From My Letter of 8/26/08. This will provide a clear picture of where we were a hal year ago.
I have been concerned about the paving project for quite some time, but trusted that previous committee actions had it under control. After seeing illogical arguments and misinformation applied at our last BOD meeting, I made an effort to completely educate myself on the matter. After seeing what I’ve discovered in the latter part of last week, I became more than concerned. Once information is discovered, it must be disclosed or an individual could face consequences that threaten their personal assets. I would also ask that all directors visit
http://www.orchidland.org/olca/legal.php to get a taste of what can happen when an association does not execute by the rules. Note the disclosure of information aspect and the loss of insurability this board is facing. Once the attached information is delivered to the entire BOD then we are all obligated to execute and are all accountable.
I have attached a letter from Ron Vizzone, as well as a copy of the paving contract. I think it is important that definition of priority of paving from the bond be understood, so I’ve included the text from the bond as it relates to the subject. “The priority order in which roads will be paved will be determined by the avoided cost of road maintenance, the amount of vehicular travel and the number of residences adjacent to the road.” I must point out that has nothing to do with “parcels served or parcel count” as was indicated last Wed. night. By the way and for the record : I’m over it for now, as far as the need to address K St and Paradise Ala Kai paving, even though these do meet all three criteria (more so than many of the chosen streets- Note: Paradise Ala Kai has a density of over 50%) and I will certainly do what I’m supposed to and represent my district’s wishes at a latter date. At this point there are more issues at a higher priority level.
I know a map exists with detailed input on the first priority of reducing road expenses and I will provide details on adjacent permitted structures by street, if needed. I hope that information already exists in the documentation that was used by the Paving Committee to reach their decisions??????.
I bring this up, as I now agree with Ron and most of his statements. We are not addressing this project by the definition provided to us and that means we are in violation of our fiduciary duty to our membership. That along with the failure to properly disclose to our membership could make us a very large litigation target. As demonstrated in Frank’s very well written letter (attached) there is really no continuity to any plan that may have been developed. Actually, unless there is something written and documented, we really have no plan. When we are dealing with millions of dollars of member money, not to have a plan, is moving through treacherous country.
The list of questions and considerations is very lengthy, so I’ve attached a copy of the contract with notes and modifications where I think we have a problem or the matter is unclear. That being said, I think the entire board needs to see the documentation of how the paving committee reached the decision to pave the streets that were chosen and an explanation of the noted contract variances provided. Aside from the Kaloli Point area, I don’t see where the contracted streets meet the requirements of the bond, as the documentation I discovered is contrary to the feedback provided. I think the entire BOD needs to be comfortable with why the following streets were ignored or eliminated when they are on the list of the #1 priority.
27th Paradise to Shower
23rd Makuu to Paradise
18th Kaloli to Paradise
19th Makuu to Kaloli
7th Makuu to Paradise
The minute these streets, with the highest defined priority, were not put on the list, it seems we violated the premise and requirement of our bond. The lack of documentation on the subject, along with the fact that we have only board members on the committee, won’t look good when we get to court and I believe we will, if we don’t execute by the terms of the contract and with detailed documentation of every move.
As of this point the lack of minutes and other documentation of how we have proceeded to this point could put us at serious risk and frankly, I don’t think anyone wants personal legal liability.
My logical recommendations to the BOD will be to immediately request the following:
All Minutes of pervious Paving Committee meetings be provided to the BOD ASAP along with detailed explanations of variances indicated on the contract.
Contractor will be directed to route all paperwork relevant to the project/ contract through the HPPOA General Manager to comply with contractual obligations.
Immediately appoint an equal number of non-board members to the Paving Committee or dissolve the Committee and incorporate the task into the overall BOD function
If Paving Committee continues, all meetings are to be given public notice
Complete revision of the paving plan to be aligned with the parameters of our bond
Request that the entire quote process be reviewed and realigned for phase two.
Research via committee or seated BOD the validity of determined cost and method of application currently used and apply the findings to subsequent contracts ie; how can 33rd be done at a cost 20% to 25% lower than our billing cost and what alternative methods can be considered to maximize the amount of paved roads?
Once complete, the revised plan is to be submitted to General Membership via every means available.
Disclosure- Disclosure-Disclosure
All requests for payment are to be submitted in accordance with the contract, via our main office first. We need to have at least one more audit procedure in place due to the amount of money at risk.
Sufficient documentation based on the three stated criteria from the bond be provided for the HPPOA file, if any road or segment of road is done that services a current or previous BOD ‘s dwelling. In other words……consensus on the application and reasons behind it
I’m certain you will agree with the seriousness of this matter and the need to do it “by the book” or we will probably face dire consequences. I look forward to your feedback.
Aloha,
Jeff
