Share 'Discovered wet wood'

Hi all, I found a small crack in the paint on the top side my Tiki 21. I thought it was time for a coat of paint anyway so I started to sand the crack I noticed wet wood underneath. It is just a small area. I scraped the area and it seems it's just a thin strip (see picture). I didn't build my Tiki 21, so I have limited experience. Can I just use a Dremel and remove all the damaged wood and fill…