Hanalei Bay Resort Vacation Owners’ Association
Board of Directors’ Meeting
Hanalei Bay Resort
Friday, March 13, 2015
Minutes
I. CALL TO ORDER/ROLL CALL
President Deborah Fraga-Decker called the meeting to order at 10:14 a.m. PDT. Board
members in attendance were Deborah Fraga-Decker, Geoff King, John Mullen, David
Nicholl and Dick Schweickert. Representing Management were Nigel Lobo, Chief
Operating Officer; Mary Dieckmann, Vice President of Resort Operations; Julie DaRonco,
Area Manager; Scott Pacer, Resort General Manager and Jim Braman, Director of
Operations. Alexa Soler recorded the meeting minutes.
II. APPROVAL OF MINUTES OF PREVIOUS MEETING
On motion of John Mullen, seconded by Geoff King, the minutes from the January 16,
2015 Board of Directors’ Meeting were unanimously approved.
III. MANAGEMENT REPORT
A. Operations
1. Front Desk
The 2014 year end occupancy was 82.0%.Year-to-date occupancy is 66.8%.
2. Maintenance/Housekeeping
Annabel and the VOA Housekeeping team’s whole unit cleaning service ended
$26,669 ahead of budget for 2014. In total, an additional $75,917 in Revenue was
generated for the VOA from this program in 2014.
3. Activities
Tuesday evening Wine Tastings in the Gazebo have begun just below the
restaurant. Wine specialists from Young’s Market, Scott and Jim are hosting this
event, which have been popular with 30-40 Owners and Guests attending each
week.
4. Landscaping
Thatching and fertilizing the lawns in front of the 4000 building and behind the
6000 buildings and the installation of ten new Pua kini kini trees on the hillside
across from the 5000 building have kept the grounds crew busy since the last
meeting.
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5. Update on “Going Green”
The Board reviewed the list of “Going Green” initiatives currently in place at the
resort.
6. Safety
Hanalei Bay Resort is 51 days accident free as of February 6, 2015. This month’s
Safety Training topic was Electrical Safety.
7. .Status of Meeting Minute Postings
Meeting Minutes from the January 17, 2014; March 21, 2014; April 25, 2014; May
12, 2014; July 18, 2014; September 19, 2014; October 24, 2014 and November 5,
2014 Board of Directors’ Meeting minutes are posted to the HBR website. The May
13, 2014 Annual Owners’ Meeting minutes are also posted to the website.
B. Guest Satisfaction Scores
December goals were met in Hospitality and fourth quarter scores were met or
exceeded in every category. Guest Satisfaction Scores for other GPR managed resorts
were included in the packet.
C. Inventory and Default Analysis
In 2014, 18-one-bedroom and 68-two bedroom intervals have closed escrow. 41 have
so far decided to not purchase. 68 have not responded, and have been cancelled.
Action Item: Number of units in default to be included in the Inventory and Default
Analysis going forward.
Discrepancies regarding the available inventory were discussed.
Action Item: Management to correct the available inventory by unit type and
biennial/annual numbers noted in the packet.
D. Financial Analysis
The Board reviewed the financials as of December 31, 2014.
E. Delinquency Report
Year-to-date delinquency is at 4.07%. Bad Debt was also collected in the amounts of
$97,542 from 2012 assessments and $23,395 from 2013 assessments for a total of
$120,937.
IV. CONTINUING BUSINESS
A. Action Items
Action Items from the January 16, 2015 Board of Directors’ Meeting were discussed.
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B. Review of Documents Regarding Governance
The AOAO is moving forward with their review on the governance documents in order
to be updated. The VOA believes the two Associations should update the governance
documents in tandem with each other. An estimate needs to be obtained from Bill
Byrnes’; the AOAO’s estimate is $15,000. If the VOA’s estimate is higher than that of
the AOAO, action will need to be taken by the VOA Board in order to revise.
Action Item: Management to obtain an estimate from Bill Byrnes’ regarding the
update of the governance documents.
On motion Geoff King, seconded by Dick Schweickert, the Board unanimously
approved the authorization of using Bill Byrnes’ up to a fee maximum of $15,000 and
to provide the Board with an estimate; if the estimate is greater than $15,000 it would
come back to the Board for re-approval.
V. NEW BUSINESS
A. VOA Room Renovation Update
Jim reported that the rooms were completed on schedule. The only follow-up is the
cabinet in unit #1203. Schioi is back on property finishing the spalling project. It is
scheduled to be installed once the current Guest checks-out.
Action Item: VOA Room Renovation to be added under Continuing Business for the
next Board meeting on April 24, 2015.
B. Health Insurance
Dick Schweickert clarified a question regarding the broker’s commission billed for the
current health insurance policy. HMSA, the current carrier, requires the employer to
pay the broker commission directly, instead of including the commission in the
premium.
Management has recommended using a split of 53% AOAO and 47% VOA based on
the number of covered Associates for each Association.
On motion of Dick Schweickert, seconded by Dave Nicholl, the Board unanimously
authorizes GPR to charge each Association the broker commission based on the
number of full-time Associates in each Association.
Action Item: Management to report back to the VOA and AOAO Board regarding
Health Insurance as part of HBR’s standards moving forward.
Action Item: Dick Schweickert to review all current insurance policies and to report
back to the Board at the April 24, 2015 Board of Directors’ Meeting.
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The AOAO has increased the value per square foot of the insurance to get it to a
reasonable range for actual construction costs. Moving forward, the value per square
foot for the interiors will also increase because of all of the new interior items. A
replacement cost evaluation will be done on all of the interiors after an estimate is
provided for everything.
Action Item: Management to bring reserve study numbers back to the Board
regarding the replacement cost evaluation to obtain approval at the April 24, 2015
Board of Directors’ Meeting.
C. Approval of Additional Signers for Operating Account
Previous discussion from the VOA/AOAO Joint Board Meeting resulted in a request
that the President and Treasurer of each of the Associations be added to the operating
accounts as signers.
On motion of John Mullen, seconded by Geoff King, the Board unanimously approved
the President and Treasurer as authorized signers on the Operating Account.
VI. OTHER BUSINESS
A. Owner Forum/Correspondence
There was no Owner Forum or Correspondence
B. Confirmation of Meeting Dates
Friday, April 24, 2015 at 7:00 a.m. HST / 10:00 a.m. PDT, Teleconference
Tuesday, May 12, 2015 at 10:00 a.m. HST / 1:00 p.m. PDT, Hanalei Bay Resort, Joint
AOAO/VOA Meeting
Wednesday, May 13, 2015 at 10:00 a.m. HST / 1:00 p.m. PDT, Hanalei Bay Resort
Wednesday, May 13, 2015 at 1:00 p.m. HST / 4:00 p.m. PDT, Hanalei Bay Resort
Friday, June 19, 2015 at 7:00 a.m. HST / 10:00 a.m. PDT, Teleconference
C. Executive Session
VII. ADJOURNMENT
On consensus the meeting was recessed at 11:12 a.m. PDT and will reconvene in
Executive Session on Friday, March 20, 2015 at 11:00 a.m. PDT.
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