Board Members Present: Frank Rice, President; Bob McDowell, Vice President; Mike Garrison, Secretary; Bill Bowler, Treasurer; and, Wendi Anderson, Director-at-Large
Other Attendees: Janice Eisler, Asset Property Management; Richard and Misty Wickwire, Resident Managers; Chyna Colorado, Recording Secretary
I. CALL TO ORDER
President Frank Rice called the Annual Meeting of Kihei Resort Homeowners Association to order at 9:05 a.m. The Meeting was held onsite at Kihei Resort, Kihei, Maui, Hawaii.
The President welcomed the owners. Introductions were made at this time.
III. DECLARATION OF QUORUM
A quorum was declared with 27.92% of the owners present in person and 24.64% represented by proxy for a total of 52.56%.
IV. PROOF OF NOTICE
It was certified Notice of Intent was posted on property December 30, 2011, and Notice of Meeting was mailed to all owners of record on January 25, 2012.
V. APPROVAL OF MINUTES OF LAST ANNUAL MEETING (2011)
The Minutes of the February 19, 2011, Annual Meeting were distributed to owners at registration. Secretary Garrison asked if any owners would like the Minutes of the 2011 Annual Meeting read. Hearing no requests to read the Minutes, the Secretary declared the Minutes of the meeting waived.
MOTION: To approve the Minutes of the February 19, 2011, Board of Directors’ Meeting as submitted.
Rea/Prey — Unanimous Approval
VI. TREASURER’S REPORT
- The Treasurer reported that the Association Budget operated on target. At the end of the year, expenses exceeded income by only 1%. The 2012 Maintenance Fees increase by 8%. He attributed the increase to the rise in utility rates, including electricity and water. Contributions to the Reserves remain as planned. There is a Reserve Study in place.
- Accounts receivable was reviewed. Two units were secured by way of foreclosure, and both are in Quit Claim status, including units 123 and 218. Currently unit 123 is earning $900 a month. Unit 115 is owned by the bank. When the unit is sold, the bank will have to pay the Association $7,200 toward its debt. In the meantime, past due fees are accruing, as the maintenance fees are not being paid by the bank.
- The Association is in sound financial condition. The Treasurer welcomed ideas and suggestions from owners on how to save on expenses.
MOTION: That any excess of membership income over expenses for the year ending December 31, 2012 shall be applied against the subsequent tax year members assessments as provided by IRS Revenue Ruling 70-604.
Janitschek/Prey — Unanimous Approval
VII. INSURANCE UPDATE
- At the 2009 Annual Meeting, the Association approved the Insurance Resolution, requiring owners to obtain HO6 insurance coverage for their individual units. The benefits of owners procuring this coverage were noted by the President. HO6 coverage minimizes the impact of claims against the Association insurance.
- A letter will be sent to all owners stating that it is incumbent upon each and every owner to have HO6 coverage. The Association assured its insurance underwriters that the units are insurable, and that there were not any high risk issues in individual units that might impact other units and/or Kihei Resort as a whole. The President cited an example where the Association had to pay the $5,000 deductible for a leak that occurred in an abandoned unit. The cost of HO6 coverage for owners is minimal.
- An inspection of high risk elements is required by a licensed contractor. This will help the Association overall in the renewal of the Master Insurance Policy.
- The President asked owners to obtain HO6 coverage by April 1, 2012. Further, the Association is asking owners to have this proactive inspection of high risk elements conducted in a timely manner.
VIII. RESIDENT MANAGERS’ REPORT
Misty Wickwire updated the owners on Association projects and activities during the past year:
- Re-caulking and re-painting of pool area
- New pipes installed in Jacuzzi
- New outdoor furniture purchased, including lounges and chairs
- New lock installed
- Landscaping upgrades
- Ongoing electrical work
- Change of all lights
- Solar lamps installed for additional safety
- New rock and water feature donated at second entryway
- Dryer vent cleaning; 10) New front entry bird bath installed
- Terminix inspection and treatment
- Ongoing painting.
IX. LANDSCAPING AND GROUNDS
- Management has evaluated the performance of the gardeners and inspected other properties to gain an objective perspective. The goal is to maintain a manicured, eclectic look. Bids from four different landscape companies have been solicited.
- There was a leak in the sprinkler system in the parking lot noted that should be fixed. One owner was disturbed by the use of noisy landscaping equipment. Another owner was concerned about the gap in the hedge used as access into and out of the property. The President agreed and would like to see the plant hedge “completely solid”. It will be addressed.
- The HOA Board is in the process of selecting a new landscape contractor. The Board will draft the duties and scope of work for the contractor, including days of week and hours of operation.
X. ELECTION OF DIRECTORS
With the terms of Directors Wendi Anderson, Bill Bowler, and Bob McDowell expiring, there are three vacancies on the HOA Board. All three Directors have indicated an interest in serving another term. The Secretary called for nominations from the floor. Hearing none, he closed nominations.
MOTION: To elect Wendi Anderson, Bill Bowler, and Bob McDowell by acclamation to serve another term on the Board of Directors.
Bowler/Mandall — Unanimous Approval
XI. NEXT ANNUAL MEETING DATE
The next HOA Annual Meeting will be held on February 23, 2013.
XII. OWNERS’ FORUM
The following topics were discussed during the Owner’s Forum:
- Short-term rentals
- Number of occupants permitted per unit
- Coffee service at next Annual Meeting
- Fountain overpopulated and suggestion to remove fish
- Drift of smoke from one unit into another, with suggestion to require owners to close windows while imbibing
- Request from one owner for more responsiveness and communication from the HOA Board/management relative to alleged marijuana smoking complaint
- Suggestion for owners to call police when there is an illegal activity onsite
- Potential to approve a ban on smoking on property
- Jacuzzi rules and regulations, including liability for allowing children in the facility
- Tree climbing by kids and liability
- Spa issues
- Hydro-jetting plumbing pipes completed, with pressure relief valves installed
- Photo voltaic and solar hot water potential.
The HOA Board will discuss the Rental Issue, as well as the landscaping contract, in executive session.
MOTION: To adjourn the meeting at 10:16 p.m.
Manges/Rea — Unanimous Approval
Louise Rockett, Transcriptionist