maui sunset quarterly newsletter
Transcription
maui sunset quarterly newsletter
MAUI SUNSET QUARTERLY NEWSLETTER First Quarter In this Issue: Draft Annual Homeowners Meeting Minutes Board Meeting Highlights Financial Reports Board Committee Reports Local Hawaii News Airline and Travel Tips MR. MAUI February 2013 An important goal for the Board is to continually strive to improve the quality of life at Maui Sunset. The Annual Homeowners Meeting proved once again that a diverse group of owners can come together as a community and handle the challenges and decisions necessary to improve our property and buildings. Whether a Maui Sunset unit is owned by a full time resident, corporation, limited partnership, family trust or timeshare, we are all owners that share and participate in the governance of our association and are able to offer suggestions and recommendations that continue to improve the quality of life at the most beautiful property in Kihei. We welcomed our Accounting Company, Carbonaro, DeMichele, CPAs as our new Fiscal Manager that will handle the notice, proxy and elections ballots at our Annual Homeowner Meetings. Rosie Davidson represented the company and handled the election, ballot production and tallying of the voting percentages. Steve Morgan of Asset Property Management is no longer doing this for us, but he is covering the AOAO under his Broker’s license, since we are a self- managed property. We have a couple of items that we wish to alert you on; first there has been reported thefts of the registration and inspection stickers from parked cars on Maui. Please be sure to slice your stickers with an exacto knife so they cannot peel off easily. Second; the County of Maui is aggressively going after “cheaters” that have misstated the actual use of their units. In October of 2010 the County passed Bill 53 that requires your condominium association to file an annual report listing how the owners are using their units in order to determine the real property tax classification. If the association does not comply each year, the County will re-classify and re-assess any unit to their “highest and best” legal use. Therefore, please double check that you have classified the use of your unit correctly. Here are the definitions and classifications: Apartment- Units occupied by the owner for personal use (owner’s 2 nd home, not rented) OR rented to a tenant for six consecutive months or longer. Commercial- Units occupied by the owner or lessee for business or mercantile activities (retail, restaurant, office, warehouse). Homeowner- Units owned and occupied as a PRINCIPAL HOME AND FULL TIME RESIDENCE. (Maui Sunset currently has 26 full time owners but 45 others may have claimed this classification in error.) Hotel/Resort- Units occupied by transient tenants for periods of less than six consecutive months (rented for periods of 1 day to less than six consecutive months, owner’s part time residence and also rented). Timeshare- Subject to a time share plan as defined in HRS section 514E. Be sure to check with the County that your property tax classification is correct. There is also a new law, Act 326 that requires operators of transient accommodations to report certain information to associations and requires the associations to report that information to the Department of Taxation. The law applies to any operator of a transient accommodation as well as any association of homeowners with which the operator’s compliance is required for the property where the transient accommodation is located. Significant penalties apply to taxpayers who willfully fail to comply with the requirements of this new Act by March 31, 2013. Associations that fail to comply could be fined up to $100,000. The details of the requirements will be posted on the Maui Sunset Website and a page in the newsletter. Jack Wetherall and Dave Palmer were elected to a new three year term by acclamation, receiving one hundred percent of the vote. No ballot voting was required at this meeting. General Manager’s Report- Alan Blight Good Morning and Aloha to the AOAO Board, Homeowner’s and guests. It has been a very quick but enjoyable first year for me as GM of the Maui Sunset. I know more people by name than I ever did, but in addition, I have learned a great deal about our resort and its people. Last year quite a bit was accomplished; the rock wall, the irrigation line, landscaping, and the pool. The thing I want you all to know is that it was a team effort, from the Board, the maintenance staff, the landscapers, and even some of our owners. There is a pride of ownership here that runs deep and I am glad to be a part of it. The goals I set for last year were to cut out waste and try and improve the property without minimal costs. Overall I think it went pretty well, but there is more to be done. This year I would like to go deeper and find ways to reduce garbage costs and increase recycling. Another area I want explored is the energy we use for the AOAO for electricity and propane. Find a better way to trim our trees without damaging the trunks. But one of the main things I need to focus on is the plumbing. A year in a half ago we started changing out water valves and water heaters. For those of you that replaced those old air conditioners last year, you should see a savings on power and your neighbor can sleep again without all that racket. All of this has reduced unnecessary damage to all our units. This year the goal is to finish that project, so we have an accurate record to go forward with. We also need to go inside the old pipes and investigate how much deterioration has occurred in 35 years. This can be done with a camera and the maintenance crew at a large cost savings to the homeowners. These issues have been studied in the past, but the time has come before we incur a major repair. On a lighter note, the “hot tub” has a brand new heater, and we will be updating it with a new tile look and some minor tile work on the pool as well. Other projects to be the completed this year are gas tiki’s at the rock wall end of the courtyard. We had a suggestion for courtesy and safety to install a small curved mirror in the elevator area walkways. I think this is great idea. Last year the board approved an automatic gate for the second entrance on the “B “parking lot. The project is on hold until the county finishes their water pipe project, so we can determine the proper placement of the gate in order not to have to move it. The gate is now locked @ 9:00 PM at the request of many owners and guests. There have been many good suggestions by owners and guests alike, I want to thank people for taking the time to give their feedback. 2013 MAINTENANCE SCHEDULE February 18 February 19 March 8 April 10 & 17 May 3 May 27 June 7 July 3 & 10 July 4 July 15 thru 17 August 2 August 9 August 12 thru 16 August 20 September 2 September 6 September 9 thru 12 September 16 thru 30 October 9 & 16 November 1 November 28 December 6 January 24, 2014 President’s Day Mary’s Tree Trimming Maui Sewer & Drain hydro-jet Eco Lab AOAO 2nd quarter meeting Memorial Day Maui Sewer & Drain hydro-jet Eco Lab Independence Day Partial De-Thatch “B” Building only AOAO 3rd quarter meeting Mid-Pacific Pest Control (Not Scheduled) 2 Full De-Thatch (Top Dressing) Mary’s Tree Trimming Labor Day Maui Sewer & Drain hydro-jet Pool cleaned Re-tile Hot tub Eco Lab AOAO 4th quarter meeting Thanksgiving Day Maui Sewer & Drain hydro-jet AOAO Annual & First Quarter Meeting Maui Sunset Owner Recognition- Dave Palmer On behalf of the board, I would like to recognize owners who have made a significant contribution to both the lifestyle and the operation of Maui Sunset. As I call your name, please stand and remain standing until I have finished. We can then give them all a huge round of applause at the same time. First I would like to recognize the people who have contributed to making Maui Sunset a more enjoyable place to visit and live: Denise Nelson has on her own time and initiative held water aerobics classes in the pool. From the ever increasing attendance it is obvious these classes are very popular and beneficial. Tom and Sandy Duckworth and Mckeen and Marie Kessel initiated the pot luck pool parties once a month so that owners and their guest can enjoy a friendly social get together. Pat and Ruby Lee Deblasio, also known as Mr. and Mrs. Santa Claus have hosted annual Christmas and Valentines socials at their unit which also helps owners get to know one another. Several people have assisted in helping them host this event and I would like to acknowledge them as well. Mckeen Kessel who was instrumental in having smoking benches installed so that smoking on the lanais was significantly reduced. Dan Lathrop, who for two weeks every year at 7:00 PM comes out onto his lanai and entertains the whole complex with a yodeling concert. Next I would like to thank the following owners who have contributed their expertise in helping to maintain the property and buildings: Elmer Nelson has been replacing the main water valves and the air conditioners at a significant cost saving to the owners. Paul Bivens is a Certified Pool Inspector and has guided our maintenance staff through the required pool upgrading so that it conforms to the latest bylaws and as an added bonus has dramatically improved the water quality of the pool and hot tub. Harry Hecht is a professional engineer who has specialty knowledge of water drainage systems. He has written reports to the county on behalf of Maui Sunset making them understand the futility of trying to make the existing drain on our property work and in doing so has saved Maui Sunset a significant amount of money both in fines and in recommending a better system to the county. He is on the Kihei Community Association Board of Directors, the Kihei Community Association Planning Committee, the Maui Nui Marine Resource Council, the South Maui Citizen Patrol as auxiliary to the Police Dept, the Steering Committee for the South West Maui Water Shed Study, and a Mediator for Mediation Services of Maui. Phil Bazant is a professional engineer and was instrumental in getting our present roofing system and has regularly inspected the roof with our staff and made recommendations on how to extend the life of the roof with minor maintenance. He has also advised along with Dr. Harry Hecht on how to extend the life of our parking lots. I would be remiss if I did not mention the dedication of all of our staff. We have had two Tsunamis in the past two years and to see how they came to the property at night to make sure everyone was aware and was safe shows a real dedication above and beyond their normal jobs. Thank you to all of you who have made Maui Sunset a better place to live and enjoy. (Continued on page 4) 3 MINUTES OF THE 2013 ANNUAL MEETING OF THE MAUI SUNSET ASSOCIATION OF APARTMENT OWNERS January 18, 2013 Mr. Ed Meyer, President Dave Palmer, Director Mr. Jack Wetherall, J.D., Secretary David Courson, Vice President Mary Donlevy, Director Mr. Marshall Gleisten, Treasurer, Director Eileen Bitten, Director Please Note: Full written reports and exhibits are available for viewing at the Managers after the minutes are approved by the Board. The minutes of all meetings reflect a summary of significant events and are not intended or required to be a verbatim transcript. CALL TO ORDER. 9:15 AM ROLL CALL. All directors answered present. PROOF OF NOTICE OF THE MEETING. Mr. Wetherall reported that notice of the meeting was posted as required by statute. A quorum was present with 73.45% of the association present either in person or by proxy. MINUTES OF PRIOR MEETING. President Meyer asked if there was a motion to waive the reading of the minutes. Several owners requested that the minutes be read. Mr. Wetherall read the minutes of the prior annual meeting. A motion from the floor to amend the minutes of the prior meeting to indicate that the majority of the owners physically present at the prior annual meeting voted in favor of a motion to eliminate smoking within 30 feet of the barbeques. The motion failed because of the vote of proxies held by the board and proxies held by the board from absent owners. It was pointed out that Mr. Wetherall had at that meeting said he would do so but in fact, the statement was not in the minutes as circulated to all directors and filed in the office at the property. The amendment of the prior minutes passed. The minutes of the January 20th, 2012 annual meeting as amended were approved by the motion of Mr. Bivens, seconded by Dr. Madhani unanimously. Mr. Kessel and Mr. Bubbs wanted to address the issue of the @ 15,000.00 in payments made which may have been avoided if 514B was adopted per the vote of the owners in 2008. Mr. Wetherall responded to the “Memo to the Association” prepared by Mr. Kessel which suggested that someone on the Board elected in disregard of the ownership not to adopt 514 B. Mr. Wetherall pointed out that on March 5, 2008 an email was sent to the Associations Attorney requesting documents be prepared to adopt the statute. On July 8 t h the Attorney was asked about progress and responded there had been none because of a 9 t h Circuit Court of Appeals case the Attorney was handling. On further in4 quiry the Attorney told us not to adopt the statute until some time had passed and judges had ruled on various provisions. The Association changed attorneys and hired Mr. Nakamura whose advice on prompt adoption of the act was also that time be allowed to pass and that all key provisions of the act applied already so why incur the expense of a complete rewrite. Next was an email from Jack Linn of August 19 2010 in which president Linn expressed his concern about the effect of adoption and that additional information was required before he would go forward and that he had been advised that when the effects of the new act were know Mr. Nakamura could go forward with adoption and recording as stated in Mr. Linn’s email of September 8, 2010. Mr. Wetherall admitted that he believed, until he reread the minutes of the 2008 annual meeting that the resolution had been voted down. The discussion had been so vituperative in the meeting that he would have bet money that it was rejected. Mr. Wetherall took strong exception to the “Memo to the Association” to the extent that it suggested wrong motives to Jack Linn. Mr. Linn and the Board were doing what counsel had advised and what was believed then to be in the best interest of the Association. On the issue of the lost deductibles the provisions of 514 B required a separate resolution in order to pass down the deductible and one had not been adopted so that even if our Declaration had been converted to 514 B the pass down on the deductible could not have occurred. The minutes were approved as amended OFFICER AND COMMITTEE REPORTS. President. Mr. Meyer promised a short report. He had read all the Committee Reports and did not wish to take away from each of the director’s reports. He commented that the year went by very fast and was pleased to see how well the buildings and grounds appeared. I’m pleased to report Sonny got a two percent raise. He commented on all the hand-picked palm trees Sonny has chosen for our annual replacement policy and those donated by owners. Our long range goal of adding color to the grounds is doing nicely with the addition of plants that have multicolored leaves. Mr. Meyer introduced Sue Bharvani who had also donated a beautiful palm tree in memory of her husband and former two-term, Association president, Rajan Bharvani. Everything is in good shape with the exception of the cast iron drainage plumbing that is getting tired. The County of Maui is aggressively going after owners if they are renting their units but claiming the unit is their primary residence. Mr. Meyer reported on the definitions and the requirements to claim a unit as your residence. The county is looking for you to live there year around, have a driver’s license, vote in Hawaii and pay state income taxes in Hawaii. There are only 26 people at the property who are actually full time resident owners. He read to the membership the various categories of property tax classifications the county is applying. Mr. Meyer agreed to put the various categories of ownership in the newsletter with a reminder to owners of the new laws. Mr. Harris asked about A-217 and that all attempts at collection are frozen because of the bankruptcy. A brief discussion regarding bankruptcy rules. Mr. Harris suggested we should pursue and assignment of rents under 514B – 90.5 G. It was pointed out by Mr. Bivens that the unit came up for auction twice and the auction was cancelled at the last minute. Mr. Arcuri talked about a suit he had in Michigan and the operating cost the trustee ran up and the fees the trustee took from the bankruptcy assets. Mr. Bubbs asked about the amount of budget for beach cleaning. We have set the budget to cover that work but in fact the work is on hold. Our President and the Treasurer explained how funds 5 (Continued on page 6) (Continued from page 5 are sometimes moved from one category in the budget to another, after adoption of the budget. General Manager. By Alan Blight. There will be an update from the county in March on further rules on reporting on the rental of units and classification of the use for tax purposes. The property has filed the required report stating the use of each unit. Detailed discussion of the condition of the water and other pipes. Hot tub has a new heater. The goal for this year is the purchase of a quality camera that we will be inserted into the cast iron pipes to check for problems. Completion of investigation work on the pipes will be soon to avoid future leaking. It was pointed out by Mr. Skowronnek that the camera will not be able to necessarily see the neoprene clamps at pipe joints. The only way to check those is to tear into the wall if water leakage is suspected. The gate in the “B” building is now closed at 9:00 PM. Mr. Blight’s full Report is Exhibit “A”. Treasurer's Report . By Marshall Gleisten. The managing of our cash flow is great by Rosie and our CPA Carbonaro. The major item for this last year was the cost of the rock wall which was $13,926.00. This was covered by transferring funds from the Morgan Stanley account, which funds were replaced by the revenue from the Lanai power washing. The full treasurer’s report is attached as Exhibit 2 hereto. Secretary Report. No report beyond that given on the history of the 514 B. Discussion of the rock wall and how it was paid for. Discussion of the reserve study and talks with Thayer and associates as the current level of reserves is at 67.89 % of the total projected to be needed. Amenities : Mary Donlevy. It has been a good year. Several new activities have been added. The rent by Hawaiian Style Activities for next year will be $67K and rent for 2014 is expected to be $75K. Tracey at the reservations desk has been busy. All owners are encouraged to use and recommend the service offered. Full report is attached as Exhibit 1. Beach: Report by Ed Meyer. Dr. Hecht and Mr. Meyer have been working with the county and Department of Natural Resources to get a solution but the representative of the department of natural resources is objecting due to his concerns reference nesting turtles, sand crabs and foraging sea birds. Mr. Meyer opined that turtles and specifically coconut trees do not get along so there is no actual risk to turtles on our beach resulting from the beach cleanup. In addition we have never seen nesting turtles in front of Maui Sunset. Discussion of the exemption under the regulations that provide the County can go on the beach to remove nuisance seaweed and other debris that fowls beaches. The recommendation from the Sea Grant representative was to apply for a Conservation District Use Permit (CDUP). Dr. Hecht agreed that this permit, besides costly is not a good fit for what we want to do on the beach. Mr. Meyer pointed out that such a costly permit would also require Public Hearings and concluded by saying the best way to handle the beach clean-up is with the Right of Entry Permit or County permission as a private contractor. His full two page Beach Report is attached as Exhibit 6. Buildings / Long Range Planning / Website Report by Dave Palmer. The report included the lanai wall cleaning by staff, the door frame replacement done by staff at $45.00 a door which would have cost $175.00 if done by outside contractors. Full report is Exhibit 3 and 3 A. Owner appreciation report by Mr. Palmer included praise for Denise Nelson for Aqua fit; Tom and Sandy Duckworth; Mckeen and Marie Kessel for organizing pot luck get togethers; Pat and Ruby Lee Deblasio for Christmas and Valentine’s Parties; Mckeen Kessel for the smoking benches; Dan Lathrop, for the enjoyment of his yodeling for us each year; Elmer Nelson or help replacing air conditioners and hot water heaters; Paul Bivens for his special assistance with pool our upgrades; Dr. Harry Hecht for assistance as a Beach Committee member and working with the Board in solving the drainage issues with the County and State; Phil Bazant for assistance with the roof inspec6 tions; and our staff who continue to show a strong loyalty and commitment to the property. The full Owner Appreciation Report is Exhibit 4. Report on photo voltaic system. Reserve study was discussed. We are now making an annual $47,500.00 contribution to reserves. Plumbing and pipes are a major concern. The camera to look inside the pipes is a $10K capital expenditure. Currently there is no capital fund in our reserves and Mr. Palmer intends to create one. It is not a line item and he thinks it should be. Web site report. Work on the web site continues. As a reminder the web site is MauiSunset.me, the access code is Paradise and the password is the zip code for the property. Mr. Palmer is going to add a new page of upcoming events and items of interest to all owners. It may be called “Spotlight”. Communications / Newsletter Deadline for the next newsletter is January 22, 2013 by 5 PM Pacific Standard Time. Grounds & Design Report by Mr. Courson. There were six property inspections conducted in 2012. Units with violations were contacted and brought into conformance with our documents. The gate at the “B” building has been a great success in reducing people using our parking lot as a short cut. The committee is currently reviewing updating and perhaps enlarging the water feature located near the new rock wall. The rock wall has substantially improved privacy and cut down on uninvited guests traversing the common area. David and Robin live here, reduction of vehicular traffic since the gate installed. Discussion on palm trees and long discussion on the gate and the issue of an electric gate. A major issue as pointed out by Mr. Blight is that if you have an electric gate the car attempting to enter must be fully off the road while the gate opens which would require removing or impacting at least two parking places. The county still has an 8 foot setback from the center line of the road which would come inside of the bougainvillea area at the “B” building. The combination of both facts would seriously impact parking. The full report is Exhibit 7. Human Resources : Eileen Bitten. She is currently working on the employee manual and definition of duties for board members and staff. Mr. Meyer asked Eileen to report to the membership on her background. She has had over 35 years of experience in the as a human resources administrator. She had worked extensively in organizations with up to 10,000 individuals who involved labor relations and employee standards and evaluations. Ms. Bitten ended by stating her belief that we have excellent staff of fourteen with a limited turnover, who are happy to be at the Maui Sunset. Internal & Public Relations- David Courson. As part of his written report attached hereto as Exhibit 8, Mr. Courson included a copy of his letter to Don G. Couch Jr. regarding Waipuilani County part and converting a small portion to a community garden. Insurance: Insurance committee. Report is Exhibit # 9. The premium for 2013 is @ $79,000.00. On Building B. There is an extra unit in the B building and in part as a result the premiums for the B building are slightly higher that the premiums for the A building. Rules and Regulations: Motion by Wetherall. Mr. Wetherall moved that the association implement the provision of 514B -90.5 G and see if the bankruptcy court takes any action. The motion is: The association adopts a policy to fully implement the provision of HRS 514 B -90.5 (G) for the collection of rent from any tenant of an owner delinquent in assessments. The motion was seconded and carried unanimously with no votes in opposition and no abstentions. 7 (Continued on page 8 (Continued from page 7 Timeshare Liaison: There is no report. Elections. Request made for nominations from the floor for director. There were no nominations. The candidates are David Palmer and Jack Wetherall. On motion made by Tom Meyer and seconded by Ron Owen each was elected to a three year term by acclamation. UNFINISHED BUSINESS AND ACTION ITEMS- It was reported that Dr. Harry Hecht, Ed Meyer, AOAO lawyer Reid Nakamura and Alan Blight met with the Department of Public Works Director and County Council lawyer for the DPW on January 14 discuss ways to mitigate their directive to refurbish the old worn out drainage system in the B lot. The meeting was extremely successful and we are hopeful the County will accept our proposal to pump the ponding water with our in -house staff. NEW BUSINESSThe issue of marijuana smoking on the property and what should be done. Apparently the police will not come unless the caller can prove the smoker does not have a medical use or permit for the drug. Mr. Bubbs. Fertilizing and dethatching property. Propose that there be no fertilizing for a three week period during Christmas, Easter, and spring break. After extended discussion the owners decided the matter should be submitted by our Manager to Sonny to decide on whether such a schedule would work for Sonny and not interfere with the protection of the grounds. Motion passed. Mr. Bubbs wanted signage up whenever Sonny was spraying chemicals or insecticides. Discussion about children running on the grass and being exposed to insecticides. Mr. Meyer pointed out that the state of Hawaii does not permit chemical pesticides and that only non-toxic remedies can be used. There was the issue of notice. The ground floor units do not use the elevators in the normal course and so notices posted in the elevators do not get to ground floor unit owners. Discussion of how notice could be handled for important matters or just general calendar information. Summer Carol stated that in the future notices could be placed in owner’s boxes. Mr. Kessel thanked the board for reducing second hand smoke. He wondered why the Board had not adopted the resolution to prohibit smoking in the common and limited common areas of the property. After discussion on motion made and seconded and unanimously carried: Smoking is prohibited on the Common Elements or Limited Common elements of the Maui Sunset. It was noted that the handouts at the front desk will need to reflect this. Also, no smoking stickers or signage should be placed at the barbeques. The location of the smoking benches will also continue to be identified to smokers on checkin. An owner asked what a limited common element was. Mr. Wetherall offered the example of the adjoining hallways between the two bedroom units which are to be used only by the units they serve. Motion to ratify Carbonaro as the Association’s accountant and fiscal agent. Moved by Tom Meyer, Seconded by Jack 8 Wetherall. Motion passed by unanimous vote. Motion to roll over any unused funds from 2012 to 2013. Motion by Ed Meyer, Seconded by Jack Wetherall. Motion Carried Unanimously. Ratify and affirm the acts of the board intervening from the date of the last annual meeting until the date of today’s meeting. Motion by Mr. Gliesten, seconded by Mr. Bivens. Motion passed unanimously. Request by Mr. Ed Meyer to ratify January 24, 2014 as the date of the next annual meeting. No objection. Mr. Kessel made a motion which was seconded by Mrs. Harris that the association: Acknowledges that second hand smoke interferes with the enjoyment of other units by owners and their guests. The question was called on the motion. The motion passed and the resolution adopted that the Association Acknowledges that second hand smoke interferes with the enjoyment of other owners. There will be a town meeting after this meeting chaired by Vice President, David Courson. It was pointed out that we must vacate the room by 1:00 pm due to a community swimming meet. Adjournment. 12:33 PM Treasurers Report- Marshall Gleisten The summary of 2012 would be that Carbonaro under the daily oversight of Rosie Davidson continues to provide excellent service The summary of 2012 would be that Carbonaro under the daily oversight of Rosie Davidson continues to provide excellent service in managing the daily cash flow of the AOAO. While our annual financial statements are prepared under the accrual basis in accordance with generally accepted accounting principles, it is on a cash flow basis from which we take in revenue and pay our bills. So when both statements are presented side by side they can look like different entities! Cash in - Cash out is how the AOAO is financially managed on a daily basis. The major item that I was involved with in 2012 was the interim funding of the rock wall that cost $13,926 where we temporarily transferred funds from our Morgan Stanley account, which was repaid in full with funds generated from the lanai powerwashing project. This addition to the property was money well spent and well received by the owners. The AOAO is blessed to have responsible owners that pay their maintenance fees on a regular basis. It’s these funds that cover the daily bills. This is critical in keeping the maintenance fees as low as possible. We recently received the final Reserve Study; the previous was done in 2007. As to be expected, costs continue to rise which needs to be incorporated into any study. The company that prepared the Study noted our annual reserve funding is less than optimal. Further review of the complex 55-page document is needed to validate the input and resulting report. The draft annual financial statement audit shows we have Operating Funds of $22,351 plus amounts in the reserve funds totaling $593,778. The Maui Sunset AOAO Reserve fund is funded at 67.89 percent of the replacement. This is higher than required by Hawaiian Statue. Our Operating Income Statement showed a nominal ‘loss’ of $10,278, which is only 0.78% of total revenues. From a budgeting standpoint this is using a very sharp pencil to get to this close! Since the AOAO is a not-for-profit we never strive for a ‘profit.’ Break-even is ideal. What is often a topic of discussion is that of the elevator loan. It will be paid off in full on 3/4/2015. It will be these annual funds of $45,816 that will be available for other AOAO purposes, such as funding the reserve account, etc. (Continued on page 10 9 (Continued from page 9 Beach and Drainage Report- Ed Meyer/Dr. Harry Hecht The meeting with the County on the worn drainage system in the B lot was held at 11 am at the County Building with the Department of Public Works (DPW) on December 6th, with a second meeting on the 16th of January. Due to the fact that the Maui County lawyer was present we had to have our AOAO lawyer, Reid Nakamura present. In attendance at the last meeting was Ed Meyer, Alan Blight and owner, Dr. Harry Hecht. He was our expert witness who demonstrated his civil engineer skill set. Here are some of the volunteer posts he participates in: the Kihei Community Association Board of Directors, the Kihei Community Association Planning Committee, the Maui Nui Marine Resource Council, the South Maui Citizen Patrol as auxiliary to the Police Department, the Steering Committee for the South West Maui Water Shed Study and Civil Engineer, PhD. We volunteered to use our equipment to pump ponding water from the intersection of Waipuilani and S. Kihei Rd. We promised to pump the water on to our property. The meeting was very successful in our opinion. As a coincidence, that night we had a massive rain storm that flooded the intersection. Our staff was able to pump out all the water in 7 minutes- clearing the intersection. Before and after pictures were sent to the DPW to show that our system will work. We will keep you posted on further developments, but for now it looks like we are getting cooperation from the DPW. While at the meeting Ed spoke with the Director of Public Works, David Goode about helping with getting our Right of Entry Permit (ROE) so we will be able to remove nuisance seaweed from the Waipuilani Beach Reserve. He had showed some pictures taken by Dr. Hecht showing how the seaweed is slowly returning north of us near the VFW hall area. The Beach Committee, after careful study wrote to Rob Parsons in the Mayor’s office and Tara Owens who is with the Coast Processes and hazards Specialist U of H Sea Grant College Program County of Maui Planning Department, that her recommended Conservation District Use Permit (CDUP) was not something we could accomplish with all the reports, studies and Public Hearings it requires. There are sections of the permit that require information we would never have available to us or even fit the subject of seaweed removal. We explained that we didn’t believe we were in a Conservation Area and respectfully disagreed that such a permit would fit the task of simple removal of nuisance seaweed that has been successfully ongoing for several decades without problems. Tara wrote to Daniel just before Christmas and mentioned how she had worked on various versions of our Seaweed Management Plan for the Waipuilani Beach with Ed Meyer and Alan Blight that included discussions and ideas from Rob Parsons and Russell Sparks. She felt it reflected many of the conditions Daniel was concerned about, such as limiting hours of collection and not allowing beach scraping or shaping. The DLNR even suggested hand removal but they tested that and it didn’t work. The best fit is the ROE and makes the most sense for mitigating the problem we all will face soon when the seaweed returns. It is our understanding that the permit and our report was reviewed by the DNLR and he was going to submit it to the biologist for their review of impacts to animals that he claims may be affected by seaweed removal. We also don't know how to handle the fact that Daniel Ornellas of the DLNR claims there are foraging sea birds and nesting turtles on the Waipuilani Beach. Some of us have been at Maui Sunset for thirty years and there are no nesting turtles and no foraging sea birds. There are sand crabs that have been thriving on the beach, during the past decades of periodic removal of seaweed. We believe the sand crabs enjoy an environment when layers of wet seaweed are not covering the holes they dig and need to transit. This was the first time nesting turtles, foraging seabirds and sand crabs have been an issue in removing nuisance seaweed. There has never been a single complaint about endangering animals during the non-evasive beach cleaning methods we have used over the years. It will be imperative that when seaweed returns it has to be mechanically removed before it rots and creates the "sewer smells" that were written in the newspapers and news stories in the past. We have already agreed to no beach sculpting or removal of coral rubble- all we want to do is remove nuance seaweed with private funds that would cost the County nothing, but protect the fragile tourist economy and the enjoyment and use of the County Park. The pictures we recently sent show a clean beach and this is because the near shore waters are still impacted by the silt that has drained into the ocean from previous storms. We had algae starting to grow back on the small rocks in the near shore water, but the large storm waves have "kicked" up and the silt has covered the coral again to smother the new growth. We are hopeful that the County and the Mayor's good office can obtain some level of cooperation with the DLNR. We still believe if the County got the ROE, we could next work directly with the County with their oversight to remove nuisance seaweed with private funds. David Goode at Public Works has always been helpful and interested in this serious matter of seaweed removal. 10 Long Range Planning Report- Dave Palmer We have some significant challenges to meet on long range planning. The solar panel investigation continues. The current quote we have is not being pursued because it entails attaching the panels to the roof parapet. Since the panels themselves will be exposed to wind shear, we believe it is too dangerous to proceed with this system. The community pool has just installed a carport system that heats their pool. It has the advantage of offering shade for parked cars as well as providing electricity from the photo voltaic panels. We are in the process of getting a viability study and cost estimate for this type of system. We will be paying off the elevator loan in 2014. If we approve a solar electrical system, the annual payments for the elevator loan will then go towards payment for the solar electrical system. Once the economics are worked out, we will have a better handle on how much in electricity costs we will be saving. It is our intention to try to include the pool heating costs in the economics. The reserve study is now pretty well complete and it indicates we will need to increase the funding of our reserves. We currently contribute $47,500 per year to the reserves based on the old reserve study recommendations. We need to increase that to $100,000 per year to meet the current new reserve study preferred percentage. The crumbling and deterioration of our plumbing pipes is a major concern. We are looking at the purchase of a sophisticated camera to determine the extent of damage in order to either replace pipes or put a sleeve into them to extend their life. Menehune Shores is going through the same exercise. As mentioned in my previous report, we do not have any capital improvement component in our reserves. In other words, our reserve considers repair and replacement of existing facilities but does not consider any new capital items. We were lucky last year to be able to fund the new volcanic rock wall from unanticipated revenues from lanai wall cleaning and door frame replacement. There is no room in our current budget to do anything new to improve our complex. I will be making a resolution to add a capital improvement levy in all future budgets to handle this concern. Buildings Report- Dave Palmer The following action items have been completed this year: 1. Lanai wall cleaning. This work was carried out by our in house maintenance staff even though it is part of an owner’s responsibility. Had it been contracted out to an independent contractor, it would have cost the owner about $135.00 to clean the wall, ceiling and floor. Our staff did it for $70.00. This saved the homeowner $65.00 and contributed approximately $15,000 to our common area budget. This windfall income was used to pay for the new volcanic rock wall between buildings A and B which provides added security to the whole complex. 2. The door frame replacement in building “A” was also an owner responsibility that was carried out by our in house staff. Had this work been contracted out, it would have cost the owner about $175.00. It was done by our staff for $ 45.00, a saving to the owner of about $ 135.00. It also contributed approximately $4,000 to our common area budget. 3. Main water valve replacement. This work is being done by Elmer Nelson at a significant saving to the owner. Action items in progress include: 1. Air conditioner replacement. This work is also being carried out by Elmer Nelson again at a significant savings to the owner. The owner also benefits from increased efficiency and lower operating cost. 2. Next up will be the painting and waterproofing of the end walls of the buildings 3. We are delaying the installation of an automatic fob operated gate control from Building “B “parking lot until the county decides how much land it will need to widen the road. 4. Our in house staff is repairing most of the concrete crumbling on the lanais. We will need licensed contractors for any area that has structural considerations. In the meantime, all new flooring on the lanais will need to have a waterproof barrier installed under the actual floor covering whether it is tile or carpet. Maui Sunset AOAO Insurance Committee Report- Marshall Gleisten The summary for 2012 is that all policies covering the AOAO have been renewed and we were granted an eight month nointerest payment plan which benefits the cash flow of the AOAO. During the year we lost the service of Elizabeth Phillips but retained the service of her branch manager, Dave Gerlach who has considerably more experience than Elizabeth and so far this arrangement has been entirely satisfactory. (Continued on page 12) 11 (Continued from page 11) There has been much presented over the prior two years where the benefit of being under Hawaii Stature 514B would benefit the AOAO from the potential elimination of the $5,000 deductible. This would entail a two-step process where the owners would need to approve the AOAO to be governed under 514B; the second step would be for the owners to approve of the Board to require insurance by all owners: [CHAPTER 514B] CONDOMINIUMS (g) The board, with the vote or written consent of a majority of the owners, may require unit owners to obtain reasonable types and levels of insurance. The liability of a unit owner shall include but not be limited to the deductible of the owner whose unit was damaged, any damage not covered by insurance required by this subsection, as well as the decorating, painting, wall and floor coverings, trim, appliances, equipment, and other furnishings. If the unit owner does not purchase or produce evidence of insurance requested by the Board, the directors may, in good faith, purchase the insurance coverage and charge the reasonable premium cost back to the unit owner. In no event is the association or board liable to any person either with regard to the failure of a unit owner to purchase insurance or a decision by the board not to purchase the insurance for the owner, or with regard to the timing of its purchase of the insurance or the amounts or types of coverages obtained. Following is a summary of the insurance costs for the AOAO. 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Commercial Property $34,554 $32,909 $32,962 $30,470 $34,551 General Liability $12,311 $14,206 $12,405 $12,277 $11,277 Commercial Umbrella $5,287 $5,564 $5,034 $5,014 $4,741 Boiler & Machinery $2,584 $2,522 $2,526 $2,529 $2,868 Directors’ & Officers’ Liability $1,809 $1,573 $1,573 $1,628 $1,628 $274 $274 $274 $274 $274 $6,033 $6,033 $6,261 $6,260 $6,364 $6,212 $6,220 $6,199 $6,397 $6,896 Workers’ Compensation $9,312 $9,596 $8,298 $8,318 $8,654 Commercial Automobile $825 $825 $633 $699 $673 2% 2% 2% 2% 2% $5,000 $5,000 $5,000 $5,000 $5,000 $79,201 $79,722 $76,165 $73,866 $77,926 $521 ($3,557) ($2,299) $4,060 -4.46% -3.02% 5.50% Fidelity Bond Flood Insurance Building A Building B Hurricane Deductible All Other Perils Deductible Total Annual Premium Dollar Change Yearly Change - - 12 MSAOAO Amenities Report- Mary Donlevy It has been a very successful year for the Maui Sunset Amenities. We have added several new activities with rentals of sports equipment such as Pickle Ball, Badminton, Bacci, Shuffleboard etc. all being available at the Activity Desk. Several amenities have been improved such as the floor of the Kayak Storage area and the Shuffleboard Courts. In addition, we would like to remind owners who store bicycles, kayaks, and paddle boards to use large cable bike locks to secure their equipment when on our property. Hawaiian Style Activities has had an increase in business over the last year and their rent will be increased to a total of $67.000 for the next year and $75,000 for 2014. This will bring us back up to the level of rent that was applicable in 2010. HSA has been very successful in acquiring business by utilizing several new ideas we worked on together. Pool issues have included successful upgrades of equipment to put us in compliance with the requirements of the Virginia Graham Baker Act. Pool Maintenance was aided and very successful with the assistance of owner Mr. Paul Bivens. New signage for the pool and hot tub rules are in progress and expected to arrive any day. Ms. Denise Nelson continues to provide owners and guests with excellent aqua fit classes in our pool. Many visitors state these are the best classes they have ever attended. Ms. Nelson now carries the liability insurance requested by the board and is diligent at requiring all participants to sign a waiver before partaking in the classes. Additional Message from Mary Donlevy- MD FCFPC Board member I would like to remind owners to refer their visitors and tenants to use Hawaiian Style Activities as often as possible. Not only are they a great company, it will increase revenues for us all. In addition, if they would like to email their prospective tenants information ahead of their stay, this will likely make it more likely for them to book with HSA as often people plan their trip ahead of arrival on Maui. Their Maui Sunset Manager, Tracy has given us permission to give out her email address if owners or guests wish to contact her directly: [email protected] Their toll free number is 888-875-4003 and their general Maui Website is: Hawaiianstyleactivities.com/ms. THANK YOU FOR NOT SMOKING STICKERS AVAILABLE AT FRONT OFFICE: FREE As a physician who is very aware of the dangers of second hand smoke and the many diseases that are either caused or aggravated by it such as congestive heart failure, asthma, emphysema and many cancers, I fully support the Association’s decision to prohibit smoking on the common and limited common elements of the property, with the exception of your private lanais and the smoking benches in each of the parking lots. I wish to thank many association members who have supported the "Spread a Little Aloha" campaign started by one of our owners, Mr. Kessel. This campaign asks all owners to consider the health and comfort of their neighbors, spread a little aloha and put a Thank You for not smoking sticker on their lanai. In addition, Board Member Dave Palmer is to be thanked for generously purchasing these stickers for all of us to use. You may also want to consider telling your rental agent that you will not permit smoking in your unit or on the lanai. As an owner you have this right. For those who have yet to put stickers on their lanai, please help us in maintaining the Maui Sunset as a family friendly and healthy resort and consider obtaining a sticker from the front office to put on your lanai. They are free. Grounds and Design Committee Report – David Courson, Vice President Six property inspections were conducted during 2012. Upon reviewing the front and back side of each property, nonconformance of all rules and regulations of the revised Maui Sunset House Rules as approved and adopted by the AOAO Board of Directors were duly noted. Initial attempts were made to personally meet with the owner(s) of each unit not conforming to the House Rules. In most cases, the nonconforming issues were successfully resolved as a direct result of these personal meetings. The owners and residents at the Maui Sunset continue to be understanding and agreeable when requested to adhere to the House Rules (i.e. removing umbrellas and/or towels from lanais, repairing damaged slider screen doors, etc.). If a property owner could not be contacted through a personal meeting, a letter was sent describing the nature of the nonconforming violation, with a response form and pre-addressed envelope enclosed. A response was requested within 30 days of the receipt of the letter. A total of seven letters of nonconformance were mailed to property owners during 2012, an increase over the previous year of overall adherence to the House Rules. Four letters were mailed in reference to violations of House Rules 8.g (nonconforming draperies and window coverings). Two (Continued on page 14) 13 letters were mailed in reference to violations of House Rules 7.c (nonconforming lanai furniture). One letter was mailed in reference to violations of House Rules 5.b (animals on premises). All of these owners responded in a timely manner. All responses included acceptable plans of action to resolve these violations in a timely and appropriate manner. As year-round, full-time residents in the “B” building, my wife and I have observed a significant reduction of unauthorized traffic (including speeding cars, trucks, motorcycles, mopeds, skateboarders and people walking dogs) using the “B” parking lot as a “bypass road” between S. Kihei Road and Waipuilani with the closure of the “B” parking lot gate. Several people have mentioned to me how pleased they are by the elimination of this dangerous traffic using our parking lot as a “bypass road.” Our property is noticeably safer, quieter and more secure with this gate closure. Significant financial savings to the AOAO will result from the elimination of heavy trucks using our parking lot as “bypass road” causing premature surface deterioration. The rock wall paralleling South Kihei Road was completed this year, on-time and below budget. This wall has enhanced the security of our property, as well as the beauty of our grounds. Congratulations to our Manager and Grounds Crew! The committee is currently giving consideration to updating the garden waterfall area including enlarging the area by removing some grass, planting additional tropical foliage and ground cover or pumas rock, and installing four tiki-torches (connected to existing propane lines from the BBQ’s) surrounded by a lava rock wall. Initial proposals call for all work to be done utilizing in-house labor, with the exception of the matching walls. In addition, follow-up meetings with the General Manager were held to identify and prioritize maintenance issues. These include additional plantings of coconut and palm trees, the elimination of unsightly rubbish cans and construction of more attractive recycle bins located in the parking lots, identification and repair or replacement of deteriorating air-conditioners, slider screen doors and entry doors. General Manager Alan Blight is to be commended for his insight and availability in assisting the Grounds and Design Committee in maintaining our high standards and compliance to the House Rules. Please feel free to contact me at any time regarding questions or suggestions pertaining to committee responsibilities and/or actions. Living on the property “full-time” has provided ample opportunity to “talk story” with the Maui Sunset staff and maintenance crew. I am pleased to report that our staff continues to adhere to “the highest standards of excellence” in their various responsibilities. Residents and guests repeatedly comment on the professionalism, cordiality, and efficiency of the General Manager and staff. The grounds and maintenance crew continue to serve efficiently and effectively. There are no problems to report at this time within the scope of the Internal and Public Relations Committee. Internal and Public Relations Committee Report – David Courson, Vice President The following letter was sent to Maui County Council Member Don Couch and Maui County Mayor Alan Arakawa on May 24, 2012. We are still awaiting a reply. Mr. Don G. Couch, Jr. Council Member, County of Maui Kalana O Maui Building 200 South High Street, Eighth Floor Wailuku, HI 96753 Dear Councilman Couch, On behalf of the neighbors of Waipuilani County Park, I am writing to request your support of a recommendation to convert a small portion of the park to a community garden. This recommendation would enhance the park, support the Mayor’s endorsement of sustainability, and save the taxpayers money at no cost to the county. A community garden would enhance the park. The area immediately mauka of the parking lot on Waipuilani Road has been the site of illegal open fires resulting in numerous calls to the Maui Fire Department by local residents concerned about these open fires in close proximity to a nearby large propane tank and condominium. In addition, this area is a site for the sale and distribution of illegal substances. The Maui Fire Department and Maui Police are regularly called to respond to these problems. A community garden in this area (comprising less than 1% of the total park area) would eliminate these problems by utilizing this area for a community garden rather than for illegal open fires and the distribution of illegal substances. 14 Internal and Public Relations Committee Report – David Courson, Vice President The following letter was sent to Maui County Council Member Don Couch and Maui County Mayor Alan Arakawa on May 24, 2012. We are still awaiting a reply. Mr. Don G. Couch, Jr. Council Member, County of Maui Kalana O Maui Building 200 South High Street, Eighth Floor Wailuku, HI 96753 Dear Councilman Couch, On behalf of the neighbors of Waipuilani County Park, I am writing to request your support of a recommendation to convert a small portion of the park to a community garden. This recommendation would enhance the park, support the Mayor’s endorsement of sustainability, and save the taxpayers money at no cost to the county. A community garden would enhance the park. The area immediately mauka of the parking lot on Waipuilani Road has been the site of illegal open fires resulting in numerous calls to the Maui Fire Department by local residents concerned about these open fires in close proximity to a nearby large propane tank and condominium. In addition, this area is a site for the sale and distribution of illegal substances. The Maui Fire Department and Maui Police are regularly called to respond to these problems. A community garden in this area (comprising less than 1% of the total park area) would eliminate these problems by utilizing this area for a community garden rather than for illegal open fires and the distribution of illegal substances. Second, a community garden would support the Mayor’s endorsement of sustainability. This community garden program would be open to all citizens. Small individual vegetable and/or flower gardens would be planted, maintained and harvested by local citizens. Each garden plot would measure approximately 4 ft. X 8 ft. (approximately 32 sq. ft.). This proposed community garden would have from 15 to 30 garden plots. Trees would not be allowed, thus avoiding the blockage of sunlight to neighboring garden plots. My wife and I grew much of our own vegetables on a similar size plot administered through the Parks and Recreation Department of the City and County of Honolulu when we were living on Oahu. It was extremely successful and popular with all county residents. Third, a community garden would save the county money at no cost to the taxpayers. Calls to the Maui Fire Department and Maui Police Department to respond to illegal fires and substances to this area would be greatly reduced, thus saving the County of Maui a significant amount of money. The AOAO of the adjoining Maui Sunset Condominium has agreed to provide water and dividers for the garden plots (at no cost to the county), thus further reducing park maintenance expenses. Therefore, on behalf of the neighbors of Waipuilani County Park, your support in converting a small portion of the park to a community garden, thus enhancing the park, supporting the Mayor’s endorsement of sustainability, and saving the county money at no cost to the taxpayers is requested. Mahalo nui loa for your consideration of this request. Respectfully and with aloha, David Courson Vice President Maui Sunset AOAO cc: Mayor Alan Arakawa Mr. Alan Blight Mr. Ed Meyer 15 MINUTES OF THE FIRST QUARTER MEETING OF THE MAUI SUNSET ASSOCIATION OF APARTMENT OWNERS JANUARY 19, 2013 Eileen Bitten, President David Courson, Vice President Mr. Jack Wetherall, J.D., Secretary Mr. Marshall Gleisten, Treasurer, Director Mr. David Palmer, Director Ms. Mary Donlevy, MD. Director Please Note: Full written reports and exhibits are available for viewing at the Managers after the minutes are approved by the Board. The minutes of all meetings reflect a summary of significant events and are not intended or required to be a verbatim transcript. CALL TO ORDER. 9:10 AM ROLL CALL. All directors answered present. PROOF OF NOTICE OF THE MEETING. Mr. Wetherall reported that notice of the meeting was posted as required by statute. MINUTES OF PRIOR MEETING. Mary Donlevy moved that the minutes be amended to provide that she suggested micro fische or scanning of the old minutes rather than their Destruction. The amendment to the minutes was approved. The reading of the minutes of the previous meeting, which minutes had earlier been circulated to all directors, was waived and the minutes as amended were approved by unanimous vote. OFFICER AND COMMITTEE REPORTS. President. The president varied from the agenda and announced that the primary function for this meeting was the election of officers. President Meyer nominated Eileen Bitten as president. The motion was seconded by Jack Wetherall and passed unanimously. 16 Mr. Meyer then suggested that the remaining officers remain in their current offices. The motion was seconded and passed unanimously. General Manager. Mr. Alan Blight was thanked for the owner’s party which was a great success. Treasurer's Report. Nothing in addition to yesterdays report. Secretary Report. Nothing additional Amenities: By Ms. Donlevy: Additional mention of ping pong tables, a concern is expressed about the floor in the sauna and some unnamed owner who continues to get water on the floor when there is specific signage asking that water not be used in the sauna. The Board directed that a sign be placed on the Sauna: “Use at your own Risk”. Beach: By Mr. Meyer. No additional report since yesterday but Mr. Meyer passed around a picture of the beach from several years ago which made obvious the losses due to erosion. Buildings / Long Range Planning / Website A meeting is schedule with the representatives of the photo voltaic company to meet with David to develop some solid numbers for installing a system. There are at least two sizes ( amount of current produced ) and prices will be estimated for a system the company recommends. Mr. Meyer expressed the view that financing would have to be obtained as we previously did for the elevators or special assessment. Mr. Palmer would continue to evaluate a Personal Line of Credit for the AOAO. Web site report. Mr. Palmer wants to add an additional page which will highlight upcoming events or important issues affecting the property. Mr. Meyer who is on the board of a large project in Canada suggested that in that Association they have a page called “Spot Light” which serves the same function as that Mr. Palmer was suggesting. No vote was taken but there was general agreement that such a page was a good idea. Mary Don- levy volunteered by motion to do an email to all owners for whom we have email to remind them to check the website every time a new notice is posted. There was no second and the motion therefore failed. There was a discussion about storage rental and the process now in place to determine cost and how lockers would be distributed. President Bitten agreed to meet with Mary on that matter. Grounds & Design No additional report. Human Resources : Eileen Bitten. No additional report Internal & Public Relations : Nothing additional. Insurance: Insurance report by Mr. Gleisten. Exhibit # 9. Timeshare Liaison No report. Rules and Regulations: Mary Donlevy moved to have people who are checking in to the Maui Sunset to sign a tick box (as they do with the washing machine not to be on in their absence) stating that they have read the “Good Neighbor Policy on Not Smoking”. Motion seconded and passed unanimously with no directors abstaining or voting against the motion. (Continued on page 18 17 (Continued from page 13) UNFINISHED BUSINESS AND ACTION ITEMS NEW BUSINESSThere followed a wide ranging, out of agenda order discussion including: A request by Mr. Kessel that if he buys more “Thank you for not smoking” stickers, would the front desk pass them out. They would be the same those previously made by Mr. Palmer. The board without a formal vote agreed the stickers would be passed out if requested by an owner. Questions on what insurance coverage applied to the storage room. It was suggested that the Association policy would not cover contents of the storage rooms. After discussion it was decided that Marshall Gleisten would specifically inquire of our insurance agents what coverage now applied to both the building structure and to the contents of the storage locker. Mary Donlevy stated that having accurate information would be critical after the adoption of the provisions of 514 B with regard to the push through of deductibles to the individual owners. New Hana Ranch Owner, Bio-Logical Capital, has big plans The Colorado company also wants to develop a 200-megawatt wind farm on Molokai. The plans for the Hana Ranch include preserving the cattle operation and expanding the organic farming. They mentioned one possible partner in the organic farming venture as Hana Fresh Farm, which grows gourmet quality certified organic produce including more than 100 varieties of vegetables, fruits, herbs and medicine crops. With its pending purchase of the Hana Ranch, Bio-Logical Capital hopes to make Hana more of a destination with visitors desiring to stay instead of racing back to the Westside of Maui. The Hana businesses and residents appear to be optimistic about the Bio-Logical Capital’s plans of expansion of the Hana Ranch. The Hana community is extremely sensitive to new ventures and their 50 member Business Council remains open minded to their optimistic plans. For more information go to www.biologicalcapitalhawaii.com . 18 HIGHLIGHTS OF THE MAUI SUNSET AND MAUI KAI HOMEOWNERS MEETINGS ON JANUARY 11, 2013 AND THE FIRST QUARTER BOARD MEETING The majority of the annual meeting was taken up with reports and discussions concerning the Master Association (Common Element). That information is in the first five pages of the newsletter. There was approximately a 50-50 split on those owners that did not wish to have the Newsletter mailed. Be sure to visit our informational Website at www.mauisunsettimeshare.com for current and archived information on Maui Sunset. Ed Meyer reported that all the units have been painted, new artwork installed and new linens and beach towels. Owners are pleased with the addition of beach towels so our 100 percent cotton bath towels are not damaged or stained while at the pool or the beach. The two bedroom units received their new twin Serta Presidential mattresses. The only project scheduled for this year is new lanai furniture. CPA, Art Beck reported on the excellent financial condition of both timeshare associations. It was pointed out that our reserves are in good shape. The Board voted to make a reserve contribution of $1,500 to each unit. Our new Caretaker/Housekeeper, Cheryl Kalani is doing well and busy re-organizing the storage rooms at the Maui Sunset and at Kihei Storage. She appreciates hearing from owners and requests that you please make sure check-out time is no later than 11 AM and check-in time is 4 PM. Those five hours are imperative for her staff and maintenance to do their work in preparing your unit. Organizing the carpet cleaning remains the greatest challenge. With only a five hour window between check-out and check-in it is not possible to clean the carpets and get them dry. If carpets are spotted, Cheryl will leave a note for owners to contact her for those days when you would be away from the property. She would then schedule the traffic areas to be cleaned by our carpet contractor. At the Annual Homeowner Meeting for the Maui Sunset Timeshare, Steve Meyer, Jim Franzen and Ed Meyer were reelected for a three year term by acclamation. At the Annual Homeowner Meeting for the Maui Kai Timeshare, Carrie Meyer, Ron Furman and Ed Meyer were also re-elected by acclamation. Steve Meyer and Stacey Vandell reported on the new routers that have been installed. She explained how the routers do get warn out and must be replaced from time to time. If any owner has trouble with the Wi-Fi they should connect the Ethernet blue cable directly to their device for better service. Steve discussed the new T-Mobil phone service and the importance of replacing the phones in their cradles so batteries will charge. He reminded the owners that you don’t have to dial 9 first to make phone calls. Many Hawaiian Hotels were named to the Conde Nast Traveler’s Gold List—2013 Thirteen hotels made the prestigious Gold List, representing the world’s best places to stay, selected by 47,000 of the magazine’s readers. Our top hotels named on the list represent five of the Hawaiian Islands: Oahu, Maui, Kauai, Lanai and the Big Island. The Four Seasons Resort Lanai, The Lodge at Koele, received the highest readers’ choice rating of 96.2. The Four Seasons Resort Hualalai, Big Island, ranked second of the Hawaii hotels, with a rating of 95.2. The other 10 hotels named to the Gold List are Fairmont Orchid, Big Island, Fairmont Kea Lani, Maui Grand Hyatt Kauai Resort & Spa, Halekulani, Oahu, Ritz-Carlton, Kapalua, Maui, Roy Hawaiian, Oahu, St. Regis Princeville Resort, Kauai, Wailea Beach Villas, Maui, and Trump International Hotel, Oahu all with ratings in the low 90s. The Travel + Leisure Magazine’s January issue asked readers for the first time to vote on their favorite beaches. Maui again got the nod with Wailea Beach winning for activities; snorkeling, canoeing, paddle boarding, boogie boarding and gentle surf for all types of swimming activities. Maui’s Black Sand Beach in Waianapanapa State Park was the winner for the beach with the most dramatic landscape; a quarter mile long contrasted with the spiny hala trees. It’s great to see more of Hawaii’s infrastructure and beaches getting such attention. The Four Season Resort Hualalai on the Big Island was the only Hawaii resort to make the TripAdvisor’s new list of the nation’s top ten hotel spas. The resort at Kaupulehu on the Kona Coast was chosen as part of TripAdvisor’s wellness travel survey of more than 1,100 U.S. travelers. 19 Maui Boat Owners Worry about the Japanese Tsunami Debris How about some Hawaiian “Cranberry Sauce”? There is widespread concern from companies that operate small boats and ships in Hawaiian waters from debris from the March 2011 earthquake and tsunami. They wish the Department of Land and Natural Resources (DLNR) and the National Oceanic and Atmospheric Administration (NOAA) had a better budget to prepare for the debris. NOAA estimates that 1.5 million tons of tsunami debris is currently floating around the Pacific and points out that only 14 pieces of debris have washed ashore in the U.S that is definitely from the tsunami. Hawaii is in the tsunami debris field and the largest concentrated area of debris is approximately several hundred miles north of the islands. This is still within the area of some of Hawaii’s largest fishing fleet. Operators of larger vessels, such as Matson claim the debris is out of their shipping lanes. In addition, the various cruise companies are not weighing in on the potential issue of debris. There is very little Federal help yet with NOAA giving only $50,000 to Hawaii. The DLNR has no budget at all for this potential problem. Everyone is taking a “wait and see” attitude. Little did we realize that Hawaii has the ohelo plant that is native to the high elevations of Maui and Hawaii and is equivalent to the cranberry. During the summer and fall, these beautiful, bell shaped flowers ripen into fat, round berries that range in color from saffron to a deep magenta. They are abundant along the Halemauu Trail in Haleakala National Park. They are related to blueberries and cranberries and have that similar tart taste. The University of Hawaii was so concerned about the popularity of the berries by pickers; they developed an ohelo cultivar, Kilauea, to be grown at home and in nurseries. It makes an ideal potted ornamental plant and is used for commercial berry production. You can order your own plant from North American Plants: (503)474-1852; www.naplants.com. Better yet try some of the delicious ohelo-berry jam from the Kilauea General Store (808) 967-7555. Ocean Brand Vodka to open a Solar Distillery on Maui The New Andaz Maui in Wailea will soon offer Luxury Suites Sales of 12 luxury condominiums at the new complex located at Maui’s Mokapu Beach will begin this winter. The Andaz Residences Maui at Wailea, will begin initial sales along with the developer; Wailea Resort Villas LLC. The residences are still in the construction phase as part of the Andaz Maui resort hotel. Ocean Vodka Organic Farm and distillery, opened in April on 80 acres on the slopes of Haleakala. They will highlight the company’s commitment to an environmentally conscious business practice, featuring a new visitor’s center, organic farm, and martini garden and craft distillery. Ocean Vodka, served exclusively on Hawaii Airlines, is one hundred percent Certified USDA Organic, and the only vodka in the world made from organic sugar cane and deep ocean mineral water. The residence floor plans include three bedroom/fourbath and four-bedroom/six-bath layouts with dens. They will range from 3,300 square feet to 5,200 square feet. Prices will start approximately in the $6 million range. The condos are scheduled for completion following the luxury hotel’s opening in 2013. The hotel is on 15.5 acres of the former Renaissance Wailea Beach Resort which closed in 2007. It will have 255 room, 35 suites and seven beachfront villas. You can easily view the progress from the parking lot at Ulua beach. They will utilize solar panels to power one hundred percent of the operations of the distillery and facility. The sugar cane will be organically farmed with the use of synthetic pesticides and fertilizers and the mature sugar cane will be hand harvested. 20 HAWAII’S GROWTH MARKET The total number of airline seats to Hawaii has cumulatively increased by 7% in 2012 according to a survey done by Pacific Business News. The largest gains have been going to airlines that are adding flights to Hawaii from secondary markets on the Mainland, Asia and beyond. Flying directly to neighbor islands airports and originating from secondary cities or new markets has proven to be the most successful strategies for adding seats to Hawaii. According to Alaska Airline, they began flying to Hawaii in the third quarter of 2007 with 26,533 air seats. Their available air seats has grown 615% in 2008 to 189,656, and each year it has introduced new routes and added additional flights, leading to annual seat growth increases of between 39% and 86% per year on its Hawaii routes. Alaska’s flights now represent 20% of the air seat capacity. Their strategy has succeeded with 64% of all available seats flying directly into neighbor islands. We mentioned Allegiant Air in the last newsletter; they have nine planned routes from secondary type airports where competition is less. So far they have only cancelled the Monterey, California route due to decreased demand. Hawaiian Air is the giant with over 170 daily interisland flights and has added 16% seat capacity in 2012. The word on the “street” is Southwest Airlines is gearing up for flights to Hawaii but they still refuse to give any specifics in interviews by the Hawaii Tourism Authority and various travel magazines. In September Southwest’s flight attendants approved contract changes that will allow the airline to operate flights that require training over the oceans. Pilots approved the overwater flights agreement in June. They currently have 34 737-800 aircraft that will allow them to fly more economically. The airlines must be optimistic, since Alaska Airlines recently placed an order for the newer 737-900ER aircraft which hold 181 seats compared to the 157 seats on the existing 737-800 models. They already have three flying and will receive four more during this winter quarter. They are expecting 9 more in 2013. Organic Products for Maui are Big Business First, we heard about Oracle Corp. CEO Larry Ellison plans to grow organic strawberries and other produce on his newly purchased island of Lanai. Now, Oprah Winfrey reportedly is planning to market organic produce and other products grown on her Maui farm. In October Oprah Winfrey’s Oprah’s Farm LLC registered trademark applications for the brands “Oprah’s Organic” and “Oprah’s Harvest. She owns several hundred acres of land in Maui’s Upcountry Kula area under the entity OW Ranch LLC. 21 Airline and Travel Tips Here’s something that not many vacation travelers know about- The U.S. Department of Transportation (DOT) regulation that passengers will be able to hold a reservation without payment, or cancel a booking without penalty, for 24 hours after the reservation is made, if they make the reservation one week or more prior to a flight’s departure date. Travel must be booked a week or more in advance, but that is something most of us already do. This fairly new regulation was placed on the books along with the regulation that airlines must include all taxes and fees in advertised fares. Most airlines are “quietly” offering the cancellation policies but they are not backed up by the DOT. Some airlines include the “free 24-hour hold” on their Website but while others have it a bit obscured in the pages of the Website. United, for example, allows for a 24-hour cancellation but not a free 24-hour hold- they charge for it. To get the refund you must know to go to United’s refund Web page www.united.com/web/enus/content/reservations/refunds. For Seattle travelers Alaska Airlines information on the 24-hour cancellation is at www.alaskaair.com/content/about-us/customer-commitment/. The best advice is know your rights- Federal laws don’t require airlines to provide compensation, hotel rooms, or meals in the case of weather related delays or cancellations. The law does require airlines to pay compensation should you be involuntarily bumped from a full flight and delayed more than one hour past your original arrival time. See www.dot.gov/airconsumer. (Click on Air Travel Consumer Reports, then Travel Tips & Publications.) We had mentioned that TSA was expanding their Pre-check-trusted travelers program if the pilot programs at 35 airports worked this past year. The five millionth person was screened using this new program and was so successful the TSA anticipates more than doubling the number of travelers it will screen in PreCheck lanes. The goal is to screen one million passengers each month. Currently, travelers can get into PreCheck by enrolling in the U.S. Customs and Border Protection Service’s “Global Entry” program, which costs only $100 for a five-year enrollment. You join by filling out a form online and presenting yourself for an interview with a CBP agent at a major airport. It is the same drill as getting your Nexus cards. With Global Entry, there are no more lines at passport control. You simply walk up to one of the kiosks and insert your passport and place your finger tips on a glass reader. A receipt pops out in less than ten seconds and you are finished with Customs. Hawaiian Airlines has recently entered into a codeshare agreement with Virgin America that will widen the Honolulu based airlines’ reach on the U.S. Mainland by allowing passengers to travel on a single ticket check in when traveling to and from Hawaii with a one stop check in. The new agreement also allows members of each airline’s frequent flier program to redeem miles and travel on either airline. In addition, both airlines will be able to check bags through to a passenger’s final destination and issue boarding passes for connection flights on Hawaiian Airlines and Virgin America. There is already a codeshare with Virgin Australia for travel between that country and Hawaii. Hawaiian Airlines has added a new non-stop flight from Honolulu to Brisbane. The Hawaii Tourism Authority believes this will add $79 million a year in visitor spending. The new service will operate three times per week, with a 264 seat Boeing 767-300 ER. The airline has hired 500 new employees this year due to their tremendous expansion into markets other than Hawaii. The majority of the new employees are flight attendants. Starting June 13, 2013, Hawaiian Airlines will operate two daily flights between Kahului and LAX for ten weeks to help summer travelers to Maui. This will add 34,000 air seats to Maui over the summer months. They plan to use its 264-passenger Boeing 767-300ER for these new flights. Hawaiian Airlines flew a record 9.48 million passengers last year, an almost 10 percent increase over 2011. Specifically they flew 812,395 passenger in December, compared with 740,660 for the same month in 2011. The big news is their revenue per passenger mile, increased 22.8 percent last December, and 20.4 percent for all of 2012. Their capacity of seat miles increased by 27.3 percent, which was 5 percent over 2011. The load factor for the year was 83.2 percent. Airlines typically require a 70% load to break even on any given flight. Alaska Airlines will begin daily flights between San Diego and Lihue starting in June. They plan on a new service between San Diego and Boston starting March 29th so those on the east coast can get to Hawaii on the same airline. They already have flights between San Diego and Honolulu. 22 Five Cheap Flight Secrets Conventional wisdom says to purchase your Maui airline flight tickets a year ahead before your travel date. Is conventional wisdom correct? Probably not. Here are five secrets to help you buy the right flight, at the right price, at the right time. Secret #1 - Airlines don’t start selling cheaper seats until about 4-months before departure. Ticket price research from Airlines Reporting Corporation shows that you’ll typically get the best airfare 6 to 7 weeks prior to your flight. In the last four years, flyers buying tickets in that sweet-spot period saved 5.8% to 26.3% off the average price. That equates to a $25 to $130 savings for a $500 round trip ticket to Maui. Unless you get peace of mind knowing that your dream getaway is booked, don’t buy too early. Secret #2 - Airlines analyze their weekend sales results on Monday mornings. Price changes hit the, major (hidden) travel reservations systems in the afternoon and sales start that evening. Other airlines jump in the next day with matching prices. So the best time to buy airline tickets and shop for travel (domestically) is Tuesday at 3 PM Eastern. No airline ever sells an entire planeload of seats at the very cheapest “sale” prices; they simply couldn’t make money doing that. In fact, on average, only about 10% (or less) of an airplane’s seats are the super cheapies. What does that mean to you? If you see a great price, nab it – it will not last. Secret #3 - A little travel date flexibility saves you even more. Supply and demand economics is the reason you save. Airlines typically have the most seats available and the least demand on Wednesdays. Empty seats require discounts to fill the plane – meaning airlines have to offer more seats at their cheapest price point. Traveling Wednesday s instead of Fridays can easily shave $30 to $100 off a round trip ticket to the Maui. Other cheap days are Tuesday and Saturday. Squeeze the very most out of your time on Maui by taking a red-eye flight back to the mainland. The absolute cheapest time to fly is on those overnight red-eye routes. Secret #4 -Airline reservations systems must sell everyone in your party the same, meaning higher price ticket — even if there are a few cheaper priced seats. This simple secret is why you should shop for one passenger first, when traveling with two or more in your party. You’ll have to split your ticket purchase into multiple transactions, but this minor hassle can save you hundreds. Secret #5 - Deals can and do pop up unexpectedly, which is why you must use technology to track prices and notify you when prices drop. Signup for free alerts on websites like Yapta, Airfarewatchdog, Farecompare, and Expedia and receive an email or text message when prices change. Lastly, if you ignored the previous secrets and the price of your airline ticket drops below what you paid, some websites like Yapta send alerts when you're eligible for a refund from the airline. Just beware of the ticket change fees. 23 Renewable Energy News and Changes to Hawaii’s Energy Goals The Hawaii Energy Office has taken a new look at what it will require for the state to reach its ambitious clean energy goal. Previously its goal was to achieve 70 percent clean energy by 2030, with 30 percent of that gain coming from efficiency measures and 40 percent from locally generated clean energy sources. Despite all the new wind farms and solar panels, the state currently gets less than 13 percent of the its energy from such renewable sources. The new interim goal is 15 percent by 2015. One project that missed the mark was the “Big Wind” project for Molokai and Lanai that would have piped hundreds of megawatts of renewable energy to energy starved Oahu by an undersea cable. The new scenario analysis is looking at being more aggressive including photovoltaic, biomass and geothermal energy. The Boston-based First Wind, which has three wind farms in Hawaii that now produce 150 megawatts, continue to say that their farms produce energy even at night. First Wind says it has maxed out its potential for wind projects and plans on putting its focus on proposals for 200 megawatts of renewable energy form Hawaiian Electric Co., which could include solar. If the proposals are successful they plan on building utility-scale solar arms. One interesting new development is Forest City recently turned on its 1.23 megawatt photovoltaic project in Pearl City on Oahu. Currently, there are four utility-scale solar farms on Oahu that sell power wholesale to utility buyers. Puna Geothermal Venture on the Big Island, which currently reports 38 megawatts of energy online, believe this type of energy is always present locally. Puna Geothermal is dubious that Hawaii will reach its stated goals. The Solar Energy Association believes that getting a “smart’ grid would allow for greater saturation of energy and encourage more renewables to come to market, knowing they can sell the surplus to a grid. The biomass companies are also in the game and the largest one on the Big Island- Hu Honua Bioenergy believes they will contribute more in the future to the renewable goals. Singapore investing in Maui The Grand Wailea has recently reported a large scale remodeling project and addition of rooms. The latest news is the Government of Singapore Investment Corp. will buy the Grand Wailea and three other luxury U.S. resorts owned by the New York based Paulson & Company for $1.5 billion. In addition, the 780 room Grand Wailea, the transaction included the La Quinta Resort & Club, PGA West golf course in a Quinta, CA. the Arizona Biltmore Resort & Spa in Phoenix and the Claremont Resort & Spa in Berkeley. The properties are all currently managed by the Waldorf Astoria Management under Hilton’s World wide’s Waldorf Astoria Hotels. Mama’s Fish House makes the mark on 2012 Diner’s Choice Award Mama’s Fsh House was the only Hawaii restaurant named to OpenTable’s 2012 Diner’s Choice list of the Top 100 Best Restaurants in the U.S. The popular Paia restaurant was among 100 restaurants In 27 states chosen from more than 5 million reviews submitted by verified OpenTable diners for more than 15,000 restaurants in the nation. OpenTable (Nasdaq: OPEN) 24 25 26 27 28 FUTURE MEETING SCHEDULE MAUI SUNSET TIMESHARE ASSOCIATION: Second Quarter Board Meeting Bellevue Club Bellevue, WA April, 26, 2013 9:00AM Third Quarter Board Meeting Bellevue Club Bellevue, WA July 26, 2013 9:00AM Fourth Quarter Board Meeting TBA Annual Owners Meeting Bellevue Club Bellevue, WA Jan. 17. 2014 9:00AM MAUI SUNSET MASTER ASSOCIATION Second Quarter Board Meeting Kihei Community Ctr. May 3, 2013 9:00AM Third Quarter Board Meeting Kihei Community Ctr. Aug. 2, 2013 9:00AM Fourth Quarter Board Meeting Kihei Community Ctr. Nov. 1, 2013 9:00AM Annual Homeowners and First Quarter Meeting Kihei Community Ctr. Jan. 24, 2014 9:00AM All owners are welcome to any meeting. Please help us by using the enclosed non-owner use comment sheet. It’s a tremendous help to your management team. If there is any other information you would like to receive, please let us know. Aloha, Ed Meyer Secretary/Treasurer Communication Committee Chairperson Lorrie Meyer—Publisher (425) 454-9923 29 MAUI SUNSET BOARD OF DIRECTORS: TIME INTEREST PRESIDENT Stella Schmidt 10670 NE 29th St. #90 Bellevue, WA 98004 (425) 827-1234 (H) VICE PRESIDENT Steve Meyer 26143 SE 39th Way Issaquah, WA 98029 (800) 233-3310 (B) SECRETARY/ TREASURER Ed Meyer American Resort Marketing Inc. 812 – 102nd Ave N.E. Bellevue, WA 98004 DIRECTOR James Franzen 7339 Holmes Rd. S.E. Olympia, WA 98507 (360) 951-1326 (H) DIRECTOR Stacey Vandell 512 208th Ave. N.E. Sammamish, WA 98074 (425) 864-1345 (Cell) (206) 448-3252 (B) ASSOC. ATTORNEY Jack Wetherall 155 -108th Avenue NE, #700 Bellevue, WA 98004 (425) 453-9200 (B) (425) 453-0528 (Fax) ASSOC. ACCOUNTANT Art Beck, CPA 310 120th Ave N.E., Suite 201 Bellevue, WA 98005 (425) 453-0498 (B) (425) 646-9285 (Fax) CARETAKER — HOUSEKEEPER Fine Services Group LLC (FSG) Cheryl Kalani (808) 250-6284 (Cell) COMMUNICATION COMMITTEE Ed Meyer Stella Schmidt (800) 233-3310 (B) (425) 827-1234 (H) MAINTENANCE Ed Werbitzky (808) 879-7364 (B) (808) 283-5080 (C) NIGHT WATCHMAN Christ Hoerner Scott Simpson (808) 879-9291 30 (800) 233-3310 (B) (425) 646-4382 (Fax) (425) 883-1334 (H) OWNER COMMENT CARD YOUR TIMESHARE BOARD WOULD APPRECIATE YOUR COMMENTS ON YOUR NEXT TRIP TO THE MAUI SUNSET 5 = Excellent 4 = Above Average 3 = Average 2 = Below Average _____ Check-in/out _____ Grounds Maintenance _____ Halls/Elevators _____ Inside Unit Maint. _____ Housekeeping _____ Quality of Unit SEND TO: DATE _____________UNIT #________ Comment Card Maui Sunset Timeshare C/O Arthur Beck, CPA 310 120th Ave. N.E., Suite 201 Bellevue, WA 98004 OWNER : _____________________ PHONE # _____________________ EMAIL: _____________________ NON-OWNER USE CARD PLEASE LET US KNOW WHEN YOU HAVE GIVEN YOUR UNIT TO A GUEST OR A PRIVATE TRADING COMPANY OTHER THAN RCI UNIT # ________________________ INTERVAL ______________________ IN DATE_________________,20_____ OUT DATE_____________,20_______ GUEST/TRADING COMPANY ___________________________________________ OWNER NAME ______________________________________________________ OWNER PHONE # ___________________________________________________ EMAIL ADDRESS_________________________________DATE___________________ SEND TO: Non-Owner Use/Maui Sunset Timeshare C/O Arthur Beck, CPA 310 120th Ave. N.E., Suite 201 Bellevue, WA 98004 YOUR GUEST SHOULD STILL HAVE WRITTEN AUTHORIZATION FOR PRESENTATION TO FRONT DESK AT CHECK-IN. 31 Maui Sunset Timeshare Association C/O Arthur Beck, CPA 310 120th Ave. N.E., Suite 201 Bellevue, WA 98005 FORWARDING SERVICE REQUESTED FIRST CLASS U.S. POSTAGE PAID BELLEVUE, WA PERMIT # 759