Let me introduce, with great pleasure, a fellow candidate for the Ilikai AOAO Board of Directors: Robert Humphreys.  Robert and I share the vision for the Ilikai and have agreed to join our efforts in terms of collecting vote proxies.  As a reminder: the proxies are not the actual votes.  Proxies are used to delegate the power to vote to another person.  Proxies are commonly used to form a voting bloc so that votes can be consolidated.  In our case, Robert and I forming such a voting bloc.  As said, Robert and I are joining our efforts – and will consolidate our proxies.  I am writing this to communicate that this is a strategy to make sure vote proxies are not wasted.

Click here to read Robert Humphreys’ personal statement.  Click on this link to read Robert Humphreys’ Vision Statement for the Ilikai. 

Robert and his wife first stayed at the Ilikai as visitors in 1971 and became owners in 2004.  They are part of the newer, progressive generation of Ilikai owners (and so am I).  They are residents of the state of Hawaii.  Robert is an attorney, still in active practice.  He routinely serves as an arbitrator, advising state agencies and national and local organizations.  He also used to head a large federal agency and worked as a counsel to a U.S. Senate Committee, as some of his credentials.

Robert and I share the vision for the Ilikai.  We need intelligent, educated, progressive and forward thinking people on our Board.  It is time to break this circle of the fraternity/sorority formed by the OBC (Old Boys (and some ladies) Club) directors currently on the Board.  These OBC directors-old-timers are dragging the Ilikai and all of us into the Stone Age.  They claim to represent the “owners.”  But in reality, they represent an OBC “fraternity/sorority” that they have formed here in our building as a way to kill time and boredom while retired.

For those of you who do not know Robert Humphreys: You may have seen him and his wife at Board meetings and around the Ilikai.  He is a tall, handsome and intelligent looking gentleman, with an equally attractive wife, a wonderful couple.

Vote for me and Robert!

Here is some interesting sample reading of advice our (the Ilikai AOAO that is) legal counsel, Milton Motooka, gives to Boards of Directors. 

Milton Motooka, Ilikai AOAO legal counsel

This was published in the December 2005 Hawaii Community Associations newsletter - see pages 3, 8 and 9 there.  In it, Milton Motooka talks about “Avoiding & Responding to Recall Petitions” and gives advice to Board Directors on how to deal with what he calls “dissident owners.”  Among other things, Mr. Motooka explicitly advises (see page 3 of the attached document, item 4-d), “The board should be seated on a riser and there should be a podium from which the president can preside.  It is a psychological benefit for the board to be seated on a riser.”

Gee whiz.  What can one say.

P.S.: Here is something to think about: Milton Motooka was the Ilikai AOAO’s legal counsel at the time Forward One (the hotel owner prior to Anekona) sold 80 units to the Shell timeshare company.  That is when we got timeshare here, which we now are trying to get off the premises.  As we eventually learned, Forward One was in great hesitation about legitimacy of timeshare for the Ilikai.  But they made A LOT of money by selling those units to Shell.  They were planning that transaction for at least 8-9 months – apparently, with full knowledge of the Board of Directors and the AOAO legal counsel, Milton Motooka.  Yet they kept this as top secret from the AOAO members, owners that is.  Ilikai owners did not find out about this until AFTER the fact. Questions remain about the role Milton Motooka played at that time.  Mr. Motooka is yet to come forward to explain himself.  WE INVITE AND ENCOURAGE MR. MOTOOKA TO PROVIDE EXPLANATIONS.

By the way, Bill Moore and Lavonne West  who are currently on the Board of Directors were on the Board at that time, and so was John Popovich who is now the AOAO manager.  Bill Moore and Lavonne West are also now trying to get re-elected to the Board.  Perhaps they could offer some explanations, too, as to what they were doing on the Board at the time Forward One brought Shell with their timeshare here and what makes them think they deserve to get re-elected to the Board.  Also on the Board at that time was Frank Tokioka of the Tokioka Family (see my “Elephant in the room” posting for some information about the Tokioka Family).  (One of the readers wrote to me, “With people like that on the Board, who needs enemies?!”)

P.S.: Readers have been commenting that the blog looks dull without pictures.  Excellent feedback.  Hence the picture.

As a reminder, here is what the Ilikai covenants (Declaration and Bylaws) say about permitted uses of Ilikai apartments:

1. Pursuant to Section 7(a) of the Ilikai Declaration, “[t]he owner of each apartment within the building shall use such apartment only as living accommodations for hotel or apartment purposes” (emphasis added).
2. Pursuant to Article VI Section 1(a) of the Ilikai By-Laws, “[t]he owner of each apartment within the building shall use such apartment only as living accommodations for hotel or apartment purposes” (emphasis added).

Timeshare is NOT one of the permitted uses!

At the last Board meeting (January), a representative from the Sarento’s restaurant debriefed on their news.  He stated that iStar renewed their lease (as far as I understood, for another 20 years).  He also informed that they are planning significant renovations.  He sounded very upbeat and optimistic about the future.  It was refreshing to hear good news. 

By the way, iStar offered the services of the same professional designer who is working on Sarento’s renovations to our Board of Directors.  iStar stated that they had offered this designer’s services – to be paid by iStar - repeatedly to our Board to assist with Common Elements renovations, such as the lobby furniture.  But no, our Board refused these professional services.  Instead, the Board Directors themselves chose the cheap ugly fabric for the furniture, the “design” for the elevator cab (cheap carpet on elevator cab walls and floor; they simply ruined the elevator), and cheap faux flowers all over the lobby.

The good news is: We have money in our Reserves.  Once we remove some of these Directors from the Board at the upcoming Annual Meeting, we can get professional designers and fix this damage.  This damage is not long-term.  It can be fixed relatively easily.  We just need to get fresh representation on the Board.

Back to Sarento’s:  Here is a report in the Pacific Business News of 02/08/2010.  Another article, in Honolulu Advertiser of 01/17/2010, reports, “Sarento’s adds live music on Thursdays.“  Apparently, the live music and Jazz Nights are quite popular there and bring significant crowds.

A reader posted the following comment on 02/12/2010: “I’m curious as to how much money iStar is offering to put toward the common elements. If they’re paying for these common elements, then they should have a say. If not, they shouldn’t. I understand they’re not even paying for the torch lighting and music on Friday nights. Shouldn’t they since these amenities are for the hotel guests as well?”

Thanks for articulating this question!  This is actually commonly asked.  Here are some answers.  The hotel owner (currently iStar) currently owns circa 28% of the Ilikai (p.s.: I use the “hotel” etc terminology rather loosely, but you know what I mean).  Their contribution to the Ilikai AOAO maintenance fees amounts to about 28%.  So certainly they should have a say in how the AOAO funds are spent, wouldn’t you agree?  Yet, at the moment, they do not have any representation on the Board.  Last year (2009), there were multiple openings on the Board of Directors due to resignations.  iStar attempted to get their representative, Leslie Love, who is Senior Vice President at iStar, elected to the Board.  But the OBC-controlled Board of Directors (OBC stands for Old Boys Club) voted her down.  Instead the OBC-controlled Board elected to the Board Lavonne West (who then left on a cruise for at least two months and was not even here to contribute to Ilikai affairs), Bill Lawrence, and Dass Ramadass.  Dass Ramadass does not own anything at the Ilikai.  He works for the various companies of the Tokioka Family.

By the way, here is some trivia to think about: As you may or may not know, Bill Lawrence is a Director on the Ilikai Board as well as on the Board at the Ilikai Marina.  Ilikai Marina has a resident manager.  I.e., their AOAO manager actually lives on-site.  The Ilikai Marina AOAO rents a condominium for that resident manager and pays for it with Ilikai Marina AOAO funds.  And whose condominium do you think the Ilikai Marina AOAO rents for their resident manager? – Bill Lawrence’s!  In other words, Bill Lawrence is on their Board of Directors.  And the AOAO rents his condominium, with AOAO funds.

Back to iStar.  As said, they own 28% of the Ilikai and their contributions to the Ilikai AOAO funds amount to circa 28%.  So, surely, they are entitled to have representation on the Board and to have a say in how the AOAO funds are spent, wouldn’t you agree?

Speaking of which: As I pointed out in my posting re “The elephant in the room – the Tokioka Family”, the Tokioka Family owns ONE unit (unit # 1623; it is possible that they own a couple more units, if under different names, but certainly not more than five units total).  Yet they control circa 20% of the vote proxies!  How?  Because they operate their rental company, Marina Vacations, at the Ilikai.  When Ilikai owners place their units into that rental program, the default is that those owners give up their proxies to Marina Vacations – i.e., the Tokioka Family.  True, those owners can request to take back their proxy.  But let’s face it, many owners don’t even know what proxies are, or don’t care, or would not want to go against the Marina Vacations in fear of jeopardizing their rentals.  Not only that, but several Board Directors, incl. Directors Bob Romo, Bill Lawrence and Bob Currie, rent their units through Marina Vacations program – i.e., these Board Directors depend on Ilikai Marina for their rental income.  Another Director, Dass Ramadass, does not own anything at the Ilikai.  Yet, he is on the Board because one of the Tokioka Family’s companies owns ONE unit at the Ilikai (several at most, if under different names) and Dass Ramadass happens to be an employee of the Tokioka Family’s companies.

What is my point? – My point is that there are two many conflicts of interests on the current Board.  Yet, these same individuals want to get elected to the Board again.  Do we need all these conflicts of interest and problems?

So anyone wondering why iStar, with their 28% of ownership at the Ilikai, should have any say in Ilikai renovations, should instead ask why the Tokioka Family gets to have so much control at the Ilikai even though in terms of ownership, they own less than 0.1% of the Ilikai (one unit to be precise, several at most in case they are owned under other names).

Back to the common elements renovations: Let’s get some facts straight here.  Here are some examples.  Several months ago, the current Board authorized spending thousands of dollars of the Ilikai AOAO funds on renovating one of the parking elevators.  I and other owners repeatedly and repeatedly asked whether the elevator at issue actually belonged to the hotel.  At a Board meeting, a representative from the hotel stood up and stated explicitly that the elevator at issue belonged to the hotel.  Yet at the same Board meeting, our Board authorized spending thousands of dollars of the AOAO funds on renovating that elevator (with ugly materials)!  Here is another example: most of the lobby, except for a narrow walkway, actually belongs to the hotel and not the AOAO.  Much of the furniture belongs to the hotel.  So why did this Board decide to waste thousands of dollars on reupholstering that furniture with that cheap and ugly fabric?  I and other owners repeatedly and repeatedly raised this concern.  The Board’s response was: “Ilikai owners sit on that furniture.”  Well, many Ilikai owners frequent the neighboring Hilton and sit on Hilton’s furniture.  How about the Ilikai AOAO reupholsters Hilton’s furniture?  In the case of our lobby furniture, iStar (who owns most of the lobby and furniture to begin with) repeatedly and repeatedly offered to the Board the services of their professional designer (paid by iStar).  But no, our designer-wannabe Board Directors refused the services of that professional designer and proceeded to indulge in their designer-wannabe pursuits at the AOAO expense.  You all can see the result: cheap (although new) fabric on the furniture, nothing matches anything, cheap faux flowers all over the lobby, ruined elevator with cheap ugly carpet on the elevator cab walls, that one elevator looks totally different from the other ones, etc etc.  In other words, it is NOT iStar pushing these expenditures.  iStar is not even on the Board.  It is the current Board pushing these ideas.

But there is good news to it.  We do have money in our Reserves.  Let’s work together with the hotel!  Let’s get professional designers to help make our Ilikai beautiful again!  With all the renovations in store in the near future, this is our opportunity to upgrade our Ilikai.

Folks, our Ilikai has SO MUCH POTENTIAL!  It is a great building, great location, great history!  We need to bring back its glory and beauty!  The current Board has had a whole year to prove themselves, but they failed.  That is why I am running for the Board, we need fresh representation.  I need your VOTES!

THANKS to those who have written to me to ask why I haven’t been posting and also for the kind and supportive words.  I appreciate it so much.  I have NOT resigned from the Ilikai affairs in any way.  It’s just I have been very busy, mostly with work, with a major deadline looming next week.  I will do my best to resume posting.

I will have some spare time this Friday-Saturday and will post notes from the Board meeting etc (I promise!)  But here is a quick synopsis for starters of what we found out at the last Board meeting:

1)  The Board decided to write off circa $800K of the Anekona delinquencies.  This was followed by some incoherent talk about the remainder of the delinquencies.  It was disgusting.

2)  We also learned that the current Board Directors totally ruined rapport/ relationship with iStar.  There was quite a drama towards the end of the Board meeting.  We are talking drama, folks.  Based on what was told at the Board meeting, the current Board apparently also repeatedly refused iStar’s repeated offers of assistance with common elements design and also assistance re the easements at the Yacht Harbor Tower.  Did you see what this Board did to our elevator, with the ugly carpet on the elevator cab walls?  The cheap faux flowers all over the lobby?  That’s just some examples.  And they refused the help of a professional designer (paid by iStar) that iStar was offering to them!

3)  Did you know that eRealty wants to relocate that walkway in front of the ballrooms from the bridge over the Hobron Lane to our building?  Apparently, our Board has known about this for a long time.  What have they been doing about that, other than rejecting offers of help from iStar?  What ever happened to the prescriptive easement etc?

It was surreal to watch this Board and listen to them.  It’s just beyond belief.

In my previous post, I wrote that there are lots of Ilikai owners who are really concerned about what is happening and the current Board.  Many owners – those who are informed – would not have anything to do with voting for the current Board of Directors to be re-elected.

If you are sceptical about the above statements, then you should have been at today’s Board meeting.  The general session lasted 2.5 hours and towards the end, got really heated, to put it mildly.

I will post notes, but give me a couple days, as it was overwhelming.

Here is some clarification.  We have now at the Ilikai this OBC group of Board Directors who are also running for re-election.  The OBC stands for Old Boys (and some ladies) Club.  By the way, I am not the one who thought of this term.  It was another concerned Ilikai owner who is concerned about what is happening.  The OBC Directors (also running for re-election) are: Lea Sasak, Bill Moore, Bill Lawrence, Dass Ramadass, and Lavonne West.

This OBC group is actively pitching the argument that goes like this, “We must retain control of the Board.  For that, we need to have four owner Directors elected.  The only way to accomplish this is if you [owners that is] give us your proxies.  We will collect all these proxies and then use them.  No votes will be wasted that way.  That way we will get elected, we will retain control of the Board.  Otherwise, iStar or iStar and Shell will take over the Board, and the world will come down.”

That is a totally BOGUS argument.  Why?  Here is why:  There are LOTS and LOTS of owners who do not want to have anything to do with that group of OBC Directors and will not give their vote proxies to them.  Because these owners got completely disillusioned with this group (e.g., this group has been in full control of the Board for a year now; what have they accomplished?), or they personally dislike the people in that group, or other reasons.  So if that group is the only owner representation choice available, then the disillusioned owners will either not vote at all or vote for iStar.  A lot of owners have more confidence in iStar – or me – than in this group.  That is the reality.

What is the solution?  Here is the solution:  There should be more than one option for owners to vote for.  The OBC group is one option, they do have their constituents.  I am representing the OPPOSITION.  Somebody was trying to talk me into partnering with the OBC group.  That would be exactly the way to lose owner votes, because many owners do not want to be part of that group and their mentality, way of conducting business, and so forth.  My goal is to represent owners who have a different, progressive vision for the Ilikai than what we have seen with the OBC Directors.  We urgently need fresh representation on the Board.  That is why I am putting my candidacy.

Click here for an outline of my vision as a Board Director candidate for the priority areas.

In my and some others’ opinion, perhaps by far the main “accomplishment” of the current Board from March 2009 through now is that they managed to convert – through fierce infighting – the Ilikai Board into an OBC-controlled Board (Old Boys (and some ladies) Club).  The OBC Directors, who are also Board Director candidates pitching themselves for re-election, are: Lea Sasak, Dass Ramadass, Bill Moore, Bill Lawrence, Bob Currie, and Lavonne West.

So what about the “elephant in the room” – the Tokioka Family?

Dass Ramadass is one of the OBC group of Directors and was hand-picked to be elected to the Board by the OBC Directors when the Board had a vacancy this past fall.  Please note that the Board has ZERO representation of the Hotel (owned by iStar), even though the Hotel/iStar own 28% of the Ilikai complex.  iStar did want to have one Director on the Board and put forward iStar’s Senior Vice President, Leslie Love, as a candidate.  But the OBC Directors chose members of the OBC network, Lavonne West, Bill Lawrence, and Dass Ramadass, instead, whenever there was a vacancy on the Board.

Anyway, back to the “elephant in the room.”  One of the OBC Directors and candidates for the upcoming Board elections is Dass Ramadass.  Click here to view Ramadass’s resume that he submitted as a Board Director candidate. 

Folks not familiar with the setup may read his resume and say, “Wow.  VP this, VP that.”  Specifically, Dass stated that he is Executive Vice President/Treasurer at National Mortgage & Finance, Ltd., also Executive Vice President at Mutual Finance Co., Ltd., and also President/Director at Hawaiian Properties.

However, what Dass Ramadass failed to point out is this:

(a) Dass Ramadass himself does not own anything at the Ilikai.

(b) It is the Tokioka Family that owns all those companies where he is employed: National Mortgage & Finance, Ltd., Mutual Finance Co., Ltd., and Hawaiian Properties – as well as Marina Vacations.  Marina Vacations is the sales and rental agency at the Ilikai.  The number of Ilikai units in their program has declined compared to what it used to be.  Nevertheless, it is estimated that to the tune of 250 of Ilikai units are in their rental program.

In other words, Dass Ramadass himself does not own anything at the Ilikai.  He is nothing more than an EMPLOYEE of various companies of the Tokioka Family.

So how come he is a Board Director and how come he is running for re-elections to the Board?  Well, that is because the Tokioka Family owns ONE unit at the Ilikai, under Mutual Finance Co., Ltd..  Please note here: We have searched public records.  The various companies of the Tokioka Family used to own several more units at the Ilikai.  It appears that at this point all they own is unit # 1623.  It is conceivable that they own several more units under some other names, but certainly not more than five or ten units at the very most, for sure.  They sold their other units in recent years (e.g., they sold unit # 309 for $385K on 09/05/2003, which they had bought for $240K on 02/02/2002).

So the Tokioka Family (their Mutual Finance company) appears to own one single unit at the Ilikai (several at most, in case there are other units under other names).  Yet, they get to place their EMPLOYEE, Dass Ramadass, on our Board of Directors, and likely to have him and possibly an additional Director on the new Board.  How come?

Because Ramadass is an officer of a company that owns that unit # 1623. 

But there is more to it.  Even though the Tokioka Family owns one unit (several at most, in case there are other units under other names), upon information and belief, they hold proxies for around 200 Ilikai units at least.  Why?  Because they own Marina Vacations, the rental agency at the Ilikai.  When owners put their units in that rental program, the DEFAULT is that Marina Vacations obtains their PROXY for voting!  Owners can choose to opt out.  But the DEFAULT is that they give away their PROXIES.

The Tokioka Family certainly has some sort of commercial interests here at the Ilikai, beyond simply running that rental agency.  What specifically? – Who knows. 

For ex., one of their companies, Hawaiian Properties, is a management company.  Would the Tokioka Family want to place their Hawaiian Properties here to replace Hawaii First?

But the bottom line is this: Here is this Tokioka Family.  They own one single unit at the Ilikai (several at most, in case there are other units under other names), – yet they hold PROXIES for an estimated 200+ units and will end up placing at least one or possibly two people of their liking on the Board.  What is wrong with this picture?  Not only that, but they place their EMPLOYEE, Dass Ramadass, on the Ilikai Board, who does not own anything here.

Dass Ramadass may be a wonderful person.  BUT: He is NOT an Ilikai owner.  He is an EMPLOYEE of companies owned by a family, who happen to own one single unit at the Ilikai (or several at most).  How can Dass Ramadass act on the basis of undivided loyalty and FIDUCIARY DUTY to the Ilikai AOAO when he does not own anything and instead is an employee of a company with who knows what commercial interest here?  Wouldn’t he simply do what his EMPLOYER tells him to do?

I am NOT questioning Ramadass’s integrity in any way whatsoever.  There is nothing illegal with this setup, nothing in violation of the Bylaws and condominium law.  But come on, it is a no-brainer setup for potential conflicts of interests.  Do we need/want this here?  Haven’t we had enough of these conflicts of interests, hidden agendas, behind the scenes commercial interests?

But wait.  There is more to it.  What about the other Directors who are also running for re-election?  Upon information and belief, several of them rent through Marina Vacations (i.e., one of the Tokioka’s companies).  This includes, upon information and belief, Board Director Bob Romo who rents through them, Board Director Bob Currie, and Board Director Bill Lawrence.  Their rental income depends on Marina Vacations making sure their units are rented out.  I am NOT questioning their integrity in any way.  I am simply pointing out the facts.

Suppose, hypothetically speaking the Board decides to replace Hawaii First with Hawaiian Properties (a Tokioka’s company).  Dass Ramadass will excuse himself since he has a clear conflict of interest.  But what about the other Directors who happen to depend on Marina Vacations for handling their rentals?  That is just one example!

Am I the only one who has problems with this?

But wait.  There is more.  John Popovich has spent many years working for various companies of the Tokioka Family.  The current Board hired John Popovich as the AOAO manager.

By the way, remember the saga with renters from a neighbor building, Ilikai Marina, coming over to use our POOL?  Remember that?  Remember the explanation that John Popovich gave claiming that those renters are “guests of the unit # 1623″?  (P.S.: There have been so many complaints from Ilikai owners about this.  The AOAO may have addressed the problem by now.  I do not know either way re the current status.)

What is my point and what is my proposed solution?  My point and proposed solution are:

(a) There is way too much potential for conflicts of interest in our Ilikai.  We have already had so many problems because of that.  It is enough.  Not only that, but also this “invisible hand” of the Tokioka Family here is something what can play out in who knows which ways that could affect all of us, Ilikai owners, in who knows which way.  They own one unit, and because of that and by virtue of running a commercial enterprise here, they end up with proxies for at least 200 units?!

(b) I will pitch for myself as a Board candidate here: I have NO conflicts of interest here.  I have no affiliation with any of the commercial entities here.  Click here to read more on my vision as a Board Director candidate.  Vote for me!

(c) As for those estimated 200+ proxies that Marina Vacations holds: I think they should show good will and give up those proxies.  The Tokioka Family owns only ONE unit (or several at most)!  The 200+ proxies come NOT through ownership but through their business operation!  Dass Ramadass is not an Ilikai owner.  He is simply an employee of the Tokioka Family.  Would he act in a fiduciary manner to the AOAO or would he pitch the commercial interests of his employer, the Tokioka Family?

P.S.: By the way, here is what Dass Ramadass wrote in a March 12, 2008 publication in Midweek (click on the link).  Here is in Dass Ramadass’s own words, “I started my career at Hawaiian Properties as an intern. I’d come to Hawaii from my home-town, Kuala Lumpur, in Malaysia. I thought I’d spend the summer studying at Hawaii Pacific University before going to London to study law. Before I knew it, the summer had turned into semesters and the semesters into years.  Today, 21 years later, I’m still at Hawaiian Properties.”

In my posting on January 24, 2010 on “My vision as a Board Director candidate for the Ilikai and the Board” (see below), one of the key items pertained to my dream vision for the Yacht Harbor Tower (YHT).  I wrote that my dream vision is that our Ilikai will unite back with the Yacht Harbor Tower. This will solve many problems for the Yacht Harbor Tower and its current owner (eRealty) and us.  I believe it will be good for all parties involved.  I also wrote that imagine how great it would be if iStar managed to work out some deal with eRealty to merge back the YHT and Ilikai hotels.  Let’s encourage that!

Here is some elaboration on this thought.  As you have all heard by now, the Edition Hotel is set to open at the YHT.  The Edition Hotel is the Marriott’s new, top of the line, luxury boutique hotel brand.  The Edition Waikiki is supposed to be the first ever Edition Hotel in the world.  This is certainly a very exciting prospect, really something to look forward to.  My dream then is that maybe our Ilikai Hotel can merge with the YHT hotel, so that we are again together, as one complex, the way the Ilikai has been for decades.  Admittedly, it is not realistic for the super luxury Edition brand to be at our Ilikai as well.  Let’s face it, our Ilikai needs a serious facelift.  Our Ilikai has a huge potential, it just looks rather dated at this time and needs a facelift.  But here is what Marriott could do: they could run the YHT as their Edition Hotel and then the Ilikai as some other of the Marriott’s brands.  For example, if you have been to Las Vegas, then you are probably familiar with the MGM Grand.  What many do not fully realize is that there are several hotel brands in the same MGM Grand complex.  Specifically, the MGM Grand includes the main MGM Grand (Grand Tower, West Wing etc, with the check-in etc in the main tower), the Signatures (three condotel towers connected to the main MGM Grand complex with a long covered walkway), and the Skylofts Penthouse Lofts (their five-star property, located on the upper floors of the main tower).  These hotel components are part of the same MGM Grand complex, but differ significantly from each other and cater to different types of guests.  This is very common.  Many hotels have this type of setup these days.  So in theory, what Marriott could do is to operate the YHT as their Edition hotel (luxury boutique) and then operate the Ilikai hotel as another one of the Marriott’s brands, such as the Renaissance, as we used to have at our Ilikai.  I.e., something upscale but more conservative, especially considering the demographics of the Ilikai owners, many of whom are older. (Remember the Marriott Renaissance days?  I bought my condo during that time.  I came to the Ilikai, and it swept me off my feet, with its beautiful courtyard, happy hotel atmosphere etc – and NO timeshare at that time.)  I know the above vision is far fetched, but that’s my dream, I am brainstorming.

Also, again, keep in mind that luckily, Shell’s timeshare at the Ilikai is NOT ”deeded.”  Some timeshare is deeded, i.e., 50 or whatever number of timeshare owners hold the deed.  But in the Shell’s case at the Ilikai, it is Shell and NOT the timeshare owners who actually own those 123 units.  What this means in practical terms is that it would be relatively easy for Shell to sell their 123 units and get out of here.  Also keep in mind that all of Shell’s units are uniformly remodeled and decorated.  Therefore, should iStar buy those units from Shell, they can easily add them to the other 203 hotel rooms that they own.  Let’s encourage this to happen!

The Ilikai AOAO Board of Directors consists of nine Directors. Of those, seven will be up for election at the upcoming Annual Meeting on March 2, 2010.  I put forward my candidacy for the Board.  In the coming days, I will be posting to elaborate on my vision for the Ilikai and the Board, and also why I think I make an excellent candidate for the Board.  Below is the overview/summary.  (As said, I will post to elaborate on all these areas, not necessarily in the order listed).  If you have comments, questions, suggestions, feedback, complaints , please share those, incl. via e-mail (olga@ilikaiowners.com).  I would be happy to meet as well and talk on the phone (please e-mail to coordinate the time, date etc).  (Not as any excuse, but please kindly keep in mind that I work, incl. sometimes working long hours, travel to the Neighbor Islands etc.  So sometimes things take longer for this reason.)

I also humbly ask for your vote proxy.  Click here for instructions for this.

So here is the OVERVIEW for my vision as a Board Director candidate for the Ilikai and the Board:

1) Foundation: The Code of Conduct and related considerations

I will post on the Code of Conduct, as I believe this is truly the foundation for the Board of Directors, AOAO manager, legal counsel, contractors, and all of us if we want to move forward, incl.:

(a) Ethical conduct as Board Directors

(b) Reducing and eventually eliminating conflicts of interest that plague the way the Ilikai AOAO is managed, incl. in the Board of Directors. (It is an ongoing issue at the Ilikai, and what is particularly troubling is the lack of awareness, recognition, and will to address this ongoing problem – I will post more specifics.)

(c) Developing and establishing policies and procedures for contracts procured by the Ilikai AOAO, incl. proper bidding based on clearly delineated scope of work, contractor qualifications, wide solicitation, and establishing processes to prevent favoritism and any potential for contractor kickbacks.  This needs serious streamlining at the Ilikai AOAO.

(d) Moving the Ilikai AOAO in the direction of being managed professionally and by professionals (a major issue at the Ilikai), incl. clearly defining and streamlining the role and functions of the Board of Directors, Board President, committees, AOAO manager, AOAO legal counsel, AOAO financial managing agent, and contractors

(e) I and many other owners are of opinion that the current Board runs the AOAO as an Old Boys Club (”OBC”).  Let’s work towards changing this OBC culture!

2) Defining and articulating to ourselves – and to the world – what we want and what we do not want, in terms of key parameters, such as who is welcome here (e.g., a full service hotel is most welcome here) and who is not welcome here (e.g., timeshare is NOT welcome here)

3) Dealing with Shell and timeshare at the Ilikai:

(a) The Ilikai governing documents (Declaration and By-Laws) delineate permitted uses of units.  Both the Ilikai Declaration and By-Laws state, “The owner of each apartment within the building shall use such apartment only as living accommodations for hotel or apartment purposes” (emphasis added).  I.e., timeshare is NOT listed as one of the permitted uses of units.

(b) Why is timeshare bad for the Ilikai, Ilikai’s reputation, and our property values?

(c) Why is it important to work towards removing timeshare off the Ilikai premises?

(d) Steps to consider for a more effective approach

4) Preserving the Ilikai Hotel:

(a) The huge value of a successful Ilikai Hotel for individual condo owners, incl. for our property values and for rental income for those owners who rent

(b) Collaborate with iStar (the current owner of the Ilikai Hotel) in a fair, collaborative, and professional manner

(c) The Board should play an active and proactive role in preserving the full service hotel component at the Ilikai.  (E.g., when Shell and timeshare got to the Ilikai in 2005, where were the owners-controlled Board (some of whom are on the current Board and are candidates for the upcoming elections) and the Ilikai AOAO legal counsel, Motooka? – I will post more information on this.  Let’s learn from mistakes.)

5) Ilikai renovations:

(a) My vision is that whatever renovations we do in the upcoming year and beyond should be used as a terrific opportunity to bring the Ilikai out of its current notably dated state into a more upscale destination. This to include hallway carpet renovations, lobby, pool, and elevators.

(b) These renovations should enhance our quality of life here, our property values, and rental income for those owners who rent.

(c) Renovation related decisions should be made with full engagement of professionals, such as designers and architects, and not by volunteer amateurs (I will post more on the current process of decision making by the Board – it is horrifying). 

(d) Also, importantly, there should be a process for owners to provide input and feedback.

6) Proactively dealing with the delinquencies (now over $1.4M) – this is just way too much money to simply write off as the current Board appears to want to do for most of that sum, –  incl.:

(a) The role Lyle Hosoda, Hawaii First and Richard Emery, and Chris Goodwin potentially played in the circa $1.2M Anekona delinquencies fiasco

(b) From whom can we potentially collect those circa $1.2M delinquencies?

(c) An urgent need to step up efforts to collect delinquencies of individual condo owners

7) Addressing other real or potential assaults and threats to the Ilikai and our property values, such as:

(a) The Hilton Luau noise

(b) Future development of the Ala Wai Harbor area in front of the Ilikai

8 )  An urgent need for competitive bidding for the Ilikai AOAO master policy insurance

9)  Re the Yacht Harbor Tower (YHT):

My dream is that our Ilikai will unite back with the Yacht Harbor Tower. This will solve many problems for the Yacht Harbor Tower and its current owner (eRealty) and us.  I believe it will be good for all parties involved. Just imagine how great it would be if iStar manages to work out some deal with eRealty to merge back the Yacht Harbor Tower and Ilikai hotels.  I hope we can encourage iStar and eRealty to start a dialogue, who knows maybe they can work out some mutually beneficial deal.  Maybe the Edition Hotel set to open at the YHT can even be expanded to include the Ilikai. I know it is far fetched. But this is my dream.  Another dream that I have is to have Shell sell their 123 units currently in the timeshare program to iStar.  (Keep in mind that luckily, Shell’s timeshare is NOT ”deeded,” i.e., it is Shell and NOT the timeshare owners who actually owns those 123 units.  Let’s hope Shell comes to their senses, sells their 123 to iStar, and gets out of here.)  This way our Ilikai Hotel will be bigger.  If our hotel can then merge with the Edition Hotel set to open at the YHT (via a mutually beneficial deal between iStar and eRealty) then this will be like the ultimate dream come true.  I know it is far fetched.  But even simply writing about it lifts my spirits and puts a smile on my face.  Let’s try to encourage iStar and eRealty to work together.

10) Fostering ongoing communication between the Board and owners, incl.:

(a) The Board and AOAO manager should commit to responding to Ilikai owners, incl. their letters, concerns, questions, feedback, and suggestions

(b) If elected (or not elected), I plan to continue maintaining this blog site (www.ilikaiowners.com).

11) What makes me (i.e., Olga Geling) a good candidate for the Board?

(a) The pros (will elaborate later)

(b) The cons (will elaborate later)

(c) There are for sure negatives about me, some of which I am actively working to overcome.  This includes that I sometimes say things not in the most diplomatic way.  I am well aware of this and am sincerely working on it (but keep in mind: it is election time! The gloves are off!).  I believe the pros outweigh the cons.

12) Why the Old Boys (and some ladies) Club (OBC) candidates are a terrible choice for the Ilikai Board? (The OBC candidates are: Lea Sasak, Bill Moore, Bill Lawrence, Bob Currie, Dass Ramadass, Lavonne West.), incl.:

(a) The dismal track record of the OBC candidates as the current Directors on the Board (from March 2009 through now)

(b) The dismal track record of the OBC candidates in the past, incl. who allowed Shell and timeshare to infest the Ilikai?

(c) Additional “enlightening” trivia, incl. who brought Lyle Hosoda to the Ilikai? (The Hosoda saga and the way the current Board consisting of the OBC Directors tackled the delinquencies over $1.4M speak volumes about certain OBC candidates.)

13) The “elephant in the room” – the Tokioka Family:

This is a serious concern for many reasons.  Related to that are the concerns associated with having Dass Ramadass as a Board Director. 

I will post in the coming days more on all of the above listed areas. I know it is a very ambitious list as a vision statement. In no way am I suggesting that I can accomplish all of the above. It requires joint effort.  But the list gives the idea where I stand as a candidate for the Board. If elected, I will do my very-very best to work on these priorities.

ANY FEEDBACK IS MOST WELCOME AND ENCOURAGED!