HAPPY VALENTINES

                            January 2009
         SEMI ANNUAL MEETING – MARCH 20, 2009
               1 p.m. Friday, CMI Conference Room
President’s Letter: The heavy vog is mostly gone. We have blue sky and ocean
with a strong surf and spectacular sunsets. This is the paradise we love.

The big activity of the month is the Plumbing Inspection. It is long overdue and
is a huge preventive project. It is encouraging to be in the position to “prevent”
instead of living from crisis to crisis. (I will add that three stacks had leaks that
required repairs recently. One was a toilet, one was a tub drain and one was
multiple leaks due to owner renovation and improperly installed plumbing
fixtures.) Donna volunteered to send inspection date notices and repair
statements. The plumber will give her the list of costs that she will pass on to
the owners who need to complete the repairs by July 1, 2009. ‘Many sincere
thanks to everyone for such great cooperation! This will be another
immeasurable cost saving to the Association.

The semi-annual Property Inspection was performed on January 9, 2009, by
Randy Stingel and if you haven’t received a warning letter, your condo passed!
Some of us need to replace or install bronze obscure (privacy) jalousie louvers. I
ordered some from Oahu, so let Mike P or me know if you want a 32” bronze
louver for $10 or a 24” bronze louver for $8. Some owners with wood louvers
are changing to privacy obscure glass that is easier to obtain and maintain. All
windows must be uniform and louvers in good condition. If you have questions
please ask Mike P at 895-8099 or Brenda Rumball at 425.244.0400. Randy’s
report said that, “Mike P and his staff seem to be doing an excellent job. The
maintenance of the facilities is much improved since my prior inspection (July
2008) and the landscaping is very well maintained.”

The donated slide-in grill is being removed and a new Jenn-Air Deluxe slide-in
grill will take its place. It was the last of a brand close-out and was reduced to
less than 50 %. The grill island is mostly done. The ceramic tile surrounds are
flat, the center divider is tiled on top and the propane is stored inside without
exposed gas lines. There is still some finishing work to do and the new grill
needs to be installed.

It is impossible to thank Sue Dzik enough for taking over a disorganized, chaotic
parking situation and transforming it with a written policy, new static cling
registrations, new warning notices and improved marking of stalls. Sue and
Wayne will be spending significant blocks of time at their second home in Texas.
Sue is transferring the responsibilities and headaches to the SM, Mike Pascual.
Many, many thanks to you, Sue, for untold hours of dedication and fearless

The bicycle shed behind building 7 was painted and Mike P and the BOD decided
how to handle the lock and the keys. Rick Benton wrote the following policy
which the BOD approved:

                    Kona Bali Kai AOAO Bike Shed Agreement

The covered storage for bicycles hereinafter referred to as the “Shed,” will be
available on a first come first serve basis for owners and long term tenants only.

    There is a limit of two (2) bicycles per unit.

    The Shed is a convenience with weather protection for bicycles only. Any
     article/s other than bicycles stored in the Shed will be immediately
     removed and disposed if not claimed in 7 days.

    KBK AOAO makes no warranty expressed or implied as to the security of
     the Shed. This includes that KBK AOAO will bear no responsibility, liability
     for damage, theft or other loss that may occur to bicycles stored in the
     Shed. Use the Shed at your own risk.

       Bicycles must be locked to the Shed bike rack with the owner’s own cable

    There will be a $25. Deposit for the Shed key. Lost or misplaced keys will
     require $25 for replacement and the prior deposit will be forfeited.

    $25 will be refunded when the key is returned.

       Owners Name_______________________Condo #____Date____________

       Bicycle registration and ID number_________________________________

       Date of $25 deposit____________Date Key provided__________________

       KBK Site Manager________________________________Date___________

       (Two signed copies: one for each signature)

On Tuesday, January 27th, Quince Mento of the County of Hawaii Civil Defense
held the first full-scale tsunami response exercise conducted on the Big Island in
many years. At 8 am many residents were surprised in tsunami inundation
zones where County police, fire fighters and County crews mobilized according
to their existing tsunami response plans. An earthquake in the Aleutian shelf
could trigger seismic activity that would reach the eastern side of the big island
in four hours.

The impact on residents and traffic was minimal and normal traffic resumed at
10:00 am. Civil Defense used its new electronic mass emergency notification
system, City Watch. For more information call Civil Defense, 961-8229.

The telcom Board Meeting on Thursday, January 22nd, at 10 am was held in the
CMI Conference Room and was attended by all 7 board members. Brenda
Rumball, Wayne Dzik and I were present. Tim Kohler, Karen Nyberg, Mike
Watson and Dean Boddy were present by speaker phone.

The following projects were ratified by unanimous votes of the BOD: Payment
to Surveyor for staking of the seawall; Purchase of 3 Intelliflo SVRS Pumps to
comply with the Virginia Baker Pool and Spa Act; Approval for plumbing
inspection by Funk Plumbing to allow access to each unit for inspection of all
hoses, angle stops, flex hose supplies, toilet tank mechanisms, ice maker
supplies, washer and dishwasher hoses and valves, water heaters and valve
supply lines; Approve Aloha Insurance KBK Property Insurance overall package
for $82,686.53 which is a savings of $19,000 over last year; AOAO cancellation of
Castle lobby phone; EZ Unit Manager tracking program for SM for 1 year for
$250; and purchase of Deluxe Jenn-Air Grill for $467.71.

The BOD decided to schedule the pool sealing schedule twice yearly and repair
and replace loose tiles on the pool and spa. The SM reported that the lock on
the pool gate has already been repaired.

In the executive session CMI recommended immediate remedies to the BOD for
delinquencies that included liens, foreclosures and personal judgments.

Rekeying of 3 more knobs and deadbolts to the master key were completed this
week. KBK is mandated by HRS 514B-137(b) “The association shall have the
irrevocable right, to be exercised by the board, to have access to each unit at
any time as may be necessary for making emergency repairs to prevent damage
to the common elements or to another unit or units.” 95.5% owner participation
proves that Mike P has restored the security trust.

The Third Restated KBK Bylaws are being recorded at the Bureau of
Conveyances and should be in the hands of owners next month.

A flurry of activity regarding the seawall was completed with a photograph and
narrative report to County and State governmental agencies by Dr. Cory Foulk.

The Shane Dorian Day Surf Meet for youngsters was held because Shane Dorian
agreed to use only the sand beach and enter using the public County access
pathway. This meet cooperated with the established KBK requirements
considering that the grassy area that still has rocks and stumps from the
unfinished seawall and could not be used.

When the final leasehold condo was sold recently we received the payment for
the lease in the amount of $44,663.25. Now all condos are fee simple.

Michael Sweere

Ken Nelson #315, Owner:

“I have really appreciated the monthly newsletters informing us about the
meetings and progress (and challenges) at our special place in paradise, Kona
Bali Kai, (thank you Donna). So it was with some anticipation that I arrived this
year to check it out for myself. Since arrival I have been very gratified to see the
physical improvements and feel the confidence of our fellow owners, staff and
board about the future of KBK. I think we have turned a significant corner. It’s
not been easy.

A few of the highlights include the beautiful lobby furniture, updated front desk
and the remodeled parking garage (thank you Bruce Nyberg for the cable tray).
In addition, the Banyan beach surfers have become participants in cleaning up
the area right south of the condo complex. A major turnaround.

Put these physical improvements together with the confidence and cordial
working relationships of the staff, residents and board and, I am convinced, we
have a positive future. This is all enhanced by the incredible volunteer efforts
provided by our fellow owners. They have been organized and effective. It has
truly been a team effort. We are all indebted to them. Thank you. Thank you.”

Barbara Lehman-#414 Oceanfront Potluck Committee Leader:

Aloha! When visiting your home in paradise at Kona Bali Kai, please attend one
of our Owners’ Pupu, BBQ and Libation gatherings held on the second Friday of
each month.

On January 9th, 30 owners and guests enjoyed hamburgers and Wayne’s beans.
All owners are invited for these feasts and to enjoy our fabulous sunset. We
each bring a dish, dessert or pupu to share with 6.
Please join us for our next BBQ on Friday, February 13          at 5:00 p.m.
High Surf: The high surf attracts huge numbers of surfers. One car was towed
from the covered garage and the security guards were called in early to head off
cars and trucks that ignore the KBK property signs.

Saddle Road nears completion: Nine new miles of highway that links Hilo and
Kona were recently blessed. This nine mile completion is attached to the first
phase of 17 miles. The next phase is expected to be finished by July.

The Humane Society in Kailua Kona provides this tidbit about feral cats: One
cat and her kittens can produce 420,000 offspring in 7 years.

Kona Bali Kai Crosswalk: Brenda Ford’s email this week said that our crosswalk
passed in the Council but the “as built” aerial photos have not been delivered.
Brenda asks for our patience. We have had several close calls that could easily
have been casualties so this safety measure could not happen too soon.
The chart above is a listing of policies, coverages and deductibles, however, it
does not reflect all the terms and conditions of the policies. See the actual
policies for complete coverages. Tammy Segawa, CMI Account Executive.

Tourism Industry: Hawaii’s lagging visitor industry, which has seen its visitor
count fall by 10.2 percent through November, may fall below 2001 levels for the
year, said state Tourism Liaison Marsha Wienert. The state hasn’t experienced
such a major 11-month drop in arrivals since 2001, when the count through
November was off by 8.7 percent, Wienert said. The year-to-date plunge in
arrivals for 2008 already has surpassed the 9.3 percent annual drop of 2001, she

High end hotels have shown the greatest drop. The Sheraton announced very
low occupancy in December. Mid priced condos and lower priced hotels have
maintained a higher occupancy rate than hotels combined with rates dropping
9.5 to 13.8 percent. Duration of rentals has increased and rental cars are being
held for longer periods of time.

Reminders of what is important to tourists:

    There is, perhaps, nothing worse from a guest’s perspective than sleeping
     in a bed that is uncomfortable. Discomfort comes in many forms such as
     hard beds, improperly sized linen, flat/hard pillows and musty smelling
     bed linens.

    Internet access.

    Extras in a room such as fresh flowers, a pineapple or bottles of water
     often result in satisfaction that surpasses the investment and encourages


24” and 32” Bronze Obscure Louvers. Michael                    ORDERED

Rekeying 3 doors with deadbolts & knobs compliant: Donna COMPLETED

Saving the Association $19,000 – Brenda Rumball               COMPLETED

Writing the Shed Policy – Rick Benton                         COMPLETED

Pool and Spa Compliant with Virginia Baker Act- Mike P     COMPLETED

Towed an unauthorized vehicle from covered garage- Staff   COMPLETED

Negotiated and hauled a discontinued slide-in Grill – Michael COMPLETED

Wrote letter to attorney to get Bylaws recorded- Donna      COMPLETED

Reimburse AOAO for rekeying by Castle due 12-31-08

Filled 1500 sandbags to make seawall compliant- Mike P & crew COMPLETED

Property Inspection January 9th – Randy Stingel            COMPLETED

Wrote warning letters for violations- Tammy Segawa         COMPLETED

Call from Community Police Committee: Donna                COMPLETED

Preventive Plumbing Inspection – Funk Plumbing & SM        IN PROGRESS

Offers to owners from Aloha Homeowners’ Insurance          IN PROGRESS

Painted bicycle shed - AOAO crew                            COMPLETED

Will photograph Potlucks when available.    Beth Ivey        AGREED

Reminder: The Monthly KBK Newsletter is available on our web site
ILOVEKONABALIKAI.com. It can be read and downloaded/printed at any library.

Donna Sweere,      Newsletter Coordinator, 808 334-1135


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