2015 Annual Meeting Minutes

Kaanapali Royal Association of Apartment Owners
Annual Meeting Minutes
January 10, 2015

Board Members Present: Richard Beck, President; Tom Perkins, Vice President; Jim Basolo, Treasurer; and Directors Ed Kelly, Rod Conklin and Rick Little

Other Attendees: David Ferguson, Pat Bauwens and Monica Aarhus, Management Consultants of Hawaii; Charles D. Philips, General Manager; and Carol Simmons, Recording Secretary

I. DECLARATION OF QUORUM

A quorum was declared with total of 30.4768% present in person and 29.5244% represented by proxy for a total of 60.0012% present. With 4.7627% registered as quorum only, there was a total 55.5392% voting quorum present.

II. PROOF OF NOTICE

It was certified Notice was sent to all owners of record in accordance with the Association governing documents on December 10, 2014, and it was posted on property in compliance with Hawaii State Law.

III. CALL TO ORDER

President Rick Beck called the Kaanapali Royal Association of Apartment Owners Annual Meeting to order at 9:03 a.m. The meeting was held at the Waiola Church, Lahaina, Maui, Hawaii.

IV. INTRODUCTIONS

The President welcomed the owners. Introductions were made at this time

V. MEETING RULES OF CONDUCT

The President announced that meeting business would be conducted in accordance with Roberts Rules of Order, Newly Revised. Customary rules of courtesy were briefly reviewed.

VI. APPROVAL OF MINUTES

The January 11, 2014, Annual Meeting Minutes was distributed to owners at registration. The President asked for additions or corrections. With no corrections or objections voiced, the President declared the Minutes of the 2014 Annual Meeting approved as prepared.

VII. PRESIDENT’S MESSAGE

President Beck reported that the past year was “really good”, with 35 of the 70 lanai enclosures permitted by the County. This long-standing issues is on the way to being resolved. Currently, there is a clear path to approval from the County. Owners with questions and seeking approval can contact the President for direction.

The Budget was overrun in 2014. The President attributed the overage to electric rate increases, plumbing issues and insurance premium increases.

The President thanked Management and staff for their good work.

VIII. ELECTION OF DIRECTORS

There are four positions open on the Board, as follows: Three for three-year terms and one for a one-year term. The terms of Directors Beck, Perkins and Basolo are expiring. All three have indicated an interest in seeking to serve another term and their names are on the ballot. Additionally the following owners have indicated an interest in seeking to serve on the Board, and their names have been placed on the ballot, including: Glen Bodinson (K302); Doug Duckworth (K303 and Bob Pure (C303). The President called for further nominations from the floor.

MOTION: To close nominations.

A Motion was duly made, seconded and unanimously approved.

The candidates introduced themselves and answered questions the owners had.

The President appointed two owners to serve as inspectors of the election and to certify all ballot counts, including Annette Kelly (G102) and Brian Mallard (E301). Balloting procedures were explained.

The meeting recessed at 9:50 a.m. to collect and count the votes. Meeting business resumed at 10:06 a.m.

IX. FINANCIAL REPORT

Treasurer Jim Basolo updated the owners on the financial status of the Association as of November 30, 2014. The income from operations fell short of expenditures by a little over $87,000. There was an Operating Fund balance at year end of just over $5,000.

Owners received a copy of the Annual Audit Report for the year-ended November 30, 2014, at registration. It was conducted by Shaun Thayer, and a clean opinion was rendered.

The Treasurer recognized Mr. Ferguson and staff for “keeping the Association on track”.

X. COMMITTEE REPORTS

A. Communications

Vivian Hyman was the chairperson of this committee the past five years. As she sold her unit recently, she was no longer eligible to serve. The Web Master has resigned his position. Another person is under consideration. The new Web Master will refresh the site with modern design tools. The goals is to design a site that can be updated by Association staff.

The President would like to see the Coconut Wireless come back on line. The newsletter was published two times a year. Email blasts will also keep the owners up-to-date.

B. Rental Advisory

Ed Kelly reported the number of rental properties has increased. There is a Rental by Owner Awareness Association on Maui. This group advocates for owners to be able to rent their own units. Kaanapali Royal rental owners can communicate with each other through Director Kelly and his wife, and the information will be shared with the other rental owners.

C. Energy and Technology

Energy costs this past year were about $270,000. In an effort to reduce costs, the committee has explored energy conservation measures. A solar proposal was solicited, including the installation of a Photovoltaic plant on property. Owners would need to approve the system by a 67% vote of approval. To-date about 50% of the owners have approved, 20% have voted no and 20% have not returned the written consent ballot. The Board yesterday decided to no longer move forward on the PV system; hence, solar efforts have come to a halt. The committee, however, is investigating other measures to conserve on energy and save money.

D. Building and Grounds

The Parking Lot work is a major upcoming project. Other projects, activities, suggestions and comments include: 1) Golf net replacement; 2) Owners need to give keys of stored cars to management; 3) Owners need to contact management / office staff when lights bulbs need to be replaced; 4) Change hot water heaters on a five-year basis; 5) Change of air conditioning filters two times annually; 6) There are two approved entry door locks; and 7) Servicing of door locks available by Island Lock and Key on a bulk basis, with sign up in the office.

Owners had questions that were answered and discussed about the lighting, electric meters, consumption, tennis court resurfacing and usage, multi-sport court usage options, utility bill breakdown, pool temperature and chiller plant status.

E. Architectural Review

When owners plan interior work and remodels, a form should be completed prior to the commencement of construction. Forms are available online and in the office.

F. Legal

The President updated the owners on two pending legal issues: 1) Wrongful termination; and 2) Handicap ramp issue.

Mr. Ferguson noted that Directors’ & Officers Insurance Coverage is increasing. He answered questions about insurance coverage and Reserve Funding requirements regarding funding levels.

XI. ANNUAL RESOLUTIONS

MOTION: That any excess of membership income over membership expenses for fiscal year ending November 30, 2015, shall be applied against the subsequent tax year member assessments.

A Motion was made, seconded and approved by unanimous voice consent.

MOTION: To give the Board the authority to approve the Minutes of this Annual Meeting as to form and content.

Rick Beck / Deborah Conklin Unanimous Approval

MOTION: To authorize the Board of Directors to select the Auditor to perform the fiscal year end, November 30, 2015, audit, unannounced verification of cash and prepare the tax returns for the Association.

Rick Beck / Rod Conklin Unanimous Approval

XIII. ELECTION RESULTS

Rick Beck, Doug Duckworth and Bob Pure were elected to serve three-year terms. Tom Perkins was elected to serve a one-year term. Jim Basolo was recognized for his service on the Board.

XIV. NEXT ANNUAL MEETING DATE

The next Annual Meeting will be held on January 9, 2016.

XV. OTHER BUSINESS

A Pupu Party is scheduled this evening at the pool commencing at 5 p.m.

The new owners introduced themselves.

There will be an Organizational meeting of the Board following adjournment of Annual Meeting business.

XVI. ADJOURNMENT

The meeting was duly adjourned at 11:07 a.m.

Respectfully submitted,
Louise Rockett
Transcriptionist