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Poll for KBV Owners - How would you vote on upcoming management contract?

Based on your current knowledge, who should the KBV board choose for next Management Contract?


  • Total voters
    10
  • Poll closed .

magmue

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I thought it might be useful for KBV board members to have some recent feedback on this particular issue. It may not be the most important decision they will need to make, but it certainly affects other issues ongoing. I checked with Jack, our public square moderator and he gave his OK.
Answers are in alphabetical order. Poll will close on May 16, the date of the upcoming Annual Meeting.
Please do not vote unless you are a current owner at Kauai Beach Villas. You don't have to post and explain your rationale unless you want to. Vote totals will be displayed to anyone who has voted, but individual votes are anonymous. And if, after browsing in the forum here. you want to change your vote, you can do that up until poll close.
 

bianchicycle

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Maybe there should be other questions in this survey so the BOD knows how the owners think. One question might be, “should the BOD halt ongoing plans for the building of a minimal use area for member breakfasts and do a comprehensive plan to use then entire old tennis court”.

It seems to me that we could use a gym with a yoga/workout room as well as an outside fire pit and social area. The members breakfast area should be enclosed and used for meetings of all kinds and maybe a business area with a computer and printer.

This area could also be used for a check-in and management area so we can stop paying Windham thousands of dollars to use, what was our office.

Tom
 

ecwinch

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My greatest concern is that GPR is becoming too aligned with KBV generating revenue from rental activity. Which I view as a necessary short term evil, rather than a long term solution. In that regard I question if GPR’s goals are aligned with what is best for KBV owners. Simply because any solution that decreases rental activity has a significant impact on GPR revenue.

To deconflict that, does anyone know of a reason that the rental operation has to be bundled with the mgt contract?

Can’t we separate those two roles and put the rental contract out for competitive bid?

And shouldn’t the poll have an choice of putting the contract out for a competitive bid? I understand that GPR is doing a great job and all, but why are we just limited to Wyndham or GPR? That was one complaint by Lou Colombo - perhaps unfounded - that the other mgt companies were talked to, but we did not go thru a competitive bid process in 2016.
 
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ecwinch

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Maybe there should be other questions in this survey so the BOD knows how the owners think. One question might be, “should the BOD halt ongoing plans for the building of a minimal use area for member breakfasts and do a comprehensive plan to use then entire old tennis court”.

It seems to me that we could use a gym with a yoga/workout room as well as an outside fire pit and social area. The members breakfast area should be enclosed and used for meetings of all kinds and maybe a business area with a computer and printer.

This area could also be used for a check-in and management area so we can stop paying Windham thousands of dollars to use, what was our office.

Tom

I find it difficult to answer the question without having a ballpark idea on the financial implications.

And what “on-going plans” are we referring to? I don’t recall seeing a resolution or vote of the BoD on this topic in the minutes. Can someone point out the reference?
 
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magmue

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bianchicycle said:
Maybe there should be other questions in this survey so the BOD knows how the owners think.
Great idea, but the forum poll option only lets you ask one question per thread. As far as I'm aware, at least. This forum seems to work identically to another group I belong to where I tried hard to set up a multi-question survey without success.

If we can demonstrate that this kind of surveying works, I could see potential for more and different questions.
 

magmue

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ecwinch said:
shouldn’t the poll have an choice of putting the contract out for a competitive bid?
Makes sense - wish I had thought of that as a fourth choice. The forum doesn't offer me an option for editing anything but the thread title, so can't change/edit it now.

I would not object to having this poll thread deleted and starting over with a new poll that offers 4 choices. Can a mod help with that?
 

bjreichel

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bianchicycle said:
Great idea, but the forum poll option only lets you ask one question per thread. As far as I'm aware, at least. This forum seems to work identically to another group I belong to where I tried hard to set up a multi-question survey without success.

If we can demonstrate that this kind of surveying works, I could see potential for more and different questions.

Is it possible to use another virtual tool (such as surveymonkey) to create a multi-question survey and provide a link to it on this forum?
https://www.surveymonkey.com/
 

ecwinch

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ecwinch said:
Makes sense - wish I had thought of that as a fourth choice. The forum doesn't offer me an option for editing anything but the thread title, so can't change/edit it now.

I would not object to having this poll thread deleted and starting over with a new poll that offers 4 choices. Can a mod help with that?
I added the option. Let me know if you prefer different wording.
 

bianchicycle

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I find difficult to answer the question without having a ballpark idea on the financial implications.

And what “on-going plans” are we referring to? I don’t recall seeing a resolution or vote of the BoD on this topic in minutes. Can someone point out the reference?

We were told, at an Owners Breakfast in December, that permits have been issued to build a simple structure to host breakfasts on the old tennis court. My suggestion then was the same as now, why are we only doing that and not making a comprehensive plan for the entire area. I was told that we pay, something like $250k/year/ to use the office space. $250k would go a long way to building a new office space on the old tennis court.
 

magmue

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Thank you, Eric! Now that there is a 4th choice, some folks may want to go back and change their vote, which is allowed.

For those who haven't cast a vote yet - you'll see the ongoing tabulation as soon as you vote.

Question - if the board made a decision to put out a request for bids, who would manage KBV during the bid process? And how long would it take for that process from request to review to decision?
 

ecwinch

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Thank you, Eric! Now that there is a 4th choice, some folks may want to go back and change their vote, which is allowed.

For those who haven't cast a vote yet - you'll see the ongoing tabulation as soon as you vote.

Question - if the board made a decision to put out a request for bids, who would manage KBV during the bid process? And how long would it take for that process from request to review to decision?

As I understand it, the GPR’s contract is not up until the end of 2019. I imagine the process would be similar to what happened in 2016. If we feel we don’t have the time to do that this year, then I would recommend negotiating a 1 year extension to allow for a competitive bid.
 

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bjreichel said:
Is it possible to use another virtual tool (such as surveymonkey) to create a multi-question survey and provide a link to it on this forum?
Of course, and I will go and vote if someone puts that together. But sometimes the perfect is the enemy of the good. Some people don't like to follow links, and some will postpone a multi-question survey for "when I have more time" and then not get to it.

I'm just happy to see a rational conversation happening that is also fairly focused on one of the issues that is on most of our minds.
 
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DeniseM

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IMNSHO, it's difficult to post a multi-answer/detailed survey that is accurate, unless the BOD writes it, because we don't really know the specifics of the options available. Maybe after the election the BOD will send out another survey?
 

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My greatest concern is that GPR is becoming too aligned with KBV generating revenue from rental activity. Which I view as a necessary short term evil, rather than a long term solution. In that regard I question if GPR’s goals are aligned with what is best for KBV owners. Simply because any solution that decreases rental activity has a significant impact on GPR revenue.

To deconflict that, does anyone know of a reason that the rental operation has to be bundled with the mgt contract?

Can’t we separate those two roles and put the rental contract out for competitive bid?

I hate to sound like the proverbial "broken record," but yet again it appears that we are out of compliance with our governing documents, and this matter must be voted upon at the upcoming annual meeting and should have been included in the meeting notice.

The Declaration Article 2, Section 5, as Amended in 1996, provides :

"e. Plan Manager Rentals. The Interval Association will have the right, but not the obligation, to contract with a Plan Manager to utilize any unreserved Time Periods, The unreserved Time Periods may not be reserved by the Plan Manager for rentals until 45 days prior to the commencement of a particular week. The Plan Manager can be paid a fee for such rental with the balance of any fee being paid to the Interval Association as established in the management agreement with the Plan Manager. Any fee shall be clearly set forth and described in the management agreement.

The foregoing provisions permitting revenues from such rentals to inure to the Plan Manager are subject to the following limitations:
1. An Owner's untimely request to reserve a Use Period shall nevertheless be honored unless the Use Period(s) otherwise properly requested by that Owner have been reserved by other Owners or have been rented to members of the public before the Plan Manager's receipt of such an untimely request.
2. The Plan Manager shall reimburse the Interval Association for expenses incurred by or allocated to the Interval Association in connection with such rentals.
3.. The Plan Manager shall submit to the Interval Association not less than thirty (30) days before the scheduled mailing of the annual report referred to in Section 5, Article VI, of the Interval Declaration, a report for the preceding fiscal year setting forth the amount of revenues derived by the Plan Manager from such rentals and the amount of money paid by the Plan Manager to the Interval Association for expenses incurred by or allocated to the Interval Association in connection with such rentals.
4. Said provisions shall be effective only if and for so long as: (a) The Developer, or an entity owned or controlled by the Developer, or under common management and control with the Developer, is the Plan Manager; or (b) A majority of the Owners present, excluding the Developer, do not vote in favor of a proposal that revenues from such rentals shall be for the benefit of the Interval Association. As long as rentals inure to the benefit of such a Plan Manager as provided above, such a vote shall be taken annually at a meeting of the Interval Association; provided that, the first such vote shall be conducted at the earlier of: (i) the annual meeting of the Interval Association following the sale of Intervals representing 66 2/3% of the total voting power residing in the Owners of all Intervals in the Plan, or (ii) the annual meeting of the Interval Association immediately preceding the expiration of the Management Agreement with such a Plan Manager; and provided, further, that such a vote may be taken by the Owners without a meeting in accordance with the Interval Governing Documents."
 

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Question - if the board made a decision to put out a request for bids, who would manage KBV during the bid process? And how long would it take for that process from request to review to decision?

Declaration Article V, Section 7, as Amended in 1996, states:

"The Plan Manager Management Agreement must provide as follows:
(a) The term may not be longer than three (3) years, but may provide for automatic renewals annually after the end of the initial term, unless a written notice canceling the contract is given by either party at least ninety (90) days before the renewal date.
(b) Any decision by the Association not to renew any contract with a Plan Manager must be made by the vote or written assent of at least a majority of the voting power of all Owners excluding the Developer.
(c) However, the Board must have the right to cancel the Agreement if the Plan Manager has violated it. If the Plan Manager claims it has not committed any violation, the matter will be determined by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association.
(d) The Plan Manager may resign only if it gives written notice to the Board at least ninety (90) days in advance, and turns over all books and records relating to the management and operation of the Plan to the Board."

I don't know if the current management agreement provides for automatic renewals (because I've not been provided a copy of it and it's not posted on the owners community web page), but owners certainly have a statutory right to see a copy of it:

"§514B-154.5 Association documents to be provided. (a) Notwithstanding any other provision in the declaration, bylaws, or house rules, if any, the following documents, records, and information, whether maintained, kept, or required to be provided pursuant to this section or section 514B-152, 514B-153, or 514B-154, shall be made available to any unit owner and the owner's authorized agents by the managing agent, resident manager, board through a board member, or the association's representative:
* * *
(5) All signed and executed agreements for managing the operation of the property, expressing the agreement of all parties, including but not limited to financial and accounting obligations, services provided, and any compensation arrangements, including any subsequent amendments;"
 

ecwinch

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I hate to sound like the proverbial "broken record," but yet again it appears that we are out of compliance with our governing documents, and this matter must be voted upon at the upcoming annual meeting and should have been included in the meeting notice.

The Declaration Article 2, Section 5, as Amended in 1996, provides :

"e. Plan Manager Rentals. The Interval Association will have the right, but not the obligation, to contract with a Plan Manager to utilize any unreserved Time Periods, The unreserved Time Periods may not be reserved by the Plan Manager for rentals until 45 days prior to the commencement of a particular week. The Plan Manager can be paid a fee for such rental with the balance of any fee being paid to the Interval Association as established in the management agreement with the Plan Manager. Any fee shall be clearly set forth and described in the management agreement.

The foregoing provisions permitting revenues from such rentals to inure to the Plan Manager are subject to the following limitations:
1. An Owner's untimely request to reserve a Use Period shall nevertheless be honored unless the Use Period(s) otherwise properly requested by that Owner have been reserved by other Owners or have been rented to members of the public before the Plan Manager's receipt of such an untimely request.
2. The Plan Manager shall reimburse the Interval Association for expenses incurred by or allocated to the Interval Association in connection with such rentals.
3.. The Plan Manager shall submit to the Interval Association not less than thirty (30) days before the scheduled mailing of the annual report referred to in Section 5, Article VI, of the Interval Declaration, a report for the preceding fiscal year setting forth the amount of revenues derived by the Plan Manager from such rentals and the amount of money paid by the Plan Manager to the Interval Association for expenses incurred by or allocated to the Interval Association in connection with such rentals.
4. Said provisions shall be effective only if and for so long as: (a) The Developer, or an entity owned or controlled by the Developer, or under common management and control with the Developer, is the Plan Manager; or (b) A majority of the Owners present, excluding the Developer, do not vote in favor of a proposal that revenues from such rentals shall be for the benefit of the Interval Association. As long as rentals inure to the benefit of such a Plan Manager as provided above, such a vote shall be taken annually at a meeting of the Interval Association; provided that, the first such vote shall be conducted at the earlier of: (i) the annual meeting of the Interval Association following the sale of Intervals representing 66 2/3% of the total voting power residing in the Owners of all Intervals in the Plan, or (ii) the annual meeting of the Interval Association immediately preceding the expiration of the Management Agreement with such a Plan Manager; and provided, further, that such a vote may be taken by the Owners without a meeting in accordance with the Interval Governing Documents."

Brian - I appreciate the fact that you always cite the supporting passage from the governing documents, and dont feel you are being a broken record. And I am in whole-hearted agreement that the BoD needs to really make compliance with all the applicable statutes and governing documents a priority, starting with a top-down review conducted in conjunction with a lawyer well-versed in corporate governance and Hawaiian law. On that same note, I would like to see much more of the IOA records available either here or on the GPR KBV Owner community i.e. annual report, annual budgets, BoD minutes other than just the last 2+ years, etc. In particular - to clear up the innuendo regarding the GPR contract, I would like the BoD to make available the minutes of any executive session where that topic was discussed.

Now, with that being said, the provision you are citing is clearly in regard to "unreserved Time Periods", and not the IOA owned inventory. So the applicability is fuzzy in my mind - unless GPR is in fact renting out unreserved time and not inventory reserved with IOA/defaulting intervals. But it is a valid point, and clarity and what GPR is in fact renting out is important to understand. If they simply make available unreserved time 45 days out, then I agree the guidance in the Declaration needs to be adhered to (unless superceded by HRS 514B or E). But a quick review on Expedia and their website indicates it is more than just 45 days out.

And to your 2nd point, I too would like the BoD to explain how/why the provisions on not renewing the mgt contract were not followed in 2016.
 

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I would like the BoD to make available the minutes of any executive session where that topic was discussed.
FYI, I made a formal, written request via email to our current manager for all Association and Board meeting minutes since July 1, 2006, as well as for the full legal names of any corporate interval owners appearing on the IOA membership list, but to date I've received no response to, or acknowledgement of, my request....very frustrating
 

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I made a formal, written request via email to our current manager for all Association and Board meeting minutes since July 1, 2006
Would GPR, who came on in 2016 have access to BOD minutes that go back further than that?
 

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They should be in the Book of Minutes i.e. part of the corporate record that the Plan Manager is tasked to maintain on the behalf of the IOA as Brian notes above:

(a) Notwithstanding any other provision in the declaration, bylaws, or house rules, if any, the following documents, records, and information, whether maintained, kept, or required to be provided pursuant to this section or section 514B-152, 514B-153, or 514B-154, shall be made available to any unit owner and the owner's authorized agents by the managing agent, resident manager, board through a board member, or the association's representative:
 

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from the Bylaws:
5.04. Right To Inspect. The membership register including mailing address and telephone numbers, books of account, minutes of the Interval Association and Board meetings and all other records of the Interval Association and the Plan are open to inspection by the members at any reasonable time during normal business hours at the office where the records are maintained. Inspection may be made in person or through an attorney or other agent. The right to inspect includes the right to copy and make extracts and to have a copy prepared and transmitted to the member, at the member's expense. However, a member must first agree in writing not to use, or allow the use of (including without limitation to duplicate, send by facsimile or otherwise provide a copy to, or otherwise to provide for copying by, any person of), any information he/she gets for commercial or other purposes not reasonably related to the regular business of the Interval Association or the member's interest in it.
The Board may also make reasonable rules: (i) requiring authenticated notice before inspection; (ii) limiting the hours and days of the week for inspection; (iii) setting the cost of making copies of documents requested
; and (iv) establishing the rights and remedies of the Interval Association, including the imposition of penalties and fines, against any member who does not comply with the provisions of this Section or said rules. Each member must obey this Section and these rules.
Each Director will always have the absolute right at any reasonable time to inspect all books and records and the properties owned or controlled by the Interval Association.
Each member and Director shall also have the rights to inspect and receive copies as is provided by the Time Share Law.
- - - - -
It is a busy time of year for the resort manager.

Brian, how long has it been since you sent your initial request?
 

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Brian, how long has it been since you sent your initial request?

I emailed my request, and made a request through the KBV website, yesterday morning. I didn't ask for photocopies of anything, only that the minutes either be emailed to me if already in electronic form, or that I be allowed to inspect them when I arrive at KBV next Wednesday, and that I be provided the full legal names of any corporate interval owners appearing on the IOA membership list. I believe your cited Bylaw provision conflicts in certain respects with the requirements of HRS 514B and applicable regulations, to wit:

Hawaii Department of Commerce and Consumer Affairs Administrative Rules

§16-106-12 Plan manager or RME of plan manager designated for time
share plan. (a) All time share plans shall have a designated plan manager.
* * *
(d) A plan manager’s duties, responsibilities, and obligations shall
include, but not be limited to:
* * *
(9)Providing that the minutes of the board of directors and association
meetings, and the association’s financial statements be available for
examination by time share owners at convenient hours at a place
designated by the association;

* * *

(g) The plan manager shall keep an accurate and current list of the
names and addresses of association members, including the names and addresses
of vendors under agreements of sale, if any.

§514B-154.5 Association documents to be provided.
(a) Notwithstanding any other provision in the declaration, bylaws, or house rules, if any, the following documents, records, and information, whether maintained, kept, or required to be provided pursuant to this section or section 514B-152, 514B-153, or 514B-154, shall be made available to any unit owner and the
owner's authorized agents by the managing agent, resident manager, board through a board member, or the association's representative:
* * *
(6) An accurate and current list of members of the condominium association and the members' current addresses and the names and addresses of the vendees under an agreement of sale, if any. . . .
* * *
(8) Meeting minutes of the association, pursuant to section 514B-122;
(9) Meeting minutes of the board, pursuant to section 514B-126, which shall be:
(A)Available for examination by unit owners or owners' authorized agents at no cost or on twenty-four-hour loan at a convenient location at the project, to be determined by the board;
* * *
(e) An association may comply with this section or section 514B-152, 514B-153, or 514B-154 by making the required documents, records, and information available to unit owners or owners' authorized agents for download through an internet site, at the option of each unit owner or owner's authorized agent and at no cost to the unit owner or owner's authorized agent.
 

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Jack - I can understand that it is a busy time of the year, and would suggest that GPR focus on "working smarter, not harder" - and perhaps the information being requested should just be published on the Club website or here.

Brian - just FYI and you many have already discovered this, but the Oct 20, 2016 minutes on the KBV community website contains the minutes for the majority of 2016, to include the annual report.

This includes the minutes for the Feb 23, 2016 Special BoD meeting where the BoD voted to terminate Wyndham's contract. There is no indication that this action was in compliance with the governing documents, unless some provision of HRS 514B takes precedence.

https://kauaibeachvillasresort.com/wp-content/uploads/2017/02/102016.BOD-Wyndham.pdf
 

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Brian - just FYI and you many have already discovered this, but the Oct 20, 2016 minutes on the KBV community website contains the minutes for the majority of 2016, to include the annual report.

Thanks, Eric!
 

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What would be insightful is knowing what option the BoD candidates are in favor of.
 

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Reaction score
393
Points
173
Location
Northwest of Normal
Resorts Owned
HGVC: Kingsland
West 57th
Worldmark
Whale Pointe fractional
Point at Poipu (deed)
Lawai Beach Resort
Kauai Beach Villas
I agree completely.

I asked Larry Warner that question directly, in this thread (page 2), and didn't get an answer. I would love to hear from all the candidates on this one.
 
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