Elevator Repairs and Power Conditioning Top Agenda at Royal Mauian HOA Meeting

January 24, 2024 – Kihei, Maui — The Royal Mauian Homeowners Association Board convened for its first meeting of the year on Wednesday, January 24, 2024, to discuss key updates and challenges facing the condominium community. The meeting, held via Zoom with full board attendance, focused on elevator repairs, potential electrical infrastructure upgrades, and preparations for the upcoming annual meeting in March.

Board member Paul Piraino presented a detailed report on the resolution of Elevator 2’s mechanical failure. After months of documentation and follow-up, the HOA secured a $110,615.25 insurance reimbursement from Travelers Insurance under a boiler and machinery policy. The total cost of repairs, including a new motor and crane rental, was approximately $113,115.25. The HOA’s direct outlay was limited to $7,700, including a $2,500 deductible and $2,700 in consulting fees. Board members credited Piraino’s persistence and the consultant’s contribution with both securing the reimbursement and reducing the original repair estimate by over $25,000.

The board unanimously voted to allocate the insurance funds to the 2024 reserve balance and formally ratified the repair contract with TK Elevator. Board President Mary Sipes and other members acknowledged the frustration of needing repairs so soon after recent elevator installations and discussed the warranty limitations that led the board to file an insurance claim instead of pursuing legal action.

Concerns over the root cause of the elevator failure sparked a broader discussion on Maui’s inconsistent power quality. Sipes noted that although a definitive cause couldn’t be determined, low-level power surges remain a plausible contributing factor. The board is exploring installation of a power conditioning system, including models with backup battery capability to ensure elevator functionality during outages. They are seeking input from owners with relevant electrical expertise to assist in evaluating vendor quotes and consultant recommendations.

Preparations for the March 16 Annual General Meeting were also discussed. The agenda will largely mirror prior years, with standard business including board elections, memorial acknowledgments, and financial presentations. A proposed change would allow the board to approve meeting minutes soon after the annual meeting, improving availability for prospective buyers and lenders. Two board seats are up for election, with both incumbents indicating interest in serving additional terms.

During owner comment periods, topics included the one-year elevator warranty, power conditioning benefits, and the governor’s initiative to encourage converting short-term rentals to long-term housing for Maui wildfire victims. Sipes clarified that while the board does not regulate whom units are rented to, long-term rentals are permitted and owners may participate in FEMA-related programs independently. She added that, as of the meeting, there was no indication of any Royal Mauian units participating in such programs.

The meeting concluded at 9:04 a.m. HST, with an executive session to follow. The board expressed appreciation for community engagement and invited further owner involvement in ongoing infrastructure planning.

At the Royal Mauian Homeowners Association Board of Directors meeting held on November 21, 2024, board members and owners convened to conduct essential year-end business, including financial reporting, a reserve study review, and approval of the 2025 budget. The meeting, led by board president Mary, included directors Jerry, Don, Jack, Maggie, and Treasurer Paul Perino, who provided detailed financial updates and led key presentations.

Paul Perino reported the HOA’s financial position remained sound, with revenue modestly exceeding budget projections and expenses coming in slightly under budget through Q3. He noted particular savings in payroll, utilities (notably due to reduced propane and water usage), and property taxes, the latter due to a reclassification from short-term to long-term rental status. However, the board was cautioned about increases in insurance premiums and estimated federal taxes due to reserve fund interest income.

The reserve study revealed the HOA’s reserve fund is at 43.5% funded—considered moderate risk but aligned with national averages. The board adopted the 2025 reserve study and its associated projects, including roof resealing, window and door replacements, and the removal of invasive African tulip trees. Notably, a motion passed to pre-authorize reserve-funded projects, streamlining approvals for budgeted work unless substantial cost deviations arise.

The 2025 operating budget was also approved unanimously. A 7% increase in HOA maintenance fees will go into effect, driven primarily by a steep rise in property and flood insurance premiums. Despite this, the board emphasized that all other categories were tightly controlled, with efforts to minimize fee increases through careful planning and leveraging solar reimbursement contributions.

Resident Manager Jack Wilson highlighted completed maintenance projects, including landscaping, pool area improvements, structural expansion joint repairs, and basement wall renovations. He also praised the certified arborist hired to trim large trees and addressed plans to remove 13 deteriorating African tulip trees, noting both safety and environmental concerns. Replacement plans, likely with hedges for sound and visual screening, will be finalized with county input.

The meeting concluded with appreciation for board members, staff, and Jack’s team, recognizing their dedication and effectiveness in maintaining the property while navigating external challenges like water restrictions and rising insurance costs.