Milolii Beach Club Association 2

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Angie’s 2009 Annual Letter

Aloha Everyone!

I hope this letter finds all of our valued members happy and in good health.

The past year has been very active for our Association. Some of the things we accomplished:

STOP SIGNS - Purchased and, with the help of volunteers, installed stop signs on strategic streets (required by our liability insurance).
Much thanks to Dan and Donna Durgin, Jean and Jim Southard, Eric Edwards, Lynne and Bill Houston, Merle Bowman, John Swift, Gwen
and Al Keliikoa for volunteering their time to see this important project to finish.

NEIGHBORHOOD WATCH PROGRAM - We joined several other South Kona communities and formed a Neighborhood Watch Program.
We have 15 separate households that are participating in our neighborhood watch program. One of our members, Jean Southard,
graciously volunteered to chair the program. Jean has been instrumental in organizing this program, facilitating signage placement and
attending meetings. She has taken ownership for this important community service and is much appreciated.

ROAD EASEMENTS - Road easements were cleared of unsightly overgrowth in anticipation of road repairs. Additionally, spot poisoning
was done to rid the easements of some undesirable weeds, etc. This is on-going and will continue to be done on an as needed basis.

ROAD PAVING 2008 - In April of last year, we paved the hills leading from Milolii Road up Lehua and Puhala. Portions of Aoao and Ewalu
were also paved and/or hard surfaced. We spent over $60,000 on road repair and easement maintenance.

ROAD PAVING 2009 - This year we contracted to have approximately 30,000 square feet of our private roads paved and/or hard surfaced
(please see pictures attached). Due to a surplus of hot mix being ordered, the paving of the hill on Lehua was extended an additional 40
feet by 12 feet by 2 inches at no additional cost to the Association for labor or materials. Some of you will also notice that a portion of Eha
Avenue was paved and is not on the road schedule. On the last day of paving, the contractor’s found that they had ordered a bit too much
hot mix. It was around 6:30pm on Friday and getting dark. Their equipment was located very close to Eha Avenue. The contractors saw
that the road needed some repair work done so they made a decision and spread the surplus hot mix on Eha Avenue. This additional
labor was done free of charge of course as was the material. We anticipate being able to pave with hot mix all six (6) intersections of
Waena later this year (see road paving schedule). We have spent approximately $80,000 on road repair thus far and anticipate spending
another $25,000 on Waena later this year.

ROAD PAVING 2010 - On the road schedule, you will also see the roads we anticipate hard surfacing next year. The 2010 road repair
schedule is not finalized yet. The roads listed have been identified by the Road Committee as being critical. Depending on next year’s
paving costs additional roads may be added to the 2010 schedule.

GENERAL IMPROVEMENTS - We had the entry to the “flats” at Ewalu Road cleaned up and the easements cleared. Rock walls and
pillars were built on each side of the entry (see pictures attached). Ewalu Road was off center so seconds as a road base and hot mix
paving was put on the mauka side of the road. This evened out the distance from the rock walls and pillars to the paved road. This road
work also increased the apron of the entry road so emergency vehicles can enter the subdivision easily as well as two cars can now
pass. The large drop off at the curve on Milolii Road on the right side as you turn down on Ewalu was filled with road base and paved.
Cement caps on the pillars, solar lighting and donated landscaping will be added later this year to create a more inviting entry to the
lower part of our community. Many thanks to John and Vicki Swift for offering to donate the landscaping plants and trees for the entry!
Teresa Grabham took on the project of designing the rock wall and pillars. This took a huge amount of her time and effort all of which
was volunteered. We are very grateful for her expertise and support on this general improvement project. If you would like to volunteer by
submitting a landscaping design and help plant, please call me at (808) 328-0481.

ABANDONED VEHICLES - I contacted a salvage company who removed in excess of 40 abandoned vehicles free of charge from our
community. This service is on-going so if you have vehicles which need to be removed, please call me.

WEBSITE - The Association’s website was redesigned to simplify usage and will be up and running soon. The transition should be very
smooth with only a couple days down time. The website’s name remains the same: www.milolii.org. We will continue to update the site
and add to it as necessary. Frequently asked questions and a resource page are some of the new pages that will be added.
Additionally, we will continue to post pictures of interest. We hope this will allow members who live out of the subdivision or off island to
feel more a part of the community. Please check it out when you have time and feel free to give us your feedback. I want to thank Board
members Eric Edwards and Linda Kam for all their hard work on this important project.

SURVEY - I sent a survey out to members asking for input regarding your vision for this community (see survey results attached). While I
had hoped for a larger response, I was pleased that some members took the time to share their thoughts with the Board.

COMMUNITY SAFETY - I, Jean Southard, Neighborhood Watch Coordinator, and Merle Bowman, Road Committee Member, attended a
meeting organized by the new police chief for community leaders to discuss issues each neighborhood might be experiencing. We had
an organized list of questions and concerns for the police chief. It was an extremely informative meeting which also provided a venue for
networking and sharing with other South Kona Communities.
Members of the Board and I met here in our subdivision with Mitch Roth, the prosecuting attorney for Hawaii county. Some of the topics
discussed were problems association with people outside of the subdivision overnight camping at the park parcel. The main problem
with people overnight camping is there are no sanitation facilities. Additionally, users are building open fires and leaving trash. We also
discussed enforcement of the Hawaii vehicle code on private roads. Anytime the park comes up, some members have expressed
concern that development of the park parcel might create a haven for illegal activities, etc. Mr. Roth informed us about a park plan that
details how to design a park in a community in such a manner that will eliminate or greatly minimize creating a haven for illegal activities.
It is also an environmentally friendly plan. If and when we are in a position to develop the park parcel this will be good information to use
as a guideline. I would like to acknowledge a member’s suggestion on the survey form regarding the park. This owner envisioned
native plants and trees planted along walking trails in the park, including a name placard. At the old airport there is a walking trail similar
to the one suggested and it is a wonderful place to visit.

DATA AND PAPER ORGANIZATION - I committed to a time consuming process of converting boxes of paper files into a computerized
data base of all owners and their properties utilizing common software, along with putting all financials into a computerized accounting
program so various reports can be run and vital information can be retrieved. I also created individual files for all parcels in the
subdivision (915); boxes of papers were reviewed and filed accordingly to provide a history trail on each parcel.

HISTORICAL RESEARCH - I obtained a copy of the developer files for our subdivision. Currently I am in the process of researching the
history of the subdivision and the creation and transference of authority to the Association from the Developer. This information will be
used to write a timeline of the development of our community which will be posted on the website.

PROPERTY TAX EXEMPTION - A request was made to the County Tax Assessor asking that the Association be exempt from paying
property taxes on the park parcel as the Association is a non-profit corporation. The County granted the request allowing us to pay a
nominal tax of $26.00 per year instead of approximately $1200.00.

2008 APPROVED BUDGET AND ACTUALS - Enclosed with this mailing you will find a copy of the 2008 approved budget set by the Board
and Day Lum (the previous management company) along with the actual costs. You will see that the Board elected to spend an
additional $29,000 on road repairs and maintenance.

2009 APPROVED BUDGET - A copy of the 2009 budget is also enclosed.

ANNUAL DUES AND COLLECTIONS - When I accepted the Board’s offer to manage the Association, there were 493 owners in arrears;
half of those members owed 2 years or more. I am very pleased to report to you that currently, there are only 38 owners who are 2 years
or more in arrears. Ample time and several communications have been sent to these owners, however to no avail. Therefore at the
Board’s direction, I have begun filing liens against owners in addition to court actions. As of today’s writing, 704 owners have paid their
2009 dues. Additionally, several owners in arrears for 2008 and prior years brought their accounts current. So far this year we have
taken in $141,200.00. I want to thank those of you who paid your dues on time thereby allowing us to move forward with critically needed
road work in a timely manner. For those members who have not yet paid, please bring your account current. If you need to discuss your
particular situation, please feel free to call me at (808) 328-0481.

PROPERTY SALES - Despite the financially trying times, during this past year 23 properties in our subdivision changed hands. Prices
ranged from $20,000 to $350,000. The Board and I extend a warm welcome to the newest members of our community. I am always
available to answer any questions or concerns you may have.

PROPERTY CLEAN-UP - Finally, I am asking all members to take a hard look at their property and, if warranted, please make an effort to
clean it up by removing those things you can, such as weeds, dead trees, dead grass, trash, and junk. Property clean-up includes
catchment tanks. An uncovered tank or tank cover that is damaged can and does attract mosquitoes and other undesirable critters. One
owner who had been off island came back and found a dead cat in his tank . . . after using the water for a period of time! If you need the
name of a water catchment tank service provider, please contact me. Also don’t forget there is a salvage company who will remove
abandoned vehicles from your property free of charge. If you get a letter from the Board, try not to be offended, but look at the identified
problem from your neighbor’s point of view. Maybe there is something you can do. Please let's all try to be good neighbors by taking
pride in our properties! If you live off island and need assistance with cleaning up your property, give me call.

As always, I am available to discuss any of the annual packet material enclosed. I can be reached by telephone (808) 328-0481 or via email
miloliimanager@yahoo.com. Don’t forget to check out the newly designed website www.milolii.org. It is a work in progress.

Mahalo for your time.

Kindest regards,

Angie Karhu