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

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 http://aoaoweb.hmcmgt.com
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
Treasurer

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!

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.

New Shower Stall

New Makai Elevator Door to Shops

Updated Photo of Trump Tower Construction