Hawaiian Paradise Park Owners Association
Approved Minutes of the Board of Directors Meeting
August 8, 2007

Call to Order:  The meeting was called to order at 7:02 by JoAnne Backman, President.

Members Present:  JoAnne Backman, President; Frank Annin, Vice President; Lloyd Cabral, Secretary; Ron Phillips, Treasurer; Vivienne Houghton, Robin Wright, Bob Rainie and Dale Watson.

Guests:  Paul Baillie, June Conant, Bobbie Alicen, Walter Bell, Norma Bell, Jherrie Rubeyiat, John Erickson, James Cowdrey, Dee Cowdrey, Annie Svaty, Darrell Houghton, and Jim Lee.

Community Festival:  JoAnne thanked the Community Festival Committee for their hard work in creating a fantastic event for the community.

Owner Input:  Paul Baillie asked how the paving plan is being handled.  He said there are rumors that the funds will pave only 60% of the roads, and that the dead ends may be left out of the paving project.  JoAnne said the Paving Committee is in the process of deciding how to proceed with the project; it meets at 5 p.m. tomorrow.  The intent is to pave as many roads as possible, starting with the heaviest traveled first.  She said to her knowledge there has been no discussion of not paving dead ends.  Paul said, “Whatever we do, we have to be equitable.”  He added that his road has been graded and rolled, but no new materials were added.  Suzanne said she spent more than the $300,000 budgeted for materials last year, and it was not enough to replace all the materials lost in the October storm.  Frank added that road maintenance funds are being diverted for paving.

John Erickson said the community event would have been better if more parking had been available.  He suggested looking into creating an additional parking lot on the edge of the property.  JoAnne suggested that the committee have a post-event meeting to discuss what worked and what improvements are suggested.

Bobbie Alicen said she saw and heard pride in the community expressed during the festival, and a greater diversity gathered than is usual for HPP events.  She added that after this weekend Aloha Hour will occur only on an “as needed” basis.  She asked the Board to organize future Aloha Hours when it has information to share with the community.  Robin said that a minimum of three weeks’ notice is needed to put the Aloha Hour on the community calendar in the newspaper.

Bryan Christ said that not everyone will be happy with the paving project, because more people are entering and exiting through the upper park.  He said a paved road is needed through the middle of the subdivision.

James Cowdrey expressed concern over a neighbor who has started a junkyard on his property.  Suzanne recommended that he file a complaint with the County, since junkyards require a special use permit.  She said there is an online form for notifying the County of zoning violations; the County will give the owner 30 days to clean up the junkyard before they begin to charge daily fines.

Paul Baillie said there is a “Micronesian village” of 6 or 8 families on a one-acre lot in his neighborhood.  Suzanne suggested that he contact the Health Department.

Vivienne Houghton said she would also like to thank the Festival Committee for producing a fantastic event with very little time and money.

Approval of Minutes:  Frank Annin moved to approve the minutes of the meeting of May 9, 2007, as written.  Ron Phillips seconded; the motion passed unanimously.

Frank Annin moved to approve the minutes of July 11, 2007, as written; Vivienne Houghton seconded.  The motion passed unanimously.

Treasurer’s Report:  Ron reported that as of July 31, 2007, the account totals (excluding the $12 million bond issue) were:

            Union Bank                                                $  250,708.41

            FHB Roads (bonds depository)                  34,516.53

            CU Hawaii Savings                                                 51.81

            FHB Frog Squad                                           14,350.44

            FHB Non-Roads Checking                              27,920.74

            FHB Roads Checking                                       60,256.04

            FHB Roads Savings                                        273,637.79

            Home Street Bank  CD’s                            215,566.74

            Morgan Stanley Money Market                   44,389.71

            Morgan Stanley CD’s                                      392,000.00

            Petty Cash                                                           465.00

            TOTAL ALL ACCOUNTS                       $1,713,863.21

There were no significant expenditures or deposits during the month of July.  Ron suggested that the Board meetings be moved to the third Wednesday of each month to ensure that the monthly bank statements are available before the meeting.

Dale Watson moved to approve the Treasurer’s Report as presented.  Lloyd Cabral seconded; the motion passed unanimously.

Special Reports

General Manager’s Report:  Suzanne presented the Board with a written report for their review.  JoAnne asked if she had determined the cost of the striping which has been completed and the cost to finish the project.  Suzanne said she had these figures until she drove at night and realized that not all of the white stripes have reflective paint.  Frank and Lloyd offered to identify which sections have reflective paint and which do not.

Robin asked if Suzanne intended to withhold monies from the original contractor and solicit bids for the entire project.  Suzanne responded that she intended to get bids for completing the project where the first contractor left off.  Dale asked whether the original contractor would complete the project at the original price.  Frank said other contractors will be at least double the cost.  Dale suggested telling Apply-A-Line what they need to do to satisfy the Board.  Lloyd said if we go with Apply-A-Line, there is no need to ask other contractors to bid on the striping project. 

Ron Phillips moved to rescind the motion approved on June 13 to terminate Apply-A-Line’s contract.  Lloyd Cabral seconded; the motion passed unanimously.

Dale Watson moved to identify what is needed for Apply-A-Line to satisfy the Association and ask if they will complete the contract at the original price.  Lloyd Cabral seconded; the motion passed unanimously.

Page 3, Following the 3rd sentence after the motion at the top, please insert: JoAnne reported that the 3 remaining bollards are effective.

Suzanne said one person has filled out a waterline application. 

She has scheduled a meeting with the insurance agent to discuss the coverage needed to comply with the bond requirements.

She reported that flexible bollards will not work at Paradise Ala Kai.

Only one bid has been received for the guardrail at 12^th and Maku`u.  She suggested that the Board accept it and have the rail installed for safety purposes. Lloyd asked if the grate has been installed; Suzanne said not yet.  Lloyd expressed concern that a child could crawl into the drainpipe and fall into the drywell.

Robin moved that the General Manager coordinate the Maku`u grate project for completion by September 15.  The motion died for lack of a second.

Suzanne said there are encroachment issues in the 12^th and Maku`u drainage repair.  One lot is holding the excavate in a high berm along the property line.  Les told Suzanne, Lloyd and Frank that he had an agreement with the property owner.  JoAnne asked whether the owner has lodged a complaint; Suzanne said no, but she asked Les to get the agreement in writing.  Also, a drain encroaches ten feet onto a property, which requires a variance from the County.  Suzanne said she is working with Curtis Yamada to resolve the issues and will not pay the bill until they are cleared up.  Frank said the Board will address the problem in September if it is not resolved by then.

Finance Committee:  June Conant said the committee met July 25 to establish guidelines and adopt objectives, which are available for review in the office.  Allan Deehr has volunteered to serve as chair for the next six months.  The committee recommended giving Suzanne single signatory power on checks up to $1500 for non-routine expenses. 

Paving Committee:  Frank said the committee met last Thursday to review the paving specifications.  Clyde Wheatley attended and offered several helpful suggestions.  The next meeting is scheduled for 5 p.m. Friday.  Frank said the committee should be able to submit its recommendations to the Board no later than the September Board meeting.

Bob said the specifications proposal needs work.  He said each contractor should specify how they intend to do the job and the equipment to be used rather than establishing that in the paving specifications.  He said a management section should be included, and the technical section is full of cost data.  He added that it will be a political catastrophe if the committee goes solely on the traffic survey results to determine paving priority, because the lower end of the Park will get nothing.  JoAnne said the Board will make recommendations for changes.  Dale said the Board must be careful not to be in haste to get started.

JoAnne said that Larry Brown of the Planning Department requested the traffic survey results for use by the Puna Community Development Plan’s transportation consultant.

Community Festival:  Jim Lee said there were many positive comments from residents on the event, and no accidents or injuries were reported.  He said the bathrooms were out of water by early afternoon.  Suzanne said the pump may have been unplugged.  Attendance was over 500; one vendor estimated that he had served 2000 people, but Jim said he did not think that many people attended.  Annie Svaty said that after expenses, $1700 remains of the $2500 allotted by the Board.  She expects the additional $2200 tent deposit to be returned.  JoAnne said the $1700 returns to the Non-Roads fund, and asked the committee to submit a complete financial report.  Jherrie said some residents commented that the event should have started at 10 a.m. instead of noon and ended by 4.

JoAnne asked the committee to pool the comments and turn them in to the Board.

Bus Stops:  Frank said Dennis Higgins reported that materials are arriving for the 19^th and Kaloli and 19^th and Paradise sites.  He will meet with Tom Brown next week to get permits to build the shelters.

Unfinished Business

Finance Committee Volunteer:  JoAnne said Darrell Houghton has volunteered to serve on the Finance Committee.

Ron Phillips moved to appoint Darrell Houghton to the Finance Committee.  Dale Watson seconded; the motion passed unanimously.

Audit Progress Report:  Suzanne said the auditor is working on the audit.  He does not give progress reports until it is finished.

Positions Descriptions:  Robin handed out copies of the positions descriptions for the roads supervisor and roads crew, the result of a group effort between herself, Suzanne and Clyde.  Lloyd remarked that time card responsibility was not referenced.  Robin said it is addressed in the employee handbook.  However, she suggested adding to the Roads Supervisor’s description under item 7, Supporting Functions:  Additional Duties, “Ensures roads personnel time cards are accurately completed.”

Frank Annin moved to accept the roads personnel position descriptions as presented and amended.  Lloyd Cabral seconded; the motion passed unanimously.

Vivienne asked about risk management as a priority.  Suzanne said as a general rule for any decision, they always look at liability first.  Robin said safety is addressed in the descriptions. 

Robin Wright moved to schedule a special Board meeting August 15 or August 22 to determine the Association’s short and long term goals and objectives and any goals it wants to direct the General Manager to achieve by her next scheduled appraisal.  Vivienne Houghton seconded.  The motion failed unanimously.

Ron asked if a special meeting is required.  Suzanne said the Bylaws require short and long term goals for a 3-year budget plan.   Lloyd said the goals and objectives are stated in the Bylaws.  Frank said that Bylaws Article III, Objects and Purposes, outlines the Association’s goals.

Robin moved to direct Suzanne to provide the Board with her goals proposal to support the objects and purposes of the Association and enhance roads and office functions, to be presented at a special Board meeting.  Vivienne Houghton seconded.  Upon further discussion, the motion was withdrawn.

Robin said the personnel policies mandate that all employees must set annual goals.  Vivienne said this helps determine if the staff needs more help.  Ron said there is only so much money.  Suzanne said this is true, but she will have to increase the road crew.

Robin Wright moved to direct the General Manager to propose her annual goals to the Board of Directors.  Vivienne Houghton seconded.

Lloyd Cabral offered a friendly amendment to propose the goals by the next Board meeting.  Robin Wright, Dale Watson, Lloyd Cabral and Vivienne Houghton voted for the amendment; Bob Rainie, Ron Phillips and Frank Annin voted against.

The motion as amended passed by a vote of 4 for and 3 against.

New Business

District 6 Appointment:  JoAnne said that six candidates have volunteered:  Kile Golden, Kaniu Stocksdale, Daniel Diamond, June Conant, Dennis Higgins and Joan Galante.  Dennis Higgins was elected by secret ballot.

Vision Statement Task Force:  Robin reported that the committee hopes to seek member input via the website, October and February membership meetings and the January Conch.  Final recommendations will be presented at the March Board meeting.  The committee asked for Board permission to include a notice that the vision statement is being formulated and community input is requested in the September Conch.

Frank Annin moved to include a notice from the Vision Statement Task Force in the Conch.  Dale Watson seconded.  Frank Annin, Ron Phillips, Lloyd Cabral, Robin Wright, Vivienne Houghton and Dale Watson voted for; Bob Rainie voted no.  The motion passed.

Ron asked whether this required a Board decision.  Bob suggested committees be allowed to take action.  Frank said the Bylaws require that actions by committees must be approved by the Board.

Letter from Naeole:  JoAnne said that a letter was received from Emily Naeole stating that the streetlights she offered the community at the membership meeting cannot be installed by the County, because HPP’s roads are private.  She asked whether the community is interested in forming an improvement district to allow for County improvements within the subdivision.  She also asked if there is support for Walter Moe’s suggestion that Hawaiian Paradise Park become a township.  JoAnne said perhaps a committee should be formed to explore these options.

Bryan Christ said Naeole also told him that HPP does not qualify for discretionary funds for bus stops because it is private.

Development Fee:  Dale Watson said that most of the houses being built are spec houses.  He suggested that the Association charge a development fee of $1000-$1500 for each spec house to pay for wear and tear on the roads from heavy equipment.  JoAnne said this could be discussed by the Roads Safety and Policy Committee, which meets Friday.

The Conch:  June Conant said she has allocated 1 page of 8 for Community Festival articles.  Today she received a call from the committee asking for 8 pages of a 16-page paper.  She said she has received no articles to date.  She demonstrated the cost differences for printing and postage.  June suggested that whatever does not fit on one page can be posted on the website.

Bob Rainie moved that the next Conch be limited to eight pages.  Dale Watson seconded; the motion passed unanimously.

Meeting date and time change:  Ron has suggested that Board meetings be moved to the third Wednesday to allow time to receive the previous month’s bank statements.

Ron Phillips moved to change the meeting date to the third Wednesday of each month, effective October 17.  Frank Annin seconded; the motion passed unanimously.

Bob Rainie moved that meetings begin at 6 p.m. effective October 17.  Vivienne Houghton seconded.  Bob Rainie, Vivienne Houghton, Frank Annin, Robin Wright and Dale Watson voted yes; Ron Phillips and Lloyd Cabral voted no.  The motion passed.

Ron Phillips moved to limit Board meetings to two hours, unless extended by a vote of the Directors.  Bob Rainie seconded.  Bob Rainie, Vivienne Houghton and Ron Phillips voted yes; Lloyd Cabral, Dale Watson, Frank Annin and Robin Wright voted no.  The motion failed.

Finance Committee Recommendation:  The committee recommended dropping the two-signatory requirement on non-routine transactions up to $1500.

Ron Phillips moved to allow the General Manager to be the single signatory on transactions for non-routine items up to $1500.  Lloyd Cabral seconded; the motion passed unanimously.

Suzanne asked how to determine what is non-routine.

Frank Annin moved to rescind the previous motion; Lloyd Cabral seconded.  The motion passed unanimously.

Ron Phillips moved to give the General Manager single signatory authority on all checks up to $1500.  Lloyd Cabral seconded; the motion passed unanimously.

Adjournment:  The meeting adjourned at 10:05 p.m.

Respectfully submitted by:

Kirstie Goin, Recording Secretary 

Lloyd Cabral, Corporate Secretary

Motions Log  8-8-07

Approval of Minutes:  Frank Annin moved to approve the minutes of the meeting of May 9, 2007, as written.  Ron Phillips seconded; the motion passed unanimously.

Frank Annin moved to approve the minutes of July 11, 2007, as written; Vivienne Houghton seconded.  The motion passed unanimously.

Dale Watson moved to approve the Treasurer’s Report as presented.  Lloyd Cabral seconded; the motion passed unanimously.

Ron Phillips moved to rescind the motion approved on June 13 to terminate Apply-A-Line’s contract.  Lloyd Cabral seconded; the motion passed unanimously.

Dale Watson moved to identify what is needed for Apply-A-Line to satisfy the Association and ask if they will complete the contract at the original price.  Lloyd Cabral seconded; the motion passed unanimously.

Ron Phillips moved to appoint Darrell Houghton to the Finance Committee.  Dale Watson seconded; the motion passed unanimously.

Frank Annin moved to accept the roads personnel position descriptions as presented and amended.  Lloyd Cabral seconded; the motion passed unanimously.

Robin Wright moved to schedule a special Board meeting August 15 or August 22 to determine the Association’s short and long term goals and objectives, and any goals it wants to direct the General Manager to achieve by her next scheduled appraisal.  Vivienne Houghton seconded.  The motion failed unanimously.

Robin Wright moved to direct the General Manager to propose her annual goals to the Board of Directors.  Vivienne Houghton seconded.

Lloyd Cabral offered a friendly amendment to propose the goals by the next Board meeting.  Robin Wright, Dale Watson, Lloyd Cabral and Vivienne Houghton voted for the amendment; Bob Rainie, Ron Phillips and Frank Annin voted against.

The motion as amended passed by a vote of 4 for and 3 against.

Frank Annin moved to include a notice from the Vision Statement Task Force in the Conch.  Dale Watson seconded.  Frank Annin, Ron Phillips, Lloyd Cabral, Robin Wright, Vivienne Houghton and Dale Watson voted for; Bob Rainie voted no.  The motion passed.

Bob Rainie moved that the next Conch be limited to eight pages.  Dale Watson seconded; the motion passed unanimously.

Ron Phillips moved to change the meeting date to the third Wednesday of each month, effective October 17.  Frank Annin seconded; the motion passed unanimously.

Bob Rainie moved that meetings begin at 6 p.m. effective October 17.  Vivienne Houghton seconded.  Bob Rainie, Vivienne Houghton, Frank Annin, Robin Wright and Dale Watson voted yes; Ron Phillips and Lloyd Cabral voted no.  The motion passed.

Ron Phillips moved to limit Board meetings to two hours, unless extended by a vote of the Directors.  Bob Rainie seconded.  Bob Rainie, Vivienne Houghton and Ron Phillips voted yes; Lloyd Cabral, Dale Watson, Frank Annin and Robin Wright voted no.  The motion failed.

Ron Phillips moved to allow the General Manager to be the single signatory on transactions for non-routine items up to $1500.  Lloyd Cabral seconded; the motion passed unanimously.

Frank Annin moved to rescind the previous motion; Lloyd Cabral seconded.  The motion passed unanimously.

Ron Phillips moved to give the General Manager single signatory authority on all checks up to $1500.  Lloyd Cabral seconded; the motion passed unanimously.