VViieewwss FFrroomm TThhee CClliiffffss TThhee NNeewwsslleetttteerr ooff tthhee CClliiffffss aatt PPrriinncceevviillllee SSuummmmeerr 22000099 The purpose of the report is to illuminate aspects of the situation and condition of The Cliffs, which should be interesting to those who receive it. Questions and suggestions should be sent or called to AOAO President, Don Jacobs, (9046 E. Colorado Circle, Denver, CO 80231; (303-750-3214) djacobs@inteck-inc.com; CCIOA President Mark Barra,187 Walnut Tree Hill Road, Sandy Hook, CT 06482 (203) 364-1603 mbarra@gfcllc.com; CRVOA President, Chris Stawski, 111 E. Wisconsin Avenue, Suite 1750, Milwaukee, WI 53202 (414-276-8202) cjstawski@yahoo.com. Comments on the Newsletter should be sent to the Editor, Lou Genett, 1849 Oakmont Drive, Denver, NC 28037 (704-560-6338) PruOne@aol.com

General Manager’s Report Kimo M. Keawe

Pool Opens to Traditional Hawaiian Blessing…. Aloha! At long last the pool was opened to our owners and guests at the end of May. The reaction from our guests and owners has been nothing less than fantastic. It has the “wow” factor we were looking for when we first started talking about this project 5 years ago. The landscaping will be an ongoing project as we start to fine tune specific areas and add more supplemental plantings. People like what we have, but I’m always looking to further enhance the dramatic hardscapes. It will take a while for all of the plants and shrubs to mature, but once they do the ambiance we were looking for will be complete. In keeping with the tradition started with the opening of Hale Mana Ho’oko (Admin Bldg.), the Reverend Ipolani Kahaunaele Ferreira performed the blessing for all owners and guests who were invited to participate. Reverend Ipo explained in English what she would be saying in Hawaiian during the blessing. Once the blessing was completed the President of each association Don Jacobs of AOAO, Mark Barra of CCIOA and Chris Stawski of CRVOA in addition to former CCIOA President Gus Daal performed the untying of the maile lei to mark the official opening. Beautiful Hawaiian music was performed by Keola Alalem and his group and all enjoyed the heavy pupus as the celebration continued for the next few hours. Our employees and their families were also invited and finally got a chance to use the pool that they helped build. It was a fitting tribute for this beautiful new facility. As part of our original plan, we have increased our security coverage at night and now have a guest activities /pool attendant stationed at the Rec. room to monitor its use. This person also provides activities like, coconut painting, water aerobics, yoga, lei making and eventually hula lessons.

ADA Upgrades Our ADA bathroom upgrades were also completed with the opening of the pool. The new bathroom facilities are more accessible for our guests and the upgrade in décor compliments the improvements to the pool.

We have had many comments from owners who were concerned with the length of time it took to complete this project but, once they got to experience it first hand, they all said it was worth the wait. We’d like to extend a big Mahalo to Morton Yamasaki and Sean Newbold our pool designer and builder and to Matthew Schaller our project manager who kept us moving forward through the difficult challenges we faced with the unpredictable weather.

Sidewalk Project Our sidewalk project continues to move forward and we have completed the upper half of the property Bldgs 1, 2, and 3 in addition to the sidewalks around the Rec. Bldg. and the sidewalk leading to Housekeeping. Bldg 5 was also completed this week and Bldg 4 will be finished next week. Our contractor has done an excellent job so far and has added some extra touches including several marine animals including the Honu (sea turtle) and the Nai’a (porpoise) that are stamped in to the beginning of the concrete at various locations throughout the property.

Renovations Continue The flurry of activity continues as we get ready to start Phase 5 of our unit renovations for 13 CCIOA units in building 7 & 9. In addition, we have added vent cleaning to the scope of work which we put into the renovation schedule. As I mentioned previously, we have expanded our scope of work in the units to include the microwave oven issue (installed above the stove), hidden trash containers in the kitchen, replacing water heaters, and additional lighting for reading in the living room. We are also installing heat pumps in a few selected units on a trial basis to measure their performance before moving forward with a property wide application. The units will be taken out of service on September 4th and put back into service for check ins on November 13th.

Employee Recognition We had our Employee Recognition earlier this summer. We could not do it any earlier because we were pushing so hard to complete the pool project. We acknowledged many employees for their years of service most notably Rosarie Kelekoma who celebrated 25 years. Quite an accomplishment considering all the changes the property has been through over the years. Our employee of the year was Lenore Domingo of Housekeeping. We also started a new award for those employees who completed 1 year of service. We had a great lunch with lots of good food and gave away 49 gift cards valued at $20 each from Foodland. We have been participating in the Maika’i Card program with them and get these cards as a reward for having our guests shop there. We are fortunate to have such great employees who diligently care for and provide the services for our owners and guests day in and day out.

CCLLIIFFFFSS AAOOAAOO Donald M. Jacobs, President ALOHA OWNERS AND GUESTS

I hope you’re enjoying your summer, wherever you are. Kauai is beautiful with many different flowers blooming, warm days and good trade winds. We just completed our board meeting and it was a very exciting time. The following summarizes what is happening relative to our exteriors and grounds since my last newsletter. POOL AREA

The pool is open!! It is beautiful and everyone who sees it says Wow!! It is much more than we hoped for and many congratulations are due to our GM, Kimo Keawe, our staff, our architect, pool contractor and our board members who worked so long and hard on it. It was worth it. If you haven’t seen it, we hope you will soon.

As part of the pool renovation, we also completed

the renovation of the bathrooms by the pool. They are ADA compliant. FINANCES

At our July board meeting, our Treasurer, Mark Barra reported that we ended the second quarter about $126,000 ahead of our budget. $35,000 of this was because our facilities staff was busy working on the pool. Relative to our Capital Budget we project we will have about $300,000 by the end of the year. However, that is all earmarked for such projects as Landscaping, Upgrading our Rec. Room and Enhancing our Entry Way.

Finally, Mr. Barra reported that we received good news about our insurance. Our coverage increased, our deductible for wind (hurricane) decreased and our premium decreased. SIDEWALKS

As of our board meeting, our contractor has re-done the sidewalks for Buildings 1, 2 and 3. They are now

five feet wide and easy to navigate. By the time you read this, he probably will have completed most of our project. QUALITY CONTROL

We have begun to use our computer system effectively to log and track work orders. The Board asked staff to create Quality Control standards to insure our new pool is maintained properly and is in good working condition. COMMUNICATIONS

The Communication Committee reported that work continues to enhance the web-site. As we have completed the pool there will be pictures of it on the web-site. We continue to work to implement electronic voting and payment of bills. OTHER PROJECTS

We have begun to upgrade our putting green. We have removed the bunkers and are working to enhance the greens. We are evaluating adding BBQ’s between Buildings 4 and 9 as well as behind the new pool.

We continue to try to establish an Exercise Room. And, now that the Pool is completed we are

working to complete our property-wide Landscape Plan. BOARD MEETING DATES

Our next Joint Boards Meeting will be on October 22 and that will be followed by our Board Meeting. We hope you will be present to attend these.

We appreciate hearing from you. It helps us know we are doing what you want and your comments are most appreciated. Mahalo Nui

NEW ADA COMPLIANT BATHROOMS

CClliiffffss RReessoorrtt NN EE WW SS CChhrriissttoopphheerr SSttaawwsskkii,, PPrreessiiddeenntt ELECTION RESULTS At the CRVOA annual meeting last month, we held our annual elections. As long-time director Ron Raine was stepping down from the Board, we were assured that there would be at least one new member of the CRVOA’s Board of Directors. Two Board seats were up for election. Congratulations to Terry Cannings, who was reelected to the Board. I would also like to congratulate Mark Barra on his election to the CRVOA Board of Directors. For those of you who don’t know Mark, he has been involved with The Cliffs at Princeville for many years. Mark was instrumental in bringing the organizations together and putting old animosities behind us. Mark has served as Treasurer for both the CCIOA and the AOAO. His financial experience is a welcome addition to the CRVOA Board. Following the election, the Board elected officers. They are: President – Christopher J. Stawski; Vice President – Terry Cannings; Treasurer – Mark Barra; Secretary – Jim Moyes. Chuck Gehrke is a Director. We all look forward to serving you during the upcoming year!! JOINT COMMMITTEE ASSIGNMENTS As you may be aware, there are a number of joint committees on property. These joint committees are comprised of members of the AOAO, CCIOA and CRVOA. After the elections in July, the CRVOA appointed its representatives to these joint committees. The joint committee appointments are as follows: Joint Communications Committee: Jim Moyes, Chris Stawski; Joint Construction Committee: Chris Stawski; Joint Long Range Planning Committee: Terry Cannings, Chris Stawski; Joint Quality Control Committee: Jim Moyes.

In addition, the Board appointed the nominating committee for the 2010 CRVOA elections. Terry Cannings and Mark Barra comprise that committee. FUTURE MEETING DATES SET The CRVOA has scheduled its October, 2009 meeting as well as the July, 2010 meeting. The dates for the January, 2010 and April, 2010 meetings have not yet been set. The next CRVOA meeting will take place on October 23, 2009 starting at 1:00 p.m. Kauai time. This will be a regular Board meeting and budget review session. This will be a telephonic meeting for those Board members who are not on property for other meetings. Next year’s CRVOA annual meeting will take place on July 21, 2010. Both the regular Board meeting and the annual meeting will occur that day. Times have not yet been determined. The January, 2010 meeting will be on site. The April, 2010 meeting will be by telephone. Dates and times of these meetings will be communicated to you shortly. CRVOA INTERVALS FOR SALE Because of a number of foreclosures that have recently taken place, the CRVOA currently has an inventory of over 40 intervals for sale. Anyone interested in purchasing one of the available CRVOA units should contact me at cstawski@zoho.com and I will provide you with additional details. NEW TELEVISIONS At the July Board meeting, the CRVOA Board of Directors authorized purchasing 35 brand new televisions for our units. These televisions will be the most up-to-date flat screen TVs available. It is expected that these televisions will be installed in all of our intervals by the time you receive this Newsletter. Because the CRVOA had this money reserved, your maintenance fees will not be impacted by this purchase. RCI POINTS PROGRAM VOTED DOWN At the CRVOA’s July meeting, secretary Jim Moyes presented information to the Board regarding RCI’s Points Program. After an extensive discussion concerning the pros and cons of the Points Program, the Board decided to forego participation in RCI’s Points Program at this time. I believe that individual owners can elect to participate in the Points Program if they so desire; however, the CRVOA will not be doing so. On a related note, there is currently a class action pending against RCI. One of CMG’s Board members, Susan Collins, is actively involved in this class action. Specifically, Susan is part of a group that has objected to the proposed settlement. I expect that you will be hearing more about this issue in upcoming editions of The View from The Cliffs Newsletter.

CCLLIIFFFFSS CCLLUUBB RREEPPOORRTT MMaarrkk BBaarrrraa,, PPrreessiiddeenntt New Pool Review Fresh from your Board of Directors July meetings, I am very pleased to announce that the Cliffs property truly looks better than ever! The pool is fully open and being enjoyed even beyond our hopes and expectations. We will be posting pictures of the new pool on the Cliffs website soon so I encourage all of our members to visit the Cliffs website over the next month or so to see your new pool area as it is truly spectacular. There is something for everyone at “your” new pool, from wonderful water features and sprays in the Keiki pool (which I also saw quite a few adults enjoying!), to exercise capability in swimming laps in the new lap lane, to the quiet Adult area for those who just want to cool off in peace and tranquility all while enjoying the beautiful lava rocks and waterfalls. And of course the new hot tub area within the pool itself is spacious and soothing. Frankly, I can’t wait to get back to Kauai to enjoy this crown jewel of our property. My congratulations truly go out to our General Manager Kimo Keawe, Board Member Gus Daal who really spearheaded this project and the entire joint Boards of both the CCIOA and AOAO for a job very well done! Board Business As usual, there is much going on at the Cliffs at the Board level. Several enhancements are being worked on to not only make life easier for our members, but also to save us money along the way. Board member Norman Litell is heading the committee who will create electronic voting for our annual elections and any other matters that require our members vote. This initiative when completed will save our association as much as $25-30,000 annually in mailing costs and other election related expenses. Enhanced payment on line via electronic check is also being worked on, again an effort that will save us substantial money. Norman is also working on several other technology enhancements that will continue to aid our staff in getting their jobs done more easily and bringing all of our systems well into the next century.

Intervals Available One area that I do want to bring to all of our members attention is our increasing inventory of owned intervals. We all understand what the economy has done to many in our country and unfortunately, our Cliffs family of owners are certainly not immune to the current economic conditions. Due to the difficult conditions many face right now, we as an association, have had to take back more intervals than a normal year would bring. The good news is our Finance Committee recognized that this would occur early and budgeted appropriately for this occurrence. The bad news is we have several intervals for sale. However let’s look at the silver lining for our members. If you ever considered increasing your ownership at the Cliffs wanting additional weeks, you will never find a better time to do so than now. With the major construction (Pool area) behind us, the property looks great and has fast become the most desirable property on the North Shore (and possibly on all of Kauai). Buying additional weeks directly from your association is a great way to get additional intervals at great prices. If you do have any interest in buying an interval, please contact Rosarie Kelekoma at (808) 826-2004 or by email (rkelekoma@cliffsatprinceville.com) and she will give you the latest inventory we have and also a current price list. Renovation Schedule Lastly, the renovation schedule of our interiors continue as planned. To date we have completed buildings 1, 2, 3, and 8. In September, we will continue with Building 7 & 9 and then Building 5 and 6 in the Spring of 2010. The feedback of our new design from our members has been very positive giving the resort a much more Hawaiian feel to it. As with any major renovation project, we learn things along the way and this project has been no different. Rest assured that when we see something that maybe was not quite right in one phase, we do in fact correct that going forward with design changes, additions or deletions. As always, we encourage our members to let us know what they like and don’t like about the job we are doing as at the end of the day, the Board is just an extension of you, our owners. Thank you again as always, for all your support for your Board of Directors. And equally as important, my thanks to the Board members and their dedication to our property. They, as well as our outstanding staff at the Cliffs, make my job much easier and the results of their work really show in the quality of our property. I hope to see many of you at the Cliffs soon. Mahalo Mark Barra

SOLAR PANELS FOR POOL

Traditional Hawaiian Blessing of the New Pool

Mark Barra

Judy& George Bloeser Matthew Schaller, Sean Newbold Chris Stawski

Aunty Ipo

Don, Mark, Chris, Gus, & Kimo

Don Jacobs

Gerry Hempenius

Kalei

Keola Alalem

Hartwell, Loita & Sean from PICS

Guests

A few thousand words about your new pool...

.

BUILDING 5 BEFORE

BUILDING 5 AFTER

BUILDING 5 AFTER

1ST POUR IN FRONT OF BUILDING 1

BUILDING 4

BUILDING 4

SIDEWALK RENOVATIONS

Real Estate Desk

Now Open

We are pleased to announce that Timeshare Solutions, LLC in

conjunction with Oceanfront Realty International, Inc. is now offering

timeshare and general brokerage sales from the lobby of the Cliffs. Feel free to give us a call or stop in when you

visit.

Ralph E. Kitashima, Principal Broker

Cell: 808-639-8842 Cliffs Desk: 808-826-2020

Main Office: 808-826-4567

Donna Apisa, Principal Broker Cell: 808-639-6348

Office: 808-826-6585 Toll Free: 800-222-5541

VISIT US AT

wwwwww..cclliiffffssaattpprriinncceevviillllee..ccoomm

News From Around The Island

Bad weather o blame for poor roads By Coco Zickos - The Garden Island Published: Monday, August 24, 2009 2:10 AM HST

Motorists across the island are growing weary of swerving their vehicles around holes in the highway. Despite heavy machinery appearing on the North Shore nearly three months ago, little has reportedly been done since then to alleviate bumpy road conditions. Inclement weather is to blame for the delay, said Ray McCormick, the state Department of Transportation’s district engineer for Kaua‘i. Although the “final paving stage” has been reached, the contractor experienced “several rain days with heavy passing showers” and has been unable to place the wearing surface, he said. “Although the wet conditions do not last the entire day, they typically occur during the morning hours, at which time the contractor is required to decide if paving work can or cannot occur due to the anticipated weather,” McCormick said. Only a portion of the highway just outside the Princeville entrance appears to have undergone any work, residents said, while resurfacing is expected to occur on Kuhio Highway all the way from Princeville to ‘Anini Vista Drive by an unknown date. The project is expected to cost taxpayers some $3.53 million. The contractor “mobilized their equipment to the project site on or about the 20th of June,” he said, and erosion control and sign installation work was reportedly completed by the end of June.

Road reconstruction commenced in the beginning of July in an effort “to give the public proper notice” via signs, newspaper and radio announcements, McCormick said. Since then, on-site conditions and weather forecasts have been used in an attempt to “best anticipate” if the project site will be affected.

Until the project’s deferment is lifted, drivers will have to continue escaping bumps and craters in the obstacle-course road, particularly by the Prince Clubhouse and Princeville airport — a section of the highway slated to be resurfaced — though occasional patch-work jobs to temporarily remedy the situation are expected. “These potholes were identified on Monday morning and repaired later that afternoon,” he said. “HDOT is monitoring the area to ensure that should any potholes arise, they are quickly mitigated.” County officials did not respond to questions seeking comment on whether the county would be able to assist in pushing state highway projects to completion. “In short, rain and wet weather create the worst conditions for paving projects,” McCormick said. “Asphalt pavement does not perform well when placed on wet sub-surfaces. It delaminates from the sub-surface, creating potholes, making paving in the rain not desirable.”

Statehood! From agriculture to tourism, 50 years of economic changes By Coco Zickos - The Garden Island Published: Friday, August 21, 2009 2:10 AM HST LIHU‘E — Instead of luxury homes, large-scale hotels and numerous beachfront vacation properties, sugar cane fields dominated Kaua‘i’s landscape 50 years ago. In fact, sugar cane production was the source of nearly half of the island’s income, according to Kaua‘i: Hawai‘i’s Garden Island Guide Book, published in 1951. “It is the island’s top industry, providing year-round employment for some 13,000 people ... Kaua‘i’s cane producers have improved their operations to become one of the most highly mechanized agricultural areas of the world,” the book says. Not only were there eight sugar cane plantations at the time — only one of which is still in operation today — there were 6,000 acres of pineapple grown on Kaua‘i, making it the second largest profit generator for the island. “In the sugar plantation eras, they lived in a different manner,” said Kaua‘i Museum Curator Chris Faye. Today we live in very large homes with four or five cars to a family, she said. But before statehood, Kaua‘i was much more self-sufficient, with families sharing modest homes and working together where they lived. Before the island shifted gears in the 1970s to focus on the now multi-billion dollar tourism industry, Coco Palms was one of the few places people could stay when visiting Kaua‘i 50 years ago, Faye said.

In addition, the North Shore was extremely rural, with the exception of the Kilauea Sugar Plantation. It wasn’t until the 1970s that the subsidiary of a Denver-based oil and gas company bought Princeville Ranch and developed the area into a resort. There were rice and taro farms in Hanalei and it took “a long time to get out there” with the road “zig-zagging all over the place,” Faye said. The shift away from agriculture created “enormous” changes over the past 50 years, she said. “A long time ago, in an agricultural society, the beaches were considered basically wastelands and real estate wasn’t even a business,” she said. Now, shoreline properties are highly sought after, and not only did the visitor industry become the island’s breadwinner in recent decades, but real estate blossomed, becoming “an issue for the island,” said Sue Kanoho, executive director for the Kaua‘i Visitors Bureau. With the explosion of the real estate and visitor industries, the island developed beyond what many have called sustainable levels, where not only the local economy is currently feeling the impact, the environment is as well.

“Some of the highest erosion rates are related to man-made interruptions in sand transport along the shore,” writes Jim O’Connell, a coastal geologist for the University of Hawai‘i Sea Grant on Kaua‘i, in a document pertaining to shoreline setbacks. Approximately 72 percent of the sandy shores of Kaua‘i are eroding, while approximately 28 percent are accreting (building up sand), according to a study conducted by the University of Hawaii’s School of Ocean and Earth Science and Technology. “We’ve overbuilt to a point where we’re almost killing the quality that attracts people to come to Kaua‘i,” said Glenn Hontz, coordinator and director of the Food Industry Program at Kaua‘i Community College. “Luxury homes, excessive buildings, all of that is wonderful to an extent, but we’ve extended beyond a reasonable level.” Though some might ponder what it would be like to return to plantation days, Kanoho said that even though many people felt agriculture was very important to the island, the labor issues were challenging and costly.

“So many variables were starting to edge in so it was a labor issue,” she said regarding the mid-1980s transition when plantations started fade away. “Not everyone was used to working in a field and Third World countries could do the work cheaper and support from the federal government started to dry up.” She remembers watching the Lihu‘e Plantation Company convoy as they drove down Rice Street after their final harvest in November 2000. “An icon for Kaua‘i was going to disappear,” she said, explaining why many people had tears in their eyes. For Kaua‘i to be “all or nothing” regarding any industry would be unsustainable, Kanoho said. “This is a real wake-up call,” Hontz said. “We have to have a really strong tourist economy, but it cannot become the only leg to stand on.”

THE CLIFFS 3811 Edward Road

Princeville, Kauai, HI 96722 www.cliffsatrprinceviille.com

Views From The Cliffs SUMMER 2009 ISSUE

Editor Lou Genett Assistant Editor Pennie Wyatt

WWee’’rree hheerree ttoo hheellpp yyoouu ppllaann yyoouurr HHaawwaaiiiiaann aaccttiivviittiieess!! CCLLIIFFFFSS AACCTTIIVVIITTIIEESS

((880088)) 882266--22000055 aaccttiivvttiieess@@cclliiffffssaattpprriinncceevviillllee..ccoomm

ATV ~ Kayak ~ Golf ~ Luaus ~ Movie Tours ~ Na Pali Coast ~Tubing

Zip Line ~Zodiac ~ and much more!

Board Meetings at The Cliffs J A N U A R Y Wed. 01.27.2010 – Joint Meeting of the Boards 01.27.2010 – CRVOA Regular Meeting Thur. 01.28.2010 – CCIOA Regular Meeting Fri. 01.29.2010 – AOAO Regular Meeting A P R I L Wed. 04.21.2010 – Joint Meeting of the Boards 04.21.2010 – CCIOA Regular Meeting Thur. 04.22.2010 – CCIOA Annual Meeting 04.22.2010 – AOAO Regular Meeting Fri. 04.23.2010 – AOAO Annual Meeting 04.23.2010 – CMG Regular Meeting 04.23.2010 – CMG Annual Meeting J U L Y Wed. 07.21.2010 – Joint Meeting of the Boards 07.21.2010 – CRVOA Regular Meeting 07.21.2010 – CRVOA Annual Meeting Thur. 07.22.2010 – CCIOA Regular Meeting Fri. 07.23.2010 – AOAO Regular Meeting O C T O B E R Thur. 10.22.2009 – Joint Meeting of the Boards 10.22.2009 – AOAO Regular Meeting Fri. 10.23.2009 – CCIOA Regular Meeting

Meeting itinerary subject to revision