Marriott's Desert Springs Villas OWNERS

[WBP]

By email today, came a letter from the President of the DSVI HOA, with a synopsis of the Board of Directors meeting that ended on October 20, 2017.

As is typical for DSV, the management of DSVI, and the DSVI Board, the President's Letter included a list of substantial improvements to the resort, and accomplishments of the Board, and the resort's management.

This bullet of the President's Letter caught my attention:

Insurance - Our insurance premiums are expected to rise by thirty percent next year as a result of the hurricane and fire losses incurred by our carriers.

To the extent possible, I imagine that the Board will look at creative ways to minimize the impact of this increase to DSVI owners. One can only hope.

 

[VacationForever]

Here is the full letter.

November 15, 2017

Dear Marriott’s Desert Springs Villas Owners:

Below is a summary of our recent Board of Directors’ meeting that ended on October 20,2017.

Palmeras Pool - The children's pool refurbishment has been completed and additional shade has been added. We have added pool chillers to control the water temperature during the hot summer months.

Walking Path - A three (3) mile trail through both Desert Springs I and II has been completed. We have received good feedback from our owners and guests.

Electrical Vehicle Charging Stations - The vehicle charging stations have been completed and are in use.

Villa Refurbishment - The first half of the units have been refurbished and the remainder will be completed in 2018. The new units look great and have been well received by our owners and guests.

Wage Legislation - The mandatory wage increases coming as a result of rules enacted by the California State Legislature will take place on January 1, 2018. Our budgets for next year will be affected by this new law.

Insurance - Our insurance premiums are expected to rise by thirty percent next year as a result of the hurricane and fire losses incurred by our carriers.

Unpaid Fees - Our collections are some of the best in the Marriott system and with the Marriott Repurchase program, we will continue to operate very well. The repurchase agreement has been renewed and is in effect for another year and will have automatic renewals each year. Our unpaid fees for the 2017 year are currently 1.7%.

Guest Satisfaction Scores - Our scores continue to stay at high levels and our Resort is still a very soughtafter destination.

Budgets - The budgets for next year show an increase of 4.6%. This is a result of an increase in wages for both our own associates, our outside contractors, new regulations regarding the calculation of Bad Debt Expense and higher Insurance Premiums.

On behalf of the entire Board of Directors, I would like to thank you for your continued support. We hope that you will visit the resort and personally view the improvements being made.

Sincerely,

Robert Gallagher
President
Desert Springs Villas Timeshare Association

 

[mjm1]

Yes, I read that in the report as well. Fortunately the overall increase was less than 5%, including the increase in wages due to California’s new law regarding higher minimum wages. I assume other resorts will be impacted by these issues as well.

Best regards.

Mike

 

[VacationForever]

I am a little ticked that when I read that the insurance carriers decided that it was ok to increase 30% on policies that were not affected by the claims.

 

[JIMinNC]

I am a little ticked that when I read that the insurance carriers decided that it was ok to increase 30% on policies that were not affected by the claims.

Insurance is shared risk, by definition, so the companies spread the loss risk across a large population. People/businesses who have few claims have always subsidized the people/businesses that have claims. Healthy people who have health insurance subsidize sicker people. That's the way it's always worked, and frankly, is the only way insurance can ever work. Insurers do have certain flexibility under the laws to risk-adjust, meaning that places/businesses/people with higher risk of loss will tend to pay higher rates than those with lower loss risk, but these higher risk entities are still being subsidized to a significant degree by higher premiums paid by those with lower losses. That spreading of the risk across a large population is the only way an insurance business model works. If Desert Springs expects a 30% increase, I would suspect the resorts in Florida and other hurricane-prone areas may see an even larger increase as the risk of loss is greater there.

 

[VacationForever]

Insurance is shared risk, by definition, so the companies spread the loss risk across a large population. People/businesses who have few claims have always subsidized the people/businesses that have claims. Healthy people who have health insurance subsidize sicker people. That's the way it's always worked, and frankly, is the only way insurance can ever work. Insurers do have certain flexibility under the laws to risk-adjust, meaning that places/businesses/people with higher risk of loss will tend to pay higher rates than those with lower loss risk, but these higher risk entities are still being subsidized to a significant degree by higher premiums paid by those with lower losses. That spreading of the risk across a large population is the only way an insurance business model works. If Desert Springs expects a 30% increase, I would suspect the resorts in Florida and other hurricane-prone areas may see an even larger increase as the risk of loss is greater there.

What you said makes sense.

 

[Kel]

Maintenance cost could have been lower if the following “improvements” were not added:

1. The work out stations installed throughout the resort were not necessary. I doubt they will be used enough to justify the cost for purchase, installation and maintenance. And, they are made out of metal – not a good material for a hot desert area.

2. Replacing the simple less expensive stack washer and dryers with the complicated leaking and mildew forming front loading washer and dryers was a big mistake and an unneeded expense.

3. Putting new in room safes in the studios in an easily removable drawer was a big mistake and an unneeded expense. The existing electronic safes could have been reinstalled in the new closet areas.

4. The walking paths were a waste of money. You end up walking into the street/traffic areas so often you are might as well just walk on the street most of the time.

 

[pedro47]

Any budget increase under 5% is not totally bad in my opinion.

 

[WBP]

Maintenance cost could have been lower if the following “improvements” were not added:

1. The work out stations installed throughout the resort were not necessary. I doubt they will be used enough to justify the cost for purchase, installation and maintenance. And, they are made out of metal – not a good material for a hot desert area.

2. Replacing the simple less expensive stack washer and dryers with the complicated leaking and mildew forming front loading washer and dryers was a big mistake and an unneeded expense.

3. Putting new in room safes in the studios in an easily removable drawer was a big mistake and an unneeded expense. The existing electronic safes could have been reinstalled in the new closet areas.

4. The walking paths were a waste of money. You end up walking into the street/traffic areas so often you are might as well just walk on the street most of the time.

If you write Robert Gallagher, the HOA Board President, and express your concerns/observations, they may very well give serious consideration to your concerns/observations, before they move on to renovate the second half of the villas, in 2018.

 

[VacationForever]

Any budget increase under 5% is not totally bad in my opinion.

DSVI MF increase is about 6%... 5.9+%. The MF is made up of 2 pieces... one is the Master HOA (which governs both DSV I and II) and then the individual HOAs - DSV I and DSV II are separate and have different amounts. Based on my memory, DSV I is about $150 more than DSV II. Then there is the property tax that is billed separately.

 

[Kel]

WJS, I did reply to the email I received with my concerns. We visit our home resort several times a year on II Getaways. We have owned at Desert Springs II for 21 years and still enjoy it.

We stay in phase I quite often too. I think the association for phase I should eliminate the uncomfortable and probably expensive sectional living room furniture with a less expensive and comfortable couch and love seat. Just another observation of mine.

Thank you and happy travels.

 

[BJRSanDiego]

Maintenance cost could have been lower if the following “improvements” were not added:

1. The work out stations installed throughout the resort were not necessary. I doubt they will be used enough to justify the cost for purchase, installation and maintenance. And, they are made out of metal – not a good material for a hot desert area.

2. Replacing the simple less expensive stack washer and dryers with the complicated leaking and mildew forming front loading washer and dryers was a big mistake and an unneeded expense.

3. Putting new in room safes in the studios in an easily removable drawer was a big mistake and an unneeded expense. The existing electronic safes could have been reinstalled in the new closet areas.

4. The walking paths were a waste of money. You end up walking into the street/traffic areas so often you are might as well just walk on the street most of the time.

2. My wife likes the front loaders... If she's happy then I am (and unfortunately the converse is also true)
3. Room safe in efficiency... hmm... Having it screwed into a stud is more secure, certainly. But when I was there a couple of weeks ago, I tried to figure out how to remove the drawer. I looked for a release latch or a tab to press in and could not find it. I suppose that a person could jump on the drawer and tear it out. But I consider room safes to just be a deterrent to someone on staff taking something. After all, when a guest of mine screwed up the combination on a wall safe and we had to call security, they were able to open it within a minute.
1,4 - walking paths and workout stations - yeah, I didn't get much out of them either. On a positive note, there is less greenery to water.

Some things I liked: the motion activated lights in the bottom of the night stands
The hanging lights and light on a stalk by the beds. That frees up space on the night stands.
The large flat screen TVs
The abundance of AC outlets, and USB charging ports.
The ability to play Pandora music through a Blue Tooth wireless connection through the TV.
I thought that the couches and chairs were comfortable
I like the new recliner in the master unit.
Charging stations for electric vehicles
Solar hot water heating for the pools. We used the quieter pool in DSV2 and it was FANTASTIC

I think that the Marriott Staff is doing a good job keeping the place up. Glenn Knorr's engineering group especially. The activities folks (Linda and her crew) are also doing a good job (but I'd like to see the hikes return).

 

[dgf15215]

Well said. Thanks.

 

[dgf15215]

Well said.

 

[BocaBoy]

Any budget increase under 5% is not totally bad in my opinion.

5% is awful in this day and age.

 

[bazzap]

5% is awful in this day and age.

Almost 50% of all 2018 MVC MFs announced so far are above 5% increase.

 

[VacationForever]

Deleted..

 

[BocaBoy]

Almost 50% of all 2018 MVC MFs announced so far are above 5% increase.

Yes, they remain totally out of control. I am about ready to sell 2 of my 3 remaining weeks before the maintenance fees make them worth nothing.

Seven years ago we owned 6 weeks and now with only three, our maintenance fees are only slightly less than when we owned all six. Sad!

 

[Luvtoride]

Insurance is shared risk, by definition, so the companies spread the loss risk across a large population. People/businesses who have few claims have always subsidized the people/businesses that have claims. Healthy people who have health insurance subsidize sicker people. That's the way it's always worked, and frankly, is the only way insurance can ever work. Insurers do have certain flexibility under the laws to risk-adjust, meaning that places/businesses/people with higher risk of loss will tend to pay higher rates than those with lower loss risk, but these higher risk entities are still being subsidized to a significant degree by higher premiums paid by those with lower losses. That spreading of the risk across a large population is the only way an insurance business model works. If Desert Springs expects a 30% increase, I would suspect the resorts in Florida and other hurricane-prone areas may see an even larger increase as the risk of loss is greater there.

Well said, jiminNC. In fact MVC buys their property insurance on a combined basis for all properties, not individually. Believe me there will be huge claims paid out for MVC properties losses from the hurricanes in Florida and the Caribbean.
Also, although it may not be advertised in Presidents reports, property insurance premiums have decreased sunstantially over the past few years. Even a 30% increase next year leaves the insurance carriers well below the premium levels they got several years ago.
Overall, the insurance line item would not account for a large overall increase in the MF budgets for most resorts.