Just received an updated Newsletter here it is:
KBV IOA Newsletter Volume 1 2023 October 10, 2023
Aloha Kauai Beach Villas Interval Owner,
On behalf of your Interval Owners Association (IOA) Board of Directors, we hope that you and your family are doing well. Much has transpired in Kauai and at the resort since we last wrote to you. KBV IOA Newsletter Volume 3 2022 presented many details of the building issues the Association of Apartment Owners (AOAO) is dealing with.
Board Changes
In June, board Vice President Mark Twardzicki resigned after serving for the past three years. Mark’s background as a member of the Army Corps of Engineers made him a valuable contributor to board deliberations in the decision-making process. Mahalo to Mark for his committed service to the association.
Following Mark’s resignation and in accordance with the association’s bylaws, the board appointed owner Kevin Garner to fill the remainder of Mark’s term. Kevin has attended most of the board meetings over the past several years and helped draft some of the association’s newsletters. Kevin’s knowledge of the current association business made him a good fit for the board. Please welcome Kevin to the KBV IOA Board when you see him.
Long-time board member Dani Ramos, who served for many years as the association’s Treasurer, resigned her board seat at the end of August. Fortunately, since Dani is Wyndham Destinations’ Regional Controller, she continues to be available as a resource to the board and association members, sharing her extensive knowledge of the history of KBV along with her financial expertise.
The board appointed Linda Kolstad to fill the remainder of Dani’s term. Linda, who is both an IOA owner and Wyndham associate, previously served on the IOA Board from 2016 to 2018. In the interim years Linda has continued to provide support to the board in her professional capacity as Director of Association Governance for Hawaii. Please join us in welcoming Linda back to the board.
Budgeting
As we are budgeting for 2024, we want to share some of the challenges in our current environment. While inflation rates have slowed with year-over-year inflation percentages in the U.S. coming down compared to recent years, we are still experiencing increased costs in many areas that are directly impacting association (and personal) budgets, such as the cost of household paper goods like paper towels and toilet paper — which are currently running more than 7% higher than last year. Property Insurance premiums have increased 30% and with recent fires within the state, 2024 will be another challenging year. The Kauai Island Utilities Coop, an electricity provider, has asked the Hawaii Public Utilities Commission for an approximate 9.42% increase in rates.
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Resort Update
The AOAO Special Owners meeting in May was postponed to a later date yet to be determined. The postponement allowed for the parties to the AOAO lawsuit to focus on mediation efforts, which are currently taking place.
The IOA is taking reservations for 2024, however, we are not able to guarantee you will be in a specific building. G & H buildings are still closed. The AOAO is working with their project manager, The Hardy Group, to repair the buildings so they can be occupied until a remediation plan for all the buildings is developed and funded.
Management continues to refresh the units in cost-effective ways.
• Replacement of old fixtures in bathrooms – All fixtures to include towel racks, toilet paper holders, sink, shower and tub faucets, etc.
• Kitchen – Refinishing cabinets, adding handles and knobs to all cabinet doors and drawers, replacing faucets
• Adding and replacing baseboards throughout
• Replacing all electrical outlets, plugs and switches from beige to bright white
• Adding plugs with USB capabilities to the kitchen seating area
• Replacing lamps
• Adding art pieces as needed
AOAO & Building Update
The AOAO is in the process of obtaining current estimates of building remediation costs, updating the reserve study, and identifying funding sources.
Pursuant to the recommendations of the AOAO’s engineers, the AOAO’s board has approved a project to repair the soffits of buildings F, G & H. Wiss, Janney, Elstner Associates (WJE), the AOAO’s retained third-party engineering firm, is designing rigid covering. The AOAO’s project manager, The Hardy Group (THG), estimates this project will cost $250,000. The AOAO board has directed THG to seek bids and proceed with this project.
The AOAO board has a list of items required to be remediated to reoccupy Bldgs. G & H. This list from the AOAO’s professional engineers, WJE, has been given to THG, the AOAO project manager. They estimate that the cost for this project is approximately $2.5M. The AOAO board has approved this project and is seeking funding. AOAO reserves are approximately $1M. The AOAO board anticipates a special assessment will be needed to fund this project as the financial institutions contacted are declining to fund the project. The AOAO board plans to review the project and the loan efforts by the end of October, and if such a loan cannot be obtained, then at that time the AOAO will have to determine the special assessment needed. The assessment will be billed following approval by the AOAO board.
Aloha,
Your Kauai Beach Villas IOA Board of Directors
Strange things occurring without a full sharing as to why these decisions have been made. I must be missing something as this newsletter has a great deal of new news in it along with many unanswered questions. Why the resignations at such a critical time? Who is Kevin Garner and what are his qualifications other than those mentioned to be on the BOD? And it appears that one Wyndham employee resigned from the BOD and another Wyndham employee was appointed? What is a Director of Association Governance for Hawaii? Why are the financial institutions declining to fund the AOAO project? Another AOAO special assessment? How many more and is this just wasting owner's dollars? I'm confused has remediation been approved with the BOD given carte blanche? Doesn't it seem like there is a missing link or is it just me? I know there are two BODs and one is in the midst of a legal action but is this a leading indicator of what will occur with the IOA and if not, why not?
