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					                     December 2007
BOARD OF DIRECTORS                      BOD Meetings 2008
PRESIDENT: Michael Sweere 808 334-1135      January 8th 4pm
HST

VICE PRESIDENT: Karen Nyberg 808 326-5637   April 4th, Semi-
Annual

TREASURER: Mike Watson 818 292-0091         May 13th 4p, HST

SECRETARY: Sherry Helms 925 373-0137        July 8th , 4 pm HST

Director: Richard Thomas 415 456-1616        September 9th

                                                September 12th
Annual

CMI ACCOUNT EXECUTIVE:
                                1
Kelly Delmar: 808 329-6063 kelly@certifiedhawaii.com

******************************************************
Michael Sweere, President: The parking garage is open for parking
and the cameras are up and running officially as of December 18th.
The garage is clean from the rains. The 2nd Friday December
Oceanfront Gathering was delicious and an enthused group of
owners sang carols to all of us on December 23rd. The Site
Manager’s last day was December 14th.

The cameras had barely been functioning 24 hours when a south
beach person was viewed throwing a coconut at the camera. No
damage was done because the cameras are heavy duty. He ran
away but he is a regular and we have a studio quality portrait to use
for identification.

The group of DLNR, the Community Police Task Force, south beach
persons, Kelly Delmar, Mike Watson, Wayne Dzik, Sue Dzik and myself
met on December 20th to assess the previous south beach goals.
The south beach persons who said that they could get rid of the
persons who drink all day and sell drugs in two weeks did not
accomplish their goal. The cameras were proof that they were still
there and that their brown paper sacks contained alcohol. The next
step of escalation was discussed. That includes stopping the shower,
getting the county to provide facilities for the beach, reconsidering
the picnic tables that the DLNR will remove, putting the Alii wall back
together and getting a cross hatch painted at the entrance to the
beach pathway so that beach entrance no parking can be
enforced. The County beach pathway entrance is supposed to be
available for emergency vehicles at all times.

I was very relieved when the project to jet clean sewers and view
with snake cameras the problematic sewers at buildings 3, 4 & 6 was
                                   2
set for 12-27-07. The original plans were canceled in October by the
Site Manager and were re-scheduled with a different plumber
without the camera viewing that was intended to see what
obstructions or deterioration of 20 year old cast iron pipes might be
the problem. When we recently recovered the project with the
original plumber who agreed to charge for one location and include
the other two sewers while he was there with equipment at no extra
charge, it was scheduled for December 27th. There was an
emergency that day and it has been set now for the first week of
January. I am sorry to say that many projects we thought were
getting done did not get accomplished in the last two months. The
south beach shower valves did not get moved inside the KBK
property for manual control, the missing screen for the floor to ceiling
louvers in the laundry room has made the laundry room vulnerable
to insects and rodents for a year since it was replaced without
completing the screen, the sand trays for cigarettes have not been
cut from the trash receptacles and our premises have been smoke
free since November 2006. In the September transition the
Association ended up with no vacuum cleaner. An upright and
back pack vacuum were supposed to be ordered in early
November. I could name a dozen other projects that did not get
done that are getting done now.

The search for a new Site Manager has begun. We are very
encouraged that there are several excellent candidates. The
carpet in #226 was not supervised and protected when the popcorn
was removed so it will have to be replaced. Then the unit will have
to be put back together in-house. The unit is in very good condition
with new toilet, shower head, towel racks, kitchen sink, faucet,
dishwasher, hot water heater, air conditioner, new louver window
coverings, new ceiling fans, popcorn ceiling removed, new paint
throughout, 9 doors sanded and varnished, exterior door painted,
                                   3
cupboards painted and lined, new carpet on the lanai, new
microwave, 1 year old range and refrigerator and 2 year old
washer/dryer that is now vented. There is a dining set and the bed is
in our storage.

The bids on the Seawall had to be re-done by Kelly Delmar. She has
submitted a bid package that includes the approved drawings of
the wall, the specs and the detailed scope of work so that the
bidders can now have the have accurate information with which to
make their bids. Those bids will be offered on or before the January
8th Board Meeting for discussion and voting.

In a recent Executive Meeting the board voted to remove Richard
Thomas as Vice President. He is still on the board and will serve as a
Director. Karen Nyberg is now officially the Association BOD Vice
President.

The Expedia contract that was developed by Castle and signed by
Fred Strom did not include providing food in the lobby. The stated
intent was to provide a concierge service and discounts on activities
for the owners and renters. The promotion of attendance at
Timeshare Presentations was to be included as an occasional event.

On 12/26/07 a letter from the Expedia Director of Business
Development announced their suggestion to eliminate the desk
and staff person, installing a “Concierge Hotline” in the lobby,
continuing to call and solicit all new guests by phone daily, and
leave the Expedia Activity Guides in the rooms. Instead of monthly
rent, KBK is being offered a 5% commission on gross activity sales.

Many activity promoters hold a daily complimentary orientation and
breakfast to newcomers. Pleasant Holidays holds theirs every
morning at the Royal Kona Resort. Expedia holds theirs at the Hard
Rock Café.
                                   4
The Board is exploring the pros and cons of this offer. We are also
interviewing other concierge resources for the lobby. One recent
concern is that Time Shares have become very competitive with
Condo Rentals and Time Share Occupancy is recording 6% higher
than Condo Rental Occupancy.

Garage Retrofit: There will be 15 ceiling attachments in each parking
bay. Each attachment supports a working load of 1700 lbs. That
totals 25,500 lbs. The calculated weight of a full panel 22’ x 40’ is just
under 11,000 lbs. As I said before this is overcompensation but that is
what we wanted and that is what the Engineer is requiring. This is
being done in-house which is cost effective and the inspections are
made exactly the same whether the work is done by a contractor or
in-house. I cannot tell you the exact final cost of the project but it
will be a fraction of the original estimates of $200,000 to $300,000 that
I was given at the outset. The ceiling that fell will have to be
replaced with stucco as fire protection for the building bar joists.
There are condo buildings that have pipes exposed but those
ceilings above the pipes already have coded fire protected
materials.

The shrubs, trees and bushes have been cut back completely on the
southbeach based on Officer Reynold Kahalewai’s (Community Task
Force) recommendation. This removed the growth cover that
provided places to sleep, urinate and hide illicit activities. That
same day several beach complaints were called to the DLNR about
the “unfair” cutting but the DLNR supported the effort. The DLNR
called me the same day and said that there is no drinking of alcohol
allowed on the sand beach which is enforced by the DLNR (the
State) and can now be documented with our cameras.

Mike Watson, Treasurer: It has now been 3 ½ months since I have
taken over as Treasurer. I have been working with Kelly Delmar of
                                    5
CMI to get a good handle on our revenues, collections, expenses
and costs. We have been reviewing all of our vendor contracts to
ensure that we are receiving proper goods and services for our
expenditures, that our accounts are not being used by unauthorized
parties, we have proper insurance coverage and we maximize our
spending by doing work in-house with our own maintenance staff.
Kelly has started to look at each of our contracts with our suppliers
and recommendations will be made for strengthening the contracts
or re-bidding with new vendors. We are also beefing up our general
liability coverage for the property to reflect proper replacement
values. I hope each of you have the right amount of insurance
coverage for your units?

Significant savings have been achieved by doing the garage ceiling
repairs in-house with our maintenance personnel versus using and
outside contractor. For example, cost estimates in using a
contractor exceeded $200,000. But doing the work in-house;
including using a certified engineer to approve the work and
replacing the fallen ceiling will end up costing us between $20,000 to
$30,000. Many kudos are in order to Michael Sweere for
recommending this approach and overseeing this project. He
helped us avoid what would have been a one-time special
assessment!

Special thanks to Karen Nyberg for recommending we use a
standard KBK contract when contracting out for services. I would
also like to thank the owners who have provided suggestions for
investing our funds to ensure we are not at risk in one financial
institution and also to ensure we receive the highest rate of return on
our money. I encourage others to provide suggestions on how we
can save money and better sustain our assets. In closing we should
have our 2006/2007 fiscal year audited financial statement by the
end of January and it will be posted on the KBK web site.
                                   6
Mahalo,    Mike Watson



Committee Leaders:
Property Grills and Enclosures: Bruce Nyberg #212

Property Inspections: Paulette Murray #266

Parking Liaison including Alii Drive: Sue Dzik #202

Landscaping Design Master Plan: Mike Watson#251/409

Monthly Pupu Oceanfront 2nd Friday Gatherings: Barbara Lehman
#414

Webmaster: Rick Benton #208

Pool/Spa/Oceanfront Furniture: Jimmy Murray #266

Newsletter Coordinator: Donna Sweere #411

Property Security including cameras: Wayne Dzik #202

Nature Guide and Docent: Dorothy Patent #220

Mail Communication to non-email Owners: Mary and DeanBoddy
#303

Project Leaders:
*Seawall bids and Sand Bags: Ray Files #351

*Documents and Bylaws: Liane Christianson #204/308

*Lobby Renewal: Karen Nyberg #212

*Wireless Internet: Jim Fagan #327

*Carpet Quality Control Punch List: Sherry Helms and Karen Nyberg
                                   7
*Replacement of Picture at 4th floor elevator: Donna Sweere
Completed

*Mauka Glass Sun Problem: Paulette Murray

*Christmas Caroling: Paulette Murray           Completed

*Collection of Cellphones for Soldiers: Arnie Clarkson #221
Completed

*Air Conditioner for office and Camera Center: Michael Sweere #411

*Research for CD deposits and interest: Brenda Rumball Completed

*Solar for Property: Wayne Dzik #202

*Order Vacuums and Carpet Cleaning Equipment: Michael Sweere
#411

*September 2007 Annual Meeting Minutes: Kelly Delmar, CMI

*Directional signs mauka and makai: Donna Sweere

*Covered garage oceanfront parking barrier: Wayne Dzik

Rick Benton: The web site is alive and well and being kept current. I hope
that you are using it to read Board Minutes and check out your personal
maintenance fee payments, etc. Remember that you will need the 6 digit
number that follows the 574 on your account statements from CMI. Just get on
Ilovekonabalikai.com and follow the directions. If you have difficulty please call
me at 425 244-0404.

The December Newsletter will be posted as soon as I receive it. As soon as the
Board Minutes from 11-13-07 are approved they will be posted. The web site
calendar will remind you about the January 8th Board Meeting with call-in
number and the January 11th Oceanfront Potluck Gathering. Also, please note
that the Semi-Annual Meeting in 2008 is Friday, April 4th and the Annual Meeting
is Friday, September 12th.You can also voice your opinions about anything going
on at KBK on the blog.

                                        8
Rick Benton #208 425 244-0404

KBK Webmaster, Rick_Benton@hotmail.com

Mike Watson: Mike spent four days trimming, cutting and planting based on
the Landscape Design submitted over a year ago. He took hundreds of photos
so that in his absence the gardener and the future Site Manager will be able to
work on the transformation. Mike planted manila palms, crotons and some
ground cover. I heard a rumor that his Indian name is “Runs with Shovel.” In
January he will continue this ongoing mission.

Wayne Dzik: Aloha All,
The Camera Surveillance System is finally finished. The system is working beyond
expectation. We only have a problem with one camera and that is a focusing
problem. The replacement is being expedited from the Mainland for Warranty
replacement. The system has been recording since the 13th of December and
we still have more than half the total capacity available. The unit has t2o
cameras that are capable of a 35x zoom. This gives us the capability of reading
a can of beer and telling the brand from 150 ft.

The computer we set up for a Site Manager is working very well and we have a
new higher speed internet connection that has made a big difference in our
Association (AOAO) Computer Network.

Wayne , KBK #202

Jimmy Murray: The scratched/peeling/discolored planters around the pool
are being gradually replaced at no cost with colorful planters that add bright
accents to the pool area. We have had several comments from visitors who
really appreciate the new and clean oceanfront lounges.

The south pool entry gate and ground entry area needs touchup for rust. Our
plant vendor continues to keep the plants rotated and healthy around the pool
(and the building).

Jimmy Murray #266

Karen Nyberg: The progress in the lobby is still moving along with the goals.
The mailboxes were moved to the north wall and the south wall has been

                                        9
painted a lovely soft yellow/gold color. The Peggy Hopper print has had an
uplift: the dirty pink frame has been changed to teak brown and it is now
hanging inside the front desk on the west wall. We will be having a new
countertop installed in January at the registration desk. I have found some
coordinated stone remnants at a good price through our installer and he is
willing to do the work for us to fabricate and install. The glass windows will
remain clear since the camera has been installed in the office and it needs an
unobstructed view out, so decorative etched glass panels cannot be installed.

The loveseats have not arrived yet. They are coming from the factory in
Indonesia and just haven’t gotten here. We check about every 2 weeks. New
cushions are being made for the chairs out of fade and stain resistant material
(Sunbrella). We didn’t expect the originals to last long, but had hoped for 6
months to a year. With all the stains we decided to go ahead and do it now.
Donna Sweere, seamstress extraordinaire, is doing the work at no cost other
than the material.

It appears that Expedia is not making enough money in the KBK lobby even with
coffee, fruit and pastry, so they want to install a phone that people can use to
get the information where to go for a full breakfast and island orientation. The
board has found other concierge possibilities for our lobby that will put a live
person at a desk who will not be promoting time share tours at other facilities.
This is helpful to Castle so the desk clerks don’t have to spend their time being
tour planners, which is not their job.

Barbara Lehman: When you’re visiting your home at Kona Bali Kai, plan to
attend our Owners’ Pupu, BBQ and Libation Gatherings. On Friday, December
14th, 30 of us enjoyed hamburgers, tons of salads and desserts while we watched
the gorgeous sunset.

Our next gathering is Friday, January 11th at 5 PM. We meet to eat and enjoy
the fabulous sunset on the second Friday of each month. All owners are invited
for these feasts. We each bring a dish, dessert or pupu to share with 6.

Paulette Murray: At the Board Meeting on November 13th Linda Morabito of
CMI made a point that the CMI Annual Property Inspection that is in our
contract with CMI includes only an “annual 2 hour walk through.” Based on that
unexpected information we have proceeded to schedule Randy Stingel in the

                                       10
month of January. I will work with Randy and let you know the results of that
inspection.

Paulette #266

Sherry Helms: Sue Dzik and Karen Nyberg worked and tallied 1 ½ hrs at the
end of November to observe and list over a hundred areas of glue damage
that needs to be corrected by the carpet installer because as the glue gets
older and dirtier it is more apparent. The final $2000 that has been withheld for
this purpose will be paid to someone to paint the glue areas or paid to the
installer if the corrections are made right away. We cannot fix the areas of
carpet that are loose as that will void the 1 year warranty with the installer.

Sue Dzik: Aloha. We had an interesting month while the garage was out of
service. No one could find a good parking spot and it was hectic around here.
The center parking lot had lines formed waiting for someone to leave so they
could park there. It got to the point where no one wanted to move their car
because they wouldn’t be able to find a space when they returned. The
owners and renters in buildings 3,4,5,6 & 7 had trouble finding spaces also,
because we were parking in their spots. Even the surfing community was upset
with us because we were parking along the street in what they consider to be
their spaces, but we had to park somewhere. Thankfully, Nathan, Ray, Tracy,
and Marco worked hard and fast to get the garage partially opened, so we
could park and use the South entrance for entering and leaving. A little over a
week later they had the whole garage open. It’s a lot easier to park now. In
the middle of all this we had a surf meet. The guards worked very hard to keep
the surfers from crossing thru the garage. Thankfully all this is behind us.

The new stickers are here and I’ll start distributing them shortly. Homeowners will
get a red and white sticker that adheres to the lower front windshield on the
driver’s side. One sticker will be issued for each parking stall owned. If you have
more than one car and only one stall you need to make arrangements for the
additional car or you need to store it off the property. There are several parking
stalls available for purchase thru the realty company across the street (Lentz
Realty). All employees, long term renters, contractors, and visitors will receive an
orange hangtag. Ray and I will be giving these out. When we have a new site
manager he/she will decide who will be responsible for the distribution of the
stickers.

                                         11
The front desk will continue to give the white permits to Castle and other
vacation rentals as they check in. All others should contact either Ray or myself
if they need a hangtag for a guest. I will also be making a list of owners and
long term renters who want their parking stall marked with “Reserved” to help
eliminate some of our parking problems. The guards have violation stickers and
are diligent about using them so please help them by displaying your stickers
properly. We’ve already towed 2 vehicles that shouldn’t have been here and
hopefully won’t have to tow any more. If you have any questions please
contact me at 808-331-9741. Once all the new stickers are given out, any old
red ones (or whatever color is being used) will no longer be valid.

Sue Dzik

Songbirds of KBK by Dorothy Patent #220
One of the joys of Kona Bali Kai is watching the lovely songbirds that live in the trees and on the
lawns of our property. Some of these, such as the bright red northern cardinal, come from the
U.S. mainland, just like most of us. Others, however, are immigrants from other countries.




        Perhaps the most common unfamiliar bird you will see is the zebra dove, which is
smaller than the familiar rock dove, commonly called the pigeon. Zebra doves, which came
here from Asia, forage for seeds on the lawn but are also likely to land on the lanai and stroll
around looking for crumbs.




                                                12
        The other bird you’re sure to see is the common mynah. Mynas were brought in from
India in 1865 to eat pesky insects, and they’ve established themselves throughout the Hawaiian
Islands. Mynas live in affectionate pairs but may also gather together into small flocks.




        If you see a bright yellow bird with a rosy glow on its head, you’ve spotted a male saffron
finch. Females are a streakier, less glowing yellow and lack the orange on the head. Native to
South America, these pretty birds are quite common on KBK property.




                                         Like zebra doves, yellow-billed cardinals sometimes
land on the lanai, looking for crumbs. These pretty birds come from South America. They

                                                13
resemble the red-crested cardinal that is common on the other Hawaiian Islands, except they
lack the crest. Young birds had a dull brown head and a dark bill.




       Java sparrows also frequent KBK. These jaunty birds came from Indonesia. Males and
females look alike, with a striking white patch on their cheeks and a bright pink ring around each
eye.

Other birds you may see include the pigeon—there seems to be one male that lives on the KBK
shoreline, perpetually trying to court the smaller zebra doves. The ubiquitous English sparrow
has made its home in Hawaii, too, as it seems to have all over the world. The tiny Japanese
white eye flits quickly from palm to palm, and the occasional familiar house finch makes an
occasional visit, as does the northern mockingbird.

       So, enjoy bird watching while you relax on your lanai or in a lounge chair on the lawn.
The birds of KBK offer endless entertainment.




IMPORTANT TIDBITS
The planter that was stolen over 5 months ago at the 3rd floor elevator has been
replaced.

Mary Boddy is recovering from minor surgery on December 17th. Her address is
416 7th Street, Huntington Beach, CA 92648.

Arnie Clarkson collected the Cellphones for Soldiers that were deposited in the
donation box at the lobby Christmas tree. Those will be mailed the first week of
January.

Brenda Rumball and Rick Benton are here from Washington. Retha McKenna
and Lee Jones are “back home” in Kona for a few months from Washington,
Katrina and Mike Watson were here enjoying their visitors and working. Ray Files
and family are here from California and he is ready to investigate bids on the
                                               14
sea wall. Jack Buchanan was here from Virginia and Sharon and Frank Veltri
were here for a visit. Ron and Theresa Washlohn are here from California and
Jean Mulvihill and Bob have arrived for 6 weeks from Minnesota. Ann and
Johndale Solem were a key part of the caroling success. Kay and JJ Lundrigan
soaked up lots of sun at the pool and returned reluctantly to California. We also
lost Nancy Towle and Russell and Patricia Little who were with us earlier.

John Rogan (J.R.) gets credit for the fact that our Christmas Tree survived the
wind storm. He insisted that we wire the top of the tree to the beam. Bruce
Nyberg gets credit for performing the feat. The Site Manager had the entry
Christmas banners cut down during the storm on the 5th and Michael Sweere
replaced them on the 19th.

32 Southbeach Petitions were submitted to Officer Reynold Kahalewai of the
Community Police Task Force and a duplicate set was given to Reggie Lee of
the DLNR (State Of Hawaii) at the meeting on December 20th. We were hoping
for at least 100 checklist petitions but we were appreciative of the efforts of
many owners to get theirs mailed by the deadline. Officer Kahalewai said he
was very glad to receive them to get a community sense of the problems.

Boston Basil’s Restaurant (326-7836) has expanded to deliver to major hotels,
condos and business parks from 11 am to 2 pm and 5 pm to 9 pm daily. They
have an exciting menu with soups, salads, pupus, full Italian dinners, pizza,
Calzones, sandwiches, beverages and desserts.

Directional signs will be needed in all buildings to guide the deliveries. Those
signs have been ordered and are being made. Some are completed and will
be installed very soon.

Sewers at #3,4,6 will be jetted clean and viewed on January 3rd. This was
scheduled and canceled several times by the Site Manager. This procedure is
long overdue.

The Pupu Pantry lessor has moved out. Many hopeful ideas have been
suggested for the space. Some include a salon/spa; coffee sandwich shop with
room service and an outdoor table with umbrella or another convenience store.
Of course the owner will make the final decision about the space.

COCONUT PALM APPROVAL: KBK received an inspection letter from Malcom R.
Saxby, Arborist and President of Puna Certified Nursery on 12-24-07 that stated:
                                        15
“Per our inspection, Coconut Trees are healthy and pose no threat (unless Act of
God). He also added that “proper maintenance must be scheduled and we
recommend twice per year.” We have a contract for twice yearly trimming with
Puna.

Mike Watson is also supervising proper fertilization of the coconut trees
according to The University of Florida recommendations.

GUESTBOOK COMMENTS OF NOTICED IMPROVEMENTS: “We have
noticed many improvements at the complex since our last visit a year ago.

-We love the new lobby furniture and carpet. Very classy and tastefully
decorated. New hallway carpet substantial improvement. -Looks like it will last
a long time.     The new beach furniture is very much appreciated and
comfortable for us when sunbathing. –Pool area plants make the area much
more inviting and thanks to the maintenance staff for keeping the pool clean.”
Jim and Tisha Marsh – Palm Springs, California.

MOTION TO REPAY THE AOAO FOR NEGLIGENCE OF MASTER KEY:
Based on the motion that was made and passed at the September 2007 Annual
Meeting President Sweere wrote a detailed and factual letter to Castle R&H on
October 5th, 2007. The letter required Castle R&H to respond by October 31st and
pay the cost of re-keying as a result of the negligence. Mr. Thompson of Castle
Resorts R&H responded after the deadline and denied responsibility.

In the research to write the letter President Sweere discovered that the ring of
keys that the intruder/employee dropped were immediately tested in the door
of Unit 221 by the police and none of those keys turned the lock. Contrary to
information imparted to the owners, the Master Key was not recovered after the
break-in.

In a recent Executive Board Meeting the Board voted 4 to 1 to engage the law
firm of Motooka Yamamoto & Revere to proceed with this matter.

CHRISTMAS CAROLING: An enthusiastic group of singers walked the
beachfront and the mauka buildings with flashlights and good will. Song
printouts were provided by Paulette Murray who led the way with blinking
antlers. The bonus features were the spectacular full moon and the hot


                                        16
chocolate (with optional old-fashioned marshmallows), sandwiches and cookies
afterwards.

NEW YEAR’S RESOLUTIONS FROM YOUR BOARD OF DIRECTORS:

Michael Sweere: It would be to find some way to express my deepest and
heartfelt appreciation to Karen, Mike and Sherry, the Committee Leaders, and
the Project Leaders who have turned KBK around against all odds. It was a great
day for us when Kelly became our CMI Account Executive! I also must include
all of you owners who give such great support and ideas. Thank you very, very
much! You just can’t know.

If I may be so bold as to offer a resolution for owners it would be to vote “yes” on
the new Bylaws you will be receiving that will be give us 7 to 9 board members,
percentage voting and more checks and balances so the power balance
between owners and the BOD is more balanced (which 514B promotes) for the
owners.

I will work to find a Site Manager who is as ambitious as the BOD and our
remarkable Leaders.

The south Seawall is now easily within our grasp and our budget. The wood rot
repair must become a 2008 vital priority. Even though we have been informed
that we are substantially underinsured I will do my best to get a 10% reduction in
maintenance fees.

Most of all I will continue to encourage the enthusiasm, problem-solving and
amazing dedication of owners at all levels who constantly offer to help.

Karen Nyberg: Get KBK in shape so that when the next Board is voted in they
don’t have so many issues to deal with. Get to our cabin more often; choose
clients more carefully this next year; get back on a good exercise program; drink
more water. Go to church more often. See the grandkids more. See my Mom
more often. Pay more attention to other people than myself.

Richard Thomas: No response to request.

Sherry Helms: My plans are to do whatever I can to help improve the look
and operations of our beautiful home away from home.


                                        17
Mike Watson: Here are my 2008 KBK New Year’s Resolutions:
-Visit Kona every 6-8 weeks. Meet with owners, CMI property manager,
suppliers/contractors and be actively involved in projects/activities that will
better the facility.

-Do my best as Treasurer to ensure our funds are spent in a judicious manner and
that our expenditures bring quality products and services. See that our
Maintenance fees stabilize and that we properly budget for the future. Collect
on bad debts and late payments.

-Ensure that the AOAO hires an effective working Site Manager who will take on
responsibility, be accountable and is not afraid to work. He/she must also get
along with owners, employees, community members and guests.

-The seawall gets rebuilt on the south end of the property, the garage ceiling
repairs are completed, earthquake damages are repaired and the wood rot
repairs get done correctly. We also get the north end beach front grills done
correctly with proper gas line and tile counter top.

-Continue to request that ALL board members be actively involved and take
ownership in projects and activities at KBK.

-Not give up on seeking a 7 person AOAO Board of Directors. More board
members are needed to ensure the successful future of KBK.

-Encourage owners to volunteer and participate on committees and projects.
The more people we have involved, the faster positive changes can occur.

-Ensure our landscape plans are executed with the Maintenance team and
Marco, our new full time gardener.

-Work with the community, DLNR, Police and Public Works to ensure greater
safety, security, cleanliness and improvements at the south beach.

-We effectively utilize our new security Camera System to improve
security/safety and while minimizing our security costs.

-Participate in at least four owner oceanfront gatherings.

-Sponsor two owner volunteer clean-up days on the property.

                                         18
-On a personal note: renovate our kitchen in 409. Plus have some fun by playing
more golf, doing more running, biking and completing the 2.4 mile swim course
in Kailua Bay.

Mike Watson




And my New Year’s Resolution is to keep the Newsletters shorter in
2008. Each month I think that there won’t be much to put in the next
Newsletter and, alas, all sorts of things get done and unexpected
and important events happen.

Warm regards and Happy New Year,

Donna




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