Microbes wont all necessarily die when a compost pile dries out; certainly most will go dormant and decay will slow or cease but other varieties are capable of forming spores, some of which are very resistant to adverse conditions. Fungi don't need as much moisture as bacteria in order to break organic materials down. It is good to keep a layer of fresh grass clippings or mulch on top to contain moisture, though, if you want finished compost in the least amount of time.
Nutrients don't become useless due to sun exposure. Building a pile in shade or partial sun is fine, though. Your pile should be at least 3' x 3' and with the proper ratios of materials it should heat up on its own in just a few days. I'd recommend getting a big bale of sphagnum peat moss to have handy as this can help you get the foundation of a pile down. Sphagnum is brown material just like fallen leaves and can be mixed up with your green materials such as grass clippings in order to get the pile going. Mix in other kitchen scraps and yard waste and add some compost starter or spray a molasses mixture and\or tea on it to get it going good.