The following note has been sent to Karra. In the post of July 3, I noted that Richy requested that I send all questions to Karra. I will post her response when it is received.

Hello Karra,

Richy asked that I route any questions or concerns that I have about our operations to you.

The most pressing issue at the moment would be our umbrella insurance. Normally our board meets in August to go over the new coverages and proposals. Noting that the next scheduled board meeting is in September, I'm wondering what the board is doing to renew our coverage. Over current policy ends next week and a hurricane is lurking. As you know, at the last board meeting I asked if the board planned to seek additional bids besides HRH, but the board showed no interest.

I have concerns about our budget oversight. As you know the first two months of the year Barbara used last year's budget because no one had given her a copy of the newly adopted budget. I gave her my copy in March and she has been using that ever since.

For the first half of the year we have had vending machine commissions of $79.20. The problem is, we don't have a vending machine! I would guess this is Phase II money. The adopted budget for pest control was $160 monthly. Last month we were charged $516.41 and we are $1,234.34 over for the year. I asked Barbara to let me see the contract so that I see what the problem was but she does not have a copy. Do you know what the problem is? Last month we were $5,160 over budget for repair and maintenance for the grounds. What was the cause of this? Paul tells me that you and Richy have asked him to patrol the areas of Phase II as part of his security duty. Is there any cost sharing involved? I tried to find out last year what various bank charges were for and never could. This year we have incurred $100 in bank charges so far. What are they charging us for? In May, Scott asked me to talk to Robert Shoen about repairs to our pier that could be done while Robert was on site working for Richy. His foreman said that Justin had given them the OK to do several days of needed work on our pier at about $600 per day. Later he said that Richy saw the work going on and told them to quit after only one day. The bills for May show that we paid over $3000 for pier repairs. What did we have done besides the one day's work that I was there for? I share your concern for an efficient and effective administration of our Kontiki affairs. I know that you have so many other things going on and I would like to help in any way that I can, but I find it difficult to access information that would allow me to do anything that would be of mutual benefit.

Lastly, I am interested in knowing the outcome of the questions concerning our security lights. I was there on May 21^st when the CPL representative came by to change the security light at the end of the 700 building. He said he counted eleven security lights, but only four appeared to be on our property. He contacted one of his supervisors who talked to Pack, who was also present, on the phone. She was to visit the site and determine exactly which lights we should be paying for. I never heard any more about it and called her myself later in the summer. She said she had been instructed by Richy to talk to no one, other than himself, concerning the issue. Do you know what was determined?

I was pleased to see the entrance road repaired last Tuesday. It's good to see Rob and Robbie repairing decks and front stairs again. Justin is doing well on the items he has the responsibility for. I'm all for getting things fixed up. After all my years dealing with school budgets I've developed a keen interest in seeing that accurate and open records reflect an efficient budgetary cycle with rigorous board oversight. I know that we are in uncharted waters without a manager or employees of the HOA. I would hope that the board will evaluate the efficacy of this system and fine tune it where necessary to bring our property to the standards of appearance and operations that we can all be proud of.

Thank you for your time and I await your response.

Larry