Association of Apartment Owners

Maui Sands I and Maui Sands II

Annual Meeting Minutes

April 25, 2009 -- Page 2

Association of Apartment Owners

Maui Sands I & II

Organizational Board of Directors’ Meeting Minutes

April 25, 2009

Maui Sands I

Board Members Present: Bob Jenks, John Chaisson, Rosa McAllister,

Ken Baldwin, Kevin Kelso

Maui Sands I

Board Members Absent: Larry Lavalle, Charles Monsalve

Maui Sands II

Board Members Present: Lucia Livoti, Claire LaChance, Marie Loquet

Maui Sands II

Board Members Absent: Clyde House

Other Attendees: David Ferguson, Management Consultants of Hawaii; Chyna Colorado, Recording Secretary

I.  DECLARATION OF QUORUM

A quorum was declared for Maui Sands I with five Directors present, and a quorum was declared for Maui Sands II with two Directors present.

II. CALL TO ORDER

The Maui Sands I and Maui Sands II Organizational Board of Directors’ Meeting were called to order at 12:46 p.m. The meeting was held at the Paki Maui, Honokowai, Maui, Hawaii.

III. ELECTION OF OFFICERS

Officers for Maui Sands I were duly elected, as follows: Larry Lavalle, President; Bob Jenks, Vice President; Marilyn Jenks, Treasurer; and, Rosa McAllister, Secretary.

Officers for Maui Sands II were duly elected, as follows: Lucia Livoti, President; Marie Loquet, Vice President; Steve Lewis, Treasurer; and Claire La Chance, Secretary.

IV. OTHER BUSINESS

Mr. Ferguson distributed copies of the financial statements for the month-ending March 31, 2009.

Mr. Ferguson distributed a copy of a letter from an owner’s attorney regarding the potential for a lawsuit. The owner has made it clear that he does not intend to withdraw the lawsuit against the Association. Mr. Ferguson was authorized to write the attorney with actions being taken by the Board to address the situation, i.e. engaging the services of a roofing consultant to draft specifications and solicit bids.

Mr. Ferguson also distributed copies of a report from the roofing consultant, including a proposal from the consultant to draft specifications for bidding and overseeing the project when under construction. Mr. Ferguson noted the qualifications of the consultant. He recommended the Board hire the consultant at a cost of about $11,000. The terms of the proposal were discussed. The Board asked to negotiate for a two-year warranty, and Mr. Ferguson will call the consultant.

It was noted that Maui Sands I and Maui Sands II each have separate Reserve accounts. There were questions about the amount of the fees allocated into the separate reserve funds.

MOTION: To accept the proposal from the roofing consultant, along with the negotiated amendment for a two-year warranty.

LaChance/Baldwin Unanimous Approval

Mr. Ferguson explained that some of the monies in the Reserves are invested in a Smith Barney account. Persons currently authorized to sign on the account are Mr. Ferguson, his controller and Larry Lavalle. Lucia Livoti and Claire LaChance will be added to the Maui Sands II signature card.

Directors asked for copies of the employee job descriptions.

Kayak storage, payment and rental policy was discussed. It was agreed to have a policy drafted before the next meeting for consideration.

Budgeting strategy was discussed.

V. NEXT MEETING DATE

The Board considered scheduling quarterly meetings prudent. There are methods to hold conference call meetings that are free-of-charge through Skype.

The next Board of Directors’ Meeting was scheduled for Friday, July 24, 2009, 3:30 p.m. Hawaii Time.

VI. ADJOURNMENT

The meeting was duly adjourned at 1:37 p.m.

Respectfully submitted,

Louise Rockett

Louise Rockett

Transcriptionist