November 2012 Special Meeting

Enchanted Lake Residents Association Special Meeting: November 28, 2012

Ka’elepulu School

Directors Present: Rod Castanha, Clem Clemmer, Cindy Turner, Sue Alden, Kelly Adams, Darren Rogers, Don Young, Gus Gustavson, Bob Bourke, Franklin Denis

Directors Absent: Kelo Maosi, Glenn Magyar, Steve Brennan, Bill Kinney

59 people attended representing 43 households plus 39 proxies

A quorum was noted and the meeting was called to order at 7:04

Business:  Cindy Turner introduced ELRA VP Bob Bourke. Bob explained the need to complete the business portion of the annual meeting which was cut short due to the tsunami warning in October. There was a motion and a second to approve the minutes of the 2011 annual meeting. The motion passed.

Four board members were presented for consideration. Three returning board members are Calvin Clemmer, Rodney Castanha and Cindy Turner. Robert Molyneux volunteered to serve on the board prior to the general meeting in October. Nominations were closed and the four were elected per ballots.

Defending Our Lake: Bob presented a history of the current Lake situation regarding the claim against Delta Construction and land owner Gale Berengue. Maps of the Koapa Lots construction site and pictures and videos of four separate storm events during the winter of 2010 and 2011 were shown.

The ELRA Board of Directors repeatedly warned Delta (verbally and in writing) that their BMP’s (Best Management Practices) were not adequate to prevent run-off carried sediment and other pollutants from entering the Lake. Along with the dirt there were at least two instances of hydro- mulch, one of which included fertilizer washing into the Lake. This led to a large increase in algae growth, fish and oyster die-offs, threats to endangered birds from botulism, midge infestations, foul odor, decreased water quality, decrease in usage of the Lake by residents and canoe clubs. ELRA has spent at least $125,000 to date cleaning up the algae which has become an ongoing problem.

ELRA attempted mediation, which was unsuccessful. At this point we are faced with two choices: We can accept the damages and do nothing or file a complaint in court (lawsuit).

The value of the lake to our lakeside properties is reflected in sale prices for Lakeside properties that are on average $207,000 more than non-Lakeside homes. Reinforcing ELRA’s claim against Delta is the fact that the Department of Health cited Delta for inadequate BMP’s (Best Management Practices) and Delta was fined. ELRA attorney Linda Paul presented further information on the lawsuit as well as mentioning a class action lawsuit for individual residents, which would be handled by a separate Law firm. Linda pointed out the risk of not moving forward with a lawsuit.

There were many questions and concerns from the residents regarding the class action lawsuit, mediation and financing the lawsuit. Bob explained that the $250 assessment is needed to ensure that the ELRA has sufficient funds to proceed with the lawsuit.

Further assessments may be required. There was a clarification that this motion is for a onetime assessment of $250. It was noted that bylaws regarding special assessments require a vote by a majority of members at a General or Special Meeting. A question regarding increasing the annual maintenance fee was deferred to a later meeting.

There was a motion and a second to vote on the three items recommended by the board. The motions and vote tallies (from paper ballots) for each are as follows:

1- Vote to approve a general assessment of $250 per member if the cost of the lawsuit exceeds 50% of our reserves
58 yes/14 no

2-Vote to allow voluntary contributions in support of the lawsuit. In the event of a positive damage outcome from the lawsuit, these voluntary contributions will be repaid with 15% interest after the existing ELRA costs and attorney fees have been deducted from the law suit proceeds.
69 yes/2 no

3-Vote to approve the board’s recommendation to file the lawsuit if one or both of the above motions pass.
57 yes/14 no

 

All three motions passed.

The meeting was adjourned at 8:32pm