NEWSLETTER
KUHIO SHORES AT POIPU
11/18/05
Aloha Fellow Homeowner,
Reminder: The next annual owners meeting will be conducted Monday, March 13, 2006. A notation in a previous newsletter stated that the meeting would be March 14th but please remember that it is March 13. Please mark you calendars and plan to attend.
The main purpose of this letter is to discuss maintenance fees as related to the 2006 budget. After carefully analyzing the 2006 budget for Kuhio Shores, the board of directors came to the conclusion that a modest increase in monthly maintenance fees will be necessitated in order to keep our complex operating successfully during the upcoming year. The percentage increase will be 9.912% and the following factors were taken into consideration and calculated to derive the percentage increase:
_ Electrical rates are continuing to escalate as the generators that produce the island's electricity are all ail fired. We expect an increase of $6,000 over the 2005 rates.
_ We expect a significant increase in insurance rates for our complex as we all know that insurance companies have been strapped due to the recent hurricanes. The 2005 cost was $129,535 and we expect an increase of over $20,000.
_ We have had to go from two trash pulls a week to three. This is due to consistently high occupancy which caused overflowing trash containers. That cost will be half again as much.
_ Employee wages will be increased by 3%.
_ The cost of services from Otis Elevator, Aqua Engineers (who service our sewage pumping and treatment facilities on a daily basis), Time-Warner Cablevision, Garden Island Disposal, and Hawaii First Management Company to be increased in 2006. We expect total increased costs of $12,600 for these services.
_ For the past three years, Aqua Engineers Company has recommended that we replace our sewage pumping equipment. Such equipment is over 30 years old and is basically antiquated. It requires high maintenance and replacement parts are extremely difficult to locate. Many have to be custom machined which is very costly. It is proposed that the current pumping system be replace with modern submersible pumps as recommended. We have budgeted $94,000 for this installation based on estimates and work should be contracted as soon as possible as this project is now our top priority.
_ We have also learned that one of the large motorized blower systems at the sewage treatment plant (which we own) is inoperative, cannot be repaired and must be replaced. This work is in progress and will cost an estimated $15,000.
_ Painting of the exterior of our building was moved up last year from 2007 to 2006 but due to the accumulation of expected expenses in 2006, will be moved back to 2007.
_ Another top priority of the board is the landscaping of our property. Many improvements were made this year and we plan to continue improvements in 2006.
There have not been many increases in maintenance fees over the past ten years. In fact they were even reduced for a period of time. Hopefully we will be in that position again in the future. Although an increase in maintenance fees is an unpleasant item to deal with, let's take a look at the percent increase in the value of Kuhio Shores units during recent years. Recently, some owners have received offers of their units for over one million dollars and possibly one sale. The board realizes that every effort must be made to maintain our building, grounds and equipment in pristine condition to warrant these values.
The board also made a survey of other condo association maintenance fees. Multiple listings of condos for sale gave us this information which is as follows:
Only two one-bedroom units were listed.
1. Prince Kuhio (across the street) $494 per month. (747 sq. ft.)
2. Poipu Sands - $584 (comparable unit)
THE AVERAGE KUHIO SHORES ONE BEDROOM CONDO 2006 MAINTENANCE FEE IS $441.29 PER MONTH.
The following two bedroom units were listed as follows:
1. Poipu Sands - $782
2. Waikomo Stream - $572
3. Makahueana - $574 and $658
4. Poipu Shores - $795, $812 and $1100
5. Poipu Palms - $900
THE AVERAGE KUHIO SHORES TWO BEDROOM CONDO 2006 MAINTENANCE FEE IS $565.47 (All averages were calculated by multiplying the number of units in each category by the new fee and dividing by the total number of one bedroom and two bedroom units)
Taken together, we can see that Kuhio Shores has been operating very efficiently and the values of our units increased dramatically and continue to move in an upward direction. We have a prime location that is hard to beat.
Mahalo for your indulgence,
|
Dan Elliott, President | Tony Sapienza - Vice President |
| AOAO Kuhio Shores | Mel Kalechstein - Secretary |
| (for the Board of Directors | J.B. Hutchins - Treasurer |
| Bob Farrington - Dir. At Large |
| 
