LAULE'A APARTMENT OWNERS ASSOCIATION & MAUI SCHOONER RESORT OWNERS ASSOCIATION COMBINED BOARD OF DIRECTORS MEETING THURSDAY, JUNE 25, 2015 MINUTES I. CALL TO ORDER/ROLLCALL Board President Tom Newman called the meeting to order at 10:03 a.m. (PDT) and welcomed everyone to the meeting. The following persons were in attendance: Board Members Present Tom Newman Greg Gfeller Brian Bowcock Gordie Johansen Board Members Absent Teresa Keller Management Present Tom O Brien Joanne Hallert Olena Goushcha Heather Braun David Geist Amy Strange President Vice President Secretary Assistant Treasurer/Secretary Treasurer Sr. Vice President of Resorts Director of Resort Operations HOA Accountant Resort Manager Assistant Resort Manager Administrative Assistant II. APPROVAL OF AGENDA The agenda was approved with the addition of moving the following items: 1. Move Section V. Continuing Business, Hawaii Pacific Solar to the beginning of the agenda after onsite management report 2. Under Section VI. New Business, added September Meeting Discussion after Parking Lot Re-Paving III. APPROVAL OF MINUTES April 17, 2015 A motion to approve the minutes of the April 17, 2015 board meeting was made by Brian Bowcock, seconded by Greg Gfeller and approved unanimously. Page 1 of 6
April 18, 2015 A motion to approve the minutes of the April 18, 2015 board meeting was made by Greg Gfeller, seconded by Brian Bowcock and approved unanimously. IV. REPORTS PRESIDENT S REPORT The board noted all of the current ongoing projects are included in the on-site management report and had nothing further to discuss. MANAGEMENT REPORTS Action Items The board reviewed and discussed the action item list and noted status updates. The board directed management to take photos of the new kids area in the lobby and send to the board once complete. V. CONTINUING BUSINESS Finance Committee Report The finance committee reported at the end of April, the association has approximately $2.5 million in reserves. The board noted that the shower work has not yet been deducted from this figure. ADA Committee Report Management reported that the entry wall from the street to the parking lot has been hit numerous times by vehicles. The board discussed checking into railings on the ramp. The board directed management to present a proposal and any ADA requirements to the board at the next scheduled meeting. Hawaii Pacific Solar (HPS) Management reported on the legal opinion in regards to the Hawaii Pacific Solar (HPS) contract and reported that the board does not have the authority to enter into a 20 year agreement without an owner vote. A motion was made by Greg Gfeller to cease all activity with Hawaii Pacific Solar and the solar project. The motion was seconded by Brian Bowcock and passed unanimously. Page 2 of 6
A motion was made by Brian Bowcock to authorize Tom Newman to send Hawaii Pacific Solar a letter informing them that the board agreed to discontinue to the solar project and that the board believes that the letter of intent automatically expired July 1, 2014 and thus the invoice for engineering is not the association s responsibility. Further, if Hawaii Pacific Solar challenges the termination of the letter of intent, Tom Newman is hereby authorized to approve their invoice of $10,400 provided the association receives the full engineering/specification report. The motion was seconded by Gordie Johansen and approved unanimously. Shower Update David Geist reported that the shower installation has been going very smoothly with no issues, great feedback from the owners and they anticipate finishing three weeks ahead of schedule. PVA Marketing Piece The board discussed the PVA marketing piece to go in all of the newsletters for MS. A motion was made by Greg Gfeller and seconded by Brian Bowcock to include the PVA marketing piece in all further newsletters until the board decides differently. Newsletter Assignments November Newsletter Management reviewed the assignments for newsletter articles and asked for any volunteers to help keep with additional content. Gordie Johansen and Tom Newman will write articles as they have important content to discuss before the next election as the county lowered the tax rate and assessment. Gordie Johansen will piggyback on this news for his article and will submit to Amy Strange at TPI by October 14, 2015. VI. NEW BUSINESS Parking Lot Re-Paving The board reviewed and discussed the proposal and contract agreement from Sonny Vick s paving, Inc David Geist will ask the neighbors if guests can park in their lot while the Maui Schooner parking lot is being re-paved. Greg Gfeller motioned to approve to spend up to $130,000 seconded by Gordie Johansen to repave the parking lot including striping and curbing as needed this year. The board authorized Heather to sign the proposals on behalf of the Association. David Geist recommended having the vendor to do the painting as well. The board agreed that maintenance should not complete the work, but only to maintain it after it is done as they are already occupied with the shower installation. Page 3 of 6
VII. EXECUTIVE SESSION The board went into Executive session at 11:02 a.m. (PDT). The board came out of Executive session at 11:10 a.m. (PDT). VIII. NEW BUSINESS CONTINUED September Meeting Discussion Management presented the option for the board to stay at the Laguna Beach House for the upcoming budget meeting in September. Management will send out an email to get number of rooms and nights needed to the board and how many for dinner include a link for the hotel and dinner. The board unanimously approved to stay at the Laguna Beach House for the September 2015 budget meeting with dinner at Javiers. Utility Gas Comparison Heather Braun explained the utility gas comparison to the board and stated that they have seen some savings of approximately 20 cents per gallon over the past few months. This is monitored based on usage. Options for Additional Owner Usage Management stated that rentals/inventory control came up with a bonus week program where the association could increase owner engagement and usage at the resort and TPI would get a $25 reservation fee instead of a percentage on the rentals. A motion was made by Tom Newman and seconded by Greg Gfeller to approve of the proposed bonus week program from TPI and for TPI to send this out via eblast and also include in the upcoming newsletter to the owners. This program is scheduled to cut off mid- December 2015. Joanne Hallert will draft a version to be included in the eblast and newsletter that will go out in July 2015. IX. REPORTS CONTINUED On-Site Management Report Heather Braun provided the board with an update of the current projects at the property noting: housekeeping projects involving process improvement, show installation update, fire extinguisher project completion, pool chairs have been purchase and installed, and the roof has been replaced. Page 4 of 6
The board directed management to see if there is a way to have a box covering the dryer vents to catch the lint and to provide options at the next scheduled meeting. Occupancy Reports The board reviewed and discussed the occupancy reports and noted January and May 2015 are slightly higher than the same time last year with the exception of March, showing a year over year history. The board directed management to show prior 4 years avg. by month on the graph and the current year compared against it for all future occupancy reports. Foreclosure / Deed Back Reports The board reviewed and discussed the foreclosure and deed back reports. New Owner Report The board reviewed and discussed the new owner report. Comment Card Summaries The board reviewed the owner/exchange comment card summary report and commented that the property is currently getting great reviews on TripAdvisor and Yelp. Management will look into Heather Braun responding to comments on Yelp and TripAdvisor herself. Interval International Comment Card Report The board reviewed and discussed the Interval International comment card report. FINANACIAL REPORTS April 2015 Financial Statements The board reviewed and discussed the financials. Gail Turner told the board that as of the four months ended April 30, 2015, the combined financial statements for the AOAO and ROA reflect a net favorable variance to budget of $50,414. Reserve ROA and AOA of $1,303,315 is funded. Tom Newman moved to accept the financials through April 2015. The motion was seconded by Greg Gfeller and passed unanimously. Page 5 of 6
Delinquency/Collection Reports The board reviewed and discussed the delinquency and collection reports. Joanne Hallert informed the board that the combined delinquency factor as of April 30, 2015 was 8.10%, versus 8.49% as of April 30, 2014. Olena Goushcha stated that May 31, 2015 delinquency is 6.87% and budgeted was 8% compared to 2014 the rate was 7.52 %. The board directed management to provide an update for collections at the next scheduled meeting. Sales/Inventory Report The board reviewed and discussed the sales and inventory reports. The board requested management to present an owner to owner sales proposal at the September 2015 meeting. The board directed management to clarify what is pending for Great Destinations and will send an update via email to the board. The board directed management to propose other avenues the board can consider to market their units other than Great Destinations at the September 2015 meeting. The board directed management to provide a summary from Great Destinations of how many they have closed since contract began. X. EXECUTIVE SESSION The board went into Executive session at 11:56 a.m. (PDT). The board approved the minutes of the April 17, 2015 executive session. The board came out of Executive session at 11:57 a.m. (PDT). XI. ADJOURNMENT With no further business to discuss, a motion was made by Greg Gfeller and seconded by Gordie Johansen to adjourn the meeting at 11:57 a.m. (PDT). Submitted by: By: Trading Places International Its: Managing Agent Approved by: By: Laule a Apartment Owners & Maui Schooner Resort Owners Association Joanne Hallert Director of Resort Operations Brian Bowcock Secretary Page 6 of 6