compensation to do that and it needs to be taken into consideration. 

Paul also says there is a huge amount of work involved.  Arleen says this gets discussed at the annual meeting.

Rex says that an option is to hire a licensed individual to handle these positions.  Karen said that these management companies come and go like the wind and that she has had nightmare situations with the management companies lying, cheating, stealing, with total access to checking accounts.  Rich suggests making the job a zero compensation job.  He states that it needs to be either a fixed amount or no amount.  Karen said she agreed.  Don made note that the organization went for quite a few years with no officers at all because nobody wanted to volunteer.  He said that compensation is going to get you officers, if you don’t put it out there you may end up with nothing.  Rich said that maybe that was ok to not have any officers.  Rex said that at the annual meeting anyone can raise the motion of payment to officers.  No motion to change the compensation at this time because it has already been decided on.  At the annual meeting a motion to fix the payment to officers in the future may be made.

 

BULLETIN BOARD

Karen says we need a proactive bulletin board.  The minutes for this meeting go up on the bulletin board as soon as they are approved.  Future agendas will go up on the bulletin board.  The minutes from the December 12, 2007 meeting will not go on the bulletin board because it was an executive session.

K.. said nobody has permission to use her name or post her name unless she has given them permission.  She reports her name has been copyrighted.  There is a $500,000 dollar fine for illegal use and she is putting the board on notice.  Rex moves that we get a legal opinion how to address her pertaining to the copyright of her name.  Paul seconds.  Discussion includes Rex asking K.. for a copy of the copyright.  Barb says she has seen the copyrighted paperwork.  Karen states we need to have a copy of the copyright for the board. 

Vote:  Yes:  Paul, Rex, Rod, Ron.  Abstain: Don.  Motion passes.  Don says he thinks there is more constructive ways to spend association monies.

 

Paul interjects and asks K.. if she is a property owner.  K.. asks Paul why he is asking her such a question in the middle of a discussion about her copyrighted name.  Paul persists in asking her if she is a property owner.  She says yes she is.

 

Karen goes on to say that we cannot send her any mail, can’t give her a ballot, can’t give her any notification until we get a legal opinion on how to address her.  Barb wonders why we can’t just send her a letter saying “To Whom It May Concern.”  (Secretary’s note:  we don’t send ballots in the mail anyway.)

 

WEBSITE

Don says the website should be password protected if the minutes are going to be posted. 

More discussion will take place about the website at the annual meeting.

 

RELATED BOARD MEMBERS/OFFICERS

No comments by any board members except that Arleen said it is off the agenda.

 

ANNOUNCEMENTS

K.. makes a motion for the association books to be audited.  Don seconds for sake of discussion.  Don says it’s in the bylaws.  Rex says in order to get an audit in the state of Hawaii, it costs tens of thousands of dollars, especially during tax time.  He said most people think it’s a simple straightforward process, but it is not.  Don says that in the bylaws, Article X it states:  The members of the corporation may at any annual meeting, or at any special meeting called for that purpose, appoint some person, firm, or corporation engaged in the business of auditing to act as Auditor of the corporation.  Rex says the last time he had an audit done it cost $21,000.  Don says we only have $21,000 in the bank.  Rex recommends that the motion not be passed.  Don suggests the better forum for this motion might be the annual meeting.

Rod says no director, officer or member shall serve as auditor of the corporation.  Rex says since the motion is now on the table it either has to be voted on or the motion withdrawn.  K.. withdraws the motion.  Don asks Ron what he would charge.  Ron says in his professional opinon that he wouldn’t touch it but if he did do it would be around 8-10,000 dollars.

 

Gary asked about the legal easements of the first two roads.  Don said they are a legal entity and are different from all the rest.  It’s up to the owners to decide what to do with the roads.

 

Don thanked everyone for coming and said it’s the most productive and non-confrontational meeting that he’s attended.  Karen said she agrees.

Rex thanks Ron for all the time he’s spent on the Association.  Arleen said that all the membership thanked him when it went out with the minutes.

 

SCHEDULE NEXT BOARD MEETING:  Feb 16, 2007 after the annual meeting.

 

ADJOURNMENT:  Motion to adjourn 5:37pm:  Rod, Second:  Don.

Meeting Adjourned.

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