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KBV 2019 Annual Meeting Report

jacknsara

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Aloha from KBV,

DeniseM sent me a private message asking what happened at the recent KBV board and annual meetings. She suggested that “it sounds like something traumatic happened” . . .

I try to separate business such as being on the board of KBV from personal life. Perhaps the most "traumatic" thing for me personally is the second sentence below which I spoke in the annual meeting. There was time between the first and second ballots where the meeting was officially paused. While I don’t remember my precise words to the audience of owners, the following is very close to verbatim.

If you don’t understand what is going on, you are witnessing a hostile takeover by Wyndham. I have to admit that Jeff Bellin has been correct all along.​

I considered my response to the “hostile takeover” for most of a day. In addition to other factors I choose to not discuss at this time, I considered the trade-off between my responsibility to represent independent owners, many of whom had voted for me (many via proxy to KYHOME) with the futility of remaining on an 80% Wyndham selected board. I submitted my immediately effective resignation on Friday 5/17/19.

During the morning board meeting preceding the afternoon annual meeting the resort manager, Grand Pacific, agreed to begin posting drafts of unapproved board meeting minutes within a very small number of weeks after such meetings rather than waiting for final approval which often takes a few months.

Once those are posted, I should be able to answer some or most questions of clarification about the minutes that may arise.

For those KBV owners who want to know more, your best source of information for the time being is Jeff From Salem who posts primarily in his yahoo group. While I have always respected Jeff’s freedom of expression, I have occasionally found his prose objectionable. I compliment Jeff on his restraint in his most recent postings in his yahoo group. As he says, for the time being, you are free to read between the lines and draw your own inferences.

Jack Goodstein
 

Aurelius

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Both in here and the yahoo group the accounts of what happened have been vague and full of innuendo and nobody is willing to share the facts. It would be great if someone would post the facts of what happened for those not in attendance.

The continued “evil Wyndham takeover” mantra without any details of what they did wrong is hard to follow. Did they just elect their preferred candidates with their voting interest? Because I’m not all that concerned if that’s what happened - that’s within their rights as interval owners.

Did they violate bylaws? Rig the election? How could they possibly do that with a management company running the election that clearly is independent of Wyndham and would stand to lose if Wyndham remains control?

It just makes no sense and sounds like sour grapes. If they did something against the documents or bylaws, then by all means they need to go and action needs to be taken.
 

ecwinch

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Jack - it is disappointing to hear that you have resigned. But likewise, now that you are no longer a BoD member, you are no longer subject to a duty of loyalty that prevents you from speaking freely about the public actions of the BoD.

Unfortunately, asking people to rely of Jeff's reports is problematic to say the best. For instance, I have been removed from the Yahoo group, so cannot even read anything Jeff is posting.

Reading "between the lines and drawing inferences" is not something we should have to do here in the official KBV forum. Hopefully an objective fact based reported of the actual events at the Annual Meeting will be forthcoming shortly.

Thanks again for your service, and sorry to hear of your resignation.
 

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I have no insider info, but this is what appears to have happened - this is my opinion only, based on the Yahoo Group and TUG posts:

• Trish Harrington came in 3rd in votes, but was not elected. I believe that means that they did not get a quorum. When that happens, the board selects the the new officers, and even though there were 3 open spots, and Trish got the 3rd most votes, she was not chosen for one of the 3 spots.

• I also understand that the election was (blatantly) not run in a manner in compliance with the governing documents and applicable law.

• I assume that a great deal is still happening behind the scenes, and therefore the principal parties are not ready/not able to share all the details, until the situation and possible options, are clearer.

• It appears that Jack is constrained from sharing some details, until the minutes are officially released. His constraint may be based on his personal ethics, rather than his obligation as a former board member.

YMMV
 
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ecwinch

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Thanks for that report DeniseM. Do we know who was running the election?
 

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I don't know anything about that part, or how the election was out of compliance.
 

ecwinch

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Thanks for sharing what you know.
 

jacknsara

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Aloha,
We had a quorum. That was not the issue at all.
The following was visible to all meeting attendees.
A lawyer for the IOA and a parliamentarian were hired to "run" the meeting.
Their interpretation of the situation was that at least one Hawaiian resident needed to be on the BOD.
From the vote count, it appeared that Wyndham gave almost none of their votes to their Wyndham employee (Dani Ramos) member of the board. Consequently, she had fewer votes than Trish Harrington who came in third.
While I did jot down the vote numbers as they were called out, I am not sure that I captured them correctly.
The lawyer and parliamentarian declared that Trish was not eligible at that point due to the Hawaiian resident requirement.
The floor was open to nominations of any other Hawaiian residents who were also owners. There was one such person in the room who put her name in. She was totally unprepared to advocate for herself. I didn't write down those numbers, but even so, she got about a fifth to a quarter of all votes.

Among other motions passed in the morning board meeting, a motion to put the resort management contract out for bid was passed 3 - 2 after the conclusion of an executive session.

Jack
 

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Wow! That's even worse! In another election, involving a TUG candidate at Sheraton Desert Oasis, the quorum scenario I described happened, so that's why I suspected that it was a quorum issue.
 

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Aloha,
We had a quorum. That was not the issue at all.
The following was visible to all meeting attendees.
A lawyer for the IOA and a parliamentarian were hired to "run" the meeting.
Their interpretation of the situation was that at least one Hawaiian resident needed to be on the BOD.
From the vote count, it appeared that Wyndham gave almost none of their votes to their Wyndham employee (Dani Ramos) member of the board. Consequently, she had fewer votes than Trish Harrington who came in third.
While I did jot down the vote numbers as they were called out, I am not sure that I captured them correctly.
The lawyer and parliamentarian declared that Trish was not eligible at that point due to the Hawaiian resident requirement.
The floor was open to nominations of any other Hawaiian residents who were also owners. There was one such person in the room who put her name in. She was totally unprepared to advocate for herself. I didn't write down those numbers, but even so, she got about a fifth to a quarter of all votes.

Among other motions passed in the morning board meeting, a motion to put the resort management contract out for bid was passed 3 - 2 after the conclusion of an executive session.

Jack
It would seem that Wyndham somehow knew that Trish would be invalidated by the lawyer and parliamentarian so they focused their votes on 2 candidates. If indeed this information was withheld from the other directors then I’d agree this is improper.
 

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Am I just totally missing it? Or have the names of those elected (whether or not the results are under 'protest') not yet been stated here?
 

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This was a well carried out hostile takeover byWyn. I finished 3rd with a little over 950 votes. Dani has over 100. The Hawai’i revised statutes did not include the requirement in these rewritten in 2016. Our bylaws says differently. Our bylaws still require it. The Atty used for years by PAHIO (KBV) stated it was no longer required. The 2nd Atty disagrees, stating the bylaws take priority. We had no choice to go along with this. Also of interest was the person in 2nd place who apparently just closed escrow on his interval 4/29/19. This was question and the parliamentarian and Atty state he owns ignore so no harm no foul.

No wonder there was no progress with the remodel Grand Pacific proposed to us. These delays were not necessary. Every person, except Dani who declined to comment, stated GPR has done an excellent job.

Please explain why behemoth Wyndham wants this resort back. Honestly, I can come up with no sufficient rationale.

A note about Jack. I was very sad to hear of his resignation but understand. He has put more work into this resort in 1 year than anyone I know. I totally understand why-through my eyes-but really wanted him recognized for that. Nice work, Jack.
 

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Thank you for the additional info.

However, in the interest of having a 'more complete' thread for those who may just access and read this, can we get the names of who was # 1 and #2 included here? And maybe a complete list of the new BOD? (Even if unofficial and as of this moment only)
 

magmue

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.... The 2nd Atty disagrees, stating the bylaws take priority.
So owners were sent a proxy/ballot inviting us to vote for up to 3 board members without our being made aware that if we didn't choose at least 1 who lived in Hawaii, our vote would be wasted? In reviewing the BOD candidate statements today, the only one who sounds like they might be a Hawaii resident is Dani Ramos (apparently not). The ballot didn't state that residency might be an issue to take into account in voting, and if
So we were asked to vote using incomplete information. And KBV paid for this lawyer? Who presumably had previously searched the out-dated bylaws on behalf of Wyndham for some dirty trick that could be rolled out at the meeting.

I think I understand now why Larry Warner was still working on re-writing the bylaws after a year. How did the election work out for him?
 

ecwinch

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Not sure why this residency requirement is such a revelation, as the email digest from the Yahoo group indicates that Larry Giger surfaced it weeks ago, only to have Jeff blow those concerns off.

> On Apr 22, 2019, at 3:04 PM, LARRY GEIGER l [KBVOwners] < KBVOwners@yahoogroups.commailto:KBVOwners@yahoogroups.com > wrote:
>
>
> > >
> >
> >
> >
> > well said, but as a candidate, I have not seen a question addressed to me asking for response. If there were, the KBVOwners system is not getting them to me. Sometimes qualifications and broad experience are as important as tenure. Speaking of Danielle Ramos, isn't she the only one who meets the requirement of the By-Laws that one member of the Board reside in Hawaii?
> >
> > Larry

Honestly, Larry Geiger, I'm not sure the need to have one person who lives in Hawaii on the board was on my radar. Is that true? And is that a rule from the state of Hawaii or is that an IOA board rule? I'm wondering how we could satisfy that requirement if not for Dani? Some boards have a rule forbidding any corporate owners (such as Wyndham) on their board. I actually believe that I spoke to someone at last year's annual meeting who lives on the island, or one of the islands. But I imagine that they might be rarer birds, so to speak. At my other timeshare resorts (in Maine and in Martha's Vineyard, MA), in-state residents having deeds are fairly common.

So, Larry, I thought of you as someone who has said hello here before. I was concerned about a remark you made about the need for "new blood" and putting down Trish Harrington. Correct me if I'm wrong about that, but at this point, we absolutely need someone like Trish, but we need more than her as well.


Larry, could you tell us what your take is on not only Wyndham's history here at KBV, but what you know about their practices outside of KBV in other situations?


And Aloha,


Jeff
 

jacknsara

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Aloha
The "draft" minutes for the May 16, 2019 board meet and annual meetings are now posted on https://kauaibeachvillasresort.com/owners-community/bod/
Owners who do not yet have the password for the site can contact GP Vacation Services at 888-477-6967
I'm willing to address questions of clarification about these minutes within boundaries for directors ( https://www.tugbbs.com/forums/index.php?threads/guidance-for-directors-when-posting-in-the-kbv-ioa-ps-forum.286967/ ) since I was one when these meetings occurred.
Jack
 
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Hi Jack. I'm also going to post this on the Yahoo KBV Group.

Linda Kolstad. She is no longer on the IOA board, owns no deed at Kauai Beach Villas. Is she an officer with Wyndham? My understanding is that one needs to be an officer of a corporation in order to be their representative on the board.

Regarding the 3-2 vote NOT to automatically renew Grand Pacific's management contract in spite of their incredibly stellar work in 2 1/2 years, particularly in comparison to what Wyndham did in their 10 years previous, the vote is curious but not surprising. For one, we, the members, have the right to vote for automatic renewal of a contract. It's not merely a board vote. Secondly, the three votes in FAVOR of not renewing GP's contract come from Dani Ramos, a Wyndham employee, Larry Warner, someone who only owns a single 'Every Other Year' deed and yet got named to the board and has been hugely supported with Wyndham votes (I was a witness to the counting both this year and 2 years ago). How does someone like that get onto Wyndham's radar? Warner got half of Wyndham's votes this year in the first round of voting. The other half went to George Keeney, someone who owned ZERO (nada, zilch, bupkus) deeds at KBV up until a couple days before the May annual meeting. How did HE get onto the ballot, when rules state that anyone on the ballot needs to be a member/owner for at least 60 days prior to getting onto the ballot? Keeney does own a deed at Wyndham's Bali Hai. Keeney's home happens to be close to Warner's. How about that?? And finally, the third vote for terminating Grand Pacific's contract came from Mr. Twardzicki. Twardzicki and Warner also live nearby each other and are good friends. I'm only suggesting that Warner has Twardzicki's close ear.

The Wyndham-oriented Directors on the board connived to take advantage of an obsolete loophole in the ByLaws (I say "obsolete" because the state of Hawaii has eliminated it as a state rule for boards) that says that at least one board member has to be a Hawaiian resident. Knowing that there'd be no competition for Dani Ramos in the room, Wyndham went ahead and put ALL of their votes behind non-owner George Keeney and Larry Warner. Trish Harrington easily came in 3rd, with Brian Reichel having a strong showing. Wyndham's plan was, knowing that there'd need to be a native Hawaiian on the board (with Linda Kolstad gone from the board earlier in the year), that the 3rd place finisher would be automatically removed from the voting and a new vote would need to take place. Rather than give individual owners proper notice to nominate an appropriate individual owner/member, and give time for that person to promote him/herself to the members at large, the parliamentarian insisted that the vote for a Hawaiian resident needed to happen right then and there in spite of numerous protests. A Hawaiian resident from the room finally offered herself up as an opponent to Dani Ramos, but she hadn't prepared any speech or talking points.

A vote was taken ONLY from members in that room. That means that any owner/member who had voted directly (i.e., had not given their vote away for a proxy to vote for them) was disenfranchised, meaning they didn't get to vote or say. Wyndham, having their representative in the room, was able to put all of their votes toward Dani Ramos. EVERYONE ELSE in the room that day placed their vote for the woman who volunteered herself at least minute. Not ONE voted for Dani. Of course, the volunteer got swamped by Wyndham's many votes. What a hit job.

Then to make matters a bit worse, Dani promptly announces she planned to retire in 3 months time (although I'm guessing that Wyndham's people will talk her out of it until Wyndham puts in place their choice of management company that will be decide in the Fall).

Fortunately, we're looking into lawsuits against current individual members of the board for dereliction of duty as well as against various factions of Wyndham.

Jeff
 

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*This post is NOT aimed at Jeff - my intention is to set some ground rules for the responses.

Friendly Reminder: Folks, you are welcome to debate the issues here, but let's not make it personal - in other words, don't attack other posters.

Now someone is going to say: "Gee isn't that the same thing as criticizing a board member for their actions/the boards actions?" And the answer in NO. When you run for office, criticism is part of the job description. That is not the same thing as attacking a TUG member personally, because you disagree with them, or questioning their motives, or questioning their ethics.

We had a round of that not too long ago, and it completely stifled communication on this forum - it's not going to happen again.

Posts that attack other Tuggers/posters will be deleted with no warning.
 

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There is no such thing as an obsolete bylaw. They remain in place until an amendment is made by an ownership vote. Was that ever amended from the bylaws? Bylaws are frequently more strict than state laws. For example - you can’t have a pet in the unit per the bylaws. It’s not against the law to have a dog. Does that mean that is also obsolete by your standards? Can I bring Fido? Sounds like the directors that lost didn’t anticipate Wyndham being so strategic with their votes. I agree it feels pretty shady, but in no way illegal or against the documents.

You mention that it requires an ownership vote to change management companies. Can you point me to the minutes showing that an ownership vote was taken when management was changed from Wyndham to GPR? Or was that change made in violation of the bylaws?
 

ecwinch

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Should how members voted in election be publicly disclosed?
 
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ecwinch

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In regard the issue of the "record date" of the meeting, as this is an issue of that was both raised at the Annual Meeting and is mentioned above, I thought it would be helpful to understand what the pertinent non-profit statute (414D-107) outlines (emphasis added):

(b) The bylaws of a corporation may fix or provide the manner of fixing a date as the record date for determining the members entitled to vote at a members' meeting. If the bylaws do not fix or provide for fixing such a record date, the board may fix a future date as such a record date. If no such record date is fixed, members on the date of the meeting who are otherwise eligible to vote are entitled to vote at the meeting.

(c) The bylaws may fix or provide the manner for determining a date as the record date for the purpose of determining the members entitled to exercise any rights in respect of any other lawful action. If the bylaws do not fix or provide for fixing such a record date, the board may fix in advance such a record date. If no such record date is fixed, members at the close of business on the day on which the board adopts the resolution relating thereto, or the sixtieth day prior to the date of such other action, whichever is later, are entitled to exercise such rights.


Jack - can you speak to the question on if the BoD set the record date of Annual Meeting? I find no indication this occurred by reviewing the BoD minutes published on the web site.
 
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jacknsara

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Aloha,
One way the date of future meetings is documented is in meeting minutes. For example, the May 16, 2019 meeting was documented in the approved May 17, 2018 meeting minutes.
http://kauaibeachvillasresort.com/wp-content/uploads/2018/08/051718.mins_.pdf
I am pretty sure it is documented in subsequent minutes as well but I did not reconfirm that before writing this reply.

May 17, 2018 Board of Directors’ Meeting
VII. OTHER BUSINESS A. Owner Forum/Correspondence B. Confirmation of Meeting Dates
Wednesday, October 17, 2018 at 9:00 a.m. HST, KBV, Committee Meeting
Thursday, October 18, 2018 at 1:00 p.m. HST, KBV, Board of Directors Meeting, Budget
Wednesday, May 15, 2019 at 9:00 a.m. HST, Committee Meeting, Kauai Beach Villas
Thursday, May 16, 2019 at 9:00 a.m. HST, Board of Directors’ Meeting, Kauai Beach Villas
Thursday, May 16, 2019 at 1:00 p.m. HST, Annual Owners’ Meeting, Kauai Beach Resort
Thursday, May 16, 2019 to follow Annual Meeting, Kauai Beach Resort, Board of Directors’ Organizational Meeting

These dates are further documented on https://kauaibeachvillasresort.com/owners-community/bod/

This reminds me to seek clarification of the date for the next telephone meeting of the BOD. There is a discrepancy between the draft minutes (Wednesday, August 28, 2019 at 9:00 a.m. HST, Grand Pacific Plaza/Teleconference) and the web site (Wednesday, September 11, 2019 at 9:00 a.m. HST, Board of Directors’ Meeting, Teleconference).
This is not the first time a discrepancy has occurred but they do get corrected when noticed and pointed out.

Jack
 

CO skier

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Should how members voted in election be publicly disclosed?
If the vote is not by secret ballot, and especially if the vote is overtly taken in a meeting open to all owners, whether in attendance or not and regardless if they voted or not in the election, then there is no reason that the vote or anything that occurs at the meeting not be publicized, unless there is a specific prohibition in the governing documents, of course. jmo, from a non-attorney in the popcorn munching gallery.
 
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Aurelius

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If the vote is not by secret ballot, and especially if the vote is overtly taken in a meeting open to all owners, whether in attendance or not and regardless if they voted or not in the election, then there is no reason that the vote or anything that occurs at the meeting not be publicized, unless there is a specific prohibition in the governing documents, of course. jmo, from a non-attorney in the popcorn munching gallery.
I believe this is correct with the exception of it being publicized. Available to owners as part of a records request sure. But blasted on a public forum, no. Similar to disclosing the owner list with emails, or someone’s payment ledger, it is improper to disclose in a forum such as this.
 

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I believe this is correct with the exception of it being publicized. Available to owners as part of a records request sure. But blasted on a public forum, no. Similar to disclosing the owner list with emails, or someone’s payment ledger, it is improper to disclose in a forum such as this.
Oh, please. This is the internet age where anyone with knowledge can blab that knowledge (from attending an open HOA meeting as just one example), and as much misinformation as they want to invent (or "interpret" for this KBV forum), on any open forum. It has been happening for years, not just in Hawaii.

Sorry, not at all the same as private owners' lists or personal ledger information, which are not part of an open HOA meeting.

Were any owners at the KBV annual meeting sworn to secrecy? Therein is your answer.

Should not any HOA annual meeting be an opportunity to disseminate true information to all owners rather than suppress information?
 
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