Friday, December 19, 2008

The Treasurer's Report

Treasurer's Report

1. As of December 2008, the Association has over $369,000 in Cash and Reserves, which does NOT include about $63,000 owed to the Association by owners who have Assessment loans outstanding.

2. Our 2009 Budget was approved at the Nov 21 Board Meeting with my recommendation that we NOT increase maintenance fees for 2009. This was unanimously passed by the Board of Directors. These fees remain unchanged since 1993.

3. A new Reserve Study was completed in September which indicated what our Reserve funding should be over the next 20 years. Our building manager, Mike, has reviewed these numbers for accuracy. He assures us we can do many of the maintenance items in-house, which should save a significant amount and allow us to adequately fund the Reserves to the 50% level required by Hawaii statute.

4. Our Utility costs, specifically electric, gas, and sewer are still averaging about 40% more than budgeted for 2008. This is mostly due to the energy surcharge added by these companies. Hopefully with crude oil prices dropping, these surcharges will become less in 2009. We have, however, budgeted for an increase in 2009.

5. We have completed the sewer line replacement in the parking garage at a cost of $31,000.

6. Because of some maintenance issues such as railing repairs, spalling at the Makai side of the building, water heater maintenance, and maintenance staff turnover, the storage lockup rebuilding has been delayed. We are hoping this can be completed by the April Owner's Meeting.

7. The Association is researching the feasability of installing several Solar Panels on the roof section at the Mauka end of the building. We are trying to determine whether this could reduce our gas therms usage for water heating and the cost effectiveness of such a retrofit.

8. If you are interested in reviewing past Meeting Minutes, CCR's, ByLaws, House Rules, and other Waikiki Shore items, you can now do that at the Hawaiiana Management Co. web site. Here is how you can access the Waikiki Shore specific site:

a. go to
b. scroll down and click on 'Waikiki Shore Apts'
c. Click on any menu button for information

We will update the site information periodically.

Happy Holidays to all the owners!

Ted Simon

Saturday, September 6, 2008

Next Owner's Meeting Has Been Confirmed

The next Waikiki Shore Association of Apartment Owners meeting and reception has been confirmed at the Halekulani Hotel on April 25, 2009.

Meeting: Ballroom 1 2nd Floor 9:30 am to 11:30 am

Reception: Hau Terrace 2nd Floor 5:30 pm to 8:30 pm

A hui hou!

Saturday, August 30, 2008

Emergency Water Line Repair

When painting the water pipes in basement a crack was discovered in the main water line to the building. Fortunately, it was not leaking yet. Water company said it was a matter of time before it would break and leak.

So, we have to replace that 10 foot section ASAP after Water Co. gets permits for us. Repair will probably be done in October, prior to sewer line replacement in garage.

Contractor will have to cut out section of driveway to garage by the stairs. Cost will be about $50,000. We have authorized this expenditure, although authorization probably not needed, since this is considered an emergency repair. Currently this is galvanized pipe and will be replaced with copper.

Sunday, August 3, 2008


2008 Board Meeting: November 21, 2008 (time and location to be announced)
2009 Annual Meeting: April 25, 2009 Halekulani Ballroom 1 2nd Floor 9:30 am to 11:30 am
2009 Board Meeting: April 25, 2009 (immediately following Annual Meeting)
2009 Owner's Social: April 25, 2009 Halekulani Hau Terrace 2nd Floor 5:30 pm to 8:30 pm


Waikiki Shore Board

PRESIDENT: Rich Elliott
SECRETARY: Lou Crompton
DIRECTOR: Chris Steis
DIRECTOR: Davis Whiting

Hawaiiana Management Co.

Allen Wilson, Senior Management Executive
Ted Walkey, Team leader
Stephanie Angle, Sr. Admin. Assistant
Accountant, Imelda Mateo


Building Projects:

1. High Speed Internet is working well. The AOAO has purchased 50 additional Internet Modems and Linda has these available for $280. The Modem is about 3x5 inches and can be placed on a desk or mounted on the wall near your phone plug. It must be connected to your phone line since it is a DSL modem; then connected to your computer. This is NOT a wireless modem. Also, another type of Modem will not work due to the security codes in our system.

2. Satellite TV service versus our current Cable TV service is still being researched.

3. Glass Door with Fob key entry access by the Makai elevator is complete.

4. New shower enclosure with a sand trap at the building Makai end is complete.

5. Storage Lockups should be complete by November.

6. No report yet on proposal by Paul McCrea, #410, for a swimming pool on the property.

7. At the April Annual Meeting, most owners were in favor of adding a fitness room for owners and guests. Our initial research suggests that an area opposite the new glass door entry by the Makai elevator looking toward Ft. DeRussey is a possibility. The addition could be done in-house. Exercise equipment such as elliptical machines, treadmills, stationary bike and a Universal machine for strength training, as well as a wall mounted TV and air conditioning, is a possibility. We are continuing to research the feasability, desirability and costs associated with such a project.


1. The garage sewer pipe has been purchased for $15,000. Replacement should cost about $17,000 and will begin late October. The AOAO had budgeted $50,000 for this expenditure for 2008. Our total cost of about $32,000 will be a considerable savings.

2. As of July 1, 2008 we were able to reduce our annual Association Property, Liability, Workers compensation, etc. premium for a nearly $32,000/year savings with NO decrease in insurance coverage. Our new policy coverage is through the Atlas Insurance Agency.

3. We are currently receiving approximately $50,000 per month from our first floor concession rentals and Castle office, storage rooms, and parking lease fees.

4. Our building maintenance costs are down by nearly 20% for the year. However, our utility costs continue to rise due to the high cost of energy. Utilities currently are averaging 13% higher than 2007. Some Utilities are nearly 40% higher than 2007. Our 2009 budget will reflect this increase plus anticipated additional increases from the utility companies.

5. Our management and administrative costs are lower so far in 2008 and therefore, we are ON BUDGET and have over $450,000 in Cash and Reserves. The Board has commissioned an independant Reserve Study which we will have by November to determine whether our Reserves are adequately funded for future expenditures.

6. At this time we DO NOT anticipate a monthly maintenance fee increase for 2009.

Tuesday, February 26, 2008

Manager & President's Report

February 26, 2008

Dear Owner's and Rental Agents,

  • Enclosed are pictures of the 50' boat that ran aground in front of the Waikiki Shore
  • We have completed 18 storage rooms out of 25 and hope to have them all done by the end of summer.
  • The dates and times for the Annual Homeowner's Meeting are as follows:


Date: April 26, 2008

Time: 9:30 am check-in. Meeting to follow at 10 am.

Where: Halekulani Hotel Ballroom 1 (2nd floor - oceanside)

Reception: Heavy Pupus, Cash Bar

Date: April 26, 2008

Time: 5:30 pm to 8:30 pm

Where: Halekulani Hotel Hau Terrace (2nd floor)

RSVP to Linda at 923-7245 or out of state owners 1-800-922-2161 by March 26, 2008

  • There has been a lawsuit filed against the AOAO by Theresa Jones, apt 215, regarding the use of parking stall #13. The Board believes there is no merit to the suit and intends to vigorously defend the assets of the Waikiki Shore Apartment Owners.


Rich Elliott - President, Board of Director

Michael Mullaney - AOAO Manager


Treasurer's Report

Dear Owners,

In 2007 your Board approved the installation of High Speed Internet access at a cost of $24,000. There are some programming issues. The AOAO pays the monthly expense of $583 for this access with NO additional Maintenance Fee increase to the owners. Maintenance Fees have not increased in nearly 15 years.

The income generated from the 1st floor rentals is now $55,000 per month. In 2007, the AOAO collected $567.496 in income from the 1st floor merchants. We continue to do well in this area.

The AOAO is researching the cost to replace our aging Cable TV lines and service with Satellite TV. This upgrade would bring us into the 21st Century with the advent of HDTV with more and better quality programming.

The building Emergency Generator is operational and will help to maintain essential operational building requirements in case of a power outage.

In 2008 we will replace the garage sewer drainage pipes at a cost of approximately $30,000. These 48 year old lines are in bad shape and replacement is necessary.

Even though our insurance costs increased considerably in 2007, especially in Property, Flood and Worker's Compensation categories, and is currently about $120,000 per year, the Association is in excellent financial condition with $294,870 in Cash and Reserves going into 2008.


Ted Simon
Treasurer - Board of Director

Other News From Hawaii

The Royal Hawaiian Hotel is about to begin a restoration. Plans are in progress to close the hotel for seven months on or around June 1, 2008 and reopen in late 2008.

Construction on the Trump Waikiki Hotel is up to the 11th floor. Completion is scheduled for August, 2009.

The Royal Hawaiian Shopping Center will be the new home of Hilo Hattie's 29,000 sq. ft. flagship store when it relocates to Waikiki in the early summer of 2008. The two-level store, occupying the first and second floors with direct access from Kalakaua Avenue, will further enhance the $84 million revitalization that is taking place at the Center.

Jimmy Buffett plans to open a restaurant in Waikiki. Expect occasional appearances by singer/author Jimmy Buffett at a new Waikiki restaurant that will bear his name and is expected to open later this year on Kalakaua Avenue in the Ohana Waikiki Beachcomber. It will be known as Jimmy Buffett's At The Beachcomber and will occupy a prominent location on Kalakaua Avenue above Macy's on the hotel's lobby level.

50' Boat Runs Aground in Front of Waikiki Shore

Photo courtesy: Clarence from Beach Boy Hale