Association of Apartment Owners Maui Sands I Board of Directors Telephone Conference Meeting Minutes October 17, 2015

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1 Association of Apartment Owners Maui Sands I Board of Directors Telephone Conference Meeting Minutes October 17, 2015 Board Members Present: Owner Present: Other Attendees: John Cush, President; Jean Rachkowski, Secretary; Dave Bontorin, Treasurer; and Directors Shanna Stubbs, Wendy Cush and Dave Stuffler Bob Jenks, 3D; Rosa McAllister, 2B; Laura and Jeff Cowan, 4E; and Rick Momsen, 1K Doug Lefler and Bill Dix, Hawaiiana Management Company; and Louise Rockett, Recording Secretary I. CALL TO ORDER President John Cush called the Association of Apartment Owners of Maui Sands I Telephone Conference Board of Directors Meeting to order at 9:10 a.m. II. DECLARATION OF QUORUM There was a roll call, and a quorum was declared with six Directors present. III. PROOF OF NOTICE It was certified that notice of meeting was ed to all Directors in accordance with the Association governing documents, and it was posted on property in compliance with Hawaii State Law. IV. MEETING RULES OF CONDUCT Meeting rules of conduct were briefly reviewed. V. APPROVAL OF MINUTES The Board considered approval of the July 18, 2015, Board of Directors Meeting Minutes. A correction was noted on Page 3 under the voting results of the Amended Motion, as follows: There was a roll call vote, and the Motion passed by a majority vote. President Cush voted no. To approve the Minutes of July 18, 2015, Board of Directors Meeting as corrected. Dave Bontorin/Wendy Cush Unanimous Approval VI. PRESIDENT S REPORT President Cush updated the Board on Association activities and projects since July 18, A new Resident Manager has been employed. The contract with new Managing Agent commenced on October 1, A lot of work has been accomplished since July

2 October 17, Page During a walk around in April 2015, an action list was generated, and many of the items on the list have since been completed. Operations at Maui Sands are proceeding smoothly. A part-time maintenance person was hired, but the President questioned whether the three or four hours schedule is ample time to complete maintenance tasks. Projects are moving forward in a progressive yet slow manner. The large dumpster behind the pool building has been hauled away. Most of the space inside the maintenance sheds has been cleaned out, re-shelved and re-stacked. The sheds leaked in the past and have now been fixed. There is no need at the time to replace the roofs. A new, sloped roof will be added to the pool restroom building. Where the storage used to be located, a new roof will be added to the newly appointed meeting and conference room, with kitchen and running water. There have been a few incidents on property. An owner has moved forward to replace the front wall on the exterior of his unit without approval or authorization. No citation has been issued. The President described how the work was proceeding. The goal is for the work to be done in a professional, non- invasive manner. The project is being photo-documented and monitored. The tenants in 3C were evicted, and a new renter is now living in this Association-owned unit long-term. There were upgrades and repairs made prior to the new tenants moving in, and they are pleased with the results. The new Resident Manager has been well received on property. The President answered questions the Board and owners had. VII. TREASURER S REPORT Treasurer Bontorin reported that during the management transition, he continues to work on past financial statements. He updated the Board on the financial status of the Association as of August 31, The focus has been drafting a 2016 Budget for the upcoming year. Overall, the Operating Cash is in a good position, and the balance in the Reserves continues to increase slowly. There were a number of emergency repairs conducted this past year, including: 1) Repair of the Resident Manager s Office; 2) Replacement of the Fire Alarm System; and 3) New outdoor furniture purchase. The Treasurer noted the Association continues to face a number of challenges and repairs, including building the Reserves.

3 October 17, Page 3 VIII. SITE MANAGER S REPORT The President updated the Board on the Status of the Property Inspection Action Items date April The list of items was reviewed, with the President noted items that have been completed. Further, the status of items not completed was noted and explained. The President reported progress has been made, with many action items completed. The President updated the Board on landscaping activities, including planting a hedge and replacement palms. The President answered questions the Board and owners had about the inspection update. IX. COMMITTEE REPORTS A. Parking Committee Persons on the Parking Committee are Jean Rachkowski, Dave Bontorin and the new Resident Manager. Director Bontorin noted that the goal of the committee is to devise a plan to address parking as associated with Maui Sands II. Long term, the status of the parking is uncertain, with the Courts involved in the decision. No dramatic changes at this time will be made until the Court has made its decision. Some owners consider the current parking situation improved. Other owners disagreed with this assessment of the parking lot situation status and testified about their parking challenges. It was noted that bids have been solicited to build a fence separating Maui Sands I from Maui Sands II. X. UNFINISHED BUSINESS A. Roof Repair Bids The President reported a number of roof repair bids were received for the laundry roof and over the pool bathroom building. Repairs are being conducted in-house for the roof over the pool building. Bids for the laundry room roof have been solicited, but progress has not been made. B. Permit for Repairs of Building 4 and 5 It was recommended to move ahead with the repairs. The County of Maui recommended a lead paint survey. Proposals were solicited to mitigate. The Association is working towards getting the lead paint survey accomplished. Other issues related to the granting of the permit include the easement on the seawall, the water meter, backflow prevention devices and check manhole cover.

4 October 17, Page 4 As the Association does not own the property, the President recommended the State Department of Land and Natural Resources work with the landowner on the granting of an easement. The Association would like to move forward on the work on an emergency as-is basis doing smaller jobs one at a time that do not require a permit. To contact Kawika s and get on their schedule for the repairs, painting and waterproofing. Jean Rachkowski/Dave Stuffler The President questioned the timing of the Motion made by Director Rachkowski. He considered the cost of all the work prohibitive, and Director Rachkowski disagreed with his assessment of the cost. Director Rachkowski stressed the importance of moving forward with the repairs and scheduling the work with the contractor. Options were evaluated, including the timing and pros and cons. It was suggested that a committee be established, working in concert with the new Managing Agent to draft a new action plan. The timing was further discussed. Director Rachkowski and other owners in the 4 and 5 Buildings would like to see the project commence before September of 2016, suggesting that the repairs could be accomplished in-house in preparation for the painting. The owner of 4E voiced serious concerns about the potential of water damage. The outside of their unit is in terrible condition. The project has been deferred for a number of years. Laura Cowen did not want to see it tabled again. To table the Motion, pending receipt of more information, with an analysis completed and a plan of action drafted within the next week or two. Shanna Stubbs/Dave Stuffler There was no vote; however, most of the Directors agreed by consensus that this was the preferred course of action. C. Termite Inspections Termites were observed by the tree by Building 6. The termite Inspector was called and baits have been set. The termite infestation at the pool is associated with the cabinets, and the cabinets will be removed. There are a couple of other areas on property that have been infested, and the inspector will be returning to inspect these specific termite infestation locations. Director Bontorin noted some owners are not allowing the inspectors into their units for pest control treatment. He encouraged all owners to take responsibility and work

5 October 17, Page 5 together to resolve this potentially damaging situation. D. Pest Control Allison is working with the pest control service and owners to make sure treatments and inspections are conducted in all units. During the pest control service, Allison also inspects the smoke detectors and fire extinguishers in each unit. Operational smoke detectors are required by law. The Association encourages all owners to have a fire extinguisher visibly mounted inside their unit. E. Status of Lead Paint Tests A preliminary report was received from Kawika. There were questions about the data received. Other proposals have been solicited. Directors Stubbs and Bontorin will be working with the Management Company to assess the proposals received in-committee. F. Ratification of Pool Filter Purchase The pool filter collapsed and was recently replaced on an emergency basis at a cost of $2,418 plus tax. This is a Reserve Fund expense. To ratify approval of the $2,418 plus tax expense to replace the pool filter and assembly. John Cush/Shanna Stubbs Unanimous Approval XI. NEW BUSINESS A Budget Approval Treasurer Bontorin received a copy of the draft budget from the Managing Agent last week. Since that time, revisions have been made. He explained how the draft Association financial plan was calculated. There is no increase in fees for 2016, including the Operating Account and Reserve Fund. Some Directors would like to see the Reserve balance grow, suggesting an increase in contributions to the Association long-range fiscal plan. Reserve funding strategy was discussed. It was agreed that a professional Reserve Study be conducted in Funding has been added to the budget for the cost of the professional, onsite assessment next year. It was suggested that an increase in contributions to the Reserve Fund be deferred until after the Reserve Study has been completed To approve the 2016 Budget as presented. John Cush/Dave Stuffler

6 October 17, Page 6 There was some discussion on staffing and compensation. There was a roll call vote, and the Budget was accepted unanimously. B. Office Equipment New computer equipment for the Resident Manager is needed. The current computer is non-functional. The President recommended the purchase of a laptop computer, printer/fax machine and WIFI modem at a cost of around $1,000. To purchase a laptop computer, printer/fax machine and WIFI modem for the office at a cost of an estimated $1,000. John Cush/Wendy Cush Unanimous Approval C. Storage Association Files There are 18 banker boxes, and storage location options were discussed. Mr. Lefler will coordinate with Allison to relocate onsite. XII. NEXT BOARD MEETING DATE The next Board of Directors Meeting will be held on January 16, 2016, 9 a.m. Hawaii Time. XIII. OWNERS FORUM There was an Owners Forum. In response to request from Rosa McAllister, the President provided an update on the status of legal questions associated with Maui Sands II. A Settlement Conference was held on October 2, 2015, and no report from the Court, attorneys or judge has been forthcoming at this time. There is a follow up meeting on the 30 th of October XIV. ADJOURNMENT TO EXECUTIVE SESSION The Board adjourned to Executive Session at 10:51 a.m. to discuss accounts receivable. Respectfully submitted, Louise Rockett Louise Rockett Transcriptionist