We learned that the previous AOAO Board of Directors at their last meeting on February 25, 2010 (in Executive Session) decided to replace our current management agent, Hawaii First, with a company called Hawaiian Properties.

An owner, Robert Humphreys, wrote a letter to the Board on March 23, 2010 questioning this switch and detailing related concerns, such as alleged conflicts of interest of a Board Director, Dass Ramadass (Dass Ramadass is a Board Director, even though he does not own property at the Ilikai, but is an employee of Hawaiian Properties).  For your information, Robert Humphreys is a seasoned attorney, still in active practice, incl. serving as an arbitrator and advising state agencies and national and local organizations.  He also was a U.S. Army officer and aviator.

I, too, sent a letter on February 18, 2010, to the then Board, i.e. the previous Board that made the decision to switch to Hawaiian Properties, and the AOAO legal counsel, Milton Motooka, to list related concerns.  In my opinion, switching to Hawaiian Properties as the management company could trigger a whole web of conflicts of interests, with the Tokioka Family at the center of it, through an elaborate proxy collection scheme and now the management contract paid for with AOAO funds.  I am perplexed how this is allowed and the direction the governance and management of the AOAO is taking.  Note that in my letter I explicitly asked to advise me at their earliest convenience if I had any factual misunderstandings or ungrounded concerns.

I did not receive a response from the Board or Milton Motooka.  Robert Humphreys did not receive a response either, but was told, upon his inquiry, that the current Board chose not to revisit this decision by the previous Board.  One can easily speculate why.

Please also note that there are other management companies in town, such as Certified Management and Hawaiiana.  They are highly reputable companies.

Here is a March 26, 2010 article in Pacific Business News about Terry Dowsett as the new General Manager of the Ilikai Hotel.  

Mr. Dowsett brings to the Ilikai more than 30 years of experience in the Hawaii’s hotel industry.  This includes work at Aqua hotels where he assisted with the re-opening of the Aqua Palms, and also work as director of operations for the Big Island’s Mauna Lani Resort, general manager for Embassy Vacation Resorts in Kaanapali, Maui, and general manager of the Outrigger Prince Kuhio in Waikiki.

Welcome to the Ilikai!

Well, folks, our new Board of Directors already managed to have a two-hour Board meeting.  It was held last Thursday, March 18, from 4 PM for two hours.  When I heard about it from another owner and after it was held, I replied, “How could they have had it if they must post it first?”  Board meetings must be announced by posted notices.  Announcements about Board meetings are typically posted by our mailboxes, so that owners can see it.  This meeting was not posted there.  I check it every single day.  It turned out that they (and I am not sure who “they” are in this case) posted it on the door of the AOAO office on the second floor.  Well, hello.  Who is going to see it there?!  This meeting consisted of an executive session only.  Pursuant to our Bylaws, the nature of any and all business to be discussed in an executive session must be announced PRIOR to the executive session.  That wasn’t done either.

Anyway.  There is a notice posted by our mailboxes to inform that the next Board meeting is scheduled for this Thursday, March 25, 2010, in Kauai Room on the second floor.  The meeting will start with an executive session at 2:30 PM, followed by a regular session scheduled to commence at 3:30 PM.

As said, pursuant to our Bylaws, the nature of any and all business to be discussed in an executive session must be announced prior to the executive session.  Since the executive session will be before the regular session, how are they going to announce what they will be discussing?  I sent an e-mail to John Hall, who is rumored to be the new Board President, about this and asking that they post the agenda for the executive session.

Ilikai owners are invited and encouraged to attend the meeting.  Well, I am the one “inviting” and “encouraging” you to attend   I am not sure if the Board wants to see us there.  Since the regular session is scheduled for 3:30 PM, then that’s when we should be there, I assume.

“Happy families are all alike; every unhappy family is unhappy in its own way.”  Leo Tolstoy, in Anna Karenina.

Honolulu Advertizer recently published on the subject of growing problems in condominium associations.  They published two articles on this on the same day.  Here is the first article of March 14, 2010, titled “Fighting Hawaii condo boards is costly, risky,” or click here for a PDF version.  Here is the second, related article on the same subject, titled ”Fighting a condo association can be futile,” or click on this link for a PDF version. 

And click on the link to read the Bluestone arbitration ruling .  The ruling is quite enlightening, take a look.

By the way: (a) Note the legal fees of that owner: $318K; (b) Her attorney was (and I assume still is) Terry Revere.  Terry Revere is a familiar name from other condo associations.  He happens to be from the same law firm as the Ilikai’s legal counsel, Milton Motooka.  (By the way, as you know, many Ilikai owners were perplexed when they found out that the previous Board chose to bring Milton Motooka back as the Ilikai’s legal counsel.)  (c) Note Terry Revere’s legal advice to homeowners contemplating fighting their condo boards: “You have to be rich, crazy or damn sure you’re right,” said attorney Terry Revere.  That’s the legal advice he has to offer?

Re whether same or similar problems are at the Ilikai: I think it is more along the lines of the Tolstoy’s quote cited above, “Happy families are all alike; every unhappy family is unhappy in its own way.”  I have been learning about other condo associations in our state.  It seems like the healthy ones are similar.  But the unhealthy ones often differ in terms of their problems, – unless they have the same people involved.

WHAT ARE YOUR THOUGHTS ON THIS?

I posted earlier re a Bill that was going through this year’s State Legislature and that had relevance to us at the Ilikai.  This is HB 2582 which proposed, among other things, that commercial vessels be allowed in the Ala Wai Harbor.  As you know, the Ala Wai Harbor now is comfortably “sleepy” in terms of its atmosphere.  Even a minimal number of commercial boats could mean boats going out and in all day, traffic, pollution from oil, noise, and so forth.

So what is the status of HB 2582?  The Bill itself is dead.  I.e., for now at least, no commercial vessels in our Harbor.  But apparently, there is now some modified version(s) of that Bill making it through the Legislature.  From what I understood, this modified version(s) would not allow commercial vessels, but focuses instead on other issues, such as fees for moorings, in particular for live-on-the-boat situation.

Click here to read this update that was kindly put together and shared by one of the activists from the boating community.  We sincerely appreciate all their efforts and keeping us informed!

Multiple Ilikai owners helped defeat HB 2582 by voicing their concerns.  I heard from several owners who took the time to submit their testimony.  Several owners took the time away from their busy schedules to go to the State Legislature to testify in person this Bill.

 The next meeting of the Waikiki Neighborhood Board is scheduled for Tuesday, March 9, 2010, at the Waikiki Community Center located at 310 Paoakalani Avenue, 7:00-9:30PM.  Here is the agenda and timeline for the meeting. 

The agenda includes several items pertaining to the ALA WAI HARBOR.  As you know, the Ala Wai Harbor is located directly in front of the Ilikai.  Needless to say, lots of commercial interests would love to take a bite off that piece of such prime land.  Any developments there could potentially have significant effects on the Ilikai.  (I have never been to the Waikiki Neighborhood Board meetings.  But from what I heard, they are pretty good at adhering the meeting to the timeline listed on the agenda.  That way interested folks do not have to attend the whole meeting and can simply arrive for the meeting portion of interest.)

DISCLOSURE: I have NOT researched this subject, its pros, cons, etc.  I am posting this information as it has been supplied to me by folks who are very active in this area and have thorough knowledge of what is happening.  Below is information as it was provided to me, I did not write it.

This Bill, if passed, could have a highly significant impact on the Ilikai, since the Ala Wai Harbor is right in front of the Ilikai!

This is one of the last chances for ocean loving people of Hawaii and particularly Keehi and Ala Wai boaters to stop the bill in the Senate that would limit their opportunities to the waterfront.  Submitting testimony couldn’t get any easier, see instructions below.  One or two points in a couple of sentences expressing your opinion is more than enough.  Keep it simple.

HB 2582 (click on the link for more information) authorizes moorage for commercial vessels and commercial vessel activities in the Ala Wai and Keehi Boat Harbors and adjusts fees for permittees of vessels that are used for a place of principal habitation in state small boat harbors.  It has been assigned to the Senate’s WTL & WAM committees.  HB 2582 proposes to reduce the number of recreational slips in both harbors – meaning longer on a wait list for a slip to 1) get a boat or 2) to change boats, in other words, being locked in the same sized boat – by converting 15% of the slips from recreational to commercial.   At the FIN hearing, DLNR stated that they wanted to commercialize the 700 / 800 rows.  DLNR could get the same amount of revenue simply by increasing the percentage to 30%, the same percentage that was recommended in 1976!

On Wednesday, Mar 10th @ 2:45pm WTL <http://capitol.hawaii.gov/site1/senate/comm/commWTL.asp>, the committee that hears most boating bills, will hear HB 2582.  Please see below the instructions how to submit your testimony – by Tuesday. 

At the previous hearing before the House FIN committee, only one individual testified for a commercial operator that it would be “more convenient” for his customers to come to Ala Wai rather than get on a bus or take a taxi to Kewalo where he now operates several boats.  Consider possible effects on the parking, on the harbor infrastructure and the recreational users. 

We recommend that you read Reg White’s testimony at FIN starting on page 9 and that of others – click here to read the HB 2582 testimonies and more from earlier hearings – click here for other HB 2582 testimonies.  These testimonies highlight the strongest points of why this bill should not pass.  Showing up in person on Wednesday will have the strongest impact on committee members.

Instructions how to submit your testimony:

Persons wishing to testify should submit testimony in one of the following ways by 2:45 p.m. [Tuesday] the day prior to the hearing :

*** By E-mail:  Testimony may be emailed if less than 5 pages in length, to the Committee at WTLTestimony@Capitol.hawaii.gov .  Please indicate the measure, date and time of the hearing.  E-mail sent to
individual offices or any other Senate office will not be accepted.

*** By Web: Testimony may be submitted online if less than 4MB in size, at http://www.capitol.hawaii.gov/emailtestimony.

*** In person:  1 copy of the testimony to the committee clerk, Room 228, State Capitol.

*** By fax:  Testimony may be faxed if less than 5 pages in length, to the Senate Sergeant-At-Arms Office at 586-6659 or 1-800-586-6659 (toll free for neighbor islands), at least 24 hours prior to the hearing.  When faxing, please indicate to which committee the testimony is being submitted and the date and time of the hearing.