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[2011] Marriott HOA Board Member Data that Marriott Does Not Disclose

Superchief said:
I am considering volunteering to run for the Oceana Palms board just to provide true owner representation. However, my name is also Bill and that could really confuse matters.:eek:
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Good luck with that....If you decide to do so make sure Marriott feels that you are in favour of everything they've done with the DC etc. Unfortunately anyone who wishes to run must go through Marriott's "vetting " process. In other words they have a sure fire manner in making certain that "loyalists" remain on the board even if there are current loyal member who get voted out. There are a number of very qualified candidates who have applied for more than one Marriott board whose names never make it on to the applicants list because Marriott doesnt want them to !
 
Luckybee said:
Good luck with that....If you decide to do so make sure Marriott feels that you are in favour of everything they've done with the DC etc. Unfortunately anyone who wishes to run must go through Marriott's "vetting " process. In other words they have a sure fire manner in making certain that "loyalists" remain on the board even if there are current loyal member who get voted out. There are a number of very qualified candidates who have applied for more than one Marriott board whose names never make it on to the applicants list because Marriott doesnt want them to !
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I have always been curious regarding how many people volunteer to be board members, and how they are screened. I would be interested in hearing TUG members' experiences regarding this.
 
I suspect that if Marriott casts its votes at a particular resort for all of the inventory that it owns, that those votes alone may be able to determine the outcome of an election.

I wonder who/what position at Marriott decides how the company is going to vote on its developer inventory?

I also wonder if the owners at a particular resort will ever know how many votes Marriott casts (e.g. Destination Club inventory).
 
It isnt just a matter of Marriott having the votes at election time, rather with some of the resorts (i dont know about all), the current board determines who they allow out of the volunteers to stand for election ie : if there are 25 volunteers they may only allow 5/10 etc. So for example if a board is "Marriott interest dominated" one could bet the farm that all candiates approved for the board will be of the same ilk unfortunately !
 
Luckybee said:
It isnt just a matter of Marriott having the votes at election time, rather with some of the resorts (i dont know about all), the current board determines who they allow out of the volunteers to stand for election ie : if there are 25 volunteers they may only allow 5/10 etc. So for example if a board is "Marriott interest dominated" one could bet the farm that all candiates approved for the board will be of the same ilk unfortunately !
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If my memory is right, the CC&R's at each of the resorts at which we have owned called for the Board to establish a Nominating Committee to prepare a slate of Nominees for the consideration of the owners. I seem to recall that that Nominating Committee is constituted by current and/or ? former Board members. To your point, it could be difficult to get past the Nominating Committee if there are no objective measures known to the candidates (e.g. Board Member Job Description) and used by the Nominating Committee, or the process is entirely subjective.

I would really like to think that the present Board Member's have the resort's best interests at heart, at the resorts at which they serve. I struggle, though, to understand how anyone can justify serving as a Board Member for 10 or 15 years (particularly with the Board's being so small), with a pool of new/fresh/qualified candidates in the range of 20,000 to 40,000 or more owners at a resort. And I wonder how Marriott can condone the image that this creates; it does not look inclusive or democratic to me, and between the lack of turnover and the participation of some Board Members on multiple MVCI Boards, it really creates a "Good Ol' Boys Club" image.

On the other hand, many of the Board Members that I know are quite qualified to serve in the roles that they do, have done a good job, and have given up countless hours of their life to carry out their role.
 
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For several years I attempted to be on the board at Cypress Harbour. I would fill out all the information and really work hard on my bio to have a chance to serve. None of my attempts allowed me to proceed to the election to be voted on by the members. After a few years I just quit, it definintely appeared as a waste of my time understanding what the word "no" meant. I always thought it must be owners of numerous weeks for many years making them well known to others. Whatever the reason I thought the "good 'ol boy system" was alive and well.

I do know that reading the bios of candidates certainly doesn't give alot of information. I am also astonished that no member of this forum serves on any of the boards. Maybe they do, but don't want to disclose their idenity on an internet public forum such as this.

For years after my experience I have always wondered just who are these people?
 
Lardan said:
For years after my experience I have always wondered just who are these people?
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This year, we had three choices (vote for 2) for the BOD at Oceana Palms. One was the previously mentioned Bill Whitaker, and the other two were recent MVC purchasers with no relevant experience for this type of position. I am hoping that the lack of choices was due to the newness of the resort, but I am beginning to wonder whether Marriott stacks the deck in their favor with the prescreens.

I am disappointed to learn about your disappointing experiences. Did you ever receive an explanation for your rejection?
 
This was so long ago I can't remember any explanation given to me. If I did, it must have been very vague or just to inform me I didn't make the cut. If there had been any decent explanation I would have remembered it.
 
Lardan said:
I am also astonished that no member of this forum serves on any of the boards. Maybe they do, but don't want to disclose their idenity on an internet public forum such as this.
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There is at least one. Eric (Minoter), is president of the Beach Place Towers board.
 
Why stack control if it isn't needed? Just do the job!

Lardan said:
For several years I attempted to be on the board at Cypress Harbour. I would fill out all the information and really work hard on my bio to have a chance to serve. None of my attempts allowed me to proceed to the election to be voted on by the members. After a few years I just quit, it definintely appeared as a waste of my time understanding what the word "no" meant. I always thought it must be owners of numerous weeks for many years making them well known to others. Whatever the reason I thought the "good 'ol boy system" was alive and well.

I do know that reading the bios of candidates certainly doesn't give alot of information. I am also astonished that no member of this forum serves on any of the boards. Maybe they do, but don't want to disclose their idenity on an internet public forum such as this.

For years after my experience I have always wondered just who are these people?
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No matter how they try to paint it this isn't right. Those that feel qualified to run should be allowed to do so - period. As Marriott is certainly already aware it is very hard to unseat any incumbent Board member - have a ton f candidates further dilutes the votes and makes it less likely an upstart will prevail. Plus they hold so many proxies they can basically out vote the independent owners if needed.

It is all just too convenient for Marriott (or any other developer doing the same tricks) to hold on to control long after it was supposed to rightfully pass to the owners. Do the job & you will be kept on with no need to stack the deck. Obviously Marriott doesn't think their performance as management meets the levels required or they wouldn't feel the need to maintain it by questionable actions. In fact I know of at least two Associations were the management has been given a 90 day /out contract meaning if the Board votes to remove them they could be out in 90 days. THAT'S pressure to deliver as promised. In addition the Developer has agreed at those same resorts to vote their shares for the Board candidates WITH the majority of independent owners. They did not have to agree to that but they did. Why? Because they saw that the Board/Owners have taken the reins and guided the resorts to the best they can be for the money, have created relationships / contracts that truly give value to the owners/resort and are willing to stake even their holdings on that level of caring. It is a vote of confidence on all sides and means they can work together for the best of the Association/Resort which should always be goal #1.

The actions of Marriott show a distrust ofthe owners as well as their own performance/value. Not the feeling I want my management to have regarding their own way of doing business. Stacking the Board is one telling way to judge a developer/managements self worth.
 
The nomination process for Board service is not complicated. For sold out properties, the nominating committee generally has 3 members, none of which are Marriott employees. The members consist of one or two Board members and one or two non-board owners.
The process is as follows: Owners are invited to submit a Board self-nomination form which is sent to the resort. All forms are then submitted to the nominating committee for review. Local management can suggest owners for the ballot. However, the nominating committee (independent from Marriott) makes the final decision of those owners for the ballot. Primary considerations include: experience serving on volunteer boards, expertise (finance, legal, property management, organizational skills, time available to serve). An important criterion includes annual stays at the resort (but this is not a requirement).

Generally there are twice the number of owners for the ballot, plus 1, for positions up for election (ie 2 positions, 5 owners for the ballot). Incumbents are generally included in the count, but it is not required. Many incumbents elect no to run. Board service is very time consuming and involves time commitments outside of Board meetings at the resort. Board service is not a boondoggle for those who truly serve for the owners.

The major challenge in electing new Board members is to get owners to vote. It is sad that only 20% or less owners (not including Marriott) vote their ballot. At resorts that have a 100% owner Board, Marriott would have little or no impact on the Board representation if a majority of owners voted their proxy. This could also eliminate repeat Board service since more voting owners could influence incumbent reelection. Owner voter apathy has more influence on the outcome of an election than Marriott's DC weeks. However, if owners continue to not vote and Marriott continues to accumulate and own more weeks in the DC (generally through foreclosure purchase), Marriott will begin to accumulate the votes that could sway Board elections.

I cannot vouch for the nominating process for every MVCI resort. The information above is my experience at BeachPlace and Ocean Point and understanding at several other properties. The Board and owners serving on the nominating committee also needs to be committed to their fiduciary responsibility to owners and remain independent from Marriott. It is truly up to the owners, Board members and voting owners.

Eric Minotti
BeachPlace Board President
 
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minoter said:
The nomination process for Board service is not complicated. For sold out properties, the nominating committee generally has 3 members, none of which are Marriott employees. The members consist of one or two Board members and one or two non-board owners.
The process is as follows: Owners are invited to submit a Board self-nomination form which is sent to the resort. All forms are then submitted to the nominating committee for review. Local management can suggest owners for the ballot. However, the nominating committee (independent from Marriott) makes the final decision of those owners for the ballot. Primary considerations include: experience serving on volunteer boards, expertise (finance, legal, property management, organizational skills, time available to serve). An important criterion includes annual stays at the resort (but this is not a requirement).

Generally there are twice the number of owners for the ballot, plus 1, for positions up for election (ie 2 positions, 5 owners for the ballot). Incumbents are generally included in the count, but it is not required. Many incumbents elect no to run. Board service is very time consuming and involves time commitments outside of Board meetings at the resort. Board service is not a boondoggle for those who truly serve for the owners.

The major challenge in electing new Board members is to get owners to vote. It is sad that only 20% or less owners (not including Marriott) vote their ballot. At resorts that have a 100% owner Board, Marriott would have little or no impact on the Board representation if a majority of owners voted their proxy. This could also eliminate repeat Board service since more voting owners could influence incumbent reelection. Owner voter apathy has more influence on the outcome of an election than Marriott's DC weeks. However, if owners continue to not vote and Marriott continues to accumulate and own more weeks in the DC (generally through foreclosure purchase), Marriott will begin to accumulate the votes that could sway Board elections.

I cannot vouch for the nominating process for every MVCI resort. The information above is my experience at BeachPlace and Ocean Point and understanding at several other properties. The Board and owners serving on the nominating committee also needs to be committed to their fiduciary responsibility to owners and remain independent from Marriott. It is truly up to the owners, Board members and voting owners.

Eric Minotti
BeachPlace Board President
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Thanks Eric for your clear and transparent explanations. It seems that things are under pretty good control according to your post. I hope that this is the case for all resorts.

Note that I would like to see much more transparent and formal "governance rules" from Marriott, on how they manage the resorts (incl. BoD). From what you mentionned, I would expect MVCI to provide all processes in writting somewhere on their website (or on each resort page, like for BoD minutes or MF budgets).

I am actually trying to contact MGV board for one specific question (and will add this one re:"governance rules").
 
Based on the recent claims put forward by Mr. Cohen on behalf of Marriott ruba Ocean Club owners, I encourage owners to demand an overhaul of the Board's nomination and election process.
 
EducatedConsumer said:
I encourage owners to demand an overhaul of the Board's nomination and election process.
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Resort bylaws require scrutiny, here. To fulfill their fiduciary role and responsibility, it is my understanding that bylaws prescribe requirements for annual meetings, regular board meetings, budget meetings and special meetings including but not limited to notice requirements, place/location, voting methods and distribution of minutes. In some resorts, where meetings can take place may be limited to a defined radius from the resort if not at the resort. Some bylaws also detail what expenses BoD members can claim, who has the authority to approve same and how exceptions are to be handled. In some locations, bylaws are written to comply with statute. Florida is a good example. AOC is clearly out of FL jurisdiction, so local statutes prevail.

If the BoD meeting(s) and BoD expenses were handled w/in the letter and intent of resort bylaws, rethinking what requires an 'overhaul' may have merit. BoD expenses are a line item on the Annual Budget. While there may not be a bylaw requirement, it is a best practice that any positive or negative variance(s) are explained.
 
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TJCNewYork said:
Resort bylaws require scrutiny, here. To fulfill their fiduciary role and responsibility, it is my understanding that bylaws prescribe requirements for annual meetings, regular board meetings, budget meetings and special meetings including but not limited to notice requirements, place/location, voting methods and distribution of minutes. In some resorts, where meetings can take place may be limited to a defined radius from the resort if not at the resort. Some bylaws also detail what expenses BoD members can claim, who has the authority to approve same and how exceptions are to be handled. In some locations, bylaws are written to comply with statute. Florida is a good example. AOC is clearly out of FL jurisdiction, so local statutes prevail.

If the BoD meeting(s) and BoD expenses were handled w/in the letter and intent of resort bylaws, rethinking what requires an 'overhaul' may have merit. BoD expenses are a line item on the Annual Budget. While there may not be a bylaw requirement, it is a best practice that any positive or negative variance(s) are explained.
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Well said.
 
Owners are able to monitor Board expenses by reference to the annual budget. As a benchmark, BeachPlace Towers Board expenses are $1.13/week or $12,000 a year. Those expenses include Board travel for 5 Board members twice a year for a 3 day stay at the property for 2 full days of meetings, including finance committee meetings and executive sessions with our local attorney. The expenses are limited to coach round trip air fare (the major expense item), 3 nights in a master at Marriott's Board rate (less than $100/night), transportation too and from the airport (sometimes it is less expensive for a 3 day car rental rather than the round trip taxi fare), breakfast and lunch brought in for working meetings, and dinner with receipts not to exceed $25/night for 3 nights. There are conference call committee meetings (finance and nominating) that occur through out the year that typically last 1-2 hours. The telephone costs for these conference calls are also included in Board expenses. I consider the level of expenses described above reasonable and necessary and would encourage owners to become familiar with Board activities.

Our meetings (which are posted at the front desk) are noticed in the mailings to owners and begin at 9AM and end at 3 or 4PM depending on the agenda. There have been budget meetings that have lasted well past 6PM. Our conference call meetings are also posted at the front desk and owners are invited to attend the conference calls in the conference office on property.

By-laws were written by Marriott to conform with State law and seem to be designed for efficient operation of the Association. Owners that believe that certain by-law provisions not mandated by state law should be changed should contact their Board and discuss the recommended changes.

Eric Minotti
 
minoter said:
... By-laws were written by Marriott to conform with State law and seem to be designed for efficient operation of the Association. Owners that believe that certain by-law provisions not mandated by state law should be changed should contact their Board and discuss the recommended changes.

Eric Minotti
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Thanks for the info, Eric; you've provided a good starting point for all of us to help keep our Boards honest. For various reasons these Aruba Ocean Club owners have not had an easy time getting information from Marriott, the resort GM or their Board members. I highly doubt at this point that the MAOC Board would be receptive to the type of discussion you're suggesting. So for them, and others who might find themselves in the same situation, can you advise where exactly they can look to find the info they need to proceed - things like the Board expenditure $ limits and allowances you've outlined for BP, which particular governing docs might contain the relevant language, which particular line items in the resort budget can be reviewed, etc ... If nothing else, maybe with your help they'll at least be able to minimize the legal costs that they're probably going to have to incur to proceed here.
 
minoter said:
...For sold out properties, the nominating committee generally has 3 members, none of which are Marriott employees. The members consist of one or two Board members and one or two non-board owners.
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Curious how many applicants are usually considered before they decide on the 5 contenders?

What assurance do owners have that the 'nominating committee' is objective in their selection, and do existing board members always have a kick at the can, thus inhibiting the process?

I assume board members up for election are not on the nominating committee?

Brian
 
Susan,
My suggestion is for owners to attend their Board meetings and vote their proxy. This may sound simplistic, but it will give owners the face time with the Board to discuss their (owners) relevant matters. If Board members are not approachable or accessible, owners should use the power of their vote and replace them.
Regarding Board expenses, airfare is the most expensive item (especially out of country, ie Aruba) on the expense report. I suggest any interested owners price out what a reasonable proforma expense report might look like given the information I gave above. Then the owner can analyze how the cumulative total for all Board members expenses for ALL meetings compare with the line item on the Association's annual budget.

Brian,
The number of applicants for Board service varies, but all applicant forms are considered by the committee. No incumbent Board members serve on the nominating committee. You have to have faith in the committee that they are performing their duties objectively. My experience is that the committee works diligently to select candidates with the expertise needed on the Board. Incumbents are generally included on the ballot. As I mentioned earlier, the major negative impact on electing Board members is owner voter apathy. If an incumbent is not doing a good job, owners voting their proxy can negate Marriott's voting power (in sold out properties) and new Board members can be voted in. But it takes more than 15 or 20% of votes to effect change, and unfortunately, the numbers of owners voting is dismal. If an Association has an ineffective Board, they have no one to blame but themselves.
Eric
 
minoter said:
But it takes more than 15 or 20% of votes to effect change, and unfortunately, the numbers of owners voting is dismal. If an Association has an ineffective Board, they have no one to blame but themselves.
Eric
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I totally agree with this statement. I serve on 4 boards. Granted they aren't as powerful as serving on a Marriott board as they are the soccer board, swim board, 2 PTA boards. However, the one thing I noticed is that the same people serve. Hence, why I'm on 4 boards. The nominating committee is always looking for new members but nobody wants to serve in our situation. Nobody wants to make the comittment either. Anyways, the 2nd thing is nobody comes to any meetings. Nobody ever votes. But people sure have a lot to say about how the club or PTA is run. It is so sad because if they came to meeting they just might have a clue. Things aren't as easy or simple as everyone thinks it is.
 
I just received the following email..... Grande Vista looking for Board Members!


Dear Marriott’s Grande Vista Owner:
At the fall 2011 Annual Meeting Owners will elect members to serve on the Board of Directors. Any Member desiring to become a candidate for election to the Board of Directors must complete and submit a Volunteer Form to the Association. Volunteer Forms must be received by June 1, 2011, to be considered for the 2011 Board of Directors election.

At the November 19, 2010 Annual Meeting, Owners voted to approve an amendment to the Association documents to allow the use of a non judicial foreclosure process. The non judicial foreclosure process will allow the Association to foreclose more quickly on delinquent accounts as well as save the Association money spent in legal fees. I encourage you to review the amendment.

Please contact me with any questions you may have at 407-238-6388 or by email at paul.ryan@vacationclub.com.

Best regards,

Paul Ryan
General Manager
Marriott’s Grande Vista
 
It's that time of the year again. What are the chances that Marriott does its job this year and discloses the number of Marriott HOA boards that this year's candidates serve on, and the number of years that they've served on those HOA boards?


EducatedConsumer said:
Great job Dioxide, thank you.

First thing I noticed was the number of possible descendants of MVCI President Steven Weisz on these boards in Developer board positions. Could they all possibly work for Marriott? I found what I thought were some inconsistencies in the data provided by Dioxide in regards to "Developer" representatives.

Second thing I noticed was the number of Developer and Non-Developer Board Members who serve on multiple Boards. See Dioxide's data file for specifics.

Third, are the Non-Developer Board Members who have seemingly served multiple, multi-year terms on the same boards. First, I tip my hat to the hard work and volunteer efforts of these long-serving Board Members. I know many of them have done an excellent job, and dedicated endless hours to being responsible Board Members. However, in my opinion, both the Board Members and Marriott should have disclosed the names of those Board Members who served multiple, multi-year terms and/or served on multiple MVCI Boards (to establish a potential "Marriott coziness factor") to help informed owners make decisions about who they elect to the Board (based on the longevity/term of seated/non-seated members of the Board). Personally, even if a Board was doing a good job, I would want to see some turnover in Board Members to broaden the involvement of the owner base and to bring fresh ideas to the Board.

The names that I recognize from previous ballots of Board Members who may have served multiple, multi-year terms:

EDWARD REYNOLDS
THOMAS RACCA
DAN DIGLOVACCHINO
JOSEPH LAWRENCE
NORMA LEVY
JOHN MCSWEEN
RUTH SCHRIEFER
RAYMOND LANTZ, JR.

and, take note of the following:

DAN DIGLOVACCHINO (non-Developer) presently serves as the Cypress Harbor Board President and Treasurer of the Sabal Palms board and President of the Summit Watch board
JOHN MCSWEEN (non-Developer) serves on the Desert Springs Villas and Grande Vista boards (Vice President of the Grande Vista Board) (I seem to remember his name from other MVCI boards)
RUTH SCHRIEFER (non-Developer) serves as Vice President of the Manor Club Board and Vice President of the Sabal Palms Board
RAYMOND LANTZ, JR. (non-Developer) serves serves as Secretary of the Sabal Palms Board and Secretary of the Royal Palms Board
NORMA LEVY (non-Developer) serves as President oft the Shadow Ridge Board and as Vice President of the Desert Springs Villas Board

I'd be extremely interested to know how many years each of these Board Members and those Board Members who were not recognized by me as multiple term/multiple years Board Members have actually served as MVCI Board Members.

It's disappointing that Marriott has not disclosed the number and length of terms and cross-pollenation of these Board Members. I regret having casted votes recently without having this information (thanks again, Dioxide, for doing this work).

This brings me back to where this thread started............something just does not seem right to me with the number of (Non-Developer) Board Members who have served multiple terms of multiple years and of (Non-Develoer) Board Members who serve on multiple boards, when it has not been clearly disclosed. While it is true that these Board Members could have been or are doing a good job, (1) this information should have been disclosed by Marriott, and (2) if owners at any resort knew the longevity of each of their Board Members (seated and non-seated), they may have voted in a very different fashion.

Finally, I don't doubt that there are more individuals who fall into the groups above, these groupings included only the names that I recognized from proxies and ballots over many years.

What are the chances of Marriott willingly disclosing this data?
Click to expand...
 
EducatedConsumer said:
It's that time of the year again. What are the chances that Marriott does its job this year and discloses the number of Marriott HOA boards that this year's candidates serve on, and the number of years that they've served on those HOA boards?
Click to expand...

Chances are 0%. The best we can do is put together the list like I did earlier in this thread.
 
Cypress Harbour Owners - please read

EducatedConsumer said:
It's that time of the year again. What are the chances that Marriott does its job this year and discloses the number of Marriott HOA boards that this year's candidates serve on, and the number of years that they've served on those HOA boards?
Click to expand...

Ok - here's your chance to change the board.

Last Friday (Oct 5th) or soon after Cypress Harbour owners should have got an email or mail with notice of the 2012 Annual meeting.

The meeting is to consider the following:

1) Elect two members to the Board of Directors
2) The waiving of fully funded reserves

Voting has never been easier, you can do so via Morrow & Co., LLC’s on-line proxy voting system, http://proxyvoting.com/MVCI and entering the control number they provide you. You may cast your vote(s) on-line no later than 11:59 p.m., Eastern time, on October 19, 2012

Some choices for board members are:
1) William Douglas - served for 12 years on the Cypress Harbour board
2) Deb Gammon - served for 18 years on the Cypress Harbour board

or

3) Myself, felllow tugger - Robert Heape - eager to serve as a new board member.

Time for a change?

I reach out to my fellow tuggers to vote for me and ask you contact other Cypress Harbour owners you may know to vote. My promise is to be open and to always represent the best interest of MVC owners, especially my fellow Tug owners who are passionate about their timeshare. I too share the passion. My qualifications are listed on the Proxy but I'm a 11 year MVC owner, multiple weeks owned, DC member, 20+ years of senior managemet in Fortune 100 Tech companies.

I also recommend voting NO to waiving fully funded reserves. I am a fiscal conservative who would like avoid any surprise special assessments in the future due to under funding.

Please let me know if you have any questions, PM or post here, and vote for me:cheer:.
 
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