Board of Director's Meeting; October 23, 2009

MINUTES
BOARD OF DIRECTORS MEETING
WAIKIKI SHORE AOAO, INC.
OCTOBER 23, 2009

CALL TO ORDER
The meeting of the Board of Directors of Waikiki Shore AOAO, Inc. was called to order by President Rich Elliott at 4:35 p.m.

ESTABLISH A QUORUM
Six of seven members present, a quorum was established.

Members present: Rich Elliott, Lou Crompton, Thom Gibb, Davis Whiting, Nick Frost, Don Laster

Members absent: Chris Steis

Present by invitation: Mike Mullaney, Association Manager
Allen Wilson, Hawaiiana Management Co. Ltd.

APPROVAL OF MINUTES
1. It was moved, seconded, and adopted unanimously to approve the minutes of the April 25, 2009 Annual Meeting of the Association, as submitted.
2. It was moved, seconded, and adopted unanimously to approve the minutes of the April 25, 2009 Organizational Meeting of the Board of Directors, as submitted.
3. It was moved, seconded, and adopted unanimously to approve the minutes of the April 25, 2009 Regular Meeting of the Board of Directors, as submitted.

TREASURER’S REPORT:
1. The Board received and accepted a report on the status of the Association’s financial performance for the year through September 30, 2009. It was noted for the record that the Association has an operating surplus of $60,789 for the year through 9/30/09. Total cash & reserves of $453,571.00 plus $38,574.63 from special assessment loan receivables.
2. The Property Manager reported that there are no owners with delinquent balances.


UNFINISHED BUSINESS:
There was no unfinished business to be considered at this meeting.

NEW BUSINESS
1. It was moved by Director Gibb, seconded by Director Frost, and unanimously adopted by the Board to ratify all actions taken and decisions made since the April 2009 Board meeting.
2. It was moved by Director Crompton, seconded by Director Frost, and unanimously adopted by the Board to approve a proposal to install solar water heating equipment on the building for the purpose of reducing the gas bill, at a cost of approximately $455,000 to be leased from Bank of Hawaii at a rate of approximately $74,000 a year for 5 years. At the end of 5 years, we will own the equipment outright. After State credits, the total payment is $402,000, saving $53,000.
3. It was moved by Director Whiting, seconded by Director Crompton, and unanimously adopted by the Board to approve the 2010 Operating Budget and Reserve Plan with no increase in maintenance fees. It was noted for the record that maintenance fees have not been increased since 1993. (That’s 18 years.)
4. It was moved by Director Frost, seconded by Director Whiting, and unanimously adopted by the Board to authorize the expenditure of up to $16,000 on the annual Owners Party to be held on April 24, 2010 at the Halekulani Hotel from 5:30 to 8:30.


NEXT MEETING:
The next Board meeting will be held on April 24, 2010 at 9:30 am at the Halekulani - Ballroom 1 on the 2nd floor.


ADJOURNMENT: There being no further business, the meeting was adjourned at 4:50 p.m.


Louis Crompton
Association Secretary

Important Flood Insurance Letter

From: Michael Mullaney
Subject: FLOOD INSURANCE
Date: Tuesday, July 28, 2009, 4:00 PM

Dear Owner,
The AOAO has been receiving numerous calls from owners whose lenders are requiring 100% insurance coverage.
Attached is a letter in which our insurance agent explains this issue a little further. Mike Ayson will gladly help you with any questions or concerns so please contact him if you would like more information.

Aloha,

Waikiki Shore AOAO Inc.

===========================================================

ATLAS
INSURANCE AGENCY
Michael Ayson
AOAO Account Manager
1132 Bishop Sireet, 16 Fir
Honolulu, HI 96813
Phone: (808) 533-8607
Fax: (808) 550-1041 mayson@www.atlasinsurance.com

July 22, 2009

AOAO Waikiki Shore, Inc.
2161 Kalia Road
Honolulu, HI 96815

Re: American Saving Bank Flood Insurance Requirement

Dear Unit Owner,

I have been informed that American Savings Bank recently sent you a letter requiring additional flood insurance coverage. ASB is not satisfied with the association’s $29,321,600 flood policy limit. They prefer that it match the association’s $34,653,000 property policy limit. Most lenders only require the association’s flood insurance limit to be within 80% of the association’s property policy limit. It appears unlikely that the association will increase its flood limit since only a few unit owners are affected. It would cost the association approximately $14,000 more per year to increase its flood limit to $34,653,000.

The easiest and least expensive way for you to satisfy ASB’s requirement is to purchase a personal flood policy through a company that has access the National Flood Insurance Program rates (NFIP). ASB can add the cost of the policy to your escrow account The annual cost using the NFIP rates is $291. I would be glad to assist you if you in procuring a policy are interested. Please note that if you do not respond to ASB’s letter they will force place a policy on your behalf. Force placed policy premiums are exorbitant. They are approximately 3 times the normal rate.

Feel free to contact me if you have questions or concerns.

Sincerely,
Michael Ayson

AOAO Meeting Party Pictures

AOAO Meeting Party Pictures

Next meeting dates announced.

The next Board of Directors Meeting will be on Oct 23, 2009, time & place to be announced.

The next Annual Homeowner's meeting has been confirmed for April 24, 2010 at the Halekulani. Same rooms, same times.

Meeting: 9:00 registration. Meeting starts 9:30 in Ballroom I
Reception: 5:30 - 8:30 on the Hau Terrace.

See you there!
A Hui Hou!

Two new businesses!

New beach steps and deck area!

AOAO Meeting Notes, April 25, 2009

MINUTES OF THE ANNUAL ASSOCIATION MEETING
OF WAIKIKI SHORE AOAO, INC.
APRIL 25, 2009


CALL TO ORDER

President Rich Elliott called the meeting to order at 9:35 a.m. A quorum was established with 90.06 percent represented either in person or by proxy.

CONDUCT OF MEETING

There being no objection, the meeting rules were adopted. (attached)

INTRODUCTIONS
Thomas Gibb VP-Board of Directors-Waikiki Shore, AOAO
Lou Crompton Secretary-Board of Directors-Waikiki Shore, AOAO
Ted Simon Treasurer-Board of Director-Waikiki Shore, AOAO
Davis Whiting Director-Board of Directors-Waikiki Shore, AOAO
Tom Hull Director-Board of Directors-Waikiki Shore, AOAO - Absent
Chris Steis Director-Board of Directors-Waikiki Shore, AOAO - Absent
Al Hamai Registered Professional Parliamentarian
Allen Wilson Hawaiiana Mgt. Co. – Senior Management Executive
Trudy Benigno Hawaiiana Mgt. Co. – Tally Clerk
Luana Farias Hawaiiana Mgt. Co. – Tally Clerk
Annie Kekoolani Hawaiiana Mgt. Co. - Recording Secretary
Michael Mullaney Manager - Waikiki Shore, AOAO
Brad Thomas Maintenance - Waikiki Shore AOAO
Linda Morishita Administrative Assistant - Waikiki Shore AOAO

APPROVAL OF MINUTES OF PRECEDING MEETING

The minutes of the November 21, 2008 Board of Directors meeting were approved as written.

REPORTS OF OFFICERS

A. President’s Report: President Elliott reported that a majority of the owners received a letter regarding charges against him from the State of Hawaii. The State has discharged and dismissed all counts.

This is the 17th year that maintenance fees have not been increased. Some of the
projects accomplished this past year were:

§ The sewer line replacement is completed;
§ The water line repair has been completed;
§ A new glass door was installed by the elevator;
§ The outside shower was upgraded;
§ New exterior signage has been installed;
§ Extensive garage cleanup and repainting is completed;
§ Walkway railings have been repaired.


The following are projects being worked on by the Board:

§ Cable TV upgrade vs. satellite;
§ Makai walkway extension;
§ Storage lockup completion;
§ Roof solar for water heating;
§ Spalling repair—ongoing.

Mention was made that about 15 owners are being over-charged on Real Property taxes. In December, owners will be informed whether they have been over-assessed and it will be up to them to file a tax appeal. In closing, President Elliott reported that all litigation involving Waikiki Shore is completed.

B. Treasurer’s Report: Treasurer Simon gave a slide presentation on the financial status through March 31, 2009. The Association is in great shape financially with over $465,453 in cash and reserves. The Treasurer announced that maintenance fees will stay the same for the rest of the year.

C. Auditor’s Report: The auditor’s report for the year ending December 31, 2008 was accepted.

APPOINTMENT OF TELLERS

Richard Anderson (#PH9) and Mr. Bushnell (#PH9) were appointed tellers for any ballot votes.

ELECTION OF DIRECTORS

Nominations: The following persons were nominated to serve on the Board of Directors:
Don Laster (#216)
Willis Howard (#508)
Paul McCrea (#410)

Election: Voting was conducted via secret ballot by plurality voting in accordance with Amendment #4, Article III, Sec. 3 of the By-Laws, using percentage voting. The results of the voting:
Don Laster 71.27% Elected to a Three-Year Term
Willis Howard 8.00% (Not Elected)
Paul McCrea 6.76% (Not Elected)

NEW BUSINESS

A. Resolution on Assessments. The following resolution was adopted by unanimous consent:

“Resolved, by the owners of the Association, that any excess member assessments not used by the Association in the current year shall be applied against the year 2010 assessments as provided by IRS Revenue Ruling 70-604.”

ADJOURNMENT

The meeting was adjourned at 10:50 a.m.



OWNERS FORUM

The Owners’ Forum was convened at 10:51 a.m. The following topics were addressed:

Expression of thanks to Ted Simon for a great job as Treasurer
Expression of thanks to Rich Elliot and Mike Mullaney for management of the building.
Outstanding obligations for the special assessment.
Inclusion of a fitness center in the planning for the swimming pool.
Concerns over the condition of the elevators.
Clarification of rules related to guests parking in the garage.
Explanation and discussion of the status of the swimming pool project. A letter will be sent to all owners explaining the project, projected costs, benefits, etc.

The Owners’ Forum was concluded at 11:40 a.m.


Submitted by:


Annie Kekoolani
Recording Secretary


Concurred by:



Louis Crompton
Board Of Director-Secretary

Board of Director's Meeting, November 21, 2008

MINUTES
BOARD OF DIRECTORS MEETING
WAIKIKI SHORE AOAO, INC.
NOVEMBER 21, 2008

CALL TO ORDER
The meeting of the Board of Directors of Waikiki Shore AOAO, Inc. was called to order by President Rich Elliott at 4:35 p.m.

ESTABLISH A QUORUM
Five of seven members present, a quorum was established.
Members present: Lou Crompton, Rich Elliott, Thom Gibb, Ted Simon, Chris Steis
Members absent: Tom Hull, Davis Whiting
Owners present: Marjorie Babcock (#412); Carol Laechelt (#808); Wayne King (#1315);
Willis & Lena Howard (#508); Jim Johnston (#1204); Frank Slocum (#1305);
Robert Bergis (#1202); Paul & Grace Best (#1208); Stephania Gibb (#1306);
Marsha Lewis (#515); Sharon Ertel (#1006 & #1104)
Present by invitation: Mike Mullaney, Association Manager
Linda Morishita, Admin Assistant
Allen Wilson, Hawaiiana Management Co. Ltd.

APPROVAL OF MINUTES
1. It was moved, seconded, and adopted unanimously to approve the minutes of the April 26, 2008 Annual Meeting of the Waikiki Shore AOAO, Inc. as submitted.
2. It was moved, seconded, and adopted unanimously to approve the minutes of the April 26, 2008 Organizational Meeting of the Board of Directors as submitted.
3. It was moved, seconded, and adopted unanimously to approve the minutes of the April 26, 2008 Regular Meeting of the Board of Directors as submitted.

TREASURER’S REPORT:
1. Treasurer Ted Simon reported on the status of the Association’s financial matters, a new reserve study that was recently completed, and the future financial needs of the Association.
2. It was moved by Director Simon, seconded by Director Gibb, to approve the 2009 Operating Budget and Reserve Plan as presented. It was also noted that the Maintenance Fee has not been raised for the last 17 years and again will not be raised for the 2009 Budget. The motion was adopted unanimously.

UNFINISHED BUSINESS:
Parking Rules: Pursuant to a review of the established rules related to parking vehicles on the premises, it was determined that no changes are necessary at this time.

NEW BUSINESS
1. The President reported on the status of a number of projects recently completed, ongoing currently, and planned for the future.
2. It was moved by Director Gibb, seconded by Director Simon, and unanimously adopted by the Board to ratify all actions taken and decisions made since the April 2008 Board meeting.

NEXT MEETING:
1. The next meeting will be the Annual Association Meeting to be held on April 25, 2009, at the Halekulani Hotel, with check-in at 9:00 a.m., meeting to begin at 9:30 a.m.
2. The next Board meeting will be held following the Annual Meeting on April 25, 2009.

ADJOURNMENT: There being no further business, the meeting was adjourned at 5:25 p.m.

OWNERS’ FORUM
• Robert Bergis reported a problem with hot water in his apartment, and inquired about the amount of legal fees in property tax case.
• Marge Babcock inquired about the post by the entrance to the parking area.
• Frank Slocum inquired about the health of Director Whiting and the status of the matter with the beach boys.
• Marge Babcock inquired about the television broadcast change scheduled for February 2009, and whether HD television is available locally.
• Carol Laechelt complained about the noise created by the housekeeping carts at the Outrigger.
• Willis Howard inquired about the status of the property tax appeal.

Submitted by:
Allen P. Wilson Louis Crompton
Senior Management Executive Association Secretary