The letter issued by Friends of Princeville signed by Bernard Markowicz has numerous inaccuracies about our PHCA leadership, decision making and communication practices that require correction. We provide this response to address those errors and misstatements.
As many in Princeville know, and have observed, we have consistently encouraged membership input and feedback as PHCA has implemented numerous improvements. While meaningful progress has been made there is still important work to do.
Our guiding theme is to represent the interests of the entire PHCA membership. This requires prioritizing actions that may not satisfy everyone. Even so, we consider all feedback. Our decisions have been guided by a consistent commitment to the care and well-being of the Association.
Let us correct the misstatements and assertions in the following paragraphs:
1. Stewardship of Member Funds
The PHCA Board has consistently applied disciplined procurement practices. In reality, the pool of qualified vendors and service providers on Kauaʻi is limited. Even so, we have always evaluated multiple bids whenever feasible, practical and possible.
The allegation that “The Board majority approved engaging the firm even after the General Manager acknowledged that due diligence on the firm had not been completed…” is not correct; this characterization omits facts:
- The GM and the Board did conduct due diligence of the selected legal firm both in February 2026 and recently consistent with the Procurement and Bidding Policy. The approved firm had relevant experience for the required scope of work.
- The urgency of the recall petition required timely action. The Association was facing deadlines for a “Special Members Meeting” called by the membership. A timely expert, independent third party opinion was both necessary and appropriate.
- “Substantial Association funds” have not been committed. New counsel has been retained for a very specific, limited scope of work specific to matters related solely to the Special Members Meeting and the process to remove Directors.
Stewardship means making timely, informed decisions that protect the Association. That is what we did.
2. Use of Legal Advice and Transparency
Friends of Princeville asserts that members “have often received little information about the conclusions reached” from legal opinions. In reality, very few formal legal opinions have been issued in recent years. Transparency is always important; however transparency must coexist with legal and fiduciary responsibilities, including attorney-client privilege, contractual non-disclosure requirements, confidentiality obligations and duty to avoid exposing PHCA to litigation risk.
These obligations limit the extent to which legal opinions—especially written opinions—can be shared. Releasing privileged legal analysis would waive PHCA’s attorney-client privilege, expose the Association to litigation risk, compromise ongoing disputes and undermine the Association’s negotiating position.
For these reasons, legal opinions belong to the Association not to individual Board members, and they must remain confidential. Directors cannot selectively disclose legal advice or provide redacted or partial summaries if doing so would reveal privileged analysis.
3. Communication With the Membership
PHCA Board meetings are held at least twice a month. Member input is always welcomed and encouraged. The assertion that communication has been “limited and episodic” is simply not accurate. Under our leadership, PHCA has issued regular newsletters, provided committee meeting updates, expanded use of the Association website and provided detailed project updates at meetings supported by written documentation in Board packets.
Communication can always improve and we remain committed to do so. The claim that communication has been “limited” does not reflect the significant increase in member-facing engagement over the past two years.
4. Execution and Long-Term Planning
The insinuation that planned maintenance activities have moved slowly is not accurate. In many cases due diligence requires analysis prior to implementation. Vendor availability, contractor scheduling and material delivery lead times also create practical time constraints outside of the Board’s control. The reality is:
- PHCA has decades of deferred maintenance that we are catching up;
- Major projects may require County or State permit approvals, coordination with external parties, contractor availability and delivery of materials from the mainland;
- PHCA Board has implemented the first multi-year capital funding and planning framework;
- Most notably five-year improvement plans for street maintenance and drainage upgrades have been developed and are being actioned by the PHCA Board
During our tenure, PHCA has:
- Completed major road resurfacing on 12 streets, the PHCA Parking lot and 13 street intersections (aprons) by the end of this fiscal year,
- Performed drainage improvements with six high-risk culvert replacements, including a major culvert replacement this fiscal year on Lower Ka Haku,
- Initiated long-term capital reserve planning, and
- Improved vendor oversight and contract/construction management
Progress is visible across Princeville. The suggestion that “too little visible progress” has been made is inconsistent with the substantial work completed and the long-term planning and funding now in place.
5. Leadership and Governance
Friends of Princeville suggests that the Chair “has significant influence over how and when matters are brought forward for decision.” We disagree with that characterization. Under PHCA’s established practice, the agenda for each Board meeting is reviewed, discussed, and agreed upon in a public meeting with input from all Directors.
Friends of Princeville further alleges: “We believe Ms. Thiele and Mr. Sands have supported a style of governance that has produced insufficient financial discipline, inadequate communication, insufficient transparency…, and too little visible progress…”
Their opinion is not supported by any evidence of misconduct, violation of policy, or failure to perform duties. We came to the service of PHCA with a commitment to volunteer our time and expertise for the betterment of the PHCA community. The Board’s decisions have been collective, documented, and made in good faith based on what is best for the PHCA.
6. The Risk of Factional Recalls
Friends of Princeville warns against allowing “one group to gain Board control to advance a private legal dispute.”
On this point we agree. PHCA is strongest when its Board reflects balance and representation across all constituencies: single family homeowners, condominium owners, the hotel and timeshare owners. Our responsibility is to serve all members of the community.
A Director recall should not be used to reshape the Board mid-term based on policy disagreements or personality style. Regular elections serve that purpose. The PHCA community membership initiated the action to recall Director Krebs. We support that recall petition initiated by the membership. In response, the recall of Directors Sands and Thiele was initiated by one faction, creating a retaliatory dynamic that risks destabilizing the Association.
Conclusion
We value and respect the right of members to evaluate our performance. Scrutiny is appropriate. PHCA continues to evolve and improve its service to the community – that work is ongoing.
Throughout our tenure, we have remained committed to:
- representing the entire membership,
- protecting PHCA’s financial and legal interests,
- improving infrastructure and community assets,
- strengthening communication within the community,
- advancing long-term planning, and
- ensuring Princeville remains a strong, well-managed community
Members have rights. We respect those rights. But let’s make sure the decision is based on the complete record.
We encourage you to vote in a manner that supports continuity, stability, and responsible governance.