MINUTES FOR THE MEETING OF THE BOARD OF DIRECTORS OF ...

MINUTES FOR THE MEETING OF THE BOARD OF DIRECTORS
OF THE
VACATION RESORT OWNERS ASSOCIATION
CALL TO ORDER
ATTENDANCE
PRIOR MINUTES
OLD BUSINESS
MANAGEMENT &
COMMITTEE
REPORTS
FINANCIAL
REPORT
Pursuant to call by the President of the Association, the first quarter meeting of the
Board of Directors was held on February 15, 2013 at 1:00 p.m. at the Eagle Crest
Administrative Office in Redmond, Oregon.
Directors present included Mark Hunt, Pat Duffy (telephone), Bill Neumann, and Jim
Sahlstrom. Staff members present included Curt Heimuller, Karen Smith, Robin
Dowty, Arron Curtis, Bob McDaniel, Lawain McRae and Debbie Hahn. Nate Roberts
of The Timeshare Guys, LLC and David Bishop of Edward Jones Investments were
also in attendance. Mark Hunt, President, presided at the meeting, and Debbie Hahn
recorded the minutes on behalf of the Secretary.
Following motion duly made, seconded and carried, the reading of the meeting minutes
dated November 9, 2012 was waived and the minutes were approved as written. Mark
announced the agenda for the meeting (see attached) and opened the discussion of
business items.
None pending.
David Bishop of Edward Jones Investments attended the meeting to report on the
Association reserve investment portfolio (“Attachment 1”). David confirmed at this
time investments are in mortgage-backed securities in government programs (GNMA,
FNMA, Freddie Mac). David indicated these investments return principal and interest
on a monthly basis allowing the Association to have cash flow that matches expected
expenditures. The current yield on the bonds in the investment portfolio is at 4.69%.
The money market account earns very little, so combined the portfolio yield is at
3.89%. David indicated the focus has been on keeping the investments safe and liquid
and having cash flow available to meet projected expenses. At this time, David
recommended staying on course with the current investment program, and directors
agreed in continuing this approach.
Robin Dowty noted there is no insurance activity to report. Robin then reviewed the
items detailed in the financial summary (“Attachment 2”) and internally prepared yearend
2012 financial statements (“Attachment 3”), noting items of significance were
summarized in the financial summary. Robin advised the final approved 2013
Association budget (“Attachment 4”) was included for director reference.
Robin next presented the Delinquency Report (“Attachment 5”), referring back to the
financial summary for additional details.
Following discussion, and upon motion duly made and seconded, the following
resolution was unanimously approved:
RESOLVED, that the financial report submitted by Robin Dowty
including “Attachment 2”, “Attachment 3” “Attachment 4” and
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“Attachment 5” be hereby approved subject to audit.
RESERVE
EXPENSES
Karen Smith reviewed the Evaluation of Reserve Account Expenditures vs. Budget Per
2012 Reserve Study (“Attachment 6”) noting this is not yet a close-out report as a few
items have yet to be completed or have all invoices processed. A close-out report for
2012 will be presented at the second quarter board meeting. Variances are highlighted
in yellow and include:
The roof project was over budget by $192.
Two additional lights were added to the Emergency Lighting project for a total
of six lights.
Rock façade was added to the sports center entrance, which was not part of the
initial scope of work.
Additional concrete was required for completion of the Pool Concrete project.
Ceiling fan, wall sconces and exterior lights were added to five units. Karen
noted the exterior lighting fixtures were relocated to improve the unit front
entrance lighting and the ceiling fans will help with heat in summer.
Following discussion, and upon motion duly made and seconded, the following
resolution was unanimously approved:
RESOLVED, that the “Evaluation of Reserve Account Expenditures vs.
Budget Per 2012 Reserve Study” (“Attachment 6”), including noted
variances, be hereby approved.
Karen then reviewed the Evaluation of Reserve Account Expenditures vs. Budget Per
2013 Reserve Study (“Attachment 7”). Karen noted the unit refurbishing project
deposits are grouped at the top of the report, adding the project is substantially
complete but not all invoices have been received. Variances on the 2013 Reserve
Study will be addressed later in the meeting.
TIMESHARE
INTERVAL
RESALE
ACTIVITY
Robin Dowty presented a summary of Association owned intervals (“Attachment 8”)
noting the Association currently owns 149 intervals totaling $72,306 in 2012 dues not
assessed to a paying owner. The value of inventory carried on the balance sheet is
$25,850 as further detailed in the financial summary.
Nate Roberts provided a verbal report on his VROA interval sales activity, noting he
has not sold any VROA-owned intervals since the November meeting. Nate reported
that traffic to the sales office has been slower this winter than the previous winter,
adding the past 2-3 weeks he has noticed an increase in traffic.
OPERATIONS
REPORT
Debbie Hahn presented the written operations report (“Attachment 9”) along with
supporting documents: Sports Center usage statistics (“Attachment 10”), Wireless
Internet Upgrade Status Report (“Attachment 11”), Interval International Rental
Inventory (“Attachment 12”) and VROA Landscape Revitalization Report
(“Attachment 13”). Debbie noted the operations report states BendBroadband cable
upgrades were planned to begin mid-February but due to issues with the new cable
boxes already installed at the Lodge at Eagle Crest, the VROA installation will be
delayed until the issues have been rectified. The hope is for a late-spring installation.
Directors had significant discussion regarding the landscape revitalization project,
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esulting in direction to management to work with Director Jim Sahlstrom in
developing a plan for the project by March 15th. The plan should specify type of plant
and specific location around the units.
Following discussion, and upon motion duly made and seconded, the following
resolution was unanimously approved:
RESOLVED, to approve a $5,000 budget for Landscaping
Replacement in 2013 to be used for bed preparation and stump
and tree removal, then to revisit the landscape revitalization
project in fall 2013 prior to the next planting season and after an
overall revitalization plan has been approved, subject to approval
by ECMA’s Environmental Control Committee.
Debbie presented a memo titled “Friends and Family Rental Program Proposal”
(“Attachment 14”) noting management recommends implementing this new program.
Discussion included presenting this as a seasonal program to generate data which may
result in a permanent program in the future.
Following discussion, and upon motion duly made and seconded, the following
resolution was unanimously approved:
RESOLVED, to approve a friends and family rental pilot program
for the balance of 2013 as recommended by management and
described in “Attachment 14”, with a 3-day booking window and
rates of $75 Sunday – Thursday and $100 Friday – Saturday, with
an evaluation of the program to be provided at the fourth quarter
2013 board meeting.
Arron Curtis, Resort Maintenance Manager, presented renderings for two design
options for the Sports Center front entry enhancement, specifically addressing the front
walkway and steps. “Concept A” was presented at a cost of $16,000 and “Concept B”
at a cost of $11,000. Debbie advised management is recommending “Concept A”
based on aesthetics and the added seating and lighting.
Following discussion, and upon motions duly made and seconded, the following
resolutions were unanimously approved:
RESOLVED, to approve the Sports Center Front Entry Enhancement
“Concept A” as submitted by management in “Attachment 15” with a
budget of $16,000; and
BE IT FURTHER RESOLVED, that the variance shown in the
“Evaluation of Reserve Account Expenditures vs. Budget Per 2013
Reserve Study” (“Attachment 7”) for Sports Center – Concrete, Front
Steps with a total budget of $16,000 be hereby approved.
COMMITTEE
REPORTS
Karen advised there is no formal report from the Ownership Enhancement Committee,
advising the committee has completed the assigned tasks and perhaps dissolving the
committee is in order. Directors discussed the desire to enhance the ownership
experience for current members and to provide amenities that would be more attractive
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to the younger population as the ownership demographic changes. Management was
directed to develop an owner focus group with very specific recommendations for the
group staffing, purpose and goals.
SCHEDULED 1 st
QUARTER
BUSINESS
UNFINISHED
BUSINESS
NEW BUSINESS
INTERVAL
RESALE
AGREEMENT
PROPOSAL
None
The Landscaping Replacement budget item was addressed during the Operations
Report.
Nate Roberts reported SmartShare has decided to no longer be involved with timeshare
resales at Eagle Crest. Nate indicated he is personally interested in continuing to be
the exclusive seller of Association inventory and his company, The Timeshare Guys,
LLC, would be the contracted service provider instead of SmartShare. He added selling
Club Interval Gold will be a major component of the resale program, and it will help
reduce the amount of inventory coming back to the Association. Mark indicated at this
point he would be interested in putting together a month-to-month agreement with
Nate Roberts based on the points included in the original agreement between the
Association and Smartshare. Once Nate gets some additional details finalized, a
formal agreement can be developed and a special meeting requested.
Following discussion, and upon motion duly made and seconded, the following
resolution was unanimously approved:
RESOLVED, to have The Timeshare Guys, LLC operate on a month-tomonth
basis to sell VROA intervals pursuant to the provisions originally
in the agreement with Smartshare.
OTHER NEW
BUSINESS
Task Order Agreements for Professional Services from Resort Resources, Inc.
(“Attachment 16”), previously approved and signed by President Mark Hunt, were
provided for director information. There was no discussion.
Directors confirmed the second quarter meeting on Friday, May 3, 2013, at 1:00 p.m.,
at the Eagle Crest Administrative Office in Redmond, Oregon.
ADJOURNMENT
There being no further business, the meeting was adjourned.
________________________________
Secretary to the Association
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