Dear BeachPlace Towers Owner,
The Board of Directors and your resort leadership team are pleased to provide you an update on a number of important matters addressed at the October 2012 Board of Director’s meeting.
BeachPlace Towers has experienced a busy 2012 with many resort projects and product enhancements. At the end of December, the resort will have completed the painting of the exterior of the building, resurfacing of the pool deck, the addition of an awning over the pool bar, and the modernization of the elevators. In October, we also completed the renovation of the fitness center, which was well received.
In May 2013, the resort will begin the 15 year refurbishment of the villas and common areas at a cost of $10,488,471, giving a revitalized look and feel to the property at the completion of the project in October 2013. We will also complete several smaller projects and enhancements at a cost of $1,315,819 for a total reserves project expenditure of $11,804,290. All of the 2013 asset improvements will be funded by amounts in our reserve fund without the need for any special assessment.
In reviewing the needs of the resort and to bring BeachPlace Towers up to Marriott’s Brand Standards, the increase to the 2013 Maintenance fee is significant. Over the last several years, prudent financial management of the Association has led to a 2011 year-end surplus of $2,276,216 of which $1,776,216 was Board designated as a Hurricane Deductible Reserve and $500,000 as an undesignated operating reserve. During 2012, your management company deemed it necessary to make ongoing operating expenditures that exceeded the 2012 budget by $470,000. In an effort to reduce the overall impact of these increases to the Owners, the Board of Directors worked with the management company and approved utilizing a portion of the Hurricane Deductible Reserve to be spread evenly over 3 years ($253,666 each year) starting in 2013. Therefore, for 2013, the maintenance fee for each week will increase 9.3% from $1,037.91 (gold week) to $1,134.10 and from $1,051.07 (platinum week) to $1,149.13 The majority of the increase is due to rising benefit cost for the associates and the addition of staffing to be in line with other Marriott Vacation Club properties and deliver the service levels required of a Marriott Vacation Club resort. The increased operating expenses resulting from staffing and benefits increases in 2012 will continue to occur in future years . After applying the hurricane reserve offset for 2014 and 2015, the Hurricane Deductible Reserve will have a balance of approximately $545,000 and the undesignated operating reserve will maintain a balance of $500,000. The management company is estimating increases in the maintenance fee for 2014, 2015 and 2016 to be about 5% in each year.
In May of 2013 we will hold our Annual Board of Directors meeting and the election of two directors. We continue to stress the importance of voting your proxy at the annual owners’ meeting. As was reported to you last year, only 17% of owners actually took the time to vote their ballot. Without Marriott voting their weeks, a quorum of voting owners would not have been met. We ask that you take your voting responsibilities seriously by participating in the election process. Please vote your proxy!
Your management team would also like to thank everyone who completes the customer satisfaction surveys that are e-mailed to you after your stay. The information that we collect from the surveys is regularly reviewed and used to drive our owner service initiatives.
In order to expedite service to you, I ask that you contact Owner Services at 800-845-4226 for any questions regarding your deed, address changes or reservations questions.
If you have general questions about the resort please contact Tom Hastings, Director of Operations at 954-767-1105 or Tom.Hastings@vacationclub.com
Financial questions should be directed to Lisa Armbrister, Director of Finance at 954-767-1145 or Lisa.Armbrister@vacationclub.com
For any communications to the Board of Directors, please contact Eric Minotti, Board President using the mvciobb@vacationclub.com email address.
Of course, I remain available to answer any questions that you prefer to direct to my attention at Dione.lewis@vacationclub.com
Sincerely,
Dione T. Lewis Eric Minotti
General Manager Board President
The Board of Directors and your resort leadership team are pleased to provide you an update on a number of important matters addressed at the October 2012 Board of Director’s meeting.
BeachPlace Towers has experienced a busy 2012 with many resort projects and product enhancements. At the end of December, the resort will have completed the painting of the exterior of the building, resurfacing of the pool deck, the addition of an awning over the pool bar, and the modernization of the elevators. In October, we also completed the renovation of the fitness center, which was well received.
In May 2013, the resort will begin the 15 year refurbishment of the villas and common areas at a cost of $10,488,471, giving a revitalized look and feel to the property at the completion of the project in October 2013. We will also complete several smaller projects and enhancements at a cost of $1,315,819 for a total reserves project expenditure of $11,804,290. All of the 2013 asset improvements will be funded by amounts in our reserve fund without the need for any special assessment.
In reviewing the needs of the resort and to bring BeachPlace Towers up to Marriott’s Brand Standards, the increase to the 2013 Maintenance fee is significant. Over the last several years, prudent financial management of the Association has led to a 2011 year-end surplus of $2,276,216 of which $1,776,216 was Board designated as a Hurricane Deductible Reserve and $500,000 as an undesignated operating reserve. During 2012, your management company deemed it necessary to make ongoing operating expenditures that exceeded the 2012 budget by $470,000. In an effort to reduce the overall impact of these increases to the Owners, the Board of Directors worked with the management company and approved utilizing a portion of the Hurricane Deductible Reserve to be spread evenly over 3 years ($253,666 each year) starting in 2013. Therefore, for 2013, the maintenance fee for each week will increase 9.3% from $1,037.91 (gold week) to $1,134.10 and from $1,051.07 (platinum week) to $1,149.13 The majority of the increase is due to rising benefit cost for the associates and the addition of staffing to be in line with other Marriott Vacation Club properties and deliver the service levels required of a Marriott Vacation Club resort. The increased operating expenses resulting from staffing and benefits increases in 2012 will continue to occur in future years . After applying the hurricane reserve offset for 2014 and 2015, the Hurricane Deductible Reserve will have a balance of approximately $545,000 and the undesignated operating reserve will maintain a balance of $500,000. The management company is estimating increases in the maintenance fee for 2014, 2015 and 2016 to be about 5% in each year.
In May of 2013 we will hold our Annual Board of Directors meeting and the election of two directors. We continue to stress the importance of voting your proxy at the annual owners’ meeting. As was reported to you last year, only 17% of owners actually took the time to vote their ballot. Without Marriott voting their weeks, a quorum of voting owners would not have been met. We ask that you take your voting responsibilities seriously by participating in the election process. Please vote your proxy!
Your management team would also like to thank everyone who completes the customer satisfaction surveys that are e-mailed to you after your stay. The information that we collect from the surveys is regularly reviewed and used to drive our owner service initiatives.
In order to expedite service to you, I ask that you contact Owner Services at 800-845-4226 for any questions regarding your deed, address changes or reservations questions.
If you have general questions about the resort please contact Tom Hastings, Director of Operations at 954-767-1105 or Tom.Hastings@vacationclub.com
Financial questions should be directed to Lisa Armbrister, Director of Finance at 954-767-1145 or Lisa.Armbrister@vacationclub.com
For any communications to the Board of Directors, please contact Eric Minotti, Board President using the mvciobb@vacationclub.com email address.
Of course, I remain available to answer any questions that you prefer to direct to my attention at Dione.lewis@vacationclub.com
Sincerely,
Dione T. Lewis Eric Minotti
General Manager Board President
