President's Report

April 2009

Dear NECA Residents:

We are approaching the end of the NECA Board year and in August the community association will hold its annual meeting and elect four residents to serve on the 9 member Board of Directors.

Progress is measured slowly and some of the issues we are facing are enormous because they impact residents financially. One of the biggest complaints I receive concerns the outrageous fees and policies we assess to rent our resident owned facility to the owners. I repeat – this is a resident owned facility. We have well intentioned people with narrow mindsets that only think in terms of lawsuits and as a result have abetted the private insurance firms by enacting policies that protect the insurance companies at our expense. These procedures have served to discourage and in some cases intimidate our owners from renting their own facility. We have over the years inserted too many restrictions that are so ridiculous that to have a birthday party for a one year old; a retirement party or a 50th wedding anniversary party we require the presence of the police department. On top of that we have pyramided fees that it could cost about $2,000 to rent one of our party rooms. I consider this a “police state” mentality.

Another absurd requirement is to have a resident home-owner bring a copy of their home owner’s insurance policy when renting a room. All homes in Newtown are valued so high that bringing in a $300,000 policy is nothing but harassment. It reminds me of the mentality that prevailed when we required home owners to bring in a copy of their deed. Our NECA liability insurance has a $25 million dollar umbrella and that is absolutely enough insurance to rent a room for a party. Our residents do not expect the board or the administration to enact procedures that serve no useful purpose other than discouraging the rental of our party rooms. These rooms remain unused most of the time because of our restrictions. It is a time to return to sensible rules.

Another big concern is the Keiki Program that operates at a per child deficit. This situation has to be addressed. We have 70 children participating in a program that costs the association more than the fees per child. We are not in a position to be cavalier and say it is OK to operate in the red, and then have people “lobby” to raise the assessment on everybody.

I am also worried about fees associated with Hawaiiana. There seems to be many hidden charges and that is a matter of concern.

I attended a training seminar with many other Oahu community associations and was dismayed as to the number of boards and supporting businesses (lawyers; agents; etc) that are proud of the fact that they doubled or tripled association assessment fees, like it was a badge of honor. This attitude hit home and reminded me how important it is for NECA to be ever vigilant for these kinds of people live among us also.

On Friday, May 1, 2009, I received a decision notice from the Department of Labor and Industrial Relations, a 7 page report, that will be discussed in executive session.

Finally I want to remind the board and residents that we have elections in August and new blood is always good for a board. In fact I am in favor of term limits so we don’t have career members of the board because that means tunnel vision. Two terms should be enough.

Sincerely,

Don Devaney
President