Dear Kepuhi Beach Resort Homeowners,

I hope this letter finds you well and still basking in the afterglow of a glorious holiday season filled with the aloha of family and friends.

Please find enclosed a copy of the draft minutes of the November 11, 2011 Board of Director’s meeting.

In my last letter I reported on the fantastic annual homeowners meeting and the many recent accomplishments of our association. I also touched on some of the ambitious plans we have for 2012. Now it’s time to roll up our sleeves and start the heavy lifting. Your Board of Directors and the AOAO staff are hard at work implementing various projects and activities. Some of the most promising include…

  • A new AED has been installed at building #24.
  • The two BBQ enclosures are being re-grouted and refurbished plus two new barbeque grills with hoods are being installed.
  • Additional signage for beach access and beach parking have been installed.
  • Our property manager, Paul Snyder, is using his previous experience as a solar energy consultant to develop options for using alternative energy sources to lower our gas and electric consumption.
  • Good progress has been made on finding contract labor to assist in the budgeted Building Repair and Restoration project which will be starting early in the new year.
  • The Ranch continues their accelerated activity, bringing the Hotel Lot restoration closer to completion.

Please let me also take this opportunity to provide further information on a couple topics that may have been misunderstood by some homeowners.

The 2012 Budget Deficit: I’m enclosing the most recent balance sheet with this month’s letter because there has been some misinformation circulated that I’d like to clear up. For those who have reviewed the 2012 budget (sent to you last month) you may recall we are planning on spending approximately $194,000 more than we receive in maintenance fees this year. The extra expenditures are mostly for much needed building repairs and for our portion of the full swimming pool restoration. The balance of the deficit (approximately $65K) is due to the January maintenance fee holiday.

All of the $194,000 short fall will be covered by prior year surpluses, which have built up as cash in our Operating Account. The enclosed balance sheet shows a total of over $464,000 in our Operating Account. The Reserve Fund has a balance of $347,366, spread amongst various accounts. The Operating Account is the account which will absorb the $194,000 operating deficit over the next 12 months.

To avoid any further misunderstandings…let me do some simple math. The November 30th Operating Account balance = $464,000. Subtract the expected December shortfall of $65,000 (due to the December fee holiday) and $72,000 (owing to the Reserve Accounts) and that leaves $327,000 in unrestricted operating cash at the start of 2012. Subtract the projected deficit of $194,000 from that $327,000 and we will end 2012 with approximately $133,000 cash in the operating account. This is significantly higher than historical year-end balances.

It is entirely likely that if no unforeseen operational need presents itself for 2013, a large portion of this surplus cash would then be transferred to Reserves, thus keeping them fully funded. I hope this clears up any confusion. If not, please feel free to call me directly at 360-332-2132.

Garbage Dumpster Location(s): The Board is still trying to work out the garbage dumpster location(s). We thought we had a great solution that would shorten the walking distance for all homeowners but last week the Ranch backed out on the idea and now we are looking at other options. In the end we will find a fair and beneficial solution for all homeowners.

The Board realizes changing the dumpster location(s) is a major decision and one that has generated considerable anxiety. However, I feel compelled to tell you that this topic is a prime example of a problem that seems to be getting more aggressive. While most input the Board received was polite and constructive…a number of people got quite belligerent, either concerned about the impact this would have on them personally, or making inferences that the Board’s decision was made primarily to benefit individual Board members. I am not sure that any of those people considered that occupants of cottage 1 and 2 had to walk 400 yards to the old dumpster location or that those in buildings 15, 16 and 17 could actually smell the garbage on some days.

Folks…we share a community and all of our owners need to see their neighbors’ interests as equal to their own. We Board members strongly believe that everyone must be treated equally and that the common interests of the association are more important than any individual’s…including our own. That philosophy guides virtually every decision the Board makes.

Please accept this “community first” philosophy and know that we always view every issue from its impact on the whole. We welcome your ideas and questions but jumping to conclusions and taking an aggressive stance does not help to create an environment of cooperation. We work very hard and while the Board may take a while to resolve some issues, it’s only because we are determined to do so through a fair and thoughtful process, leading to the best decision for all.

We have a big year planned for our association with lots of great things in store. As the New Year dawns and our busy lives unfold, let’s remember to also stop and smell the plumeria and enjoy our unique island paradise.

I hope to see you soon on Kepuhi Beach!


Jeff Kent
President, Kepuhi Beach Resort AOAO

Friendly Reminder
There are no personal storage lockers available at this time but there is a waiting list for people wanting to rent one. If you have a locker you are no longer using and would like to release it for someone else, please contact Connie Fox at or 408-741-0881. Also…contact Connie if you want to be added to the locker waiting list.