April 16, 2011 Maui Sands I Board Members Present In Person: Maui Sands I Board Members Present by Telephone or Skype: Maui Sands II Board Members Present In Person: Maui Sands II Board Members Present By Telephone or Skype: Rosa McAllister, Keith Hertz, Ken Baldwin, John Cush and Jean Rachkowski David Stuffler Art Ford, Lucia Livoti Claire Lachance Owners Present: Carol Carolan, 719; Bob Jenks, 3D; Doug Wallway, 4A; Jeff and Laura Cowan, 4E Other Attendees: Dave Ferguson, Management Consultants; Chyna Colorado, Recording Secretary I. DECLARATION OF QUORUM There was a roll call. At call to order, there was quorum present for Maui Sands I and Maui Sands II. Keith Hertz of Maui Sands I joined the meeting 53 minutes after call to order. II. INTRODUCTIONS Introductions were made at this time. III. CALL TO ORDER President Rosa McAllister called the Maui Sands I and Maui Sands II Board of Directors Meeting to order at 10:10 a.m. IV. APPROVAL OF MINUTES The Board considered approval of the January 15, 2011, Board of Directors Meeting Minutes. The Minutes will be posted on the website at www.mauisands.org when approved. President McAllister noted that the Minutes were circulated among Board members, and some edits were made. There was a unanimous roll call vote to approve the Minutes of the January 15, 2011, Maui Sands Board of Directors Meeting as corrected.
April 16, 2011 Page 2 V. OLD BUSINESS GENERAL UPDATES A. Bylaw Amendments Status / Roof Contract Status / Special Assessment Borrowing Authorization Regarding Bylaw Amendments, Mr. Ferguson explained that the Maui Sands I Association still lacks the 67 percent approval required from owners by ballot. He urged MS I Board members to encourage owners to vote at next week s Annual Owners Meeting. The issue is owners not responding, not negative votes. President McAllister said four ballots were sent in October; one by Michael Pang of Monarch Properties in November (that passed); and two recently concerning the Special Assessment and borrowing authority to repair the roof at Maui Sands I. As of March 22, for the four ballots sent in October, Maui Sands I collected 34 of the 38 required affirmative responses. Mr. Ferguson stated that the membership has the approval authority for Special Assessments at Maui Sands, unlike other Associations where the Board of Directors has the authority to assess owners. To fix the roof, 50 percent of the owners of Maui Sands I 56 units must approve the Special Assessment and loan. Twenty ballots have been returned thus far with seven negative votes. Mr. Ferguson will prepare a spreadsheet with the owners and their voting status for the upcoming Annual Owners Meeting. The roofing contractor was prepared to begin May 1. Material costs could rise if the project is delayed. The ten-week project is estimated to cost the 56 units $9,300 each. Board members said it s important to explain the need for the roofing project to owners. Some owners think that second floor owners should fund the project, because they are impacted by the leaks. Treasurer Baldwin commented that damages in units from leaks far exceed what the Association can bear. Repairs are getting very costly, and the Association cannot afford to delay the roof repairs any longer. Director Stuffler questioned if owners who have not turned in ballots are waiting to get more information on the roofing project at the Annual Owners Meeting. The Board will have detailed information on the project and why it is needed available at the meeting. B. Property Updates The President said Ken Kuhlman was not able to attend the meeting. His monthly reports are posted on Maui Sands website, and he will give a full report at the Annual Owners Meeting. Mr. Baldwin gave an update on landscaping improvements in front of Building 4.
April 16, 2011 Page 3 The March 11, 2011, Pacific tsunami destroyed some shrubbery. He added that these naupaka bushes prevented property damage, as the seawall wasn t high enough to hold back the ocean surge. Some naupaka has died slowly over many years because soil eroded from the planter boxes. The tsunami also caused damages to the bushes. Further, it was discovered that the planter boxes lacked soil. Water running downhill from rainfall and irrigation took grass and soil with it. The Treasurer said several more spots along the property s grassy areas in front of the seawall need to be fixed, such as the area in front of Building 7. Projects will be prioritized and scheduled. C. Community Work Days The President reported Board members and owners have been doing work day projects on the property. They are learning as they go and getting improvements accomplished. Projects include painting Building 2 (second floor) and various buildings, and the office, which is the very visible face of the property. Building 1 will be touched up next. Owners have joined in the work days or donated pizza and beverages. Volunteers and donations of paint and brushes are welcome. D. Buying a Defibrillator The President noted that Maui Sands once had a defibrillator, and she feels the property should acquire one. Given the number of visitors and children that stay at Maui Sands, she feels having a defibrillator and offering CPR and First Aid classes for owners on property would be responsible steps. Emergency oxygen is available in the office. Treasurer Baldwin said that after being recertified, he could train owners to use the defibrillator. The devices are easy to use and cost approx. $1,000. MOTION: To acquire a defibrillator. Baldwin/Stuffler Unanimous Approval E. Annual Owners Meeting Preparation Director Lachance said the goal is to make the meeting more interactive. Owners will be invited to write down ideas on displays at the event. Three objectives are to receive input on unifying the property, saving money and having fun socially. The President said Mr. Pang will discuss lease negotiations; there will be more information on the roof project and Special Assessment; the Board will share accomplishments of the past year; and there will be membership ballots for owners interested in running for office.
April 16, 2011 Page 4 With Mr. Baldwin s resignation, there will be three vacancies on the Maui Sands I Board. F. Wireless Internet Directors Hertz and Cush are researching the possibility of providing free wireless Internet access for Maui Sands owners and guests. It s estimated to cost $60-$70 for the service and $400-$500 for the hardware. The proposal could save owners money on Internet access accounts and provide a service that guests expect at resorts. The password for access could be posted in the owners section of the website each month. Suitable for normal browsing and e-mail (not downloading video), a wireless router would be placed in the office, and repeaters would be installed around the property to provide at least hot spot coverage. VI. TREASURERS REPORTS An audit report will be distributed to owners at the Annual Owners Meeting. Director Lachance will provide a summary of highlights and accomplishments of the past year at the meeting regarding financials for MS II. Director Baldwin will do similarly for MS I. VII. OWNERS FORUM Mr. Jenks inquired about House Rules enforcement regarding separator wall work at 5A and 5B, and remodeling in 5E, which has a for sale sign on the lanai. The owner of 5A received Board approval to fix a large crack in her cinderblock lanai wall and add faux lava rock to it. Her neighbor in 5B then received the go-ahead to do the same improvements. Regarding 5E, remodeling was conducted without official Board approval several years ago. Director Livoti said owners who pursue construction work need to inform the Association of the project s timeline and details. Contractors must also be apprised of the permitted hours for construction, not disposing of materials in the dumpster and other rules. President McAllister said owners are buying units and scheduling renovations. Bids and project details must be submitted to the Board for approval before construction begins. The requirement will be discussed at the Annual Owners Meeting. If the roofing project is approved, owners will be notified of the schedule. Permits have been secured. The lengthy process included a Shoreline Survey to determine the high water mark, and the study will be useful for future projects. The roofing project would be conducted starting with the buildings in the worst condition. The sequence would be Building 6, then 4, 5, 3, 1 and 2.
April 16, 2011 Page 5 VIII. ADJOURNMENT The meeting adjourned at 11:40 a.m. Respectfully submitted, Louise Rockett Louise Rockett Transcriptionist