KANALOA COMMUNIQUÉ

A HOMEOWNERS' PUBLICATION ABOUT HAPPENINGS AND EVENTS AT KANALOA AT KONA
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Wayne House AOAO President

PRESIDENT'S LETTER

October 31, 2025
Aloha! First, as always, I would like to thank the Castle staff, the board members, and all in attendance at the October 2025 Board of Directors meeting, whether in person or by Zoom. We had the best AV experience, so far, with our new equipment. Thank you to the Castle IT staff for the great AV. We had much to discuss at this quarter’s meeting, which always is the case. First on my agenda at the meeting was to give a short recap of the great get-together we had at the Ocean Pool Pavilion for Jim Heather’s (our GM) birthday bash, put on by the Kanaloa staff with assistance from the BOD. It was their day to honor the Boss. Thanks to all the staff and owners that provided the food and Evette for the beautiful Hula! I reiterated the good news about property insurance costs for Kanaloa, which helped us to reduce our 2026 Maintenance Fees by 6.9%! The property and liability insurance and a number of small policies had an approximate reduction of $230K versus our 2024/25 policies. The policy update in June 2025 is resulting in about $24K/month underrun to budget for the balance of 2025. This reduction, plus an additional reduced forecast from our insurance broker, formed the basis for the 2026 budget that was approved at this October BOD meeting. Other significant happenings at Kanaloa include the completion of the Termite tenting project for all buildings at the property, including two small outbuildings that were not in the original plan. Special thanks to Jim, Ken Albert (Maintenance) and Board member Bill Wesslund for all the coordination and scheduling. This was a colossal task. Continuing with termite updates, we have included in the updated Reserve Study, a plan to tent the buildings in the future (about every 10 years or so) and also to take care of all the carports (scheduled for 2026). We also finished the tennis court resurfacing, now including 1 tennis court and 3 Pickleball courts. It looks beautiful! We are also looking at improving the lighting, as well. Also completed in 2025 were the Irrigation System Updates, Phases IV and V. We are now saving a boatload of water, literally millions of gallons. We are currently in the middle of the Ocean Pool restroom renovation project that will give us ADA updated bathrooms. The project is scheduled to be done sometime after Thanksgiving. It is the first of the bathroom remodels. The next area scheduled for update is the Lobby bathrooms in 2026, followed by the update of the other two pools’ bathrooms in the subsequent years. Kanaloa also has other projects that are in the works or ongoing. I mentioned in my last update that Kanaloa was going to do a pilot project to try and fix the most noticeable ‘leaning lanais’ on 3 of the 2-story buildings. The project seems to be a great success and resulted in very little, if any, damage to the tile on the lanais. This project will continue on most all of the other 2-story buildings during the balance of this year. 21 out of the 28 2-story buildings (42 corners) were noted with varying degrees of the issue. Each corner of the main lanai takes one to two weeks to move up to level. There is little disruption for any owners or guests during the process. Jim H. will let you know if and when this is being done for your unit. The other major project for 2026 is to paint buildings 1-12, starting at the end of March with a scheduled finish in mid-August. Each building will take about 10-14 days to complete. If you are in the Castle Rental Program, the scheduled dates have been blocked out for your unit in the calendar. This one is probably a disruption for guests, so plan your calendar accordingly. We are also still in discussions to add a coffee bar at Kanaloa. I don’t have much to update at this time. Location, size and hours are the main considerations. Several owners and guests have expressed interest in the idea. Again, a lot to digest in the few months since the previous meeting. I look forward to seeing you all at the next scheduled BOD meeting on January 30, 2026. Also remember we have BOD elections at the April meeting. If you are interested in running for a Board position, please forward a brief bio and how you might help Kanaloa continue to be the best place to stay on the Big Island, to Jim Heather, our GM (jheather@castleresorts.com). We are again planning the Employee Appreciation Lunch on Tuesday, February 3. If you can volunteer to assist in the planning or food or donate, please contact board member Wendy Benson (wb8221@gmail.com). Also, if you have design ideas, we would be glad to have you help out on the lobby update that we are planning for 2026. Mahalo, Wayne House
JIM HEATHER General Manager
Management Team
General Manager Jim Heather jheather@castleresorts.com (808) 322-1008 Vice President of Finance Dean Yamamoto dyamamoto@ castlehospitalitygroup.com (808) 524-9277 Property Accountant Debi Uyeunten Duyeunten@castleresorts.com (808) 524-9289 Director of Condominium Administration Renette Carpio rcarpio@castlehospitalitygroup.com (808) 524-0236

FROM THE GENERAL MANAGER

October 31, 2025 Aloha Kanaloa at Kona Owners, If you recall my last newsletter, I was getting excited for the start of football season. Now that we are at the halfway point of the season, my team is so bad I am now excited about next year’s draft! At least they are so bad I can laugh instead of cry (or scream). Well, there is always next year (I have been telling myself this for TOO LONG!) On with the show. Mahalo for the birthday celebration at the Ocean Pool! It was a great time and I appreciate everyone’s efforts and well wishes. The Ocean Pool is such a special place at Kanaloa and we want to take that experience to the next level. In next year’s budget, we have put aside funds to replace the old restaurant furniture that is under the pavilion. We have ideas on how we can keep the area functional for owner gatherings as well as a comfortable place to relax on a daily basis. With the newly renovated ocean pool bathrooms coming soon, we want the rest of the experience to match. Another upgrade at the Ocean Pool in the budget for next year is a new drinking fountain with filtered bottle filler like the one in the lobby. The new drinking fountain will be relocated to the pool side of the pavilion. But wait, there’s more. The Quiet Pool drinking fountain is going to be upgraded as well! The lobby is also earmarked for upgrades in 2026. The meeting area is scheduled for a renovation and new furniture as well as the lobby bathrooms are going to be remodeled. The Board has established a Lobby Renovation Committee led by Karen Estrella Dundurs to guide the design concepts. Karen is looking for volunteers to join her in this project. Please contact me if you want to share your time and design skills. The termite tenting is complete for the residential buildings and the admin building. The last piece of the puzzle is the carports. This will be scheduled soon for completion in 2026. This project will require coordination with ownership similar to the asphalt project. We will need to move cars out of the carports and have access to the storage units in the carports. This will require advance planning with owners to get the keys to the cars and owner’s closets prior to the tenting. Kanaloa staff can assist with moving the cars and prepping the closets for inspection. The same rule applies with bagging of any consumable items that are stored in the storage closet. More information on the schedule to come. As Wayne mentioned in his newsletter, the exterior painting of Building 1 – 12 will begin in late March, 2026. Residential units can be occupied at this time, but it is not recommended for paying guests. Units should be blocked from sale in advance. This is a good time for interior projects or giving a free stay to that relative that keeps asking. The painting schedule is available in the “Documents” section of The Communique at kanaloacommunique.com. I am looking forward to a wonderful (football free) holiday season and an amazing 2026. Mahalo, Jim