Minutes BOD 05-05-2017

DRAFT
Kaanapali Royal Association of Apartment Owners
Board of Directors’ Meeting Minutes
May 5, 2017

Board Members Present: Rick Little, President; Bob Pure, Vice President; Jim Basolo,
(In Person) Secretary; and Directors Matt Kinney and Rod Conklin,

Board Members Present: Richard Beck, Director
(By Telephone)

Board Member Absent: Doug Duckworth, Treasurer

Owners Present: Blake and Jill Wells, B102; Geoffrey Gray, M202; Rick Anderson, D202; Diane Pure, C303; Stephie Sill, C302; and Q102

Other Attendees: Charles D. Philips, General Manager/Resident Manager; and (In Person) Louise Rockett, Recording Secretary

Other Attendee: Dave Ferguson, Management Consultants of Hawaii
(By Telephone)

I. DECLARATION OF QUORUM

There was a roll call, and a quorum was declared with six Directors present either in person or by telephone.

II. CALL TO ORDER

President Rick Little called the Kaanapali Royal Association of Apartment Owners’ Board of Directors’ Meeting to order at 9 a.m. The meeting was held onsite, Kaanapali, Maui, Hawaii.

III. PROOF OF NOTICE

It was certified that Notice of Meeting was posted on property on April 28, 2017.

IV. APPROVAL OF MINUTES

There were corrections noted to the Minutes of January 13, 2017, Board of Directors’ Meeting and the January 14, 2017, Annual Owners Meeting. Comments and questions were voiced as well.

MOTION: To approve the January 13, 2017, Board of Directors Meeting Minutes, and the January 14, 2017, Annual Owners Meeting Minutes as corrected.

Basolo / Kinney Unanimous Approval

V. PRESIDENT’S REPORT

The President reported that most of the major projects were completed the past few years; it has been quiet thus far in 2017.

VI. SITE MANAGER’S REPORT

Mr. Philips submitted a written two-page report dated May 5, 2017.

He reported a 40-year-old trellis fell apart on the A Building Walkway. It was replaced in house. Other trellises needing replacement in the next two to three years include the structures at J and K Buildings. All the other trellises have been inspected. This is an ongoing in-house maintenance issue.

VII. MANAGING AGENT’S REPORT

The 2017 Legislative Session adjourned on May 4, 4017. Mr. Ferguson reported that there were no major bills passed impacting condominium Associations.

VIII. COMMITTEE REPORTS

A. Communications

Director Pure updated the Board and owners on community issues. The drafting of a new County Budget is in process, and an “across the board” 7% increase in the property tax rate is anticipated. The construction of the West Maui hospital is progressing, with the opening scheduled in the fourth quarter 2018. Kaiser is slated to take over Maui Memorial Medical Center on July 1, 2017. The Hawaiian Airlines turbo prop aircraft is now flying out of Kapalua. The ERS (Employee Retirement Service) is proposing a development to “revitalize” the Kaanapali Golf Course.

B. Rental Advisory

Director Beck reported rentals are strong, with planned parking revenue $5,645 over budget thus far year-to-date.

C. Energy and Technology Communications

Director Conklin reported that electric-wise the Association is ahead of budget; however, the hot months are yet to come. LED lighting is available to generate savings on electric bills. There are no technological changes when the North Plant is upgraded; however, the blowers and the blower motors will be replaced. The chill plants will not be changed at this time.

D. House Rules

Director Kinney noted that there have been no major violations to the Association rules and regulations reported by management that have not been addressed. Violations generally are associated with parking, pool noise and pets.

E. Building and Grounds

A three-year old eyesore on the golf course has finally been removed.

The cooling tower blowers will be replaced in the October-November time frame. The lid will be removed as well. Mr. Philips described how the two-week project would proceed.

Other projects were noted including screen door roller replacement and redo of the plastic dryer vents.

In February, the Board approved the full length sliding glass door replacements on the lanais, with Rainbow Glass replacing the door. This is an owner financial responsibility to replace; however, the more owners that sign up, the lower the cost. Design approval is required from the Architectural Committee before proceeding.

F. Finance

Director Basolo reported that the budget is $32,000 plus ahead of target for the first four months. Revenues are up by $9,000, mostly due to the parking fee revenue. Expenses are under budget by $23,000. The surplus for the year is budgeted at $10,000. The Reserves are growing; overall the Association is in sound financial health.

G. Professional Services

The Association is consulting one attorney with regard to collections on one unit. Further discussion was deferred to Executive Session. This is the only item associated with professional services.

H. Architectural Review

There was discussion about the condition of the dry vents. It is important to inspect to make sure that the vents are clear to avoid a potential fire hazard and save on energy costs.

IX. OWNERS’ FORUM

The owner of Q102 had questions about the Parking Fees and Vehicle Storage Fees. He presented and read a letter from his attorney, dated May 4, 2017, about the $150 annual vehicle storage fee on top of the parking fee. It was noted that there 125 parking stalls and 105 units. This has been a long-standing issue. There is a limited amount of parking, and the Association has to address this matter in the best way possible. It was agreed to revisit this issue in October 2017 during the next Budget cycle.

X. NEXT MEETING DATE

The next Board of Directors’ Meeting will be held on Friday, October 13, 2017.

XI. ADJOURNMENT TO EXECUTIVE SESSION

The Meeting adjourned at 9:50 a.m.

Respectfully submitted,                                                                                                                                                               Louise Rockett
Louise Rockett
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