These are the minutes from the May board meeting that were approved at today's board meeting.

Kontiki Phase I HOA Board Meeting

May 5, 2007

Location: Phase II Clubhouse

Attendees: Richy Ethridge, Scott Schomburg, David Schultz, Pack Killingsworth and Karra Crowley

Scribe: Scott Schomburg

1. Meeting called to order at 9:11am.

2. Meeting minutes from the November 7, 2006 Owner’s Meeting unanimously accepted.

One note to the 11-7-06 meeting minutes – several weeks after the meeting the new pool fence was changed from white vinyl to black aluminum.

3. Property Manager’s Report – Attached

NOVEMBER 2006 – APRIL 2007

Buildings / Decks

Repair/Replacement of the following decks and balconies:

102, 103, 104, 105, 107 upper decks

202, 203, 204, 206, 207, 208 upper decks

Replaced upper rear decks to 700 building

Replaced front decks and stairs to 700 building

Repairs to stucco around new and or repaired decks completed by Coastal Bend Stucco

Replaced screens as needed by Emma Nava

Removed damaged stucco from east end of the 700 building, repaired dryrot, replaced 6 windows and installed new stucco.

Replaced remaining damaged skirting around all buildings with the exception of the backs of the 100, 200, and 300 buildings. This area was replaced 3 years ago.

Tile and vent work on 103, 208, 708 completed by Anthony Downum $1,925.00

Roofing repairs to 504 completed by Anthony Downum, Inc. $1,200.00

Replaced damaged wooden fence around pool area with 4’ tall pool code sentry aero by Del gard in black, expanded area inside fence

Removed wooden deck and poured two concrete pads inside pool fence

Installed 106 new, marine rated exterior lights on the fronts of all buildings

Repairs and adjustments to electrical panel doors on multiple buildings

Replaced 3 damaged lights facing beach behind 100-300 buildings

Cleaned, glued and added support to drain line under 600 building

Replaced damaged boards in lower deck of 107

Breakwater / Docks

Kinsell & Company completed replacement of tiebacks on bulkhead

Inspected and refastened loose deck boards on pier and boardwalk

Removed boat slip platform (behind 600 building) from water, repaired and reinstalled

Added support for light and handrail on pier

Dug holes along seawall to reinstall “warning signs” at staircase, bayside

Grounds / Landscaping /Out Buildings

Installed outdoor shower in swimming pool area

Replaced all broken sprinkler heads throughout property

Replaced signs around property

Ordered 4^th dumpster to be placed near maintenance shed

Replaced 20’section of faulty wire on lights at south end of tennis courts

Dusted ant powder along curb of 700 building, and between 500 and 600 buildings

Replaced leaking/cracked hose bib at 400 building

Cleaned, repaired and touched up paint on bbq near pool

Lift Station

Replaced control panel at lift station, repairs made by Peeco.

Removed and cleaned floats, reinstalled

Replaced capsulation

Ongoing maintenance and minor repairs to lift station

Partial List of Ongoing Projects

Repairs/replacement of decks

Replacement of exterior lights (front complete, rear to be complete by May 20, 2007)

Replacement of bulbs and light fixtures as needed on pier and around property

Installation of additional lighting on pier

Addition of seats with backs on pier

Obtaining bids for real security cameras

Repairs to additional 35’ of pier

Kinsel to provide solution/price for sand erosion

Repairs/replacement of damaged posts, including those under 600 building

Ongoing Maintenance for Phase I

Property is inspected and maintained daily, including but not limited to picking up garbage and debris in parking lot and surrounding areas, emptying garbage cans, watering areas not covered by sprinkler system, inspecting boat ramp.

November 2006:$450.00

December 2006:$450.00

January 2007: $450.00

February 2007: $450.00

March 2007: $450.00

April 2007: $450.00

Beginning May 2007:

The following items have been added to the daily maintenance schedule:

Straighten and properly place pool furniture

Inspect barbecue pits and clean as needed

Clean & straighten furniture under canopies at end of 300 building

Inspect and clean fish cleaning table as needed

Skim pool

4. List of “To Do” items – This is a general ongoing list of items that need to be completed. As items are completed they are removed. As items are discovered they are added.

1. Re-hang hose racks and hang hoses on them – This will be done in flower beads, not on beach front.
2. Fill potholes – some completed several weeks ago. Another 30 bags of asphalt need to be laid.
3. Make new pool rules sign and hang in the pool area – New sign made. Vendor needs to correct spelling error. Sign will be hung by Memorial Weekend.
4. Hang swim ring, safety hook and dip net on the pool fence in a clean fashion – These need to be properly hung prior to Memorial Weekend.
5. Fix the pool gate; the spring hinges do not work – For liability reasons, needs to be repaired by Memorial Weekend.
6. Fix the one pool fence picket that has come loose at the top.
7. Replace the BBQ pit at the 300 bldg cabana and either refurbish or replace the BBQ pit at the pool – Pit at pool has been refurbished. Pit at 300 bldg cabana should be replaced by 5-20-07.
8. Have the energy company replace the bulb in the parking lot light at the west end of the 700 bldg. It has been out for several months.
9. Fix the photo cell or whatever is causing the lights to stay on under the big canopy at the fish cleaning table. – This will be done along with several other electrical problems.
10. Lower the balcony rails on 209 and 210.
11. Add 4th dumpster next to maintenance shed.
12. Clean up the electrical in the pool pump area. - This will be done along with several other electrical problems.
13. Put the pool light on a timer!!! This will be done along with several other electrical problems.
14. Make sure the sprinklers are on a timer and that they are timed for predawn watering.
15. Move the pier light from the channel side to the other side. This will help the fishing. Pack or Larry can show Justin which one needs to be moved. This will be done along with several other electrical problems.
16. Add lighting to center of the landing at the end of the pier. – Long term project to be looked at later.
17. Finish the 300 building decks.
18. Repair finger pier at 400 building side. – Old walkway will be pulled from the channel and finger pier will remain as is until decision to do a full repair on all of them.
19. Finish decks and balconies on 100 and 200 building.
20. Fix the railing on the 709 balcony.
21. Fix the channel light that is out at the cabana at end of 300 building. – This will be done along with several other electrical problems.
22. Keep all skirting gates closed. – This has been added to daily list of items.
23. Re-stripe and renumber the parking lot. – This was tabled.
24. Need to put condo numbers above all the new doors. – This is being done.
25. Two shut off valves at end of 308 are leaking by. Causing two sprinkler heads to slowly leak on the side walk.
26. Fire ants are very prevalent. Need to have our exterminator treat them. – We will broadcast a fire ant treatment on the entire property.
27. Anytime deck/balcony rebuilding is being done, the respective owners need to be notified so they can plan accordingly. – This is being done.
28. Beach lights – They should probably be mounted inside the skirting. – New beach lights are being installed. Scott to send sample to Justin.
29. Beach front skirting is only three years old. It just needs new paint
30. Clear stored wood out from under the all buildings. It is a termite haven. – This will be cleared by deck building crew when they are finished.
31. Justin to check all skirting for access to hand shut off valves to individual units.
32. Justin to look into installing new support pipes for the tall portion of the tennis court fence.

5. Daily Task Items – These items where discussed and added to the Property Managers Report

Walk Property Every Morning

a. Pick up trash in parking lot, grounds and beach.

b. Inspect the boat ramp daily and clean as needed. Split cost 60/40 with Phase II.

c. Straighten/Properly place pool furniture.

d. Check trash cans

e. Empty if they are half full or more.

f. Empty if the trash can stinks or covered in flies.

g. Check BBQ pits and clean out as needed.

h. Clean up/straighten furniture under the canopies at end of 300 building and fish cleaning table.

i. Skim pool every morning.

6. Day Specific Maintenance Items

1. Grounds look very good. Keep doing what we are doing.
2. Level the beach every Monday and Friday morning.
3. Check lights on piers, buildings and parking lots two evenings per week.
4. Skim grass out of the pool after mowing.
5. Check fire extinguishers in all units once per year. HOA will pay for this service except when a missing fire extinguisher needs to be replaced. The unit owner will be billed if an extinguisher needs to be replaced.
6. Replace batteries in smoke alarms in all units twice per year. The HOA will pay for this service.
7. Clean out mitigation area the first of each month in winter and every two weeks in the summer.

7. Roof budget pricing and plan – These prices are being reviewed because eventually (probably within the next 5 years) we will need to put on a new roof.

a. New tile roof (same as existing roof) - $425,000

b. Composition shingle - $225,000

c. Karra has proposed to get a roof certification and look into getting a scope and price for a preventative maintenance program.

8. Board to consider repainting exterior (Scott)

a. Tabled until next board meeting

9. Derrick Construction Update (Richy)

a. Richy to visit with Derrick construction and propose that he dredge the sand from the shallow area where the new breakwater was installed.

10. Discuss possible need to resurface tennis court (Scott)

a. Dave Schultz to check with Barbara and see who did our last court repair. We will get a proposal to repair the court and make a decision from there.

11. Discuss options for updating shrubbery and ground cover

a. Karra to do a test area of new shrubs and ground cover in front of the 100 bldg. the board to look at the white rock in front of the 700 bldg and the river rock in front of the motel unit and then vote on the best style.

12. Discuss installing centralized locking mailboxes with announcement board (Karra)

a. Karra to get a price and plan for location for the mail boxes. This can be presented either via email or wait until the next board meeting.

13. Discuss number of signs in windows around complex

a. Richy and Karra have asked the board’s opinion on rental signs in the windows around the complex. Richy and Karra think they are unattractive and the number is excessive. These signs could be posted in the announcement board of the proposed mailbox center. David Schultz abstained and Scott and Pack were against forcing removal of the signs. The subject was closed.

14. Review SOP, consider adding “open camp fires are not allowed on beach” (Scott)

a. The language was accepted and will be in the SOP’s and the rental documents.

15. Security – Discuss modification of schedule for summer months

a. Unanimous vote to extend Paul’s hours on summer weekends to 12 hour shifts. The shift will start at 5:00pm and go until 5:00am on Friday and Saturday nights.

16. Security Cameras

a. Karra presented a quote from Sandollar Security to install 4 infrared cameras to record activity on the property 24 hours per day. Karra will gather some information from Sandollar on the quality of the recorded image; is the recording good enough to prosecute on.

17. Discuss Phase I golf cart (Richy)

a. The Phase I golf cart is sitting unused. Justin will price the repair of the golf cart and the sell value. Board will decide what to do with it after that. The offer was made to donate it to Phase II but they do not need another tool to have to maintain.

18. Election of new officers

a. It was a unanimous vote to keep the slate of officers the same from the last year.

19. Other new business.

a. Before the property manager makes any decisions regarding aesthetic changes they will brought before the board. This can be done via email or phone. This is to keep the board informed and the appearance consistent throughout the property.

b. New six panel store room doors in place of the original flat doors are necessary due to the need to replace the door jambs. Exterior flat replacement doors with new jambs are difficult to find.

c. No barbeque pits of any type are allowed on decks or balconies. This includes charcoal or gas. This is to mitigate the risk of fire.

d. The contract for the loans from the Crowleys has been created and will be sent by Karra to the board for their review.

e. Three $25,000 loans from the Crowleys have been taken by the HOA as of 5-5-07.

20. Property Manager - Karra stated that Chris’s term as property manager was up and proposed that Justin be hired as the property manager. Pack proposed that we run an ad to check the open market.

21. Set time for next meeting.

a. Saturday September 22, 9:00am at the Phase II Clubhouse

22. Meeting Adjourned

a. 1:18 pm