Kevin Johnson, our internet contact and provider, asked me to pass on this note from him.

Here is a quick update on the newly installed wifi service at the Kontiki condos. We have installed units in the courtyard of Phase I, on the canal between Phase I and II, and in front of Phase II. We will probably be installing an additional unit on the water side of the 300 building and will augment and adjust as required.
At Phase I there are networks named Kontiki A and Kontiki B. There are also encrypted versions of these operating (talk to your neighbors or send me a note if you need the code). Kontiki A is probably the best choice for buildings 100, 300, 400, 500 and 700. Some in 500 might do better on B emanating from the canal. Residents of 200 and 600 will want to look for Kontiki B. In rough geographical terms, we have A access points pointing up and down, and B access points pointing side to side.
Residents of Phase II should look for Kontiki 2 Front or Kontiki B. B might provide better strength from the canal side of your condos.
These are not set rules. To get the best connection, disconnect from your current network and look for the Kontiki signal that is strongest. This may have changed recently, as we have modified the set-up.
We have had over 130 unique users over the past month and have moved over 60 GB of data. I hope the service is working well for you and strongly encourage you to contact me if you have any trouble. I can be reached at rockportwifi@gmail.com or 361-238-0550.
Thanks again for the opportunity to provide this service.
Kevin Johnson

Larry Rabe worked this morning to repair a water leak at the corner of 101. It appeared to have been leaking a long time, but was undiscovered since the sand just lets the water drain into the ground without forming a wet spot on top. The electrical wire in the photo was not live.
Fishing off the pier at night continues to be very good. Last Saturday evening Don Gormley(guest in 210) and his son in law, Royal, caught 11 keeper trout with the largest being 18.5 inches long. Tuesday the guests in 606 had a nice stringer of trout off the pier. They also came in Saturday with their limit of reds.
Peeco Pump Company came out yesterday to see what was wrong with out lift station pump. Bad news. The pump is burned out and a new one is in the neighborhood of $4,000. We will have to hope the backup pump will carry us through the holidays until the other one can be replaced.
A representative from the AEP came out to check our security lights yesterday. She said we are paying for 11 lights, but have only four on our property. I have known that for years, but could not get anything done about it. Most of the other lights we are paying for seem to be at Phase II. She will get more information for us after the first of the year.
I found out yesterday that our new provider of television service is Cobridge. They purchased the area franchise from Charter in October. They have not transferred all the records and could not give me much information.
Jim Fisch(705) and I spent four hours on Monday going through records of our property that are on file at the Aransas County Clerk's office. We found some things I did not know about. For one, as of 1998, all expenses for the boat ramp cleaning and repair are to be split with Phase II and Sea Shell Shores. We have always done this all by ourselves. I know we spent about $1,100 to fill the propwash dropoff at the end of the ramp. Some of the records we found appear to even be fraudulent. We will be doing some more work on this.
As of last week the entire board of directors for Phase II resigned. With active attorneys on several sides, I don't know how they will find anyone to take those offices. They intend to call a special meeting of owners to elect a new board. We are fortunate that none of our board members lease their condos through the rental office at Phase II and are not involved in any of their problems. Three board members were leasing there, but all three got out of that pool.
Mike McAdams, who was the contractor for our new roof, came by a couple of weeks ago. He told me that he had given us a five year warranty. That was good news that no one had passed on. We have recently spent several thousand dollars to repair roof leaks and interior damage caused by the leaks. I know of two current roof leaks and Mike said he will come by next week and repair them under warranty. He says one leak looks like someone removed the flashing that he had installed.
Scott continues to monitor the invoices that are received at Johnson and Cate. Last month he found two invoices totaling over $1,300 that were sent to us, but were not our expense. This had been happening over the last few years, but no one was monitoring to be sure if they belonged to us. The result was that we paid for a lot of things that we should not have.

DC Docks and Piers has about wrapped up their work on our breakwater. Here they are placing some of the removed original shoreguard under the building to store it for us. We may be able to use it for some shallow water projects at a later time. These pieces were only ten feet long and did not even reach into the sand bottom. They replaced them with 20 foot pieces like what we thought had been used by the original contractor.

Scott sent his account of his deer hunt this weekend.
I have hunted the same small piece of family owned land in Jackson County for the past 25 years. It is not a large, high fenced, genetically enhanced spread. It is a simple family cattle pasture with a feeder and a stand. I have the property in a voluntary Wildlife Management Program in an attempt to get the doe to buck ratio in proper order. I have been working on this project for the past six years (only taking does and spikes). When I started I only saw the occasional scrawny buck; never more than six points. Each year I have seen progress and finally this year a decent sized buck. The antlers do not have much mass but the length and symmetry are pretty. It weighed 130#'s on the hoof. I plan to do a European skull mount.

It's hard to see what is going on here, but a crew came out this morning to replace a broken floor joist under 107. They entered from under 108 and some of their equipment can be seen here.
In an effort to better control the access to our pier and property, I asked Larry Rabe to put these signs up today. I don't think anyone can honestly tell us anymore that they thought this was a public pier. I think when Pop sees a vehicle parked here without a parking permit and turns on his flashing lights, people will pay attention. We had these signs in the maintenance shed and were doing us no good there.

Sandy(107) had a good idea on how to remodel their upstairs bedroom. They took out the center section of the long closet. Then two small closets were constructed at the far ends of the previous closet. This left the large opening in the center. They then placed the chest with the TV in this area. The bedroom does look a lot larger with this configuration.

MINUTES OF KONTIKI CONDOMINIUM PHASE I OWNER’S MEETING
November 13, 2010

Meeting was called to order by Scott Schomburg at 9:09 a.m.


1. Members in attendance:

Chris and Karra Crowley (101, 708)
Ardath Bruner (102)
Dan and Lisa Madsen (105)
Chuck and Sandy Madsen (107)
Alan and Angela Koemel (108)
Larry Biggers (201)
David and Shandra Pastucha (204)
David Schneider (205)
Linda Fehler and Deb Canuteson (209)
Jim and Deb Canuteson (210)
John Chupik (301)
Gerald and Barbara Weiss (303,403,405)
Dave and Hanne Wright (307)
Randy Schulte (308)
Jim and Jeannine Vater (401)
Dale Denton (402)
Wally and Bunnie Montgomery (406)
Maghsoud Tahmoressi (407)
Betty Brooks (502)
Lamar Weiss (503)
Scott Schomburg (504)
Paul and Christine Westburg (505)
Murlin and Pat Tomlinson (506)
Leo and Nancy Chafin (507) *Left early, gave proxy to Larry Biggers
Keith Sanders (508) *Left early and gave proxy to Betty Brooks
Ray and Debbie Luna (601)
Pat Noack (602) *Left early, gave proxy to Larry Biggers
Dustin Martinez (605)
Robert Strait (701)
Jay Lambrecht (704)
Hans, Olaf and Bridget Granheim and Mimi Duprey (707)
Pete and Joyce Velasquez (710)
Steve and Jane Bernhard (711)
Vic Baltov (712)



Proxy held as follows:
Larry Biggers (103, 104, 106, 202, 206, 304, 408, 603, 703)
Scott Schomburg (302, 306, 606, 705)
Karra Crowley (404, 608, 706)
Randy Schulte (305)
Betty Brooks (508)

54 owners were present, representing 52 units out of 62.
Others present: J.R. Gimler (property manager), Christy Aguirre, Tom Sheridan (attorney to Chris and Karra Crowley, Nick Johnson and Garry Cate (Johnson & Cates office)

2. Opening Statement: Scott Schomburg, Association Secretary, introduced the board members in attendance. Karra Crowley, Jim Canuteson, Rob Mabe and Scott Schomburg. Also in attendance was Nick Johnson and Garry Cate from Johnson & Cates office. Scott thanked them for all their hard work in preparing the information packets sent out to the owners prior to the meeting.

3. Conducted roll call: Using a roll call sheet, attendance was taken to establish who was present, represented by a Proxy or absent. It was decided that a unit under contract has the right to vote. 36 owners were present, representing 53 units out of 62.

Minutes from the November 8, 2009 meeting were unanimously accepted.

4. Insurance Discussion: The HOA insurance policy purchased from Angie Ruddock with Commercial Insurance Services was effective in August and will run for one year. No one from CIS was available to attend the owners meeting. The Board will have Angie attend a future meeting to review the insurance details with the owners. After some discussion of the insurance coverages it was proposed by Angela Koemel (unit 108) that the HOA form a committee headed by Gerald Weiss (unit 303) to research insurance options.
Over the years there has been an issue with the collecting of the insurance payments. At one point, the insurance company was collecting payments from individual owners. Currently they are requiring that the HOA pay the full amount in one lump sum. Since the insurance bill comes out so close to the time it is due, it is difficult to collect all monies due from each owner in time to make the payment by the due date. It was proposed to create an insurance escrow account to hold the $75,000 in order to pay the full amount when it is due. Scott proposed that the HOA pool the funds from the three savings accounts that are not being used into the account. It was proposed and approved by a show of hands to add an additional $108 to the monthly maintenance dues to collect the remaining monies needed. $108 per door will be paid over 7 months (January to July) to collect the funds to pay the insurance premium in a lump sum when insurance is due. Once the payment is made, there will be an insurance premium assessment to collect the prepayment for the insurance due the following year.

5. Energy Conservation: With rising energy costs, Scott has looked into ways to conserve energy and improve the energy efficiency of the condos. He recently found an area in his attic that was not insulated and he installed insulation. This has reduced his heat gain significantly.
The board will be establishing a standard for owners to follow when replacing or upgrading windows or sliding glass doors in order to maintain a consistent appearance and energy efficiency.

6. Pier: Due to the loss of the Phase I pier this past summer, there are two options as to what to do to regain the fishing space there was before. As per the GLO contract, Phase I is required to removed the old pier within 90 days of it being destroyed.
Option 1 was to remove and rebuild the old pier. The estimated cost for removal is $10,700. The estimated cost to rebuild is $200K (cost: $10,700 + budget of $200K).
Option 2 is to remove the old pier and enhance the Phase II pier by adding 5 turnouts and 5 new 400 watt lights. The total cost of the enhancement will be split with Phase II 60/40(cost for Phase I is $10,700 + $8,550).
It was asked that Phase I ask Phase II to assist with the removal of the old Phase I pier. Scott explained that would not be an option since that pier is the Phase I owners’ responsibility.
It was approved to remove the old pier at a cost not to exceed $10,700. It was also approved to enhance the Phase II pier by adding 5 new turn outs. There will be 2 on the north side, 3 on the south side and add 5 new 400 watt lights to the south side of the pier.

7. Breakwater: Due to the design of the breakwater it has not been effective in stopping the shoaling of sand in the channel. Repairs have been made to stop any further unraveling of the whalers and shoreguard and additional bolts have been installed through all of the shoreguard to prevent further damage.
It was proposed that Phase I, Phase II and Sea Shell Shores pay a special assessment to hire an engineering firm that specializes in coastal engineering to assess the condition and propose options to slow the migration of sand into channel due to the current breakwater design problem. The estimated cost for Coast and Harbor Engineering out of Austin, TX is $25,000. With the current design of the breakwater, future dredging that will need to be done in the next 2 years will potentially cost $120K to $150K and will continue to need to be done every 2 to 3 years.
It is proposed that if approved, the Phase I HOA Board members will research all the options to have an engineer perform a study of the breakwater at a cost not to exceed $25,000.
The total cost will be divided between Phase I, Phase II and Sea Shell Shores.
The total assessment for Phase I will be $215.52 per door.

8. Discuss option to pay off Crowley Loans: There is a long to-do list of items and small projects around the property that has been put together over time. The price per item or project is fairly low, but at this time the budget is tight and there isn’t enough money available to complete the items on the list. Currently the HOA is paying $4,108 per month to pay off the loans made by Chris and Karra Crowley from 2006 to 2009. The total balance as of this month is $64,187. With the tight budget the HOA has, paying off the loans in full would free up the funds needed to complete some of the work on the to-do list. In order to pay them off in full there would be an assessment of $1,053 per unit. The option to assess only $500 per door was also mentioned. That would bring the balance down to around $30,000. There would be about $2,000 available monthly, but interest would still be paid on the $30,000.


9. WIFI: The demand for WIFI service in rental properties is rising. More and more guests are asking for it and the signal we currently have is very low. There are two bids for WIFI service. The WIFI fee will be paid monthly by the HOA from the operating budget.

Cobianet
$620 per month
3-5 Mbps
30 day notice to discontinue service

Rockport WIFI
$620 per month
4-6 Mbps
Initial payment of $2480 required at installation to be applied to first 4 months of service. No cancellation fee beyond 1st 4 months of service.

Larry Biggers made a motion to select Rockport WIFI. This was seconded and passed unanimously.

10. TV/Cable: The current cable provider is Charter Cable. That company has sold and we are on a month to month contract at our old rate. With the poor picture quality of the current service, the board is looking into other cable providers available in the area. When a new contract is signed, the board will negotiate to have all new cable lines run through all units to update the cable system. Direct TV is an option, but is very costly for the set up and requires additional equipment to be placed in all units.

11. Irrigation System: The midsection of property is fully irrigated, timed and automated. All of the other areas are turned on manually and the system is in poor condition. The estimated cost to get all other areas fully irrigated, timed and automated is $11,000. There was a concern about renters and guests parking in the grassy area across from the 700 building and along the access road. If a new irrigation system is installed in that area, the installer will place the sprinkler heads 12 inches from the HEB fence line set to spray toward the entrance road.

12. Repainting Skirting and Trim: The skirting and railings were not prepped correctly (primed) when they were painted several years ago. Due to this the paint is peeling off at a very fast rate. Paul Westburg gave some additional information on what could be causing the paint to peel and gave his recommendation of what to do. His recommendation is to leave it for two more years and let it wear off on its own. When the time comes to repaint, a paint that is specifically designed for that purpose will be used and a painter that guarantees his work will be hired. If someone were hired now to pressure wash the railings and skirting, all of the loose paint would be removed, but the paint that is not loose will remain. If remaining paint is painted over, it will continue to peel. It is recommended to let the paint come loose on its own over a couple of years and reassess the situation at that time.
With the work done properly, it should last up to 15 years. With the mildew that is forming around the railings it would be good to pressure wash and remove it in-house. There are also some areas around windows that were not sealed properly which is causing moisture to build inside the walls. If the re-paint is to be done in two years, these areas will need to be repaired before the painting is done. This work can be done over time in-house. It was approved to allow the board to do what it will take to maintain and repair the railings and skirting until it is time to repaint.

13. Front Beach Work:
· The front beach erodes quite a bit every year and more sand has to be brought in to refill it. The sand that is eroding is washing into the channel and adding to the shoaling problem. The proposed solution is to install a concrete spillway that will divert the runoff water into the bay instead of the channel.
· It is recommended that the old tie backs along the front beach bulkhead be encased in concrete which will prevent corrosion of the tie backs. They also serve a second purpose by helping slow the water flow and sand movement as to not have as much running off into the bay.
· The concrete cap that runs along the front beach has also been damaged and a large section of it has broken off. It has been recommended to remove the entire cap and have it reinstalled at an estimated cost of $13,300. This would also include the cost of the new spillway at the south end of the beach.
· There is a large post at the end of the old pier that was installed by Rob. The pier has been destroyed, but the post is still in excellent condition and there are lighting fixtures still attached to it. Included in the price to remove the old pier is the removal and replacement of this post to the corner of the channel to put more lighting on the channel. What is not included is some of the electrical work to carry power to the lights on the post. Wiring can be run from the 300 building.
· Due to the condition of the wiring and current lighting at the cabana at the end of the 300 building, it was proposed to update the wiring and install a new light on the cabana to attract more fish and give more light out over the channel.

14. Real Estate Discussion: Scott has spoken with Richy Ethridge about the HOA purchasing the .3 acre piece of property that Richy owns in front of the pier at the north end of the 100 building. As of now, Scott has not heard anything back about a price for the property. It is appraised at around $50,000. The reason for the HOA purchasing this land is to gain control of all properties that are landlocked within Phase I. The downside to that purchase would be that Phase I would be responsible for maintaining the bulkhead and that area of land which would become costly.

15. Audit Committee Report: Last year at the owners meeting an owner suggested to form an Audit Committee to have the financial records reviewed for the past 3 years. A formal audit has not been done in at least 5 years. Alan Koemel went over the committee’s findings. The committee met with the accountant and was provided with the receipts and records for the past 3 years that were available. Some of the bank statements were provided, but some were not available. There is a list of (21) twenty-one recommendations that has been provided to all owners to implement controls in order to assure proper accounting procedures. Some of these recommendations have already been implemented. Scott has been reviewing all invoices before they are being paid. There are several invoices that are recurring costs every month, including garbage service and cable that do not need to be reviewed.

16. Discuss Option of Formal Audit: A formal financial audit has not been performed for many years. David Schneider presented some information and his recommendation. There are different types of audits. There are financial audits and operational audits. A CPA can be hired to conduct an audit, but his recommendation was to implement more controls from this point on. David Schneider would be happy to work with Johnson and Cate’s office to implement those controls. Larry Biggers and Alan Koemel will join David Schneider on the new Audit Committee.

17. Landscape Committee Report: Angela Koemel gave the Landscape Committee report. Angela and Betty Brooks have been working to replace plants in bare areas of the beds in front of the buildings and have planted Honeysuckle that was provided by J.R. A local nursery had a sale and they were able to use their budgeted funds to purchase 21 Dwarf Oleanders and 3 Queen Palms. A long term goal would be to clean up the area around the dumpster area and possibly transplant some plants from around the property. Some of the plants that are beginning to hang out over the sidewalks can be used in this area. Also they would like to incorporate some of the recycled materials from the old pier in the landscaping around the property.

18. Long Range Planning Items:
· Swimming pool-The swimming pool is undersized for the amount of use during the summer. To remove the pool and install a new one that is larger is an estimated $65,000 to $70,000. This is a long term goal just for discussion to see where we may be going in the future.
· On-site Rental Management office-Another long term recommendation would be to open an on-site rental management office to manage the rentals of the Phase I condos. This was done many years ago. At an owners meeting in 1993 it was approved to assess for an office building to be built on the Phase I property to use as the rental office. Before an office was built, it was decided to move a resident manager into unit 704. This benefited both the owners that rent their units and those that do not. The commission on the rentals would be drastically reduced resulting in a better income for renting owners. Since management fees would be covered by the rental income, non-renters would be spared this expense. All owners would benefit from on-site management from a security and operational oversight presence.
· Electronic Access Gate-Due to the investments in our property and the enhancements of our assets we are experiencing an ever increasing number of interlopers. This will only increase as we make Kontiki a more beautiful place. One way to protect our investment is to install an access gate near the front of the road that comes back to Phase I. Here is a brief description of how it could work: During the summer, keep the gate open from 7:00 am to 11:00 pm. During the winter, keep it closed at all times. Give each owner two remotes (garage door opener). The gate would have a key pad to allow access. Owners could be notified of the gate access code on an annual basis for the coming year. Renters use the code to get it.

19. Treasurer’s Report: (Karra Crowley) 2011 Budget Assumptions-
· Salaries and security: Amounts shown reflect 75% of the actual total. Phase II reimburses Phase I for 25%
· Lawn Service: Annual contract with Tony's Lawn Service is $974.00 per month
· Fixed expenses: Trash, Legal & Professional, Property Manager Expense, WIFI, TV/Cable
· Variable Expenses: Water, Sewer, Electricity
Karra presented the two budget options. One with the Crowley loans paid off in January 2011 which would leave a surplus of $15,000 at the end of the year and allow the $4,000 a month of available funds to be used to employ a part time employee to complete maintenance in house and complete some of the projects on the to-do list. The other option is to continue to make monthly payments on the loans until paid off in 2014 which will leave a surplus of $9,800 at the end of the year.

20. Review Dues/Assessments: With the assessment to pay off the Crowley Loans, it will not be necessary to increase monthly dues.
Scott presented a spreadsheet with each item listed showing all projects that have been proposed to show the total cost with each item to be voted on individually or as a whole.
· Coastal Harbor Engineering-$25,000--$215.52 per door
· Enhancement of Pier-$8,550--$145.16 per door
· Removal of Old Pier-$11,000--$177.41 per door
· Pay Off Crowley Loans-$65,000--$1048.38 per door
· Irrigation-$12,000--$193.54 per door
· Bulkhead-$4,000--$64.51 per door
· Build of Spillway-$10,000--$161.29 per door

A motion was made by Larry Biggers to approve a $2,000 assessment per door to pay for all the items listed. There was a 2nd to the motion made by Ray Luna. The motion was approved by a show of hands with the assessment to be billed mid December 2010 and due January 2011.
The total dues that are each month for the first seven months of 2011 will be $378 per month. This amount includes the Monthly Maintenance dues of $270 and the Insurance assessment of $108.

21. Who to call list: Over time there have been some question as to who to call with maintenance problems within the units and outside the units. Owners have been unsure who to call to have repairs done. A current "who to call" list will be sent out with the next billing.

22. Election of New Board: 3 Positions Available
Owners that expressed interest in those positions were:
Ray Luna Unit 601 for position 1-- Accepted by Acclamation
Jeannine Vater Unit 401 for position 2-- Accepted by Acclamation
Pete Velasquez Unit 710 for position 3--Accepted by Acclamation
Butch Porter Unit 206 for position 4 (1 year remaining for this term)
Alan Koemel was nominated from the floor for position 4 (1 year remaining for this term)
A Ballot election was held for position 4 and Alan Koemel won.

23. Other Business: No new business

Meeting Adjourned at 2:12pm.

This post was submitted by Greg Pejka, owner of condo 121 in Phase II.



I've read on your blog site you post the good, the bad & the ugly. Well here's two uglies. The smaller was caught in Copano Bay last year after running over the school, after having four on at one time, and after the remaining seven rods had NO tackle left we figured we should concentrate on getting one in the boat. It took and hour and we have the picture. The larger drum was caught an hour later five miles from the first in San Antonio Bay on the first cast and took 1.5 hours to land on 12lb test line, we figured it weigh some 65lbs. I've been a winter Texan for the past 6 years now and just enjoy the mild winters and the fishing. I fish almost every day that’s fishable and release all unless someone puts in an order. As you probably know I'm the person the Crowleys, Kontiki Beach Management, and Nancy Jacobs is suing for defamation of character. In my counter suite I have the right to view all personal and business tax returns, all business financials from the Reservation software used in the front office as well as the interface with their accounting software, disclosures of all property transactions Ms Jacobs handled at Phase I & II for the past 3 years, emails, etc. It was quite interesting at the annual meeting while being video taped the Crowleys and Ms Jacobs stated to Scott and the association there was an easement to the Super Pier after I asked Scott to look into it. Apparently, they’re not aware I have several emails from Nancy Jacobs and Richey Ethridge where Nancy Jacobs states a 5 ft easement to the Super Pier and Richy states there isn't one. It was also amusing these three tried to disregard an audit which is state law and if not done board members are in GROSS NEGLIGENCE of their duties and can be held accountable for the cost of all audits not done. I knew this prior to the meeting and even agreed to pay for 2009's audit up to $4,500 just to get things moving. I'm sure I'll get my money back. I've also filed a claim with Stewart Title for the loss of common areas: access to fishing pier, land swap without a 2/3rds vote, and a rental company occupying space all of the association pays taxes and insurance on without an occupation agreement with the HOA. It appears Stewart Title is aware of how many closings were done at Phase I & II with their company issuing the title insurance and aren't happy with their findings. I do want to thank Larry Biggers for sharing his experience with Chris Crowley and yes, it did get forwarded to my lawyer; no wonder these things at Kontiki have never been challenged. It's all falling into place. Tight lines too all and have a Merry Christmas.

Greg Pejka unit 121

Scott and his family came in for a short visit this weekend. They arrived late last evening and had to leave before dark today. Scott did find time to do a lot of things around the campus. Our new employee, Larry Rabe, came in and worked his first four hours this morning and helped Scott build this workbench and hang the pegboard in the maintenance shed. Scott purchased some new tools and supplies to help Larry get started. His first full day will be on Wednesday.
I had picked up the new bulb for the pier light at Lowe's. David Pastucha(204) helped Scott install the bulb in the pier light.
George(guest in 607) asked Scott for a bar to lock the sliding glass doors in 607. They found this piece of conduit and Scott cut it to size to fit in the doorway. George has always spent the winter months in 601 as he alternates between New Braunfels and Rockport, but 601 is no longer in the rental pool.
Later Scott and I were able to take down the Purple Martin houses for the winter and store them inside the maintenance shed until the martins return in the spring.
I had some friends come in from San Antonio to paint my daughter's condo. While they were here they were able to replace the closet floor in 701, shown here, and to help Chuck(107) complete his remodel of his upstairs closet.

Yesterday we had a guywire for one of our street lights break. I called the AEP customer service center and within two hours this worker was out to secure the wire and place this wooden lathe on the spot where another crew needs to reset an anchor.
B&R Electric came by and bypassed one of our old pier photo cells so we could have continuous power for the WiFi in that area. The best part was that they did this for no charge.

Both our board and the Phase II board are struggling with what to do about the possibility of the sale of the land that our pier is attached to. The realtor has let it be known that anyone who purchases this and the other two parcels of land will have full use and access to our new pier. Even if we are given an easement, the new owners of the land can let any number of people use the pier and enter on our property. Even now it presents a security issue. Last Saturday evening Pop questioned a couple of guys who had parked there and were floundering on the HEB beach. One said his name was Brent Sellman and he had done some work for Richy and was told to come out anytime. Pop explained to him that at least he needed a parking permit to enter our property. Last Wednesday afternoon I saw a white SUV parked there and a guy was letting his dog run on the HEB beach. I asked him about a parking permit and he too said he had permission from Richy. Richy had said before the owners' meeting that he would give us a price if we wanted to purchase this for ourselves. So far that has not happened.

Last Friday HEB replaced the painted over signs. I guess they had a few extras based on past experiences. I hope these last a while. They were still OK today.

I didn't intend to take a picture of a headless worker, but it appears that is what I have here. The inspection prior to purchase of 701 found a broken floor joist. These workers replaced it yesterday. They said they were able to use some of our extra pier lumber.
Wednesday evening someone painted over the HEB "no trespassing" sign AGAIN. I had just admired the new sign the day before and mused that it must have been costly. The owner who did this, did us no favors. The sign actually helps when people mistake our entrance road for a public road. When they find it goes only to the condos, they usually leave and the sign discourages them from walking on the HEB beach and staying longer. I understand the beef that HEB has with us is that we allow too many outsiders to come onto their property by driving in on our road. I just hate to see the property of others purposefully destroyed.
Kevin Denton(402) had a rather bad day. His boat has been parked behind mine for some time. He had a spring break just as he was backing it in recently. He drove in from Cuero this morning to meet some guys who were to replace all the springs. While they worked, he and I talked in the parking lot. His guests had just checked out and the girls were beginning to clean the condo. A bee buzzed around first me and then him and got too close to our ears for comfort. A short time later Colette came out of his condo and said she had just been stung by a bee. She asked me what was best for the sting, but I told her Kevin is a doctor I would ask him.
The workers finished his trailer work and he said he was going to take it back to Cuero. He didn't get far. He had just pulled out when he saw in the mirror that his wheel was leaning at an angle. The picture shows the problem. The axle had broken and has to be replaced. Needless to say, the boat is still here.
I came across a really good local website for condos. Take a look at www.bayhousecondos.com. This is something we should aspire to. Anyone looking to rent or to buy would find all they need to know about the complex and its HOA.
I went to Lowe's in Aransas Pass today to get the bulb for the light fixture on the pier. They did not stock that particular bulb. It is a special order item and won't be in until a week from now. It took three employees 45 minutes to place the order for me. The cost for the one bulb is $53. I saw online we could save $4 by driving to Grainger Supply in Corpus to purchase the same bulb, not worth the trip.

Jim Vater(401) and his friend Ross Poth brought in this mess of fish on November 12th, the day before our annual owners' meeting. This is a record for the number of fish I have seen pictured on our board. They fished with guide Ron Coulston.

Minutes of Kontiki Phase I Board of Directors Meeting
November 13, 2010
Meeting was called to order by Scott Schomburg at 5:00pm.
1. Board members in attendance:
· Scott Schomburg
· Ray Luna
· Jeannine Vater
· Alan Koemel
· Pierre (Peter) Velasquez
Others present:
· Larry Biggers
· David Schneider
2. Board members agreed on officer positions to be assigned as follows:
President – Scott Schomburg
Vice President – Ray Luna
Treasurer – Alan Koemel
Secretary – Jeannine Vater
Board Position – Pierre (Peter) Velasquez
3. Scott made a motion to adopt the budget that was presented by Karra Crowley at the owner’s meeting (the budget that showed the payoff of the Crowley loans); Alan seconded. Motion was passed by general consent.
4. The issue of bonding and insuring the board was discussed – Larry will look into this and see if it’s necessary, cost, etc.
5. David Schneider was asked to give a brief overview of best practices of an HOA board. He discussed fiduciary responsibility to homeowners; guidelines regarding solicitation and selection of bids; separation of duties; approval limitations on projects. He also suggested we have a limited scope audit by a CPA in about six months. Alan will check with Johnson & Cate and see if they have a copy of another HOA’s guidelines to see if we can use this info as a basis for ours. David will put together some info in the future.
6. Discussion about establishing a permanent mailing address for the HOA – currently mail is sent to the rental office, which is a separate entity from the HOA. Scott made a motion to establish a permanent address for the HOA; Alan seconded the motion. Larry suggested using an existing unused mailbox – we can label it and notify our vendors and the mail service, and this would be at no charge to the HOA.
7. Discussion about the electric meters for the common areas not being marked, so it’s uncertain which meter goes with which area. Pierre will contact Hilda with AEP to try to straighten this out. Scott will handle the billing of the pier lights and security – these are split with Phase II. David recommended reconciling and documenting these split expenses. Jeannine will draft an agreement between Phase I and Phase II for the pier and security expenses; and an agreement between Phase I, Phase II and Sea Shell Shores for the breakwater repair and maintenance.
8. Security office (Pops) needs a better system for recording his hours – currently turns in scraps of paper to Johnson & Cate. He keeps a detailed incident log for every shift he works. Jeannine will create a spreadsheet for him to use to log hours, which will be filed with Johnson & Cate with the security log attached to the spreadsheet. Scott will initiate the new program with Pops once the spreadsheet is created.
9. Discussion about the removal of the old pier – bid was for $11,000 and after the owner’s meeting, Rob offered to complete the job for $7,000. Need to document the scope of the job and make sure he’ll be doing the same work as the bid. Jeannine made a motion to authorize Scott to negotiate with Rob for removal of the old pier and take action at his discretion; Ray seconded. Motion passed by general consent.
10. Kevin Johnson of Rockport Wifi has already been notified that he was selected to provide the wifi service for Kontiki Phase I. He will begin the installation immediately and the wifi could be up and running by December 1st. Scott made a motion to amend the 2010 budget to pay Kevin Johnson $2480 from the MM account; Jeannine seconded. Motion passed by general consent. Scott will work with Johnson & Cate to cut him the check for $2480 for the prepay of the first 4 months of service.
11. Discussion about the irrigation upgrade that was passed at the owner’s meeting – we need to verify the scope of the project and solicit more bids. Scott and Ray will handle this – ideally to have it up and running by the end of March or early April.
12. Discussion about the repair of the rotten trim around the complex that was passed at the owner’s meeting. Peter made a motion to authorize Scott to clarify the bid (ensure quality paint being used, matching lumber, add missing trim boards) and move forward at his discretion; Ray seconded. Motion passed by general consent.
13. Discussion about moving forward with the spillway and bulkhead repair: Ray will work with JR on this.
14. Discussion about the bay and channel lighting: this will be postponed until after the trim work repair is completed so the budget can be checked.
15. The next board meeting was scheduled for November 27th, 9am at Scott’s unit #504.
16. The meeting was adjourned at 8:00pm.