DRAFT Kaanapali Royal Association of Apartment Owners Board of Directors’ Meeting Minutes January 10, 2020

DRAFT
Kaanapali Royal Association of Apartment Owners Board of Directors’ Meeting Minutes
January 10, 2020
Board Members Present: Rick Beck, President; Rod Conklin, Vice President; Jim
Basolo, Secretary; Doug Duckworth, Treasurer; and Directors Bob Pure, Glenn Bodinson, and Michael Wigglesworth
Owners Present: On file in the office of Hawaiiana Management Company Other
Attendees: Jacob Marsh, General Manager; April Lum, Management
Executive, Hawaiiana Management Company; and Louise Rockett, Recording Secretary

I. DECLARATION OF QUORUM

There was a roll call, and a quorum was declared with seven Directors present.

II. CALL TO ORDER

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

III. INTRODUCTION OF NEW GENERAL MANAGER

The President introduced the new General Manager, Jacob Marsh, noting his experience, education, and qualifications.          Mr. Marsh has an Architectural Technological Degree, Facilities Engineering Degree and a minor in Hotel Management.              Mr. Marsh previously worked for the Hyatt Regency.

IV. ANNOUNCEMENT

The President thanked the owners for their attendance and urged the owners to attend the Annual Meeting tomorrow.                It is important, he stressed, to make a quorum at the Annual Meeting, so that the Annual Meeting business can be conducted.

The President reminded owners of the Annual Dinner tonight.

V. PROOF OF NOTICE

It was certified that Notice of Meeting was posted on the property on January 3, 2020, in accordance with Hawaii State Law.

VI INTRODUCTIONS

Introductions were made at this time.

VII. MINUTES

MOTION: To approve the Minutes of the October 25, 2019, Board of Directors’ Meeting.

Kaanapali Royal Association of Apartment Owners Board of Directors’ Meeting Minutes
January 10, 2020 – Page 2

Basolo / Bodinson Unanimous Approval

VIII PRESIDENT’S REPORT
President Beck highlighted some of the projects and activities this past year, including the refurbishment of pool restroom facilities, with the assistance of Marion Rozell.

This past fiscal year the budget was overrun slightly. The President noted a number of projects were accomplished and a lot of equipment was purchased. There was “a lot of strife” associated with the Air Conditioning equipment. The President said the owners would be brought up-to-date about that matter at the Annual Meeting tomorrow.

Overall it was a good year, the President said. The property is looking much better, with more color added to the landscaping.

IX. TREASURER’S REPORT

Treasurer Duckworth reported that Kaanapali Royal changed management companies to Hawaiiana Management, with Management Executive April Lum, at the lead.

The finances of the Association are being managed by the Cash Accounting Method.

The budget generally operated on target. Revenue was down $14,555. The Treasurer attributed this to two units not paying their dues, and this has been resolved.

With regard to expenses, electricity has been an area of concern. The situation is being monitored, and the next MECO bill should be telling. A lot of water is being used. The AC system is being flushed in an attempt to keep the chloride levels down, using 1.2M gallons a year. The Association has engaged the services of a new trash company, Aloha Waste. The savings are significant. Other variances, both over and under target were noted and explained, including Building and Maintenance
and Landscaping,

The Reserves were reviewed. The amount spent was $292,681. Dues from owners were$1,185. Of that $1,185, $156 per month per unit is contributed to the Reserves. A reserve funding strategy was noted. In the current fiscal year, contributions to the Reserves have increased $10 per month to $166 per month.

The summary of the Association cash position was noted: In the Operating Account,$93,000; Reserve Account (CDs), $698,000; for a total $793,000 in cash.

Reserve expenditures scheduled in the current fiscal year include a new Fire Alarm System, at a cost of around $105,000.

With one less employee on the payroll, staffing was discussed. Orlando retired in December 2019.

Treasurer Duckworth answered questions.

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January 10, 2020 – Page 3

X. MANAGING AGENT’S REPORT

Ms. Lum submitted a written report. It is a follow up on the status of tasks assigned to her at the last Board of Directors’ Meeting in October 2019.

XI. COMMITTEE REPORTS

A. Communications

Director Pure noted a Communications Report will be given at the Annual Owners Meeting tomorrow. Additionally, Director Pure is available to answer questions about access instructions to the Website.

The President noted the Website has useful information.

B. Rental

Director Bodinson stressed the importance of rental owners displaying their TAT and GET numbers of their individual websites. Further information will be provided to the owners tomorrow.

C. Energy & Technology

Director Conklin updated the owners on the 40-year-old outdated CFL mushroom lights. The committee is investigating replacing the rusted equipment; however, it is exploring options before a decision is made. Further review will be provided tomorrow.

D. House Rules

The President noted there have been no changes to the House Rules.

E. Professional Services

The President explained the purpose of the Professional Services Committee. If there are any legal conflicts involving the Association, this committee is consulted along with the Association Attorney.

There is currently one owner with questions to the Board, and the committee is seeking to resolve.

F. Architectural Review

Director Wrigglesworth reported there have been a number of remodels this past year. He thanked the owners for completing the Architectural Review applications. Owners who plan to make changes should complete the applications. It helps the General Manager to know activities on-site, including the crews and contractors working on site.

There were questions and complaints about the rules regarding contractor parking in the parking lots and the proper removal of construction waste. Mr. Marsh was asked to monitor.

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January 10, 2020 – Page 4

As an aside, covered parking was discussed. There was a suggestion to relocate the stored vehicles in the back lot to free up more spaces. Other options were discussed.

Director Wrigglesworth was tasked with monitoring the situation.

Additionally, there was a request for neighbors to be notified of construction activity. Construction work hours were noted as      9 a.m. to 4:30 p.m. on weekdays only.

G. Building & Grounds

Director Conklin provided a brief update. Additional information will be provided at the Annual Meeting tomorrow.

The pool was a major project, including the replacement of tiles at the bottom of the pool and the installation of new non-slip tiles on the pool stairs. New solar controls were installed as well. Director Conklin explained how the controls provided more temperature regulation.

The new shower tower is an upgrade of the 40-year-old shower by the pool.

XII. UNFINISHED BUSINESS

A. Air Conditioning Chiller Status

This matter will be addressed in detail at the Annual Meeting tomorrow. The President reported both of the systems are up and running. However, issues with the Heat Exchanger continue. There are currently two options to fix, and a third alternative is under consideration. Without all the information available from the Association contractor, a decision has not been made.

In October, the President said the Board discussed purchasing an Auxiliary Power Unit. It is another AC system option at a cost of about $50,000.

An automated system is also being considered so that Mr. Marsh is notified whenever there are mechanical problems. Mr.Marsh noted that there will be daily checks until all issues are addressed.

Redundancy is critical.

B. Fire Alarm System

The fire system is being upgraded because parts to maintain the existing system cannot be obtained anymore. There will be a panel in the Association Office so that the system can be monitored by Mr. Marsh.

The importance of having an Emergency Evacuation Plan was noted.

C. Storage Lockers

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January 10, 2020 – Page 5

The President explained that at the bottom of the stairs on the first floor there is closet space. The size and contents are not specified and are different. For the most part, the lockers are empty.

The Board discussed at its October 2019 meeting to remove the contents and rekey the space, renting to third-floor owners, because third-floor units are devoid of storage. The pros and cons were discussed.

XIII. NEW BUSINESS

A. Personnel Changes

Orlando went on vacation in December, following which he gave notice and retired.

Jacob Marsh is the new General Manager. The President explained why the previous General Manager was replaced.

B. High-Risk Component Study

The Board discussed whether or not more parts should be inventoried on the property, including hot water heaters, a heat exchanger and AC unit motors. The President updated the owners on the status of stocking the parts. The Board is tasking Mr. Marsh to provide a recommendation in this regard.

C. 2020 Improvement Plans

With the costly AC repairs upcoming, items on the 2020 list of improvements are questionable, including the Mushroom Lights.

D. Waste Water Pipe Replacement Policy

The President suggested that the Association should replace the Waste Water Pipes. When owners submit remodel applications, the Association should replace the 3” drain pipes in the walls. Being proactive is beneficial to all. A policy should be delineated on what the Association will and will not replace.

XIV. NEXT MEETING DATE

The next meeting date will be announced at another time.

XV. ADJOURNMENT

The meeting adjourned at 10:02 a.m. to an Owners’ Forum.

Louise Rockett
Louise Rockett

Kaanapali Royal Association of Apartment Owners Board of Directors’ Meeting Minutes                              January 10, 2020 – Page 6

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