Dear Kepuhi Beach Resort Homeowner,

It has been a very active spring at the Kepuhi Beach Resort with lots of visitors and
homeowners enjoying the rejuvenation of our beautiful property.

On April 10, 2012 the AOAO Board of Directors held their spring Board meeting at
the Community Center in Maunaloa. The draft minutes for that meeting are enclosed
for your information. Please see sections #10 and #11 for the latest on the various test
projects started last year. You will also see that the Board has approved the installation
of glass louvers (as tested in unit 2191) pending adoption of the appropriate policy
guidelines.

Also enclosed with this letter is the subsequent policy for glass louver installation.
The only policy provision that may be of question to some homeowners is the
requirement that all glass louvers be tempered glass. This aspect of the policy was
discussed at great length during the meeting and all Board members and attending
homeowners weighed in on the decision. The main reasons behind the group’s
consensus on all tempered glass were: 1) Safety. 2) A clear dividing line could not be
found for where tempered vs. non-tempered glass should be used, i.e. how far from the
ground, how far from a tree, how far from an interior staircase, etc. 3) How, over
time, could we keep track of which units use which type of glass to ensure that
replacements, when needed would also comply? 4) Having tempered and nontempered
louvers would require replacement inventory not only in various lengths, but
also in both strengths. For all of these reasons (and more), those who attended the
meeting came to the decision to require all tempered glass.

Unfortunately, there have been a couple discouraging events of which I need to inform
everyone.

Bob Hagler, Board member at large, has stepped down from the Board due to
personal reasons. Bob’s hands-on management and determined approach to
improving our property has been a great benefit to us all and we are very
grateful for his dedicated service to our AOAO. Bob’s term was ending this
fall so the Board is currently seeking someone to finish out the term and run for
election this November.

Over the past 9 months a lot of vehicle traffic and unruly behavior has been
developing on the beach in front of our resort, as well as around the old luau
pavilion (surf shack). This has led to some property damage, increasing noise,
and safety concerns as well as the gathering of unsightly camping structures and
debris. The Ranch has made a concerted effort to remove the structures and
abandoned materials. This has inflamed the emotions of those who were
congregating at these locations resulting in serious vandalism to the Hotel
property as well as some broken windows in our own units. This is something
we are working our way through and the controversy and friction seem to be
diminishing, resulting in a return to peaceful enjoyment of the beach areas by
all.

On a more positive note, our resort has enjoyed a number of canoe races and weddings
over the past few months and rentals have been fairly strong for most unit owners.
This increased activity and occupancy is helping to fuel an increased enthusiasm
which is evident throughout our resort and across the entire west end of our island
paradise. If you haven’t been on property lately…please come back soon and catch up
with your AOAO Ohana.

Aloha!

Jeff Kent
President, Kepuhi Beach Resort AOAO

Friendly Reminder: Pest Control Schedule. Spraying will occur inside and outside the units as follows:

BUILDINGS 1,2,3,13,14,15,16,17,24,25 4,5,6,7,8,18,19,20,21,22,23

DATES Jun 7, Aug 2, Oct 4, Dec 6* July 5, Sept 6, Nov 1*

*Dates must remain flexible due to unforeseen circumstances. Homeowners/renters cannot deny
access for pest control unless approved by AOAO Board in writing. Exemption: if children under 2
are present in the unit.

Need a storage locker? Contact Connie Fox a 1foxden@sbcglobal.net. If one is not available, please ask her to put you on the waiting list.