Hanalei Bay Resort Vacation Owners’ Association
Board of Directors’ Meeting
Teleconference
Friday, April 24, 2015
Minutes
I. CALL TO ORDER/ROLL CALL
President Deborah Fraga-Decker called the meeting to order at 10:06 a.m. PDT. Board
members in attendance were Deborah Fraga-Decker, Geoff King, John Mullen and Dick
Schweickert. David Nicholl later joined the meeting. 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. Heather Hatfield recorded the meeting minutes.
II. APPROVAL OF MINUTES OF PREVIOUS MEETING
On motion of Geoff King, seconded by Dick Schweickert, the minutes from the March 13,
2015 Board of Directors’ Meeting was unanimously approved as amended. Section III.
Management Report A. Operations 7. Status of Meeting Minute Postings was updated to
“The draft version of the May 13, 2014 Annual Owners’ Meeting minutes are also posted
to the website.”
III. MANAGEMENT REPORT
A. Operations
1. Front Desk
Year-to-date occupancy is 66.8%. Management is currently interviewing candidates
for the open Night Auditor position. The Front Desk team has been covering the
open shifts until a replacement can be found. Rental rates are based upon the
market value and are set at a minimum rate per night of $159 for a Studio, $179 for
Hotel Unit, $249 for a One-Bedroom and $289 for a Two-Bedroom.
2. Maintenance/Housekeeping
Annabel and the VOA Housekeeping teams individually owned unit cleaning
program is $3,689 ahead of budget as of February 28, 2015. $14,140 in revenue has
been generated year-to-date. Management discussed the various projects
occurring around the resort, including painting front doors and lanais, repairs to the
spa, and the addition of a new storage and break area for the Associates.
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3. Activities
Wednesday morning Coffee Klatch has begun. Movie night produces a strong
turnout from Owners and Guests with the Mai Tai Party continuing to be the most
popular Activity.
4. Landscaping
The Grounds team works their way through the resort, doing a section at a time, to
reduce the number of days using power tools in one area. They work as a team, and
it has increased the quality of the work. Their effort has eliminated the use of
power equipment and improves the standard of work in each location. A new
recyclable and trash area has shown success. The broken water pipe near the tennis
courts was quickly repaired.
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 13 days accident free as of March 12, 2015. This month’s
safety training topic was proper use of safety equipment.
7. Status of Meeting Minute Postings
Minutes from the January 17, 2014; March 21, 2014; April 25, 2014; May 12, 2014;
July 18, 2014; September 19, 2014; October 24, 2014, November 5, 2014 and
January 16, 2015 Board of Directors’ Meeting are posted to the HBR website. The
draft version of the May 13, 2014 Annual Owners’ Meeting minutes are also posted
to the website and are awaiting formal approval at the next Annual Owners’
Meeting.
B. Guest Satisfaction Scores
February goals were met or exceeded in most categories. Management expects the
addition of new Activities will boost scores in the Activity category.
C. Inventory and Default Analysis
Year-to-date, 23 intervals are in the Deed in Lieu process. $19,616 has been collected
from 2014 unpaid balances. There have been no intervals sold at this time as the Sales
and Marketing Agreement has not been finalized.
D. Financial Analysis
The Board reviewed the financials as of February 28, 2015.
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E. Delinquency Report
Year-to-date delinquency is at 6.23%. Bad Debt was also collected in the amounts of
$24,524 from 2013 assessments and $12,497 from 2014 assessments for a total of
$37,021.
Action: Management to research the Delinquent Intervals listed on the Delinquency
Report to see if they are only for 2015.
IV. CONTINUING BUSINESS
A. Action Items
Action Items from the March, 13 2015 Board of Directors’ Meeting were discussed.
Dick Schweickert is reviewing the insurance policy renewal. There has been a
reduction of 5% in the premium for the property, and the policy will be renewed for a
year. In January 2016, the policy will be reviewed and rewritten. The Business and
Personal Property insurance has been increased due to the renovation. Dick will send
the insurance renewal quote to the Board within the next week for review.
B. VOA Room Renovation Update
New doors have been ordered for the washer and dryers as there are funds remaining
from the renovation. Grab bars for the shower have also been ordered. The outlets
that cover the one-bedroom kitchen cabinets have been ordered as well. Moving
forward, Scott Pacer will include any documents that need to be ratified during the
Board Meetings that were previously approved via email to the Consent Agenda.
Action: Scott to add the Sofa Sleepers to the Consent Agenda for the next meeting.
V. NEW BUSINESS
A. Lease Agreement
Mary Dieckmann explained that a meeting was held during the week of April 20, 2015
with Michael Rembis, Deborah Fraga-Decker and David Brown to discuss the Lease
Agreement. Management has no objection to having the Lease Agreement between
GPR and AOAO; however, there should be no part of the AOAO Lease Agreement that
deals with the operations of the sales program as this will be covered in the VOA Sales
and Marketing Agreement. The lease will include the terms, rent and space. Lisa
Omori, Legal Counsel, revised the Lease Agreement; this was distributed to the VOA
and AOAO Boards.
The rent is quoted at $800 per month in the Sales and Marketing Agreement;
however, it is quoted at $1,700 in the Lease Agreement. Most GPR Sales programs
lease the resort space to the Sales program at $800 per month. Management has
requested a reduction in the rental terms of the Lease Agreement from the AOAO
Board; it is currently pending approval from the AOAO Board.
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The Board discussed concerns regarding the Lease Agreement between the AOAO
Board and GPR as the Sales Office will be used solely for VOA Sales.
B. Sales and Marketing Agreement
This was discussed in conjunction with the Lease Agreement above.
On motion of Geoff King, seconded by David Nicholl, the Board unanimously
authorized Deborah Fraga-Decker to sign the Sales and Marketing Agreement on
behalf of the Board once the issue of rent has been resolved.
C. Annual Meeting
Deborah requested any agenda items for the Joint AOAO/VOA Meeting be sent to her.
The agenda will be circulated to the Board once it has been finalized.
Geoff King requested that the Finance Committee meet, review and approve the
audited 2014 year-end financial statements before the next Board Meeting.
On motion of Dick Schweickert, seconded by David Nicholl, the Board unanimously
authorized the Finance Committee to approve the audited 2014 year-end financial
statements.
VI. OTHER BUSINESS
A. Owner Forum/Correspondence
There was no Owner Forum or Correspondence.
B. Confirmation of Meeting Dates
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
Friday, July 17, 2015 at 7:00 a.m. HST / 10:00 a.m. PDT, Teleconference
Friday, August 14, 2015 at 7:00 a.m. HST / 10:00 a.m. PDT, Teleconference
C. Executive Session
There was no Executive Session.
VII. ADJOURNMENT
On motion of Dick Schweickert, seconded by David Nicholl, the meeting was unanimously
adjourned at 10:58 a.m. PDT.
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