Kontiki Annual Meeting 11 November 2006

These are my notes from the annual meeting. I’m sure the board will send more complete notes at a later time.

In the absence of Richy, Karra prepared the agenda, put together a budget, and chaired the meeting.

A quorum was established. Chris and Karra represented 29 votes and all others represented 15 votes for a total of 44. This was probably a new low with 18 owners not represented.

Insurance was discussed. It was noted that in most condominium associations the owner is responsible for coverage of everything that you can touch in the unit. Because our declaration requires it, our umbrella policy covers appliances, cabinets, floorings, sheetrock, wall coverings and fixtures.

A question was posed from the floor to ask if we could vote to assess for the ongoing repairs rather than accept the loan. Chris said the vote was taken in May and could not be changed and besides it was not on the agenda to do so. No money has been loaned to date. I asked if the board had accepted the terms and conditions of the loan and Karra said they had not signed off on it yet. It is to be paid off in four years.

A budget was presented. No current financial statements were made available. There was no information given as to the current assets of the association. It was noted that financial statements will be sent to owners if they make a request to Barbara Schultz at 361 729-9707. The budget shows a loan payment of $574 to begin in January and if all the money is borrowed, the payments will go to $3,504 monthly. Chris said he will serve as property manger until February. At that time the budget shows a monthly cost for management to be $800. It would have taken only $200 a month per unit to fund this budget. Last year’s budget had been set at an all time peak of $250 to build equity as well as fund the proposed budget. I moved to set the monthly assessment at $240 to accrue about $30,000 in equity. Chris said he did not support that motion and it died for lack of a second. A motion was made to set the assessment at $250 monthly and the motion passed. This should add about $37,000 to the association equity.

Major projects to be funded by the loan were listed as:

1. Repair and/or replacement of stairs and decks as needed

2. Replacement of fence around the pool

3. Replacement of exterior and security light fixtures

4. Repair and/or repaving of parking lot and entrance road

5. Replacement of dead man encasements.

No individual costs of these items were discussed.

There was a discussion of an annual audit of association funds. No action was taken.

The current board members were reelected. Joe Mitchell had volunteered to serve on the board. Joe received near unanimous support from single unit owners.