1. business and industrial

Association of Apartment Owners of Hanalei Bay Resort
Board of Directors’ Meeting
Teleconference
Thursday, March 26, 2015
Minutes
I. CALL TO ORDER/ROLL CALL
President Michael Rembis called the meeting to order at 12:00 p.m. PDT. Board Members
in attendance were John Mullen, David Blank, Fritz Leutheuser, Joan Bettencourt, Michael
Rembis, Geoff King, Kent Oehm, Dick Schweickert and Bill Kraft. Representing
Management were Mary Dieckmann, Vice President of Resort Operations; Julie DaRonco,
Area Manager; Scott Pacer, AOAO General Manager and Jim Braman, Director of Resort
Operations. Alexa Soler recorded the meeting minutes.
II. APPROVAL OF MINUTES OF PREVIOUS MEETING
On motion of Geoff King, seconded by Joan Bettencourt, the Board unanimously approved
the minutes of the January 30, 2015 Board of Directors’ Meeting
On consensus the agenda was taken out of order.
VI. OTHER BUSINESS
I. Executive Session
On motion of Kent Oehm, seconded by Dick Schweickert, the Board unanimously moved
into Executive Session at 12:05 p.m. PDT to discuss the Management Contract.
On motion of John Mullen, seconded by Dick Schweickert, the Board unanimously
adjourned Executive Session and moved into Regular Session at 12:25 p.m. PDT.
On motion of John Mullen, seconded by Dick Schweickert the Board unanimously
approved the draft of the second amendment by John Mullen for the modified lease
agreement.
IV. CONTINUING BUSINESS
H. Restaurant Update
1. Update
Research has begun regarding the parking lot issue. A meeting with Jimit is still
needed to try and coordinate with him on this issue to see what he can help with.
Even with the use of the gates, increasing the parking spots, valet and security aid
there is still more to be done.
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2. Parking Update
a. Gate Pricing
Quotes have been obtained for the installation of some of the gates at HBR.
The quotes included are for the ordering and installation, which would hold
Management responsible for any maintenance. The mentioned can be
accomplished for approximately $25,000. Day passes can be issued for patrons
using the tennis courts.
b.
Tree Root Abatement
The tree root abatement will cost approximately $66,000 to cut the trees, fill in
the holes and redo the curbs to expand the lot. This quote does not include the
re-asphalting of the parking lot.
c.
New Parking Lot
On motion of John Mullen, seconded by Joan Bettencourt, the Board
unanimously approved the parking arms in the amount of $25,000.
III. MANAGEMENT REPORT
The Board reviewed the Management Reports provided in the packet without further
discussion. The report included:
A. Operations
1. Front Desk
The Front Desk continues to do a great job of covering shifts for the open Night
Auditor position. Golf carts have been repaired and are running thanks to the new
service man and the Maintenance department. Charity events for plate lunches are
being planned with dates soon to follow.
2. Maintenance/Housekeeping
The drywall and p-trap in unit 1558 was cut out an electric snake was run through
the drain line to clear and a p-trap was installed. The drywall was replaced, sanded,
primed and painted. The front door in unit 5307 was cut out and stucco was
replaced, sanded, primed and painted. Lanais in the front and back of 9121 building
were painted. The columns and ceilings where the spalling work had been done
was also painted.
3. Activities
Movie night is well attended by Owners and Guests, which has led to Jack’s name
showing up a bit more frequently in the comment cards.
4. Landscaping
The Grounds crew did a great job of fixing a broken water pipe at the lower tennis
courts projects.
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5. Update on Going Green
New recycling containers are available at the main collection area. These are hauled
weekly by Associates with proceeds going to the resort’s Christmas party fund.
6. Safety
Hanalei Bay Resort is 13 days accident free as of March 12, 2015. Proper use of
safety equipment with the Grounds and Maintenance teams were reviewed.
7. Status of Meeting Minutes Postings
Minutes from the January 24, 2014, March 27, 2014, May 14, 2014, July 17, 2014,
September 12, 2014 and November 4, 2014 Board of Directors’ Meetings have been
posted to the HBR website. The draft minutes from the May 15, 2014 Annual
Owners’ Meeting and Organizational meeting have also been posted.
B. Guest Satisfaction Scores
Scores for February and the fourth quarter were reviewed.
C. Occupancy Report
A quarterly occupancy report was provided in the Board packet.
D. Reserves
The Schedule of Values (SOV) for the reserve projects was included in the Board
packet.
E. Financial Analysis
The Board reviewed the financials as of January 31, 2015.
IV. CONTINUING BUSINESS
A. Action Items
The Board reviewed the action items from the January 30, 2015 Board of Directors’
Meeting.
Action Item: Management to send out easements maps for 16A and 16B to the Board.
B. Consent Docket
1. Fans for Front Desk
2. Baker Lock and Key
On motion of Dave Blank , seconded by Kent Oehm, the Board unanimously
approved the consent docket in the amount of $10,048.50.
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C. House Committee
1. Long Term Renters
If a renter is paying the current fee of $15/day, the AOAO makes $5,475 a year. If
there is a monthly fee of $250 for anyone that is a full time renter the Association
would make $3,000. If there was a one-time fee of $450, the Association would lose
a little over $5,000 a year.
On motion of John Mullen, seconded by Dick Schweickert, the Board unanimously
approved renters that stay 30 or more nights to be charged a monthly resort fee of
$250/month pro-rated based on the $250 beginning April 1, 2015.
2. Parking – Speedi Shuttle
Speedi Shuttle proposed an agreement in which would provide HBR a commission
of 15% on SpeediShuttle and Arthur’s Limousine reservations booked through a
portal that would be made available on HBR’s website. Commissions would be
calculated on the Base Fare, before taxes and fees and are earned when the
transfer is complete.
On motion of Joan Bettencourt, seconded by Dick Schweickert, the Board
unanimously approved a contract with SpeediShuttle, which Mike Rembis will sign.
The certificate will be signed upon review and acceptance of their documentation
on insurance.
3. Bicycles for the resort
It is a Grand Pacific standard to have bicycles available on property. Jim has
gathered quotes for cruisers. In addition to the quotes obtained for the bicycles
themselves, helmets and bicycle locks would also need to be purchased. Joan
recommended a cap of $1800 for all of the bicycle expenses. There was concern
regarding liability and maintenance on the bicycles. It is not a GPR requirement to
have bicycles on property.
Action Item: Management to speak with the Pool Cave vendor regarding bicycle
rentals on the property. If the Board decides to pursue, then the bicycle discussion
will be added as an agenda item to the next meeting.
D. Facilities Committee Report
1. Spalling
The spalling project that was approved at the last meeting for the 4000 building
was over budget by approximately $10,000.
2. Tennis Courts
The lower courts required additional maintenance as they were in the worst
condition. The hard courts will last longer than originally expected. Work on the
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back parking lot is anticipated to begin April 13, 2015. A charity event will be held
on May 9, 2015 to celebrate the completion of the tennis court remodel.
Action Item: Scott to send out a reminder to Owners and Renters two weeks prior
to the start of construction.
Peter Burwash’s agreement expires June 2015. Mike Rembis renewed a two year
agreement that can be cancelled at any time without cause with 90 days notice.
Action Item: The tennis program will remain on the agenda for the May meeting.
The Board will review the contract and renegotiate if necessary.
3. Ventilation
Two large fans from Home Depot are being installed. All one bedrooms are
expected to be complete by July 21, 2015. Phase 1: one-bedrooms; Phase 2: Dryer
Vents by Shioi; Phase 3: In-house installation of bathroom ventilation in the twobedrooms.
4. Elevator Service Contract
The state requires HBR to have a contractor inspect the elevators on a monthly
basis. Scott has brought down the cost from $600/month to $300/month.
On motion of David Blank, seconded by Dick Schweickert, the Board unanimously
approved the elevator service contract for Mike Rembis’ signature.
5. AT&T Tower
The AT&T Tower is still in the preliminary stages. One site inspection has been
completed and the gathered information has been sent to their engineers. Three
preliminary locations have been established, which are furthest from homes. There
are at least three more site inspections before a contract will be presented.
6. Beachside Roofing
The roofing project has been complete including the BBQ area at the lower pool,
laundry rooms and tennis shop. The only roof that is not complete is Happy Talk,
which is not a responsibility of HBR as Jimit owns the roof.
7. Kaba Key Cards
Scott is still waiting on information from KABA keycards. They are shipping out on
March 27, 2015 and are scheduled for installation on April 20, 2015.
8. Pool Bar
Avery is working on obtaining the permits for the pool bar. Management has
received some bids for the electrical and plumbing of the pool bar. There will not be
a final cost until Avery can get the clarification on some items from the county.
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On motion of Dave Blank, seconded by Dick Schweickert, the Board unanimously
approved the reserve expenditures for the pool bar in the amount of $25,000.
E. Finance
1. Reserve Reduction Chart
The Reserve Reduction Chart was reviewed and explained.
On motion of John Mullen, seconded by Fritz Leutheuser, the Board unanimously
approved the expenditures for 2015 itemized in the table attached to these
minutes.
2. PSI Invoicing
Princeville Solar, Inc. will be charging 55,494 kwh at $.3434/kwg. Management is
hoping to get PSI on an automatic payment so each charge will not have to be
approved by the Board.
Action Item: Scott to clarify whether the principal amount of $4,250/month is
reflected in the balance sheet.
On motion of John Mullen, seconded by Kent Oehm , the Board unanimously
approved the automatic payment of the PSI bill.
On motion of John Mullen, seconded by Geoff King, the Board unanimously
approved the December and January financials provided within the board packet.
F. Legal
Legal expenses were discussed with Bill Byrns including the eighth amendment to the
horizontal property regime, the second amendment to the Management Contract,
Jimit’s letter and the tennis agreement. Management is currently awaiting his legal
opinion on the mediation legal fees. Scott will be gathering information for Bill Byrns
for the switchgear liability.
G. New Board Members Committee
Brad Schultz and Mike Lynch are new candidates to be considered for election onto
the HBR AOAO Board.
V. NEW BUSINESS
A. Health Insurance Commission
Dick Schweickert clarified a question regarding the broker’s commission billed for the
current health insurance policy. HMSA, the current carrier, requires the employer to
pay the broker commission directly, instead of including the commission in the
premium.
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B. Property and Casualty Insurance Renewal
The renewal takes place on May 1, 2015. Dick Schweickert has recommended shortterming the policy this year from May 1, 2015 to December 31, 2015 and renewing it
on January 1, 2016 to coincide with the fiscal year. If there are increases in value midMay, that effects the budget for the balance of the year. The AOAO is currently at
$275 per square foot, the Board would like to see $300 per square foot as the
replacement cost for all of the buildings. The AOAO and VOA have contributed a large
amount of funding into the renovations of all units, which is Business Personal
Property and should reflect an increase in those values. It was recommended to
increase the Business Personal Property to $9,000,000.
VI. OTHER BUSINESS
A. Owner Forum/Correspondence
There was no Owner Forum or correspondence.
B. Confirmation of 2014 Meeting Dates
Tuesday, May 12, 2015 at 9:00 a.m. HST / 12:00 p.m. PDT, HBR, Joint AOAO/VOA
Thursday, May 14, 2015 at 10:00 a.m. HST / 1:00 p.m. PDT, HBR, Directors Meeting
Thursday, May 14, 2015 at 1:00 p.m. HST / 3:00 p.m. PDT, HBR, Annual Owners’
Meeting
Thursday, July 16, 2015 at 9:00 a.m. HST / 12:00 p.m. PDT, Teleconference
Friday, September 11, 2015 at 9:00 a.m. HST / 12:00 p.m. PDT, Teleconference
VII. ADJOURNMENT
On unanimous consent the meeting adjourned at 1:50 p.m. PDT.
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