MAKENA SURF AOAO ANNUAL HOMEOWNERS MEETING Saturday, February 28, 2015

MAKENA SURF AOAO ANNUAL HOMEOWNERS’ MEETING Saturday, February 28, 2015 Time: 9:30 a.m. Place: Makena Beach Resort-Molokini Terrace Directors Present:...
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MAKENA SURF AOAO ANNUAL HOMEOWNERS’ MEETING Saturday, February 28, 2015 Time: 9:30 a.m. Place: Makena Beach Resort-Molokini Terrace Directors Present: Mrs. Betty Kay Anderson, President Mr. Dick Clotfelter, Secretary Mr. Paul Imwalle, Treasurer Mr. Don Baron Mr. Mal Johnson Mr. Richard Michaels Mrs. Dusty Pence Destination Resorts Hawaii, Inc.: Mr. Maynard Torchiana, Managing Agent, Destination Resorts Hawaii Mr. Kui Aipa, Controller, Destination Resorts Hawaii Ms. Terri Marino, Recording Secretary Others Present: Mr. Rod Jones, Resident Manager Mr. Dave Merchant, Attorney retained by Makena Surf AOAO Ms. Elizabeth Michalkow, E’Scapes, Landscape Consultant Mr. Michael Reiley, HNU-Energy Owners Present: B101 – Spike and Carol Anderson B102 – Greg and Linda Wolf B104/5 – John and Ginny Freyer B106 – Nancy Aston, on behalf of the Olson Family B108 – Richard and Judith Michaels B205 – Paul and Mary Jo Johansen B206 – Jim and Susan Banister B207 – Bruce and Cheryl Scott B305 – Cliff Tschetter and Lynn Craig C101 – Norman and Joanne Champ C106 – Bill Pauli C107 – Dick Clotfelter C204 – Del Adlawan and Sharon Heritage C206 – Don and Pat Baron

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E101 – Paul and Winnie Kepler E106 – Robert and Gymme Frank E201 – Al Gardner E203 – Jack Patterson E205 – Betty Kay Anderson E303 – Paul and Kathy Imwalle F102 – Hisashi Juba F106 – Bruce and Carol Green F107 – Steve Mannschreck F108 – Bill and Arlene Hunt F205 – Mal and Florence Johnson F208 – John Rough F307 – Nathan and Cindy Kellogg G101 – Dusty Pence G106 – Heather Barbieri G201 – Roger and Janna Morgan G204 – Bobby and Maxine Goldsmith G206 – Pete and Nancy Roehl G301 – Iral and Gwen Barrett Call to Order: President Anderson called the meeting to order at 9:30 a.m. Proof of Notice: President Anderson verified that notice of the February 28, 2015 Annual Homeowners Meeting was posted in two (2) places on property and mailed to owners of record on January 12, 2015. Quorum: A quorum was established with 56.34% of the owners present in person or by proxy. Approval of Minutes: The February 22, 2014 Annual Meeting minutes were presented for approval. Mr. Torchiana noted that on Page 6, Standing Committee, “Mr. Kepler, E101” should be changed to “Mrs. Kepler, E101.” Mr. Kepler expressed his support for this change. Mr. Kepler noted that the minutes do not include any mention of the resignation of six (6) of the seven (7) Board members. President Anderson explained that in December, it was learned that the recording of the last Annual Meeting was destroyed when the recording secretary’s computer crashed. Mr. Torchiana confirmed that great lengths were taken to recover the recording, including consulting a data recovery service. Mr. Kepler suggested in lieu of having the recording to reference, that the letters of resignation submitted by three (3) of the resigning Board members be attached to the Board of Directors meeting minutes and the summarized

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comments of the other three (3) Board members who did not submit letters be included in the 2014 Annual Meeting minutes. Mr. Merchant stated that Annual Meeting minutes typically include only motions and votes but the owners can ultimately decide what level of detail to include. Mrs. Michaels (B108) stated that in the past owner commentary was included in the minutes, which set a precedent for the level of detail included. Mr. Johansen, B205, stated that transparency is important, especially to future buyers. Mr. Anderson, B101, asked if there were any written notes taken by the recording secretary that could be referenced. President Anderson made available the hand written editing notes, however, it did not include much detail. Going forward, recordings of the meetings will be stored in the Makena Surf office. Motion:

That the three (3) resignation letters and written description of all resignation speeches be entered into the minutes in the appropriate place in the Annual Meeting minutes from last year. (Kepler, E101/Johansen, B205) Motion CARRIED. Opposed: Frank, E106

Motion:

To approve the minutes of the February 22, 2014 Annual Meeting, as amended. (Green, F106/Michaels, B108) CARRIED unanimously.

Mrs. Kepler requested that a precedent be set that all details be included in the minutes. Mr. Merchant stated that while this is permissible, he would advise against it as minutes are paraphrased and therefore are not always entirely accurate. Mr. Anderson, B101, requested to maintain the same level of detail but have the option next year to add commentary to the minutes. President Anderson stated that is the process that is happening now. ELECTION OF DIRECTORS President Anderson stated that the purpose of an Annual Meeting is to elect directors and hear reports of officers and committees. New subject matter may be discussed but if the topic is not already on the agenda it cannot be voted on. President Anderson encouraged owners to share their thoughts and requested that owners stand and identify themselves, including their unit number, and speak only once on each issue. Board Turnover Mr. Johnson stated that at the November 2014 Board Meeting, Board members had a vigorous discussion about board turnover. While the consensus was that President Anderson has done an outstanding job, the group felt it is healthy for the Board to have others serve as President from time to time. The new Board agreed to support Mrs. Anderson for President for another year and

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to have another board member become a President trainee for the coming year. The goal is for the President to hold office for no more than two to three terms. This is not a change of board rules but rather a voluntary plan that is open to future modification. Nominating Procedure The Board of Directors consists of seven (7) members. There are four (4) vacancies to be filled. Betty Kay Anderson, Don Baron, and Richard Michaels have expressed an interest in running for re-election to the Board of Directors. Greg Wolf, B102, expressed an interest in serving on the Board of Directors. President Anderson explained cumulative voting procedures and called for nominations from the floor. Hearing none, nominations were declared closed. Motion:

To elect Betty Kay Anderson, Don Baron, Richard Michaels and Greg Wolf to the Board of Directors by acclamation. (Michaels, B108/Goldsmith, G204) CARRIED unanimously.

REPORTS OF OFFICERS AND DIRECTORS President’s Report President Anderson presented her report. Staffing Changes President Anderson introduced Rod Jones, who has been serving as Resident Manager full time since August 1, 2014, and acknowledged the smooth transition. He has brought in new contractors who have done good work and has saved money for the Association. Landscape Supervisor Kevin Keane resigned without notice in October. The Board of Directors subsequently met to discuss the reporting lines, which had some staff reporting to the Resident Manager and some to the Landscape Supervisor. The Landscape Supervisor position was eliminated and now all staff report to the Resident Manager. Pool Heat Pumps Mr. Baron was acknowledged for his dedication and leadership of a project to replace the heat pump at the north pool and eliminating the need for propane. In less than one (1) year the savings on propane exceeded the cost of purchasing and installing the heat pump. The Board has decided to replace the other heat pumps to realize the savings even though this project was not budgeted. Parking Light Fixtures Mr. Baron has volunteered to refurbish the light fixtures throughout the parking lot in lieu of having the twenty-eight fixtures replaced. He requested $600 to refurbish one (1) fixture as a

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sample. The fixture was sent to his plant in Connecticut, where it was cleaned, refinished, sealed and re-wired and LED lights were installed. Mr. Baron is only charging his cost, which is under $600, including shipping. The sample light was installed outside the entrance to the maintenance shed. Mr. Baron will continue to refurbish the remaining fixtures from now through September. Four (4) fixtures will be removed at any given time to be sent to Connecticut. The installation of the LED lights alone will result in about $3,000 per year in electrical savings. Insurance Claims and Deductible Change President Anderson stated that there were more than fourteen insurance claims in the last year, which is expected to raise the annual premium. She requested that if an owner has a plumber doing work in their unit that the plumber check the valves and the icemaker line to ensure good working order. The Board of Directors voted to raise the deductible on the Association’s policy to $15,000. Owners should contact their individual HO6 insurance carrier to ensure their policy will cover the new deductible. Owners with policies held by mainland carriers should ensure the policies are HO6, as required by Hawaii Law 514B. Owners were reminded that the Association policy will only return a unit to its “as built” condition, therefore, upgrades will not be covered. Mrs. Michaels added that the water lines on refrigerators are known to fail and should be replaced regularly. President Anderson further noted that Hawaii’s unique law indicates that even if the Owner is negligent, the AOAO’s insurance is ultimately responsible for damages. Landscape Report Mr. Johnson provided the Landscape Committee report, as attached to these minutes. Parking lot traffic flow was changed this year. Arrows were painted showing traffic flow and stop and exit signs were installed, and potted palms were placed to block the shed. The idea was to create a separate parking area for service and staff; however the Fire Department objected as the area is needed for access. Vendors and service persons are asked to park near the green waste. A drawing was available for review. Mr. Morgan expressed concern about the turn in the parking lot, as two (2) vehicles cannot pass in that area. The next Landscape Committee Chairperson will address this item. A new process has been established for handling maintenance requests and a distinction has been made between general housekeeping maintenance and major maintenance; general maintenance falls under landscape, while major maintenance falls under the landscape chair. In the past, owners often directly contacted the Landscape Chairperson or the former Landscape Supervisor with requests. Going forward all requests will go through Resident Manager Jones for approval and will be tracked through a database. A weekly report showing the status of active requests will be printed. Owners can email requests to the AOAO office. In the past twelve months there have been 80 requests, of which 41 have been completed. Written procedures of regular landscape and housekeeping maintenance, which did not previously exist, are being developed for training and accountability of staff.

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Elizabeth Michalkow was engaged as a landscape consultant. She will supervise staff in designing and planting and will be available for consultation as needed. Makena Surf has a Volunteer Landscape Advisory Committee made up of representatives of each building who suggest improvements to the maintenance and landscape around their buildings. Mr. Johnson acknowledged the following committee volunteers: David and Heather Ashley, A201; Linda Wolf, B102; Bill and Jani Pauli, C106; Chris Harris and Tony Ucci, E104; John and Lisa Rough, F208; and Peter and Nancy Roehl, G206. Treasurer’s Report Annual Operating Budget Treasurer Imwalle provided the following highlights of the 2015 budget:  Dues were increased by 3.49%.  Payroll increased by 3.4%.  Electricity increased substantially mainly because 2014 was significantly under budget. The cost savings from the fans was good but less than what was budgeted.  A new contract was signed with the managing agent, resulting in a substantial increase in management fees.  Mr. Aipa was acknowledged for his efforts in developing the budget. Treasurer Imwalle has just received the audited financials for 2014. Capital Reserve Budget The Board is focused on increasing Reserves, which is part of the reason for the dues increase. Hawaii law requires a minimum of 50% funding of Reserves; however, the goal is to be closer to 100% funding so the Association is prepared for all major repairs and replacement projects. The 2015 budget calls for having the Reserve funded at 63%. He recommended the Board continue to focus on strengthening the Reserve fund each year, which is healthy for the Association. Mr. Johansen asked why propane costs would be budgeted higher when there was a $7,000 savings on propane last year. Treasurer Imwalle stated that when the budget was put together last fall, the Board had not decided to replace the heat pumps. Tax Resolution Motion:

To apply the deficit of $18,913 for the year ending December 31, 2014 against the subsequent tax year member reserves as provided by IRS Revenue Ruling 70-604. (Imwalle, E303/Clotfelter, C107) CARRIED unanimously.

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Newsletter President Anderson stated that Mr. Hal Louchheim, C207, has asked to be relieved of his newsletter duties. Mrs. Dusty Pence, G101, has agreed to resume newsletter responsibilities. Suggestions were encouraged. Policies and Procedures Teak Box Committee Mrs. Pence stated that teak boxes are required on lanais for the storage of recreational pool items and must be maintained. However some of the teak boxes have not been maintained and/or have been removed. Additional challenges are that the popular Tommy Bahama beach chairs do not fit in the box and visitors often are not aware of the storage rule. The Board approved a clarification of the policy. In summary:  All rental units must have a teak box for storage of beach toys and equipment.  Up to four (4) chairs may be stacked neatly behind the boxes.  Boxes should be well maintained; maintenance is the responsibility of the rental agent.  Buildings A & C are exceptions due to space limitations; the Resident Manager can help clarify the policy for these buildings.  Owners have until March 2016 to comply with the new rule. In the meantime lanais do need to be kept neat and clean. Lyn Hirschhorn negotiated a discount with Outdoor Living on a larger box that accommodates the Tommy Bahama chairs with room to spare. She will be placing a bulk order on March 15th. Other interested owners should contact the office immediately. Gymme Frank provided a photo of a retrofitted box for review. Resident Manager Jones will keep a file in the office of ideas to retrofit the boxes. Mrs. Michaels stated that many renters do not observe the rules about storing items. She asked how guests are being informed and who will be responsible for enforcement. A letter will be sent to rental agents and Resident Manager Jones will enforce the rules. Mr. Johansen clarified if keeping chairs neatly behind the box is a long-term solution. This was confirmed. He noted that it is important to have some flexibility being that it is a recreational area and 24 hour enforcement is not feasible. There was a discussion about whether or not all units should be required to have a storage box. In 2001 it became regulated that those who rented were required to have a storage box. President Anderson stated there are owners who do not rent and do not keep items on the lanai so it seems overzealous to require everyone to have a box. Others felt that those who rent but whose lanais are kept clean should not be required to have a box.

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Mr. Scott requested a policy regarding storage closets. Mrs. Pence asked that he contact her to further discuss this idea. Board Turnover Last year several people requested that the Board seriously consider term limits. HOA Leader has been a helpful resource with regard to this issue. Term limits on HOA Boards are rare and may not be practical. A small committee is further researching this topic. While the committee is not leaning towards term limits, ideas that would encourage more fluidity are being investigated. Over the next year some of these ideas will be presented for consideration. The committee is currently comprised of Dusty Pence, Gymme Frank and Jani Pauli. Other interested owners should contact Mrs. Pence. Newsletter Ideas Mrs. Pence requested ideas and articles from owners for the newsletter. She would like to start including interviews of employees and owners in the newsletter. NEW BUSINESS HNU-Energy Solar Company The Board has been advised that the net metering program, whereby excess energy is banked for future use, is changing on March 20, 2015. The Board decided to file an application with MECO to reserve the option to participate in the current net metering program. Once the application is approved, the Association has eighteen months to take action. The project will not move past the solar application process without a vote by the owners. This decision was made simply to ensure the Association has the opportunity to take advantage of the program as it currently stands. Michael Reiley, President of HNU Energy, was present to answer questions. He explained that to date the credit in the net metering program has been one-to-one (one kilowatt hour generated would result in one kilowatt hour banked for future use). After March 20th these economics are expected to change and MECO will be giving back only a portion of the excess energy banked. Therefore, the Association would need to put in a larger system to cover its needs. He explained that since the AOAO is a non-profit which would not benefit from tax credits, a third party investor who can benefit from tax credits will finance the system. Once the tax credits are used the system will be made available to the Association at a reduced rate. The agreement is typically 20 years under a predetermined rate structure that locks in the per kilowatt rate below MECO’s rate. Mr. Clotfelter clarified that this project would provide common area electric. Mrs. Goldsmith asked what prevents the power company from raising rates. Mr. Reiley explained that the net metering agreement is a legal contract with the utility. In the case of a single family home, that agreement ceases with a transfer of ownership, but in this case the contract would be with the Association so there would not be a transfer of ownership that would change the contract.

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There was a question about the sale of MECO. Mr. Reiley explained that NextEra Energy is expected to acquire AGI, MECO’s parent company, and when this occurs things will likely change again. If the Association is granted pre-approval now the terms will be grandfathered. Mr. Reiley noted that HNU Energy specializes in large, ocean front resorts, and has contracts with the Grand Wailea, Fairmont Kea Lani, Ho’olei at Grand Wailea, Polo Beach Club, and Hyatt. HNU Energy has completed projects at Wailea Point, Wailea Town Center, and Kaanapali Beach Hotel, among others. Construction & Maintenance Mr. Baron provided the following Construction & Maintenance Report:  In the last year thirteen remodels were completed on time.  Thus far, in 2015, nine (9) applications have been received.  He acknowledged the ease of working with Resident Manager Jones.  Savings on the fans have been recognized in the last two months.  In addition to the propane savings from the installation of heat pumps, another benefit is the propane tanks can be removed.  Refurbishing of the parking lot light fixtures continues. The fixtures are being sanded, primed and painted with marine paint expected to last thirty years. A certified electrician is wiring the LED lights, which require less maintenance. There is currently $22,000 in Reserves for this project and $38,000 was budgeted. At Mr. Baron’s cost, the total outlay will be significantly less than the $22,000 available to complete this project.  Much of the landscape lighting is being re-done and should be completed with the amount currently in Reserves. Security Mr. Michaels provided the following Security report:  There were no break-ins last year.  There is no standard for training new security guards or coordinating procedures for guards. At the July meeting the Board voted to make the longest employed guard, Mr. Dave Wilson, the supervisor of security. He is now responsible for training new guards and standardizing security procedures.  There have been some hardware issues with sensors and one camera not working properly. This will be addressed this year. Mrs. Morgan asked if there were plans to fix the gate by the new car wash as the concrete is too high and it sometimes does not close. Resident Manager Jones will investigate. Mrs. Kepler noted that the gate by the E Building does not have a key; it can just be lifted. Resident Manager Jones will investigate.

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Mrs. Johansen noted that there is gang tagging on the electrical panel boxes. Resident Manager Jones has contacted the electrical company and will repaint the affected boxes immediately. Annual Party Mrs. Pence reminded owners that the Annual Homeowners Party will take place at 6:00 p.m. today. A tent has been ordered to prepare for inclement weather. Mrs. Baron noted that many people have food allergies that may prohibit attendance at the dinner. She requested that future menus take this into consideration and that separating food items may be a solution. Mrs. Pence requested Mrs. Baron to submit information in writing to be recorded and considered for future events. OLD BUSINESS Standing Committee for Next Year’s Slate of Board Members President Anderson stated that since 2007 the policy for forming the Nominating Committee (the group that determines the slate of nominees for the follow year’s election to the Board of Directors) has involved appointments by the President. She apologized for mistakes she made in this process between 2007 and 2014, which she recently realized upon reading the policy in the 2007 meeting minutes. The policy states: 1) There should be four persons on the committee and she appointed three last year; 2) No board members who are running for re-election should serve on the committee and one did last year; and 3) Committee members should be from different buildings and there were two members last year from the same building. At the last board meeting Mr. Kepler requested a change to the process and the way the committee is organized. As a result, the Board passed the following resolution to make the process more democratic: To adopt the changes to the Nominating Committee procedures whereby:  Members of the Nominating Committee are chosen from those owners who raise their hand at an Annual Meeting indicating a desire to participate;  The Nominating Committee is comprised of three (3) members representing three (3) separate buildings;  Members of the Nominating Committee are selected at the Annual Meeting for the succeeding year by a secret ballot vote of the members; and  The Nominating Committee will make recommendations for Board vacancies at least six (6) weeks prior to the Annual Meeting and that would constitute a slate for open positions. Mr. Kepler proposed the following modifications to the resolution passed by the Board:

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 He suggested the first bullet read: “Members of the Nominating Committee are chosen from those owners who raise their hand at an Annual Meeting indicating a desire to participate. No current board members or spouses of board members may be chosen to be on the Nominating Committee." This would remove the Board from the nominating process.  He suggested the third bullet read: “Members of the Nominating Committee are selected at the Annual Meeting for the succeeding year by a secret ballot vote of the owners in attendance (1 per unit) who may vote for up to three (3) candidates, no cumulative voting allowed." This makes the language more precise.

Mr. Johansen asked if an owner in attendance who is carrying a proxy can use that proxy to vote for the Nominating Committee members. Attorney Merchant stated that such a proxy indicates the owner in attendance for voting purposes but not for volunteering purposes. He suggested adding "in person or by proxy" to the resolution. Mr. Kellogg asked if someone who cannot be at the meeting but would like to volunteer for the committee could express that interest through another owner. All agreed that someone that has an interest could put forth that interest to another owner. Mrs. Pence noted that she abstained from this vote at the Board meeting not because she is opposed in principal but because there are a lot of scenarios to be considered. She would like to see Mr. Kepler work on this and present it at the next Board meeting. She noted that one problem could be getting people to serve on the Nominating Committee, especially with the requirement that they be from different buildings. Another concern is that whatever is decided complies with Bylaws. Mr. Johansen acknowledged the Board for making this change. He feels adopting this now will give faith to homeowners. Mr. Michaels made a point of order that the Board already voted on this resolution. President Anderson thought the vote was to bring this as a recommended position to the annual meeting. The Board was consulted and the majority of members agreed that this was passed at the last meeting and the purpose of this agenda item is to inform the owners. Mrs. Pence stated that this topic was not on the meeting agenda; therefore, owners were not aware of a vote on the topic. Attorney Merchant stated that as per the Association Bylaws, dayto-day business cannot be conducted from the floor. Mr. Kepler stated that the 2007 policy was not on the agenda either. He feels this would fall under Old Business as the Standing Committee agenda item. Attorney Merchant agreed this would likely cover it. Motion:

To accept the changes to the Nominating Committee procedures as suggested by Mr. Kepler. (Kepler, E101/Morgan, G201) No vote was taken.

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Mrs. Michaels suggested that the owners vote on each line to ensure all are in agreement. Substitute Motion: To table the suggested amendments to the Nominating Committee procedures to the next Board of Directors meeting. (Kellogg, F307/Goldsmith, G204) CARRIED unanimously. President Anderson suggested that amendments be made in writing and submitted to a Board member. Mrs. Pence requested suggestions on a process in the case there are not three (3) volunteers. President Anderson asked for volunteers to serve on the Nominating Committee for the 2016 elections. The following individuals raised their hands:     

Judith Michaels, B-108 Mary Jo Johansen, B-206 Winnie Kepler, E-101 Gymme Frank, E-106 Iral Barrett, G-301

There are five (5) volunteers for three (3) positions. There are two (2) volunteers from Building B and two (2) from Building E, therefore, a vote is needed to select the representatives from Buildings B and E. Ballots were distributed and voting procedures were explained. NEW BUSINESS Bedroom Window Screens President Anderson stated that during a recent walk through, Mr. Torchiana and Resident Manager Jones noted that several bedroom window screens on the four (4) older buildings are severely corroded. While the screens are the responsibility of the owners, the Association will coordinate an effort to have the screens replaced. Resident Manager Jones requested three bids and the vendor selected will provide the screens for approximate $45 per window installed. Owners will receive a letter with instructions on how to participate in the program. Those who sign up by the deadline will have their screens replaced at one time and the cost will be assessed to the owner’s maintenance fee on the month of installation. Owners have the option to work directly with the vendor to have other screens replaced as well. Ratification of Prior Year’s Actions Motion:

To ratify last year’s actions of the Board of Directors. (Green, F106/Carson, F101)

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CARRIED unanimously. Raised Pavers Mr. Anderson noted there are quite a few pavers that have been raised by roots, which has become a trip hazard. Resident Manager Jones explained that work is underway to repair the areas of concern in-house with pavers provided by Structural Concrete. The concrete will be removed, the roots cut (which will not harm the palms), and the pavers will be re-installed. The initial focus is to address the worst tripping hazard areas first, and remaining pavers during slower occupancy. Minimum Stay Rental Requirements President Anderson reported that the issue of minimum stay rental requirements was addressed at the last Board meeting. Second and Third Floor Entry Lanai and Roofs President Anderson pointed to two sample tiles that the board was planning to recommend as replacement tiles for second and third floor lanais. However, Resident Manager Jones determined there are many cracked and broken tiles on the roof, which resulted in a decision to table the lanai project given the magnitude of a roof repair project. The Board hired a consultant to assess the roofs and identify the scope of work. The underlayment is in good condition, however, there is repair work to be done this year. Resident Manager Jones has one bid and is obtaining other bids. Items to consider when the lanai project is ready to move forward again:  When the four original buildings were constructed the lanais started to leak and they had to be retrofitted. This occurred because there were no rain gutters, so the rain was wrapping off the roof, around the building, destroying the soffits and soaking the tiles.  The Board asked the Association architect to write detailed specifications, which will be given to the contractor who was the low bidder in order to re-work his bid.  Mr. Morgan noted that in the past year there were two incidents where the odor from sealing the lanais was toxic and he suggested including a remedy in the specifications. Mr. Baron stated that the same material was used but for the first time units were ventilated with fans running. This will be considered. Standing Committee for Next Year’s Slate of Board Members President Anderson reported the results of the election for Nominating Committee members as follows: • Gymme Frank, E106 • Mary Jo Johansen, B206 • Iral Barrett, G301

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ADJOURNMENT Motion:

To adjourn the meeting at 12:32 p.m. (Johnson, F205/Bannister, B206) CARRIED unanimously.

Respectfully submitted, Terri Marino Aloha Office Services Recording Secretary Respectfully submitted:

Reviewed and accepted by:

____________________________ Maynard Torchiana Managing Agent Makena Surf AOAO

_______________________________ Betty Kay Anderson President Makena Surf AOAO