August 22, 2007 Board of Directors Meeting

MINUTES OF THE BOARD OF DIRECTORS MEETING OF
NAURU TOWER
WEDNESDAY, AUGUST 22, 2007, 6:00 P.M.
ONSITE, LOBBY
DRAFT
CALL TO ORDER

Executive Vice-President Chuck Heitzman called the regularly scheduled meeting of the Board of Directors of Nauru Tower to order at 6.03 p.m.

ESTABLISH A QUORUM A quorum was established.

Members Present:
Win Straube President (via video conference)
Charles Heitzman Director/Executive Vice President
Robert Bosley Director/Senior Vice President
Gerald Greer Director/Vice President
Setsuko Hayakawa Director/Secretary/Treasurer
Harry Inouye Director/Asst. Treasurer
Eric Hill Director
Doug Shackelford Director

Member(s) Absent:
Keith Horita Director/Asst Treasurer

Present By Invitation:
Don Higgins Resident Manager
Kevin Cole Hawaiiana Management Co., Ltd.

APPROVAL OF MINUTES

Board Meeting Minutes of June 21, 2007: By unanimous consent the Board meeting minutes of June 21, 2007 were approved with no corrections or additions.

RESIDENT MANAGER’S REPORT

Mr. Don Higgins was introduced by Robert Bosley as the new Resident Manager of Nauru Tower. A motion was made by Eric Hill and seconded by Harry Inouye to ratify the hiring of Don Higgins, effective August 15, 2007. The motion carried with Keith Horita abstaining (via email).

TREASURER’S REPORT

A. Financial Statement for June & July 2007: Kevin Cole reviewed the June and July, 2007 Financial Statements. By unanimous consent, the reports were accepted subject to audit.

B. Employee Appreciation Fund: Setsuko Hayakawa reported the Employee Appreciation fund has a current balance of $4,825.13.

C. Delinquencies: To be discussed in Executive Session.

COMMITTEE REPORTS

A. Administration & Personnel: Chair Robert Bosley reported that a near drowning was prevented because of the quick action of association employees. Because of this incident, Louis Chang has donated $500.00 to the employee appreciation fund.

B. Budget & Finance: Chair Setsuko Hayakawa discussed the proposed 2008 budget which has been distributed to all Board members. A final budget meeting will be scheduled at Hawaiiana Management Co. in early September. Committees should submit all final 2008 Budget requests. The 2008 Budget will be approved at the October Board meeting.

C. Building & Ground: Chair Chuck Heitzman reported the following:

a. Pool: Currently in litigation. This matter will be discussed in Executive Session.
b. Booster Pumps: Doonwood Engineering has reported that mid-zone booster pump #3 needs to be re-built or replaced. A motion was made by Chuck Heitzman and seconded by Eric Hill to re-build this booster at a cost of $11,500.00 plus tax. The motion carried unanimously. Harry Inouye commented that he has had no hot water on numerous occasions.
c. Fountain Lighting: Indirect lighting around the fountain rim is scheduled to be installed in the next week.
d. Central Filing System: In progress.
e. Building Exterior Paint: A preliminary examination ADL, with laboratory tests, indicates that there are significant deficiencies in both the product and the application of the last exterior building painting in 2000. This matter will be discussed in Executive Session.
f. Lobby front Door: A motion was made by Chuck Heitzman and seconded by Doug Shackelford to approve $60,000.00 in the 2008 the turn-key installation of the bi-parting automatic lobby doors. Work to be accomplished in 2008. Assurances from the door supplier that their unit will operate in our wind conditions need to be obtained. The motion carried unanimously.
g. Electrical and A/C Sub metering: A motion was made by Chuck Heitzman and seconded by Harry Inouye to approve $3,000.00 for work to calibrate the master meters and the sub-metering systems of those units that have complained of erroneous reading. The motion carried unanimously. Hawaiiana Management Co. will be asked to provide a 6 month summary on the monthly billing statements.
h. Health Club & Fitness: Pending.
i. Lobby and Recreation Area: Chuck Heitzman reported that Architects Hawaii has withdrawn from the lobby renovation project. A motion was made by Chuck Heitzman and seconded by Eric Hill to interview other design firms for this work including developing a design plan (furniture plans) with different themes, for these areas, graphic design and to help the Board determine a preliminary & final budgets for the work. The motion carried unanimously.
j. Cleaning of Parking Spaces: Chuck Heitzman thanked all residents for the tremendous improvement that has been made in the cleaning of stored items from the parking stalls. Work will continue.
k. Car Wash Issue: After a discussion, this matter was tabled pending an investigation and report from Don Higgins.
l. Non Structural Cracks: RCM Construction has been authorized to repair non-structural cracks in the service rooms on floors 34, 32 & 14. The cost of the work will not exceed $3,000.00.
m. Rust on Elevator Frames: A motion was made by Chuck Heitzman and seconded by Eric Hill to have ADL investigate the cause of the rust along the edge of the elevator frames. The motion carried unanimously.

D. Legal & Rules: Setsuko Hayakawa reported that updated parking rules will be emailed to the Board in approximately 2 weeks. Legal matters will be discussed in Executive Session.

E. Information and Communication: Chair Gerald Greer reported on the following:

a. Newsletter: Thanks were given to Alexandra Palko for her work and efforts on past newsletters. Don Higgins and Ginger Gertsch will now take over publication with assistance from Alexandra Palko if she is available.
b. Website: Update to the Association website will accelerate in the next few weeks.
c. Building Signage: Chuck Heitzman will consult with the new design firm to be selected for the proposed Lobby and Recreation area renovation.

F. Parking Committee: Gerald Greer reported on the following:

a. Outside Parking Issues: $3,000.00 has previously been approved to expand employee parking. Work is continuing on this project.
b. Inside Parking Issues: Setsuko Hayakawa reported that the numbers and lines in the parking garage need to be repainted. Don Higgins will investigate to determine if this work can be done “in house” or should be contracted out. Eric Hill also mentioned the need to clean the parking lot floor.

Director Harry Inouye asked the Chair if he could leave the meeting and he was excused.

UNFINISHED BUSINESS Please see Committee Reports Above.

A. Building of The Year: Because a new Resident Manager has just started work, this project will be deferred until 2008.

NEW BUSINESS

A. Association Funds – Spending Authorization: A motion was made by Setsuko Hayakawa and seconded by Chuck Heitzman that all Association expenditures over $1,000.00 but less than 2,000.00 will require approval of 2 Officers by e-mail; over 2,000.00 but less than 10,000.00 will require approval of 5 Board Directors by e-mail. Expenditures in excess of $10,000.00 will normally require to go through Reserve Process. In case of emergency, however, approval will be granted by majority votes of the Board. The motion carried unanimously.

B. 2008 Proposed Budget: See Committee Reports, Budget and Finance.

C. Mechanical Upgrades for Energy Conservation: Doug Shackelford reported that items with a 1.6 year and less payback period should be considered. Estimated cost for the 2008 budget is $50,000.00.

D. Elevator Door Frames Rust: See Committee Reports, Building and Grounds, Item m.

E. Disclosure of Conflict of Interest: Setsuko Hayakawa reminded Board members to disclose all potential conflicts of interest. This includes ownership in companies doing business with the Association.

F. Pool Use: A motion was made by Chuck Heitzman and seconded by Eric Hill to amend the House Rules regarding Pool Use. The motion was carried unanimously and a copy of this amendment to the House Rules will be made a part of these minutes. Kevin Cole will check with the Association attorney regarding the age limit for Jacuzzi use.

G. Release of All Appointed Assistant Officers: A motion was made by Chuck Heitzman and seconded by Eric Hill to remove all Assistant Officers as follows; Assistant Treasurer’s; Liza Eveleth, Keith Horita, Dawn Smith, Harry Inouye, and Assistant Secretary Terri Bosley. The motion carried unanimously. The Board thanked all of these volunteers for their hard work.

H. Lanai Railings: Mr. Hayakawa in apt. #3901 requested permission to repair and re-paint his lanai railing. Kevin Cole will investigate this matter and report to the Board.

I. Vandalism in Elevators: It was reported that vandals have scratched the interior wood in several elevator. If this type of thing continues, the Board will investigate installing cameras in the elevators.

EXECUTIVE SESSION

By unanimous consent, the Board went into Executive Session to discuss legal and personnel matters at 9:00 p.m. The Board resumed regular session at 9:35 p.m.

DATE, TIME AND PLACE OF NEXT MEETING

The next regular meeting of the Board of Directors will be on Tuesday, October 9, 2007 at 6:00 p.m. onsite in the building lobby.

ADJOURNMENT

The regular Board Meeting was adjourned at 9:37 p.m.

Submitted by:

________________
Kevin D. Cole
Management Executive