MINUTES OF THE REGUALAR BOARD MEETING OF
KULA KAI VIEW ESTATES COMMUNITY ASSOCIATION

HELD ON April 18, 2008, 6:00pm

AT THE HOME OF: LARRY & JANET HAYES
as corrected

Meeting called to order by President Larry Hayes at 6:10 pm.

Officers Present: Larry Hayes, President, Russ Appleyard, Vice President, Kathy Hawkes, Secretary
Pro tern, Ron Hawkes, Treasurer

Directors Present: Rex Brumley, Ric Elhard, Donna Farris, Gary Kneeland,
Carol Simms

Guests: Rhonda Doyle, Janet Hayes, Rose Herrara

The minutes of the last meeting were not presented for approval and will be addressed at our next meeting.

Kathy passed out the agenda, sign in sheet for everyone to sign, and also a copy of the Board Contact List for everyone to make corrections or additions to. Donna changed her email address.

Old Business:

Larry introduced Rhonda Doyle as being the owner of Lot #1 and allowed her to speak to the board. She said she hadn't given K.. permission to put a barrier across the easement road. She now has her property for sale and said it looks tacky.

Ric asked her if she had ever asked K.. to take down the barrier. Rhonda said no, that she didn't want to cause any hard feelings and that's why she brought the matter to the board. Ric said K.. would probably remove it, if asked.

MOTION: Rhonda made a motion: for K.. to remove the barrier.

Rex amended the motion to be: to write letters to all parties of interest, on lots #1, #2 and #8. The letters are to go out within 10 days and ask for a response within 10 days.

Donna seconded the motion.

Motion passed: with 6 voting in favor and 1 abstaining.

Larry and Ron are on the checking acct signature card. Carol signed today. The bank was waiting for Carol to sign on, and Johnny Waller to sign off, before sending the signature card to Oahu.

Attorney: Ron received a call from the Lacy & Jackson firm that they will not represent us because they are no longer doing corporate work. He also received their final bill of $540.72 and presented it to the board.

From Don Coons:

Road repairs. Let's get those potholes fixed.

Paul Myers brought the emulsion and stop signs to Larry's house with his backhoe. Ron is to get a second bid from Kelly Kaupu, taking off the easement roads and telling him that we bought the emulsion. Ron, Larry, Ric and Russ will tour the area Saturday morning, mark the holes and install cold patch for now.

Committee report. Ron was reviewing the funds spent by our previous administration. What has he learned?

Ron said he has been too busy with Tax Season to really get into it. He has looked through the records. He will balance the financial statement that Karen and Arleen gave him and email it to the board and will do the tax return next month.

Jung & Vassar. It's time to let them go.

We will stay with Jung & Vassar. See later discussion.

Review of "violation letters" we sent out a couple weeks back. Rex wants to completely rewrite and send his version. Which one is it going to be?

Kathy told them they had a copy of Rex's letter attached to the agenda. Rex explained his reasons why Don's letter is illegal. After reading some additional information given to him by Arleen, he wanted to revise his letter, and that was voted down.

MOTION: Rex made a motion: to send out his first letter to replace Don's illegal letter.
Letter is to be sent out before May 1^st.

Ron seconded the motion.

Motion passed: with 4 voting in favor and 3 abstaining.

From Larry:

Payments to Arleen and Karen:

Karen thought she would get $2,000.00 by 4-14-08 and has threatened to sue us over it. The board voted in the past to only pay them $500.00 and will be sticking to that decision, and wait to see what happens.

Ron presented his Treasurer's report. Our bank balance is: $15,079.18 as of 3-31-08. Our balance in the 1 year Business CD is: $35,410.19 as of 3-28-08. He also read off the list of payables totaling approximately $3,000.00.

MOTION: Donna made a motion: to pay the bills.
Carol seconded the motion.

Motion passed: unanimously.

New Business:

From Larry:

Discuss hiring a new attorney, who can contact them, how to contact them.

MOTION: Rex proposed a standing rule: that the President of the Association will be the only
person to contact attorneys. The board is to follow the legal determination.

Ron seconds the standing rule.

The standing rule passed: unanimously. Discuss asking attorney:

Rex had several points to be brought up to the attorney. Carol was very concerned about how much this would cost. Rex agreed to table a motion until after everyone has had a chance to read them and ponder them. We also will get an idea of the cost by just asking Ron's first question.

MOTION: Ron made a motion: for Larry to send his first question only, concerning a determination of which state statute we fall under: 414D or 541J to an attorney. (since we didn't have one in place yet)

Carol seconded the motion.

Motion passed: unanimously.

We will use Ron's format for the question, and add a cover letter.

MOTION: Larry made a motion: to hire Jung & Vassar as our Association attorneys.
Donna seconded the motion.

Motion passed: with 6 voting for in favor and 1 abstaining.

Bylaws re: Email voting and telephone conferencing.

Rex said no teleconferencing or email votes according to our by-laws. Roberts rules says if it's not in our by-laws, the answer is no. We will have to have it passed by 60% of he lot owners.

Discussion of past boards doing things and passing things by email and teleconferencing. Ron said it was because most of the board was off island at the time. It was decided to leave the past in the past and go forward correctly.

Light at gate:

Ron bought the new light at Lowe's and Ron and Larry installed it.

Report on cameras from Ron

Ted is refusing to supply any info on the system, and also refusing to finish the job. He said he will box up the equipment and return it to us. Larry received it from Ted's wife Wednesday evening. Ted said we owe Mike Florez $500 for digging 2 holes.

MOTION: Rex made a motion: to postpone the camera installation until the next annual meeting.
Ric seconded the motion.

Motion passed: unanimously.

It was decided that we will pay Mike Florez, with the stipulation that he must fill the holes with cinder that we will supply, as suggested by Donna.

The new letterhead was discussed and approved.

After much discussion about the Covenant Violations a motion was made to dissolve the Covenant Violation Committee.

MOTION: Donna made a motion: to dissolve the Covenant Violation Committee.
Ric seconded the motion.

Motion passed: unanimously.

Motion to adjourn by Ric. Donna seconded. Meeting adjourned at 9:35

Next Meeting to be determined at a later date.

Respectfully submitted by: Kathy E. Hawkes