Subject: Annual Owners Meeting Documents

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DESTINATION MAUI
Z
Property Management
Apil 7,2015
Owners
Association of Apartment Owners
of
Kihei Akahi
Kihei, H[96753
Subject:
Annual Owners Meeting Documents
Dear Owners:
Pursuant to the Annual Owners Meeting held on Saturday, January
17
,2015, enclosed are the
following documents for your files:
l.
A copy of the Minutes of the Annual Owners Meeting that were approved
by your Board of Directors.
2.
A copy of your current Board of Directors list, with their terms.
For those who were unable to physically attend the Annual Owners Meeting, we have also
enclosed a copy of the Managing Agent's Report, Insurance Coverage Requirements and the
current Insurance Summary.
Please feel free to call us should you have any questions concerning the foregoing matters.
Sincerely,
DESTINATION MAUI, INC.
Managing Agent
Executive
SG:sf
Enclosures
Resident Manager
pc:
2015-04-07 To Owners. AOM Minutes Letter KAHK
:zo lmi Kala St., Suite t04, Wailuku, Hl 9679)
P
808.244.9021
F
808.241.9883 www.destinotionmoui.net
ASSOCIATION OF APARTMENT OWNERS
KIHEIAKAHI
BOARD OF DIRECTORS
(Updated Ll77lz17sl
Unit #
D-611
DG-I5
Name
Steve Werth
Vista, CA
Della Halvorson
Brackendale, BC
Office
Term
President
2013 - 2016
Vice President
2014 - 2017
h%
,3
W
c-312
Neal Halstead
Calgary, AB
Tressurer
201s - 2018
D-206
Brian Hove
Anchorage, AK
Secretary
2015 - 2018
Director
2013 - 2016
Director
2014 - 2017
David Koch6l
c-105
Allenhurst, NJ
D-602
Joan Remkus
Barrington, IL
David Haynes
2531 South Kihei Road Office
Kihei, Hl 96753
(808) 87e-1881 (B)
(808) 280-3291 (C)
(808) 87s-4344 (F)
ki he i a kahi (r1-hq1vati11-qelq
Kelly A. Hart, CMCA, AMS, Account Executive
Destination Maui' Inc.
220 Imi Kala Street, Suite 104, Wailuku,
HI 96793
(80s) 244-9021 (B); (808) 243-9883 (F)
kell v(/irdestinationmaui.net
Site Manager
ASSOCIATION OF APARTMENT OWNERS OF
KIHEI AKAHI
ANNUAL OWNER'S MEETING
Saturday, Janu ary 17 , 2015
CALL TO ORDER
President Steve Werth called the Annual Owner's Meeting of the
Association of Apartment Owners of Kihei Akahi to order on Saturday,
January 17,2015 at 9:04 a.m. at St. Thersa's Church,25 W. Lipoa Street,
Kihei, Hawaii.
ROLL CALL
Board members
Board member
Others
present:
absent:
present:
Owners
present:
Steve Werth, President, William Crawford,
Vice President, Dave Kochel, Secretary,
Joan Remkus, Director and Della Halvorson,
Director.
Tyler Brill, Treasurer
Nancy Price, Kelly Hart, Roland Carlo and
Kim Toomey, Destination Maui lnc.
Dave Haynes, Site Manager
On file with Destination Maui, lnc.
DETERMINATION OF QUORUM
A quorum was established with 63.2561% of the owners present in person
(59 units represented) or by proxy (89 units represented).
CERTIFICATION OF MEETING NOTICE
Kelly Hart stated that Destination Maui lnc. certifies that the meeting notice
was mailed to all owners of record and posted on the property on
November 20,2014 in accordance with the Association's governing
documents, Chapter 5148 and Condominium Property Regime of the
Hawaii Revised Statutes.
INTRODUCTIONS
president Werth introduced the Board members, the management team
and new owners.
APPROVAL OF PREVIOUS ANNUAL MEETING MINUTES
ttnOlOtt by Ronatd Maurer (C319), SECONDED by Charles Northrip
(C302) to approve the minutes of the Annual Owner's Meeting dated
January 18,2014 as distributed. CARRIED unanimously.
PRESIDENT'S REPORT
presiOent Werth presented his report sharing that the mission of the Board
is to Protect, Preserve and Enhance highlighting the following 2014
initiatives that tied into this mission:
The Photovoltaic System (solar panels) that were installed as a prior
Board's initiative resulted in a cost savings over the past year.
The solar hot water project development for Buildings C & D was the
major undertaking of the 2013 Board and was completed in 2014
resulting in cost savings since its installation.
o The Association owned unit (B-101) was vacated by our on-site
employee and has undergone a needed complete renovation.
A new contractor has been engaged to perform pool deck
ref urbishments.
o pool areafurniture was repaired where possible and replaced when
needed with the total inventory having been increased.
o There were extensive Iandscaping improvements that would be
further highlighted under committee reports.
New barbecue units have been acquired and will be installed after the
high season.
o The insurance premium renewal quote was going to result in a
dramatically increased cost to the Association which led to the
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solicitation of a competing quote that was essentially in line with the
insurance premiums of the prior year.
o Legal counsel was engaged when appropriate to protect the best
interests of the owners.
o The Destination Maui lnc. contract was renewed to provide continued
management services.
The House Rules underwent a comprehensive review that resulted in
needed revisions.
There was a Facebook Akahi Owners Group formed that has resulted
in a positive exchange of information between owners and an avenue
for owners to provide the Board with input.
The newsletter format was enhanced to provide owners with valuable
information.
Management was encouraged to continue the practice of enforcing
house rules in a balanced fashion.
o As part of the modification of the House Rules, the bike storage areas
were cleared of bikes no longer being utilized and a bike storage fee
system was instituted to better manage the bike storage areas.
The long term parking regulations were modified to eliminate storage
in spaces other than the deeded reserved spaces.
There was a zero dues increase for the 2014-15 fiscal year.
president Werth went on to outline some of the challenges the 2015 Board
would be tackling as follows:
o With the vacation of B-101 by an on-site employee and the
subsequent renovation of this unit, how should the Association deal
with this resource in the short and mid term?
The cost of recycling collection and disposal increase dramatically in
2014 and as of February 1 ,2015, the County of Maui was eliminating
curbside recycling collection leading to the challenge of how the
Association should balance continuing to be "green" and at the same
time being prudent with the Association's financial resources.
With the construction of a new connector road to the rear of Akahi
that parallels South Kihei Road, what might be the impact upon the
Association and how should this challenge be met?
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As part of the continuing management reorganization program, what
steps need to be taken to further bolster the actions that were
undertaken in 2014?
ln what ways should the Upper Pool area be modified to better
accommodate those owners and guests who utilize this area?
President Werth extended his appreciation to DMI, the staff, the owners,
the past Presidents and his dear wife Terri for their contributions to
enabling him and the Board to accomplishing all of the above during the
past year.
.
TREASURER'S REPORT
Treasurer Tyler Brill joined the meeting via video conferencing to present
his report. He shared information regarding past dues increase as follows:
.2010111 - 3% increase in maintenance fees
. 2011112 - 07" increase in maintenance fees
. 2012113 - 3Y" increase in maintenance fees
. 2013114 - 3% increase in maintenance fees
. 2014115 - 07" increase in maintenance fees
Treasurer Brill went on to provide an overview of the financial statements
and highlight the major capital projects completed and planned. Some of
the highlights of his report were as follows:
The cell antennae mounted atop Building D for which the Association
has been receiving rental income will cease as of June 2015 resulting
in a loss of income to the Association over the next four years of
approxi mately $70,430.
The preliminary result of the solar hot water heating project reflects a
significant future cost savings. This is magnified by a gas rate
decrease that was negotiated in 2014 that as an example, cut the
price in December of 2014 to $3.50 compared to the price in
December 2013 of $5.13.
The vacation of B-101 and the subsequent renovation provides the
Association with an opportunity with an ability to generate income
from a mid to long term rental, the ability to provide subsidized
housing to a future on-site employee or to sell to avoid any possible
future special assessment.
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Samuel Matza (C-210) posed a question regarding the increased level of
delinquency. Treasurer Brill addressed this question by stating that the
level of delinquency is relatively reasonable, that all steps able to be taken
under law and in the best interests of the Association are being taken and
that certain recoveries have been made.
President Werth recognized retiring Board member Tyler Brill for his
valuable contributions over the past three years. His parents were
presented with a restaurant gift certificate to pass on to Tyler as a small
token of the Association's appreciation.
MANAGING AGENT'S REPORTS
Kelly Hart noted that Destination Maui lnc. has had a very good working
relationship with the Association since 1999, that she has enjoyed her
professional relationship with the Association over the past 1 Vz years, and
further extended her thanks to the staff and Board for having worked with
her over the past yeat in a very productive manner. ln closing, she
reminded those in attendance to continue securing HO6 insurance and
providing documentation of that insurance to the front office.
SITE MANAGER'S REPORT
Dave Haynes offered the following comments:
The Photovoltaic System is providing positive results based on the
most recent evaluation.
o The water heating systems in Building A & B have been replaced.
The preliminary results of the solar hot water heating system indicate
that there will be substantial cost savings.
o The pool bathrooms will be remodeledHe applauded the outstanding work performed by staff members.
He commented that there will be a concerted effort made to take
office operations into the 21't Century.
.
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James Mclardy (D-603) inquired about staff awareness of water alarms
going off. Dave Haynes responded that the staff has been sensitized to this
situaiion and that there have been reports of alarms going off usually made
by neighboring owners and guests.
Kathleen Maurer (D-408) shared a concern related to the water alarm she
had purchased and its tendency to go off as a false alarm. She sought
assistance in identifying a more reliable alarm.
Don Swatman (timeshare unit owner) shared comments on the back gate
and the needed emergency evacuation plan in light of the new road being
constructed to the rear of Kihei Akahi.
President Werth announced at 10:00 am that there would be a short
recess. The meeting resumed at 10:14 am.
BOARD MEMBER REPORTS
presented his report. He expressed his appreciation to his Committee
members, Jeanne Erdahl and Jeannie Pezzoli for their hard work and
valuable contributions throughout the year as well as thanking staff,
Board members and service providers. During the year, the
rejuvenated Botanical Walk proved to be very popular, a procedure
was institutionalized to ensure that needed work was being
performed on a proper schedule that was "beefed up", a process of
regular review between the Site Manager and the Service Provider
was established, regular reports are being provided to the Board and
Committee members and Professor Jeannie Pezzoli conducted a
pruning class for crew members. As a holdover responsibility from
his 2013 Board work, Bill shared that pool area tables, chairs and
chaises are now being repaired and replaced through a regular
inspection process and that the complement of these items have
been bolstered.
Samuel Matza (C-210) commented on the recent trimming of
the Plumeria trees and his desire to see certain areas of the
grounds re-seeded.
Presid-ent Werth recognized retiring Board member Bill Crawford for
his valuable contributions. His wife was presented with a restaurant
gift certificate for her and Bill to enjoy as a recognition of both the
Board member and his spouse for their sacrifices over the past two
years.
.
in 2014 shared the efforts that were made to revise key staff job
descriptions, establish employee goals and objectives and perform
regular employee evaluations. This process led to a management
reorganization whereby the Co-Manager positions were eliminated
and replaced by a single Site Manager position that is held by Dave
Haynes. The Front Desk position was restructured in an effort to
move toward a paper free environment and to have Jordan Diaz who
now holds that position to be tasked with many of the duties now
being performed by the Owner Communications Committee. Dave
also commented on the increasing cost of providing employees with
health insurance and the steps being taken to control these costs to
the maximum extent possible under Federal and State laws. He also
shared that in the short to mid term, it is likely that the Association
owned B-101 unit will be rented on an annual basis, but that the goal
of having an on-site employee presence remains a goal of the Board.
Joan Remkus served as the Buildings and Grounds Committee Chair.
She highlighted two policy changes during the year regarding long
term auto storage being Iimited to owner's deeded/reserved parking
spaces and the clean out of bicycles that were in a state of disrepair
or had been abandoned from the bicycle storage areas and
regulations as well as a storage fee schedule now being in place. The
possible installation of a trellis over the D Building entrance closest to
the entry drive was considered, but was deferred due to budgetary
considerations. lnitiatives that will be considered in 2015 include a
smatl expansion of the Upper Pool deck to accommodate the new
barbecues that will be installed to free up space for pool patrons, the
possible expansion of the Upper Pool deck to add additional space
for seating, a visual enhancement of the D Building loading area,
additional plantings to screen the holding tanks that were installed as
part of the Solar Hot Water Heating Project and the completion of the
B-101 remodel.
o Rindi Patterson (D-103) requested a clarification regarding the
area that would be expanded to accommodate the new
barbecue grills.
Gloria Roman (C-612) posed a question regarding
maintenance, repair and replacement of the carpeted area
leading to unit entry doors. Dave Haynes shared that these
carpeted areas are cleaned quarterly, repaired as needed and
replaced in accordance with the reserve schedule.
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Della Hatvorson served as the Owner's Communication Committee
Chair in 2014. She recognized Jeanne Erdahl for her contributions to
the production of the newsletter which has undergone an updating of
the format. She also recognized Neal Halstead, another key
Committee member. Neal is the Vice President of the statewide
Rental By Owner Awareness Association that has strived to thwart
any legislation that would require all vacation rentals to be handled by
an island based property management company. Neal has also
endeavored to respond to TripAdvisor reviews in an effort to improve
Kihei Akahi's ranking among Kihei vacation rental properties. The
goal will be to have the front office assume this task in the future. The
Facebook Kihei Akahi Owner's Group has been a huge success and
other social media avenues will be considered in the future. Della has
served as the AOAO's point person with respect to the Hospitality
lnternet Service that will be discontinued as of August 3'1,2015. After
this date, owners wilt have to make their own arrangements for
internet service. A key 2015 goal of the Committee will be to have the
front office improve the content and appearance of the web site.
o Lynette Poncin (A-106) commented on the valuable
contributions Neal Halstead has made.
o Don Swatman (Timeshare Owner) expressed a concern that if
B-101 is rented, it could place the AOAO in the position of
having to comply with all ADA requirements. Board Secretary
Dave kochel responded that the Board had f ully evaluated that
concern and had concluded that a long term rental would not be
construed as an action that involved opening anything up to the
general Public.
Susan Eisenberger (Timeshare Owner) requested clarification
of past legislative initiatives that would have required all owners
to utilize a property management company. lt was shared that
all of these legislative proposals have been defeated to date,
but if enacted in the future, those managing their own
properties would have to pay up to a 40"/" commission on each
rental. This does not related to the requirement to have an onisland representative which is a requirement that has not been
opposed by the Rental By Owner Awareness Association.
.
ELECTION OF DIRECTORS
president \ruerth announced that there were expressions of interest to
serve on the Board received from Neal Halstead (C-312), Brian Hove (D2OO) and Chris Yarish (DG04), and their names were included on the
supplied ballot. An opportunity for objections to these individuals being
nominated was provided, and in the absence of any obiections, President
Werth announced that these three individuals were hereby nominated.
President Werth then called for nominations from the floor. When there
were no additional nominations coming from the floor. President Werth
asked if there was any objection to closing the nominations. None being
heard, President Werth declared nominations closed.
Kelly Hart of DMt explained the voting procedure. Kathleen Maurer (C-319
and D-408) and Dan Bosse (Timeshare owner) volunteered to assist in the
counting of the baltots. In accordance with the established practice, DMI
will destroy the paper ballots and proxies after 30 days providing no
objections are received.
The meeting was recessed at 11:33 am for those present to cast their votes
and for the ballots to be counted. President Werth called the meeting back
to order at 1 1 :57 am and made an announcement regarding an Open
House at B-101 that evening at 5:00 pm and a Potluck Social at 6:00 pm.
President Werth announced that the individuals elected were Neal
Halstead (C-312) and Brian Hove (D-206). There being no Old Business to
consider, New Business items were then considered.
NEW BUSINESS
A. Tax Resolution - Resolved, that any excess of membership income
over membership expenses for the year ending October 31,2015
shall be applied against the subsequent tax year memberships as
provided by the IRS Revenue Ruling 70-604.
MOTION by Don Swatman (timeshare unit owner), SECONDED by
Samuel Malza (C-210) to adopt the Tax Resolution. CARRIED
unanimously.
B. Waiver of Earthquake lnsurance
Kelly Hart reported that the Association does not carry Earthquake
tnsurance. The cost has historically been considered to be excessive
and coverage inadequate. She shared that this remains the case
today.
MOTION by Wayne Durgin (Timeshare Owne|, SECONDED by
Margaret Soden (C307 and C315) to ratify the Board's action to
waive the insurance for earthquake coverage. CARRIED
unanimously.
OWNER'S FORUM
challenge of dealing with the contro! of the condensation from air
conditioner units, especially the challenge of getting renters to empty
the air conditioner pan. This led to an extended dialogue with Board
members and other owners regarding past consideration of drain
lines going down the buildings and self-evaporating AC units. The
Board will undertake consideration of this challenge and include an
article concerning the same in a future newsletter.
system for the Upper Pool. After a brief discussion, President Werth
said the Board would explore this suggestion further.
want to assist with a Maui Oceanfront Marathon aid station the next
day.
DATE OF NEXT ANNUAL OWNER'S MEETING
President Werth suggested that the next Annual Owner's Meeting be held
on January 1 6, 2015.
MOTION Brian Hove (D-206), SECONDED Margaret Soden (C307 and
C31 5). CARRIED unanimously.
ADJOURNMENT
MOTION Margaret Soden (C307 and C315), SECONDED Nick Hertz (D415) to adjourn the meeting at 12:31 pm. CARRIED unanimously.
Respectf u lly su bmitted,
Dave Kochel,
Board Secretary
RESOLUTION OF TIIE ASSOCIATION OF APARTMENT OWIYERS OF
KIIIEI AKAI{I
RE:
EXCESS INCOME APPLIED TO THE FOLLOWING YEAR'S ASSESSMENT
REVENUE RULING 70.604
WIIEREAS, the Association of Apartment Owners of KIIIEI AKAHI is a Not For
Profit Corporation duly organized and existing under the laws of the State of Hawaii;
WHEREAS, the members desire that the Corporation shall act in full accordance with
the rulings and regulations of the Internal Revenue Service;
NOW, TIIEREFORE, the members hereby adopt the following resolution by and on
behalf of the Association of Apartment owners of KIHEI AKAHI.
RESOLVED, that any excess of membership income over membership expenses for the yearended October 3l,2[Li,shall be applied against the subsequent tax year member assessments
as provided by IRS Revenue Ruling 70-604.
This resolution is adopted and made a part of the minutes of the meeting of January 17,2015,
Annual Owners Meeting.
Attested:
Association of Apartment Owners of Kihei Akahi
Board of Directors Organizational Meeting
January 17,2015
CALL TO ORDER
Kelly Hart called the meeting to order at 12:46 PM HST.
ROLL CALL
Directors Present: Steve Werth, Dave Kochel, Della Halvorson, Joan Remkus and Brian Hove.
Directors Absent: Neal Halstead
Others Present: Kelly Hart, Destination Maui lnc.
CERTIFICATION OF MEETING ANNOUNCEMENT
Kelly Young certified that the meeting notice was mailed to all Directors of record and posted on
property in accordance with the Association's governing documents, Chapter 5148 and
Condominium Property Regime of the Hawaii's Revised Statutes. This meeting was to
immediately follow the January 17,2015 Annual Meeting and was part of the notice for that
meeting.
ELECTION OF OFFICERS
Kelly opened nominations for Officers. Dave Kochel made a motion nominating Steve Werth as
President, Della Halvorson, Vice President, Neal Halstead, Treasurer and Brian Hove,
Secretary, seconded by Joan Remkus. All agreed to accept these position. This slate of officers
was approved unanimously.
SCHEDULE OF MEETINGS
It was determined that the next Board meeting would be held on January 27,2015 at 9:00 a.m.
HST at the Kihei Akahi office and Lower Pool area.
ADJOURNMENT
Dave made a motion to adjourn, seconded by Della and the meeting was adjourned at 12:54
PM HST.
Respectf ully Submitted,
Dave Kochel, Secretary