2015 Board Meeting Minutes – May 8, 2015

Draft

Kaanapali Royal Association of Apartment Owners

Board of Directors’ Meeting Minutes May 8, 2015

Board Members Present: Richard Beck, Bob Pure, Doug Duckworth, Tom Perkins, Rod Conklin and Rick Little(In Person)

Board Members Present:   Ed Kelly                                                                                                            (By Telephone)

Other Attendees:    Dave Ferguson, Management Consultants of Hawaii; Charles D. Philips, Site Manager

 

I.               DECLARATION OF QUORUM There was a roll call, and a quorum was declared with seven Directors present either in person or by telephone.

II.              CALL TO ORDER

President Richard Beck called the Kaanapali Royal Association of Apartment Owners’ Board of Directors’ Meeting to order. The meeting was held onsite, Kaanapali, Maui, Hawaii.

III.             APPROVAL OF MINUTES

There were corrections noted to the minutes of January 9, 2015, Board of Directors’ Meeting and the 2015 Organizational Board of Directors’ Meeting.

MOTION:    To approve the following Meeting Minutes: January 9, 2015, Board of Directors’ Meeting as corrected; January 10, 2015, Organizational Board of Directors’ Meeting as corrected; and the January 10, 2015, Annual Owners Meeting as to form and content.

Pure/Little                    Unanimous Approval

IV.             OWNERS’ FORUM

There was an Owners’ Forum, and the following topics were discussed: 1) Early morning mowing on the golf course; 2) Covered car parking in the lower parking lot, including options to resolve; 3) Tree removal/replacement on golf course; 4) Golf balls on the fly; 5) Arborists recommendations; 6) Reminder to rental owners to post information in units of the potential of getting hit by a golf ball on the fly to avoid liability; 7) Suggestion to plant more groundcover; 8) Suggestion for more flowers; 9) Cool temperature of pool in the winter time; 10) Cats and mice on property; 11) Rental advertisements in VRBO, posting occupancy availability of nine persons in a unit; 12) Association governing documents on occupancy rules and regulations cited; 13) Call Manager when vermin observed in units; 14) Pool light bulb replacement; and 15) Exterior lighting failure call Manager.

V.              PRESIDENT’S REPORT

The President reported the Budget is operating on track thus far this year. Progress for the Association has been made on long-standing legal issues.

VI.             SITE MANAGER’S REPORT

Mr. Philips submitted a written report. He answered questions and fielded comments about the following matters: 1) Tree trimming and removal solicitation of bids and schedule of removal; and 2) Damage of roofing tiles when branch fell on tiles.

Mr. Phillips explained how his report is formatted, with: 1) Routine maintenance; 2) Annual inspections and testing by authorities; 3) Updates on projects by outside contractors and in-house labor; 4) Tree trimming and removal; 5) Cooling tower issues; 6) Front Desk operations; 7) Grounds’ projects; and 8) Update on grounds inspections. Copies of Mr. Phillips Site Manager’s Reports are available.

VII.            MANAGING AGENT’S REPORT

Mr. Ferguson updated the Board on the status of the 2015 State of Hawaii Legislative session. MCH is working on the submission of the Bi-annual Condominium Registration for the Association. It is due the end of May.

Director Pure explained the County is in the process of approving its Budgets. He reported that there is no increase in property taxes proposed for the 2016-2017 fiscal year.

VIII.          COMMITTEE REPORTS

A.    Communications

Director Pure reported the Website has been revamped, redesigned and re-launched. All of the pictures are new and provided by a professional photographer.   The goal is to provide as much information to the owners as possible. The pages are only accessible to owners. Although Director Pure e-blasted an email to all owners about access information several months ago, he is available to provide access instructions over the telephone to owners. Owners were encouraged to keep the Association up-to-date on email addresses and other contact information.  Access instructions, it was agreed, will be re-sent to all owners by Kehau.

B.     Rental Advisory

Director Kelly is available to answer questions from rental owners. He recently forwarded information from the Rental By Owner Awareness Association to rental owners. Owners who want to receive a newsletter from this Hawaii Association should go-to the RBOAA website. The cost to join the organization is $100 per year.

The President reminded rental owners of the mandate to have an on-island contact for emergency reasons. This information must be posted on all websites, rental advertisements and inside their unit as well. Additional information required is TAT license numbers.

The owners are required to provide the County of Maui Real Property Tax Division with unit usage information, i.e. rental, residence, etc.

C.     Energy and Technology

Director Perkins reported the Association is conducting an audit of the exterior lighting fixtures, seeking ways to improve consumption by updating, modernizing or beautifying the lighting. A cost estimate to upgrade will be solicited when the results of the audit are completed. One of the goals is to save money.

The committee will be “looking at” the quality of television service and how to correct deficiencies that have been observed.

With the cost of oil reduced in the global marketplace, electric bills are down slightly.

There was discussion about air conditioning controls, and it was noted that there are controls installed in the units. Owners can change their thermostats and controls to monitor/control usage.

Unit locking control systems are available as well.

D.     House Rules

Director Kelly and Mr. Phillips have been working on the pool signs. When the pool hours were changed, the rules did not address barbecue usage hours. The Board needs to establish the barbecue hours and add to the House Rules.

MOTION:   To add the barbecue hours to the House Rules from 8 a.m. to 9 p.m., and the barbecue hours will be posted on the pool signs as well.

Kelly/Perkins     Unanimous Approval

E.      Building and Grounds

Director Conklin’s updated the Board on committee activities including: 1) Pool light bulb wattage changes; 2) Grounds committee seeking change in exterior green spotlight bulbs to CFLs to save money; and 3) Golf ball net

The golf ball net will be three feet higher and closer to the ground. Options to attach were evaluated. The cost of the new net installed is approximately $13,000.

MOTION:    To remove the existing golf ball net and expend $13,000 to install the new golf ball net on the existing palm trees.

Conklin/Duckworth                      Unanimous Approval

Insurance costs have increased over the years to an estimated $40,000. It was suggested that the increase could be attributed to plugged pipes and water damages. Signage and language to inform guests/owners about what to dispose and not dispose in the toilets and sinks could potentially reduce the claims that have been filed. A sample sign was circulated. This could save the Association money. Individual unit disposal dispensers are available for purchase as well. The goal is to reduce the number of incidents to protect the Association insurance coverage.

MOTION:   To offer decals and placards for sale at the Front Office to all owners to install by the toilets and each sink along with signs for the receptacle. Further, the receptacles can be purchased at the Front Office or “on your own”, with this information added to the House Rules.

Beck/Duckworth                          Unanimous Approval

F.     Finance

There was an update on the financial status of the Association as of March 31, 2015. Income and Revenue was reviewed. Variances, both over and under target, were noted and explained. The Association is in sound financial shape, with $790,000 in cash.

Budgeting and Reserve funding strategy was discussed. The dues increase rate per year is about four to five percent.

G.     Legal

The issue with the previous General Manager was settled. The documents are being circulated amongst all parties for final signature.

H.    Architectural Review

Owners were reminded to submit applications to the Site Manager/Front Office when remodeling. Site Manager will in turn forward to the Architectural Review Committee. The multiple benefits of the application process were noted. There were only four remodel applications submitted the last quarter. There were 15 remodels in 2014.

IX.           PARKING LOT RESURFACING

MOTION:    To direct the Site Manager to work with the three bids received for the full renovation of the parking lot, including new parking blocks and new dots that create the lanes. Further to approve that the contractor commence construction in the mid-August time frame and to have it completed by the new year.

Duckworth/Little

The parking lot surface needs to be removed; it is no longer serviceable. The cost of the project is about $300,000. In January 2015, the cost was projected to be $55,000. (Note: The 55K was for root removal and seal coat only, not replacement.)

There were questions and concerns voiced about the high cost and budgeting strategy. One Director questioned the last minute notification of the major increase in the cost of the Parking Lot Project. He suggested deferring a vote until more information is known, including an inspection of the property with the proposed contractor(s).

Options to fund the project were reviewed, including a Special Assessment and Bank Loan.

The Board has a fiduciary responsibility to act prudently. The qualifications of the different contractors were reviewed. The scope of work was reviewed along with project logistics. The Board has 30 days to accept or not accept the proposals.

An assessment of the impact of this project on the Reserve Fund was requested as well.

It was agreed to call for a telephone conference meeting vote on the proposed Motion on Friday, May 29, 2015, or sooner.

X.          COMMUNITY UPDATE

Director Bob Pure updated the Board and owners on the status of the proposed West Maui community hospital and the current financial status of the Maui Memorial Medical Center. The West Maui facility will be called a critical access hospital, with 25 beds.

XI.         NEXT MEETING DATE

The next meeting date was changed to Thursday, October 15, 2015. There will be a property inspection on Wednesday, October 14, 2015, at 3 p.m.

XII.       ADJOURNMENT

The meeting was duly adjourned.

 

Respectfully submitted,

Louise Rockett

Louise Rockett

Transcriptionist