May 28, 2008

Aloha Kepuhi Beach Resort Homeowners ---an Update from Molokai

Congratulations to those who remembered our new name and thanks for commenting on how much you like it and our letterhead. We are continuing to promote the Kepuhi Beach Resort name for the complex. The Kepuhi Beach Resort name will end the confusion and better differentiate us from the West Molokai Association. We have combined our original logo with the Kepuhi Beach Resort name.

I imagine the sight of the roofing crew setting up scaffolding, hauling CDX plywood, hammering, drilling and bolting of safety lines to the building is becoming mundane. We and our contractor will endeavor to manage construction processes expeditiously, minimizing impact on owners and their guests. However, it is important for everyone to understand this is still a major undertaking and will result in some inconvenience. Please visit the web site www.kepuhibeachresort.com and click the “Track the Roofing Project” link for the status and projected roofing dates for your individual units. Schedules will change as project conditions change. John is now indicating he would like to finish all the major buildings before starting the cottages.

Once again, I strongly encourage unit owners to cover their items with plastic. When the roofers remove the old shingles, walk on the roofs, reinstall the batting and roof material; 30 years of dust and debris will filter into the upstairs units.  A larger source of dust and dirt will occur when the old roof is removed and put into the dump truck.  The material coming off the roof is caught by the wind and the dust is pushed into the walkway side of the building.  Even with louvers closed some dust will come into the units. I would recommend that your unit manger or cleaner take care of the clean up soon after the building roof is completed.

Again, I am notifying all home owners. The special assessment coupon for the 2nd payment is enclosed in this letter. Please send your check before the due date of July 1, 2008. If your assessment is late, the AOAO will be borrowing the shortfall from the bank on a one year note. Consequently, your unit’s monthly assessment will be increased by the assessment value plus 10% interest divided by 12. The new unit assessment will remain in effect for one year. Also remember that funds received are applied FIRST to the late special assessment, then the normal maintenance fee.

The closing of the Molokai Properties on Molokai was unwelcome news to all of us. The two public utilities (water and sewer) are separate companies although owned by the Ranch. The utilities are governed by the PUC and must be continued. The West Molokai Association is working with Maui County to take over the two public utilities. If you have any questions, please direct them to the WMA.

Our discussions with the Ranch on the cross easement agreement are continuing. Jeff Kent and I currently have not resolved the issues about the maintenance of the Hotel lot. The Ranch is responsible for this lot, common property and the pool. We are continuing the discussions. The level of maintenance of the Hotel lot is the issue. We currently anticipate that litigation will be necessary to establish a level of maintenance that is acceptable to Kepuhi Beach Resort owners and the Ranch. I will continue to keep you informed about the status of our discussions with these monthly letters.

Mahalo,

Jim Drehle

President WMRCAOAO