Spring 2009 Views from the Cliffs newsletter

VVViiieeewwwsss FFFrrrooommm TTThhheee CCCllliiiffffffsss TTThhheee NNNeeewwwsssllleeetttttteeerrr ooofff ttthhheee CCCllliiiffffffsss aaattt PPPrrriiinnnccceeevvviiilllllleee SSSppprrriiinnnggg 222000000999 The purpose of the report is to illuminate aspects of the situation and condition of The Cliffs, which should be interesting to those who receive it. Questions and suggestions should be sent or called to AOAO President, Don Jacobs, (9046 E. Colorado Circle, Denver, CO 80231; (303-750-3214) [email protected]; CCIOA President Mark Barra,187 Walnut Tree Hill Road, Sandy Hook, CT 06482 (203) 364-1603 [email protected]; CRVOA President, Chris Stawski, 111 E. Wisconsin Avenue, Suite 1750, Milwaukee, WI 53202 (414-276-8202) [email protected]. Comments on the Newsletter should be sent to the Editor, Lou Genett, 1849 Oakmont Drive, Denver, NC 28037 (704-560-6338) [email protected].

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Pool Renovation Continues Aloha! When we last reported on the progress of the pool we were optimistic that we would be able to complete this project by mid February. However, the rains began shortly after the New Year and continued for weeks at a time. This was truly unusual winter weather and as a result the completion of this project has been delayed. Barring any more weather delays we should finish by the third week in May. Even though we have had to deal with these delays the final facility will be well worth waiting for. The various crews have worked well together in spite of all the weather delays. We have saved thousands of dollars by having several phases of this work done in house including constructing the new equipment room, major portions of the electrical work and all of the irrigation and landscaping. Our landscaping crew is busy installing the new irrigation system. Once that is done they will begin planting over 5,000 plants that will create a lush tropical environment to enclose the entire pool area. We have added several types of palm trees including Raphis, Areca, Bismarck, Foxtails, Loulu, Mini Date and Manilas. We will also add several varieties of Ti plants (used in making hula skirts), Hawaiian Tree ferns, Pink Gingers, Pink Quill Bromeliads, and White Bird of Paradise. Our ground covers will include Lauae fern, Elkhorn fern, Dwarf Rhoeo, Hemigraphis, Mulit colored Impatiens, Variegated lirope, and Mondo grass. We will accent the new “Cliff” rock work with Creeping Fig planted at the base of the rock work, Tillandsia Bromeliad to add contrast and color and finally Dendrobium Orchids attached to the cliff face for that extra touch. We know you will all be excited once you get to experience this new facility first hand. It will bring to life the vision we had of creating a swimming environment reminiscent of a secluded pool located deep in Hanalei Valley.

Unit Renovations for 2009 We are gearing up to begin Phase 5 of our unit renovations for 13 CCIOA units in buildings 7 & 9. We have had numerous meetings with our project manager Jean Camp, in addition to the various vendors who will be involved with this project. We have already ordered the furniture and it is being processed by the manufacturers in Bali. We have expanded our scope of work in the units to include the microwave oven issue (installed above the stove), hidden trash containers in the kitchen, possibly replacing water heaters, and adding heat pumps and providing additional lighting for reading in the living room. These scope changes and additions will affect our project schedule but, if everyone performs per the schedule we should be able to complete it on time. The units will be taken out of service on September 5th and put back into service for check ins on November 13th. All of the comments for this new look have been positive and we look forward to competing the last two buildings, 5 & 6 next year.

Energy Audit for Hale Mana Ho’oko (Admin Bldg) The Solar Review committee has been working on determining our actual energy consumption now that we have settled into our new offices. A list of priorities was developed and resources acquired to measure, analyze and interpret the data. A licensed electrician familiar with the building took overall amperage readings on all applicable electrical panels to determine the actual usage under real time conditions. From that data we can determine how much additional energy our solar system would need to generate to achieve our initial goal. In addition we need to determine if we have enough roof space on the existing roof to possibly add more solar panels. The original goal of generating 80% of our needs from solar, may need to be reconsidered because of these potential constraints.

Recent Annual Meetings The 28th AOAO, 24th CCIOA, and 14th CMG annual meetings were held during the week of April 21st 2009. A general overview of the various capital projects and operational results were reported to all in attendance. In a nutshell the property is doing very well in both areas and many owners expressed their appreciation to the various boards and staff for their hard work and positive results. The results of the election of directors for each association is contained within this newsletter. We look forward to working with each of them in our quest to achieve our vision for the future of our property.

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CCLLIIFFFFSS CCLLUUBB RREEPPOORRTT MMaarrkk BBaarrrraa,, PPrreessiiddeenntt Greetings from Beautiful Kauai! I want to start my President’s article by thanking all of our members for their support in the recent election in April. Donald Jacobs and I were elected back onto the Board of Directors by our members and then I was elected as President by the members of the Board. On behalf of myself and all of our members, I want to thank Gus Daal, our previous President for the last five years, for his outstanding service to the Cliffs as our President. His leadership and untiring work ethic has helped our association complete many projects over the past years while assuring we get top quality products at every turn. Gus remains on our Board of Directors and we are extremely lucky to have him. Thanks Gus for all your tremendous efforts to make our property the best in Kauai! I also wish to thank all those candidates who entered their candidacy for the board. An active membership is vital to the success of our association and I personally thank all of you who wish to be a part of our growth. As always, we have been extremely busy as a board over the past several months. Many projects are coming to completion, as you will read about in the AOAO President’s letter, including the newly designed pool (which will be open by the time you read this letter), new landscaping plans for our property, exciting new sidewalks and new restrooms by our pool area. With respect to CCIOA projects, we are moving forward with phase 5 of our unit renovation program with buildings 7 and 9 being renovated this fall. This will leave two buildings (5 & 6) to be renovated, which will occur in 2010. We are also moving ahead on an energy saving program with the replacement of water heaters and the installation of heat pumps in all CCIOA units. These new water heaters that will be accompanied by heat pumps, will reduce energy consumption within each unit dramatically and have a “pay-back” period of less than 2 years. Speaking of energy savings programs, we are also actively working towards the completion of the solar energy project for the new administration building. A committee was formed, lead by Director Donald Jacobs, to determine the best method to maximize our solar options on this building and we expect this to be completed this calendar year. Our finances remain strong even in these tough economic times. Our occupancy levels remain high and more and more of our owners are returning to the property to see the fruits of our labor improving the property. However, even in strong periods, your association does take back several intervals each year for various reasons. If any of our members wish to purchase additional weeks, we have them for you. Please contact Rosarie at : [email protected] and she will fit you with the proper week for your needs. Thank you once again for all your support. Please come back to the Cliffs and see what has been going on at your beautiful property. It just keeps getting better and better.

Aloha Mark Barra President Cliffs Club Interval Owners Association

2009 -2010 CCIOA Board of Directors

MARK BARRA, PRESIDENT

Director Term 2009-2012 Ex-Officio member of all Board Committees

GERALD HEMPENIUS, VICE PRESIDENT

Director Term 2008-2011 Finance Committee

Legal & Bylaws (Contracts & Insurance) Committee Long Range Planning Committee

Maintenance & Furnishings Committee – Furnishings, Chair Personnel Committee, Chair

Solar Committee

KAREN ANGONA, SECRETARY Director Term 2007-2010

Maintenance & Furnishings Committee - Furnishings Marketing & Communications Committee

Personnel Committee Quality Control Committee (Joint), Chair

Resale Committee, Chair

NORMAN LITELL, TREASURER Director Term 2007-2010

Long Range Planning Committee Quality Control Committee

Resale Committee Marketing & Communications Committee

GUS DAAL, DIRECTOR

Director Term 2007-2010 Long Range Planning Committee

Maintenance and Furnishings Committee Quality Control Committee

Resale Committee Solar Committee

DONALD “Don” JACOBS, DIRECTOR

Director Term 2009-2012 Legal & Bylaws (Contracts & Insurance) Committee, Chair

Nominating Committee, Chair Personnel Committee

Solar Committee, Chair

LOUIS “Lou” GENETT, DIRECTOR Director Term 2008-2011

Finance Committee Legal & Bylaws (Contracts & Insurance) Committee

Nominating Committee Communications Committee

Solar Committee

TOM SELDERS, ADVISOR Director Term 2009-2012

Finance Committee Legal Committee

Long Range Planning Committee Communications Committee

CHARLOTTE HART, ADVISOR

Advisor Term 2009-2012 Maintenance and Furnishings Committee

Quality Control Committee Personnel Committee

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In Other News..

The Cliffs Club (CCIOA) and The Cliffs Resort (CRVOA) both have affiliation agreements with the two major timeshare exchange companies, Interval International (II) and Resorts Condominium International (RCI). Interval has recently changed their resort recognition system. The "Star" ratings have been replaced by the designations of "Premier", "Select" and "Affiliate". The CCIOA is a Premier Resort. The CRVOA is an Affiliate Resort. II requires a minimum of 25 exchange evaluations before determining the top two categories. CRVOA has not had that many exchanges since becoming affiliated with II. The II representative has told us that once there have been enough exchanges, CRVOA may be elevated to Premier level. RCI recognizes resorts as Gold or Silver Crown or as a Resort of Distinction. These determinations are based on a valuation of the properties and their amenities as well as area amenities plus the comment card scores. The Comment Cards are returned by exchange guests. The ratings of 5 of the 10 categories are used to make the determination. These are Check-in/out, Resort Hospitality; Resort Maintenance, Unit Housekeeping and Unit Maintenance. If there are sufficient cards that are rated with low scores (less than 4,) it can take months to overcome them. Both Associations participate in II and RCI's exchange programs where one can bank their week and request an exchange up to two years in advance.

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2009 UPCOMING ELECTIONS You will notice that this edition of View From The Cliffs contains a call for candidates for the Board of Directors of The Cliffs Resort Vacation Owners Association (CRVOA). This year, two directors will be elected at the CRVOA’s annual meeting in July. Those director positions are currently held by Ron Raine and Terry Cannings. Please follow the directions set forth in the Call for Candidates if you would like to run for a position on the CRVOA’s Board of Directors. Any questions regarding these director positions may be e-mailed to me at [email protected].

RAINE STEPPING DOWN Long-time CRVOA director and water boy for the CRVOA’s Kalalau Trail hikers, Ron Raine, has indicated that he will not be seeking reelection to the CRVOA’s Board of Directors in July. Unfortunately, Ron’s current work schedule is such that he has found it difficult to continue his service on the Board of Directors. During his many years of service on the CRVOA’s Board of Directors, Ron’s contributions to the organization have been invaluable. His insight and perspective has helped the CRVOA navigate through the sometimes-rough waters of the past several years. Ron’s quick wit and humor will also be missed by the Board. On behalf of your Board, I’d like to send out a big Mahalo to Ron and encourage him to try to arrange his vacation schedule so that he can be at The Cliffs when the CRVOA meets on site in January and July of each year.

BOARD ACCEPTS AUDIT The CRVOA has underwent its annual audit and, as expected, the audit came back with no problems. Much of the credit for this result goes to The Cliffs’ staff and, in particular, Julie Monroe. Julie does an outstanding job performing our accounting and works closely with the auditors during the audit process. Thanks, Julie, for all of your help keeping the CRVOA’s finances in order.

CLIFFS RESORT CALL FOR CANDIDATES

The Cliffs Resort Vacation Owners Association (“CRVOA”) Annual Meeting will take place on at the Cliffs on July 22, 2009. The terms of Terry Cannings and Ron Raine expire on that date. The CRVOA’s Nominating Committee invites paid-up members with strong financial (accounting), legal and/or management backgrounds who are interested in serving on the Board to submit a brief biography stating their qualifications and a letter of candidacy by Saturday, June 6, 2009. Both directors will be elected to serve a term of three years. Candidates are expected to attend two on site meetings each year and participate in two or more teleconferences as needed. Board related expenses are reimbursed in accordance with the approved expense policy. A resume and letter of candidacy should be sent to the CRVOA Nominating Committee Attn: Pennie Wyatt, at 3811 Edward Road, Princeville, Kauai, Hawaii 96722. Documents may also be faxed to (808) 826-1272 or emailed to the Executive Assistant, Pennie Wyatt, at [email protected].

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CCLLIIFFFFSS AAOOAAOO Donald M. Jacobs, President

Aloha Owners and Guests – I hope you enjoyed your winter season, wherever you were. Kauai had a very, rainy season that was much needed, but difficult for the owners and guests who were visiting us doing this time. FINANCES: At our April board meeting, our Treasurer, Mark Barra reported that we ended the first quarter with about an $88,000 surplus. Our annual report for 2009 was approved and is available if you desire one. It shows we ended the year about a surplus of $75,000 which will be carried to 2010. Our General Manager, Kimo Keawe and Controller, Julie Monroe are to be congratulated for their efforts, once again. Finally, Mr. Barra reported that we paid off our loan (that was borrowed to renovate the units). Since we still have owners that are still paying their special assessment, we will be collecting some monies that we can use for capital improvements. POOL AREA: The renovation of our pool continues. Due to the wet weather we expect the pool to be open by the end of May. It looks great and we look forward to your coming back to enjoy it. Both the upper and lower pools will be heated for the first time. Using solar heat for both pools should be appreciated by those of you who come in January and February.

As part of the pool renovation, we are also renovating the bathrooms by the pool. They will both be ADA compliant and should be completed by the time the pool is open. SOLAR ENERGY FOR RESIDENTIAL BUILDINGS: We continue to study the acquisition and implementation of solar energy for our residential buildings. The engineers who designed the solar system for the Administration Building, recommended we install heat pumps on all of our hot water heaters. The tests we conducted did validate that we could save considerable energy by installing these pumps. However, during the course of the study we determined that we have many hot water heaters that will need to be replaced over the next few years. Rather than installing heat pumps for these hot water heaters, it might be more beneficial to buy new hot water heaters that have these heat pumps already part of them. Our Committee is in the process of evaluating these alternatives and the owners will be notified when we have a recommendation. SIDEWALKS: We approved a contract with a contractor who specializes in building sidewalks. We will be re-doing all of the sidewalks, making them wider and easier to navigate. This project is scheduled to begin once we have completed the pool. QUALITY CONTROL: Due to the reduction in staff we have revamped our Quality Control program. However, this remains a high priority for the board. Staff completed implementation of a sophisticated asset and work order tracking to help insure that all problems are successfully and timely resolved. Staff also introduced a schedule which offers an inspection service to supplement its housekeeping and maintenance services. If you notice items that do not work right, or you do not believe are of the quality they should be, please write down your comments and give them to the Front Desk, attention, John Mahoney. We are spending considerable dues monies for our property and want to insure it continues to be properly maintained.

COMMUNICATIONS: As you are aware, our newsletter is available on the web-site. (I hope that’s where you are reading this column.) It costs us considerable money to print, and mail the newsletter. Accessing the web-site is the most efficient for all of us.

The Communication Committee reported that work continues to enhance the web-site. We are focusing on being able to send bills and being able to vote on-line. These are complex issues, so it is going slower than we wanted. We hope that next year you will be able to vote for candidates on-line. ANNUAL MEETING ELECTION RESULTS: George Bruns, Jerry Hempenius and Donald Jacobs were elected to three year terms. The Board thanks everyone who ran and welcome George to the board. The board sadly said good-bye to Rolf Ramelmeier and thanked him for his many years of service. BOARD MEETING DATES: In July we will have our Joint Board Meeting on July 22, our AOAO Board Meeting on July 24. We hope you will be present to attend these. We appreciate hearing from you. It helps us know we are doing what you want, and your comments are most appreciated. Mahalo Nui Loa.

AOAO BOARD OF DIRECTORS 2009-2010

DONALD “Don” JACOBS, PRESIDENT Director Term 2009-2012

Ex-Officio member of all Board Committees

CHRISTOPHER STAWSKI, VICE PRESIDENT Director Term 2007-2010

Candidate Review Committee Construction Committee (Joint),Legal & Bylaws Committee, Chair

Long Range Planning Committee (Joint), Chair

JAMES R. “Jim” MOYES, MD, SECRETARY Director Term 2008-2011

Candidate Review Committee, Chair Communications Committee (Joint), Chair

Legal & Bylaws Committee

MARK BARRA, TREASURER Director Term 2007-2010 Finance Committee, Chair

GUS DAAL, DIRECTOR

Director Term 2008-2011 Construction Committee (Joint),Quality Control Committee (Joint

GERALD “Jerry” HEMPENIUS, DIRECTOR

Director Term 2009-2012 Construction Committee (Joint), Quality Control Committee (Joint), Chair

GEORGE BRUNS , Director Director Term 2009-2012

Legal & Bylaws Committee. Communications Committee (Joint) Quality Control Committee (Joint)

LOUIS “Lou” GENETT, DIRECTOR

Director Term 2007-2010 Finance Committee

NORMAN LITELL, DIRECTOR

Director Term 2008-2011 Candidate Review Committee, Communications Committee (Joint)

Finance Committee

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Renovations to The Cliffs pool complex proceed as the decorative rockwork is placed and landscaping is installed. On several occasions, rain delayed the project, so the pool will be open by the end of May. We thank everyone for their patience as we continue with the pool

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Goodbye Potholes! At long last Kaui Rd.is repaved! This should go a long way towards improving the overall experience of staying at the Cliffs.

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Real Estate Desk

Now Open

We are pleased to announce that Timeshare Solutions, LLC in

conjunction with Oceanfront Realty International, Inc. is now offering

timeshare and general brokerage sales from the lobby of the Cliffs. Feel free to give us a call or stop in when you

visit.

Ralph E. Kitashima, Principal Broker

Cell: 808-639-8842 Cliffs Desk: 808-826-2020

Main Office: 808-826-4567

Donna Apisa, Principal Broker Cell: 808-639-6348

Office: 808-826-6585 Toll Free: 800-222-5541

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Cliffs Management Group, Inc. 2009-10 BOARD OF DIRECTORS

DEBRA WOOD

President [email protected]

CHARLES “Chuck” GEHRKE

Vice President [email protected]

SUSAN B. COLLINS

Treasurer [email protected]

DEBORAH NICOSIA

Secretary [email protected]

TERENCE “Terry” CANNINGS

Director [email protected]

WILLIAM BYRNS, Esq.

Legal Counsel [email protected]

Requests for information can be faxed to (716) 687-1146, or sent via Email to [email protected], or sent by mail to CMG c/o Deborah E. Nicosia, P.O. Box 441, East Aurora, NY 14052-0441.

VISIT US AT

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News From Around The Island

Community assistance needed to develop clean energy plan

By Coco Zickos - The Garden Island Published: Monday, May 4, 2009 2:06 AM HST LIHU‘E — Creating a more sustainable island has recently taken a prominent seat in many individual’s minds as the reliance on imported energy has impacted Kaua‘i in several ways, including driving the cost of electricity up 37 percent between 2005 and 2008, according to SENTECH Hawai‘i, LLC. The environmental consulting firm was hired by the county to help consider which clean energy technologies would be most appropriate for the island. The “Kaua‘i Energy Sustainability Plan” is underway with the ultimate goal of finding a way to offset the island’s dependence upon imports, especially foreign oil. Currently, more than 90 percent of Kaua‘i’s electrical generation and virtually all its transportation demand are met with imported petroleum products, resulting in the highest electricity prices in the state and among the highest in the nation, according to a press release. “This is one of the most important plans for the island because energy is so fundamental to everything we do,” said former County Councilwoman JoAnn Yukimura, who voted with the council last year to fund the plan, in an interview Sunday. “The ultimate goal is a plan that will set up a good course for the future.” A preliminary report conducted by SENTECH Hawai‘i found that Kaua‘i has a “wealth of sustainable energy opportunities” and “available untapped local renewable energy sources” that could potentially allow the island to become completely energy independent. “The goal is to have a plan that doesn’t just sit on the shelf,” said Marguerite Harden of SENTECH Hawai‘i, who has been touched by how passionate the people of Kaua‘i are and how concerned they seem to be regarding the future of the island. “We need to know where our energy is coming from, what the existing picture is and what kind of opportunities there are to cut waste. We need to know how much we could save and how much non-fossil fuel we could get and what the trade-offs are,” Yukimura said. “I’m hoping the consultants will be able to lay that out clearly for us so we can make wise choices” A final draft of the plan is expected to be released by January 2010, proposing sustainable energy goals and implementation guidelines for the next 20 years. In the meantime, the SENTECH Hawai‘i team has asked the community for its input. The first of five community meetings for the plan was held To learn more, visit www.KauaiEnergySustainabilityPlan.com.

Expanded reserve to protect habitat, prevent extinction

By Coco Zickos - The Garden Island Published: Friday, May 8, 2009 2:09 AM HST KOKE‘E — Three native birds unique to the island — the Kama‘o, O‘u and ‘O‘o — vanished from sight during the 1980s due to habitat destruction. According to the Department of Land and Natural Resources, more native species could share the same fate if the protected Hono O Na Pali Natural Area Reserve and Alaka‘i Wilderness Preserve are not expanded. “There are many threats that have caused the degradation of indigenous ecosystems and the species that comprise them,” said Natural Area Reserves System Enhancement Coordinator Emma Yuen. “In some cases, the habitat has been so degraded that species need extra work to prevent their extinction, such as birds being predated by rats and diseases, or native plants that have been eaten by non-native animals.” To help prevent the extinction of Kaua‘i’s native flora and fauna, the State of Hawai‘i recently added 486 acres of preserved land to the system’s Waimea district, bringing the total size of the Hono O Na Pali Natural Area Reserve to 3,579 acres. “This area has native montane bogs and wet forest that is unique to the Natural Area Reserve System,” Yuen said. “This area is part of the largest system of high-elevation bogs in the Hawaiian Islands. In the intact native wet forest, many species of rare and endangered plants and animals survive.” Rare plants that only exist on Kaua‘i, like the Myrsine petiolata, commonly known as Kolea, that been used for centuries for practical and spiritual purposes by the native Hawaiian people, are currently at odds with “alien species,” such as wild pigs and strawberry guava. “In this area are plants and animals that only live on Kaua‘i,” Yuen said. “By protecting them, we help preserve the natural, as well as cultural heritage of the island for future generations.” A forecasted management planwill seek community input, added Yuen. “Guiding the plan will be the purpose of protecting the native species from threats such as ungulate — hooved animals — damage, and high-priority weeds that can take over the native forest,” Yuen said. Unless otherwise specified, the public is granted access to the new section of the Hono O Na Pali Natural Area Reserve for hiking or small nature study groups. On Saturday, DLNR is offering a free, guided hike of the area, which will reveal the names and uses of several native plant species along the way. “The guided hike is meant to encourage the residents of Kaua‘i to learn about and appreciate the unique and fascinating ecosystems, as well as their importance for traditional and modern human existence,” Yuen said. The group will meet at 9:30 a.m. in the parking lot at the start of the Pihea trail, and hike for an approximately 1.5 miles round trip to visit the new natural area reserve, ending at 11:45 a.m. For more information on the hike, contact Yuen at 808-366-4788 or [email protected]

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THE CLIFFS 3811 Edward Road

Princeville, Kauai, HI 96722 www.cliffsatrprinceviille.com

Views From The Cliffs SPRING 2009 ISSUE

Editor Lou Genett Assistant Editor Pennie Wyatt

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((880088)) 882266--22000055 aaccttiivvttiieess@@cclliiffffssaattpprriinncceevviillllee..ccoomm

ATV ~ Kayak ~ Golf ~ Luaus ~ Movie Tours ~ Na Pali Coast ~Tubing

Zip Line ~Zodiac ~ and much more!

Board Meetings at The Cliffs J A N U A R Y Wed. 01.28.2010 – Joint Meeting of the Boards 01.28.2010 – CRVOA Regular Meeting Thur. 01.29.2010 – CCIOA Regular Meeting Fri. 01.30.2010 – AOAO Regular Meeting A P R I L Wed. 04.22.2010 – Joint Meeting of the Boards 04.22.2010 – CCIOA Regular Meeting Thur. 04.23.2010 – CCIOA Annual Meeting 04.23.2010 – AOAO Regular Meeting Fri. 04.24.2010 – AOAO Annual Meeting 04.24.2010 – CMG Regular Meeting 04.24.2010 – CMG Annual Meeting J U L Y Wed. 07.22.2009 – Joint Meeting of the Boards 07.22.2009 – CRVOA Regular Meeting 07.22.2009 – CRVOA Annual Meeting Thur. 07.23.2009 – CCIOA Regular Meeting Fri. 07.24.2009 – AOAO Regular Meeting O C T O B E R Thur. 10.22.2009 – Joint Meeting of the Boards 10.22.2009 – AOAO Regular Meeting Fri. 10.23.2009 – CCIOA Regular Meeting

Meeting itinerary subject to revision