Association of Apartment Owners Maui Sands I & II Board of Directors Meeting Minutes April 14, 2012
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1 Maui Sands I & II April 14, 2012 Approved Maui Sands I Board Members Present: (In Person) Maui Sands I Board Members Present: (By Telephone/Skype) Maui Sands II Board Members Present: (In Person) Maui Sands II Board Members Present: (Telephone/Skype) Maui Sands II Board Member Absent: Owners Present (In Person or By Telephone) Other Attendees: Jean Rachkowski, Doug Wallway and Keith Hertz David Bontorin, John Cush and Laura Cowan Art Ford Tracy Barrett Lucia Livoti Ryan Logtenberg, 4B; Gay Jardine, 3A; Ray Rachkowski, 5G; Bev Ford, 705; Frank Suechting, 714; Zanaida Andres, 3F; Carol Carolyn, 719 David Ferguson, Management Consultants of Hawaii; and Kailana Flores, Recording Secretary; and, Michael Pang, Monarch Properties I. DECLARATION OF QUORUM There was a roll call, and a quorum was declared with six Directors present either in person or by telephone for Maui Sands I. There was a roll call, and a quorum was declared for Maui Sands II with two Directors present either in person or by telephone. II. CALL TO ORDER President Jean Rachkowski called the Board of Directors meetings to order at 9:09 a.m. The meeting was held onsite at the Maui Sands, Honokowai, Maui, Hawaii. III. APPROVAL OF MINUTES The Boards considered approval of the January 16, 2012, Board Meeting. With no objections voiced, both Boards approved the Minutes as amended. The Boards discussed approval of the July 16, 2011, Board of Directors Meeting. By consensus, Maui Sands I approved the July 16, 2011, Board Meeting Minutes. The Maui
2 April 14, Page 2 Sands II deferred approval of these Minutes. Additionally, Maui Sands II deferred approval of the Minutes of the October 2011 Board of Directors Meeting. IV. INTRODUCTIONS Introductions were made at this time. Dave Bontorin was introduced. He was appointed to replace Rosa McAllister on the Board of Maui Sands I. She resigned her position on the Board in December V. FINANCIAL REPORT Director Cowan updated the Maui Sands I on the financial status of the Budget as approved by its Board of Directors. Accounts receivable was reviewed, including collections of past due amounts through various actions. With the help of the Maui Sands I collection s attorney, the situation has improved. There has been only one new owner added to the delinquency list since last year. The full time maintenance person was let go in December of The Treasurer recommended the Board consider hiring a full time replacement to help with some of the issues that have arisen. It would cost approximately $60 a month more for all owners collectively. Ken was hired as the Resident Manager originally. There is a multi-page job description for this position. The duties of the Resident Manager were reviewed, including the supervision of maintenance personnel, interfacing with all owners and responding to incidents on property. The Resident Manager is responsible for the maintenance of the pool at least five days a week and oversees the work of the landscape contractor. Charley has replaced Gail. He is responsible for cleaning. He also cleans the pool two days a week. There was a request for owners to receive copies of job descriptions for these two positions. Also, there was a request for a breakdown on hours spent by Ken on administrative and maintenance chores. There was a request for more information before determining whether or not the Association needs a full time maintenance person. Further discussion was deferred to New Business. VI. UNFINISHED BUSINESS A. Maui Sand I - Maui Sands II Board Mediation The date for the mediation is April 26, The Mediator is retired Judge McConnell. The mediation is about the surcharge cost Maui Sands I charges to Maui Sands II for use of the Maui Sands I facilities. Additionally, mediation will help to determine the terms of a mutually acceptable contract. B. WIFI Internet Router Director Hertz shopped for bids to purchase a router for more WIFI coverage on property so
3 April 14, Page 3 that all units have access to the internet. Additionally, Director Hertz researched how other properties on the West Side address property-wide WIFI coverage. Many properties have a hot spot on property where owners and guests can pick up a wireless signal. One property utilizes the services of Shaka Net, and Mr. Hertz solicited quotes from this wireless internet service provider. The cost per unit is about $50 per month. Mr. Hertz recommended advertising for a service for guests that is available only at the pool or the laundry building. With so many people with Smart Phones and IPads, the bandwidth is used up. He suggested discontinuing with the offer of free WIFI access in the individual units. The service provider for the main connection is currently Oceanic Time Warner, and the contract is for a single residence service. It is a turbo package. Oceanic Warner has a higher speed option, and Director Hertz will further research. Owners have the option of paying for the service with Oceanic Time Warner individually. A package price for all units will be solicited. C. AED Training The President has called the person who sold the Association its AED to schedule training classes during the Annual Meeting time frame. Owners will be invited to attend the training. D. Oceanfront Landscaping Signs have been installed warning the public to stay off of the seawall. An ocean warning sign was also installed recently. The signage on the seawall has been effective, with not as many people walking on top of the structure. Terry has been working on the oceanfront lawn area, including irrigation system upgrades. He is focusing on one area at a time. The landscaper asked for additional funds in the amount of $1,200 to purchase more irrigation system parts. He has spent thus far $350. The landscaper is only charging the Association for materials for irrigation system upgrades. The system being installed has a rain sensor. The Board would like to know how the system operates to conserve on water. MOTION: To approve $1,200 for the landscaper to purchase parts for the irrigation system upgrade. Wallway/Hertz Unanimous Approval There are some bare spots by the seawall. The owners would like the landscaper to move forward in a more expeditious manner. The President will consult with Terry to determine if there is an additional cost for him to proceed forward more quickly. The Board would need to approve the additional labor cost, if appropriate. There was discussion about contract specifications / trades with the roofer to save money on extras.
4 April 14, Page 4 It was noted that Mr. Kuhlman posts a monthly report on the website, and the landscaping information is included in the report. C. Seawall Survey / Oceanfront Landscaping. The seawall survey has been completed as required for permitting, and it has been sent to the Department of Land and Natural Resources for processing. The status of the seawall was discussed. There is photographic evidence that the seawall was installed prior to the construction of Maui Sands in According to State guidelines, conforming seawalls can be maintained. The question is whether or not to move forward with oceanfront landscaping. It was agreed by consensus to leave the landscaping as is and continue to maintain the grass in that area. A landscape architect will not be consulted. D. Oceanside Shower One oceanside shower has been installed. Another oceanside shower is hanging from a tree. The owner of 4B has offered to pay for an automatic valve to operate the shower, i.e. a Chicago faucet. It stays on for a specific amount of time and then shuts off automatically. Director Wallway offered to pay for the plumber to install. The shower fastened to the tree was considered questionable. A bid to install a shower with a conforming look to the other one on property by Building 4 was suggested. Director Wallway offered to solicit a proposal and present at the Board meeting prior to the Annual Meeting. The Board discussed adding a valve to the shower between Buildings 4 and 7. The owner of 4B will pay for two of the valves, and Director Wallway would pay for the plumber to install. The other shower would remain as-is. It was agreed by unanimous consent to change the valve at the expense of the owner of 4B and Director Wallway. The owner of 4B and Director Wallway were thanked for their contributions. VII. OWNERS FORUM There was a suggestion to remove the stop sign on the tree to improve the view. It was noted that the purpose of the stop sign is to deter people from walking in front of the unit lanais by Buildings 4 and 5. There was a question about who installed the stop sign, and the President will investigate. It was agreed that items added to the common area must have approval first from the Board. The stop sign will be removed. Many suggestions have been received from owners for improvements. The President has compiled a file for recommendations from owners. It was agreed by all Board members to authorize the President to compile a list of the suggestions for improvements to present to the owners at the Annual Meeting, at which time the top five suggestions will be prioritized by the owners for improvements and beautification.
5 April 14, Page 5 There were other suggestions offered at the meeting to move forward with minor improvements to the property, including: 1) Cleanup and upgrade to shed by parking lot by Building 6; 2) Clearance of storage of equipment from view; 3) Remove handmade parking stall Reserved signage; and, 4) Cleaning / removal / replacement of pool area trash cans. VIII. RESERVE STUDY Directors were distributed three proposals from professionals to conduct a Reserve Study. The bids have been separated between. A Reserve Study will help with the budgeting of capital replacement/repair projects. The bids range from $3,600 to $3,800. Mr. Ferguson recommended engaging the services of Barrera & Company to conduct the analysis -- a full Reserve Study for Option 1. The advantages and disadvantages of engaging the services of a consulting service were discussed. MOTION: To move forward with the Reserve Study for Maui Sands I, as recommended by Mr. Ferguson. Hertz/Wallway Without majority approval from Maui Sands II, a decision was deferred. IX. ROOFING The roofing for Maui Sands I has been completed, other than the correction of some deficiencies. The roofing work for Maui Sands II is projected to commence in the next four weeks. There were questions about why the bronze anodized flashing does not match the gutters. Mr. Ferguson noted that this concern was not raised as a deficiency, and the Association consultant and architect have signed off on the roof. X. OWNER UPDATES There was a suggestion to provide monthly updates to the owners. The President encouraged a volunteer to provide a monthly update, and an announcement will be made at the Annual Meeting. XI. ANNUAL MEETING Proposed agenda items for the Annual Meeting were reviewed, including a list of items for distribution to owners.. XII. LEASE NEGOTIATIONS FEE CONVERSION UPDATE Mr. Pang updated the Board on lease negotiations with the Robinson Family Partnership. He reported that an appraisal was conducted, and an offer was made by the family. Mr. Pang characterized the offer as a bit high. The Robinson Family Partnership is represented by the Bank of Hawaii.
6 April 14, Page 6 Mr. Pang reported that there have been no lease renegotiations between Maui Sands I and the Weinberg Foundation, because the Association is attempting to purchase their interest. He outlined the advantages of purchasing rather than negotiating for a new lease rent. The appraisal and rent negotiation process and strategy was discussed. Additionally, there was an update on the fee purchase potential. Mr. Pang answered questions the Board and owners had. Further discussion was deferred to Executive Session. XIII. EXECUTIVE SESSION The Boards of adjourned to Executive Session at 11 a.m. Respectfully submitted, Louise Rockett Louise Rockett Transcriptionist
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