2013 Annual Meeting Minutes, October

Enchanted Lake Residents Association, Annual Meeting, October 18, 2013

St. John Vianney Parish

These draft minutes will be voted on at the 2014 Annual Meeting

Directors Present: Rod Castanha, Kelly Adams, Steve Brennan, Franklin Denis, Gus Gustavson, Greg Colbert, Alan Richardson, Bob Molyneux, Don Young

Directors Absent: Kelo Maosi, Mike Mickelwait, Darren Rogers, Steve Kofsky

With 78 guests present representing 50 households plus 23 proxies received, a quorum was declared and the meeting called to order at 7:35 p.m.

President Gus Gustavson introduced the current Board Members and Officers.

President’s Report -Gus Gustavson Gus discussed some of the issues of Associate Membership. He referenced the results of the membership survey conducted in October 2012. He stated that there were some areas adjacent to the lake where previous membership meetings had voted to allow Associate Membership, but there was no record of the area along Keolu Drive and the Kaelepulu wetlands being approved. He stated that some of the staunchest supporters of the lake live in this area, and they desire to be Associate Members.

Gus Gustavson made the following recommendations and asked for a motion and vote from the membership:

  • The board recommends members confirm (approve) Bob Bourke and Cindy Turner/Hugo DeVries as Associate Members of ELRA
  • The board recommends membership approve in advance any Keolu and/or wetlands properties the board recommends for Associate Membership
  • Based on the Membership survey, recommend the membership allow the board to vet and approve applications for Associate Membership from residences that have navigable access to the lake

A motion was made from the floor to approve all three recommendations. The motion was seconded and passed with a majority voice vote of the attendees.

Additionally, during the discussion regarding Associate Membership, Gus stated that the review of membership requirements in the By-laws and Articles of Incorporation leads the board to conclude that Associate Members cannot serve on the Board of Directors without a change in the By-laws. He stated that, based on the Membership survey conducted in late 2012, the board would address this in the By-laws change.

The minutes from the 2012 Annual Meeting (business portion cancelled due to tsunami warning) and the November Special Meeting were reviewed. There was a motion and a second to approve the minutes. The motion passed.

Financial Report-Vice President Steve Brennan Steve presented the financial report as Treasurer Bill Kinney has moved away and the office is currently vacant. Steve presented graphics displaying percentages of income and expenses with the majority of expenses being for the litigation attorney fees. The general operating costs have remained stable from last year. It was noted that only 4% of the expense was for Lake Maintenance. A 2013-2014 budget was presented and does not include a Special Assessment or litigation expenses. There was an addition of non-litigation attorney fees to cover the cost of changes to by-laws. The annual dinner fund has also been included in the budget.

Title Review-Greg Colbert Greg addressed the question that has been frequently discussed “does the ELRA have the right to require the payment of fees?” Greg gave a history of the ELRA dating back to the development of Enchanted Lake by Joe Pao. The ELA, as established for the initial lakeside lots, was originally a voluntary membership organization. In 1973, as Kukilakila was being developed, the developers of that community established a requirement for those units to be members of ELA. That was eventually changed in 1987 when both the initial lakeside lots and Kukilakila were provided membership within the newly established ELRA which also took fee simple possession of the lake. In that same year, the Protective Provisions governing the lake were amended and strengthened by Bishop Estate to more clearly provide for regular maintenance assessments in preparation for the conversion of lakeside lots to fee simple interest. By 2000, most homes had subsequently converted to fee simple and the board was able to leverage the strengthened language of the Protective Provisions to more directly require the payment of assessments by lakeside lot owners. He emphasized the difference between membership dues that are associated with a conscious choice to join an organization and an assessment that is a result of lot ownership and runs with the land. The ELRA hired Title Guaranty to review the individual deeds of Lake owners to ascertain that all of them have the same provisions. At some point this will need a legal opinion. The Protective Provisions expire in 2016 and can be extended or revised by a 2/3 vote of Lakeside owners. The presentation concluded with a review of how important it is that ELRA take action along with a large majority of lot owners to extend the Protective Provisions before their expiration in 2016.

Update on Lake Projects-Bob Bourke Bob gave an overview of some past projects including the removal of ALL mangrove from the Lake and from the stream between the Lake and the beach this past year in coordination with the Kailua Canoe Club.  He also chronicled the events involving the Delta construction site and the subsequent runoff of sediment and nutrients into the Lake. Some of these events included repeated warnings from ELRA about the inadequate BMP’s placed at the construction site. Following the rain events, there was a massive algae bloom which led to a fish die off, endangered wildlife, oyster die off, foul odor, midge infestation and the need for an expensive clean-up with Pono Pacific. Bob illustrated a formula for obtaining a dollar value of the lake for residents of the Lakeside properties. Based on real estate values of a couple of years ago, having a lakefront property adds $207,000 to each property value with an annual value of about $6,000 per year. There is a need for a long term plan to maintain the Lake.

Report on Litigation-Gus Gustavson Gus gave a report on the status of the litigation. The complaint was filed in December of 2012 and discovery has followed. Delta has filed a counter claim against ELRA and also named the City and County. The expected court date is summer of 2014. Another Special Assessment is likely. Attorney Linda Paul spoke briefly about damage to the Lake.

Election of Board Members-Gus explained that Bill Kinney had one year left on his term. Alan Richardson has agreed to run for that slot. The other candidates were introduced. The following were elected to the board for three year terms:

  • Kelly Adams
  • Michele Compton
  • Linda Jenks
  • Doug Kroll
  • Margaret Novack

Path Forward-The goals for the Association are toward cooperation and collaboration as we work to re-do the By-laws and work toward long-term maintenance of the Lake.

 

The meeting was adjourned at 9:50pm