700 XP, Homemade Machete
Talk to Max downstairs in the Lifeguard Station to start this quest. Look for Kelly's husband William in the Diamond Bungalows. Follow the trail on the mini-map to find William. After talking to him, head back to Kelly and talk to Max.
You will can also talk to Svetlana in this room to start the Time for Booze continuous event.
Banoi Herald Exerpt #8 is on a shelf in the bungalow that William is in.