Well, the process for the elections for the Board of Directors to be conducted at the upcoming Ilikai AOAO Annual Meeting on March 2, 2010 has just started. But there are already problems brewing. If you are an Ilikai owner, then by now you should have received a proxy package containing proxy forms, a meeting notice, and personal statements of several people (incl. me) who want to get elected to the Board of Directors. This package was mailed out by the AOAO Office, and instructions direct to send the proxies back to the AOAO Office. Historically, it is the management company (Hawaii First now, Hawaiiana prior to them) that does this and collects and counts the proxies. This year, it is the AOAO office that mailed those. Then out of a blue, another piece of mail arrived. This one contained personal statements and proxy solicitations from two iStar representatives (Steve Stinson and Leslie Love). This was mailed out by Hawaii First. What’s up with that? (Hint: don’t be naïve.) There have already been other irregularities as well, but I’ll leave those aside, at least for now.
Now, if the elections go peacefully – let’s hope – and all those involved get what they wish, then this may work out fine. If not, then it is no rocket science to see that the above arrangement is setting the stage for contesting the election results. Why?
It is no rocket science to see that certain Board Directors are really eager to get re-elected. Why is another story. (Hint: don’t be naïve.) The Ilikai AOAO manager, John Popovich, also has a strong vested interest in the outcomes of the elections, as some claim that his job as the AOAO manager could be at stake (I really doubt this though). I.e., letting the AOAO office handle the proxies could be interpreted by some as akin to letting a fox guard hens in a hen house. (Those of you attending Board meetings: Do you remember how the Directors on the current Board decided to vote and voted to have the AOAO reimburse over $65K to a group of owners for the really ill-conceived and poorly handled, and dismissed Anekona-related lawsuit, even though Anekona was well on their way out at the time because they were in the middle of the foreclosure? I am NOT discussing the $65K+ itself etc here, that is a whole other issue (Parenthetically, I would have no reservations to express directly to the attorney retained by those owners, Mr. Zalewski, as there are serious questions about his actions). I am talking here specifically about the voting by the Board. Do you remember that voting? That was back in April. I cannot describe it by any word other than rigging – and it was blatantly, in front of dozens of people in the room witnessing this circus.) P.S.: The end does not justify the means, in my opinion. We must act ethically. And yes, I did stand up and voiced concerns about this at that meeting and also in writing to the Board afterwards.
Likewise, Richard Emery and his company, Hawaii First, also have a vested interest in the outcomes of the elections. This is because Hawaii First’s contract with the Ilikai could be at stake. Not to mention that some Ilikai owners have the idea of looking into exactly how the AOAO ended up with over $1M+ in delinquencies during Hawaii First’s tenure here, Lyle Hosoda’s fees in the amount of $125K-$135K (according to what Richard Emery stated), and other queries. I.e., letting Hawaii First handle the proxies could be interpreted by some as akin to letting a fox guard hens in a hen house.
I am NOT saying anyone will behave inappropriately. But why create room for somebody to be able to allege inappropriateness? What they – the Board of Directors that is – should have done is this: Get an independent contractor to handle the proxies. It is NOT that expensive. But they didn’t. And this is asking for trouble, if some of the people involved do not have the chips fall their way. It is not rocket science. What were they thinking?
What is my point? I have two points to make here: (a) this shows the usual shortsightedness and clumsiness of the people on the current Board (and my point with that is: these individuals should NOT run for re-election considering numerous issues with their performance as Directors); and (b) I appeal to all those involved, incl. those handling proxies, to conduct themselves in a professional, ethical, and honest manner; because if not, expect trouble, because already now there are items in the election process that could easily be challenged.
By the way, as a general comment: rigging homeowners associations’ election results is easy. I mean, EASY. You would be surprised how common it is. As a quote attributed to Stalin goes, “It is not the people who vote that count; it is the people who count the votes.”
The longer I live at the Ilikai, the more cynical I get.