Southcape 1985 Annual Meeting Minutes
MINUTES OF THE ANNUAL MEETING
JULY 3l, 1985
The Annual Meeting of Southcape Resort & Club Condominium I was held at the Resort on Wednesday, July 31, 1985. The meeting was called to order at 10:33 a.m. by Edward Conforti, Trustee and Resort Manager.
Mr. Conforti introduced the Board of Trustees, Joseph Bottari, Mel Melle, and Donald Buese as well as Attorney Michael Dunning and Attorney Elizabeth Mcll!'1chols.
Attorney McNichols determined that there was present, in person or by proxy, 38.68% of the beneficial interest of the Trust, representing a quorum, and the meeting proceeded.
The Notice of the Annual Meeting was read by Attorney McNichols.
Mr. Conforti discussed at some length the billing procedure for maintenance fees and taxes. The annual bills for maintenance fees and real estate taxes will be mailed no later than January 15th of each year, and will be due by March Ist. If not paid, the delinquent assessments will bear interest of 18% per annum.
Mr. Conforti read the financial report and a lengthy discussion ensued regarding Condominium assessments that had gone unpaid, some as far back as 1983. Balances in the accounts as of 7/31/85 were as follows:
Checking/Savings $27,302.22
Reserves/Replacements 47,450.17
TOTAL $74,752.39
There were unpaid delinquencies of $70,668.25, of which $19,000 was accumulated from 1984.
Attorney Michael Dunning spoke on delinquent maintenance fees –unpaid assessments by Unit Owners. He said that, in the future, if fees were not paid by March Ist, that they would allow for a grace period until April Ist, or April 15th, and at that time, a I!Notice of Lien" would be recorded at the Barnstable
County Registry of Deeds setting forth the amount of lien plus costs and attorney's fees. He said that a section of the Master Deed concerning the non-payment of maintenance fees would be sent to the Unit Owners along with a copy of the Minutes of the Annual Meeting. He further stated that a Unit Owner would not be alloweQ to occupy their Unit if the assessment were not paid, and that the Trust would rent the Unit to cover the cost of the Maintenance fee.
NEW BUSINESS: Mr. Conforti discussed the practice of Unit owners using the Community Center, pool, tennis courts, etc. , when they are not occupying the Units. Unit owners are life-time members of the Southcape Resort Community Center. While staying at the Resort the use of the facility is complimentary except for a $4.00 per hour Indoor/Outdoor fee when the court lights are operating.
Owners may use the facility when not staying at the Resort, at which time they would pay $2.50 to swim and the same fees for court usage as any member would pay. Remember outside members pay an annual fee of either $150 or $200 for single or family membership. (subject to increase)
Mr. Conforti announced that Southcape Resort was the recipient of the prestigious 5 Star Achievement Award from Interval International. This honor was bestowed on the Resort at the National Timeshare Convention held in Nashville, Tennessee on May 8, 1985. The achievement award was based on a survey of all the exchanges' to Southcape Resort. At the present time there are only seven 5 Star resorts in the Northeast. The 5 Star winners are further distinguished by a special logo accompanying their photographs in the 1985-86 Interval International directory. .
Mr. Conforti introduced all of the employees of the Resort, indicating their consistent performance under adverse conditions was most significant in acquiring this national recognition.
Maintenance fees were discussed. Mr. Conforti said that in 1985 98% of the Units were sold. The Resort was experiencing maximum usage. He stated that the cost of utilities had risen sharply, especially in the winter months, and he hoped that the Owners would do all they could to conserve energy. He also stated that salaries at the Resort had been frozen by the Trustees, and that they had cut back on supplies, etc., to keep costs down and the budget (which is fixed) under control.
Mr. Conforti spoke briefly about some correspondences he had received concerning the issue of bonus days, cable television, check-out procedures. and communications between Management, Trustees, and Owners.
He recommended that more Unit Owners apply for bonus days in the early part of the year, since all of the other weeks were fully reserved. As to cable television. which is not available to Mashpee, Mr. Conforti talked bf a satellite dish. but indicated that this expense was not budgeted for 1985.
Current check-out procedures were discussed. Mr. Conforti stated that the current practice of checking Unit Owners out was instituted to protect the interests of the Unit Owners as bath towels and other items had been missing and damage had been done to property in the Units. Units will be checked prior
to the Unit Owner leaving. and at that time the key will be placed in the inspector's hand and the interval owner will vacate the Unit.
A number of Unit Owners requested that they receive financial statements and a list of major expenditures, but it was determined that this was too expensive for Homeowners to mail out. The Board. of Trustees are responsible for all major decisions involving expenditures of funds. Anyone desiring to run for office please forward a written resume to the management office.
It was brought up on several occasions that the Resort was in desperate need of a computer. A mailing had been sent out earlier to get the Unit Owners' opinions as to whether or not a computer could be helpful, and the majority ruled in favor of it. The Board of Trustees will continue the discussion for
the acquisition of a computer during their meeting immediately following the AI1J'tUal Meeting .
Comments from Don Buese: Mr. Buese thanked Mr. Conforti for a job well done and continued success for the Resort.
Questions from Unit Owners: Responses from Mr. Conforti or Attorney Dunning.
The major concern for Unit Owners seemed to be their inability to reserve bonus time. The second major concern was the increase in maintenance charges, which was discussed at great length. In regard to bonus days, Mr. Conforti produced an occupancy status report which noted that the majority of bonus days usage occurred during the months of January through March. Although bonus days
are available during the full float period, they are less likely to be available during the high demand periods. Remember the Resort is 98% sold with over 1,000 float owners eligible to reserve up to a maximum of 18 months in advance. It is imperative that each Owner make his reservation as soon as eligible. Even though future plans may be uncertain Owners can always cancel or trade for a
different period of time at another resort.
Mr. Conforti then addressed the concern over increasing maintenance fees. An article from the Cape Cod Times and another article from the Boston Globe highlighted the increase in labor costs. “Everybody in the tourist industry is being hit" said Maureen A. Wells, economic development analyst for the Cape
Cod Planning and Economic Commission. "The once extreme case -like $11 an hour for a chambermaid -is getting to be normal." Waiters, chambermaids, and snackbar attendants are all in demand, she said. The Town of Mashpee has three time share resorts all competing for service help; our maids, who started at $5.50 per hour, now receive $7.50 per hour. Utilities have increased as has the cost of service contracts, beach permits, and firewood (which is shipped to the Cape). The legal process continues to collect over $70,000 cumulative delinquencies on maintenance fees and real estate taxes.
Mr. Conforti introduced a survey of the seven "Double 5 Star" resorts in the Northeast. A comparison between Trapp Family Lodge and Southcape showed an identical $230 maintenance fee even though Trapp Family Lodge had 1,100 sq. foot units and fewer indoor amenities. Ponds at Fox Hollow's maintenance fees range from $170 to $359 based on the size of unit and whether it was prime time
or off-season time. Deerhurst Inn, Canada, (40 year right to use) ranges from $220 to $290 based on size of unit. Deer "Run Village, Catskills NY, ranges from $250 to $320 based on size of unit. Harborside Inn, Martha's Vineyard, has an annual fee of $189 but their units are 300 sq. feet and they are only
open 30 weeks a year. Shawnee Village, Delaware, has annual fees ranging from $180 to $200 but they have 325 units. As Southcape Resort expands a portion of all management salaries will be disbursed over the new units thus stabilizing, if not actually decreasing, fees in the future.
Question: What are the plans for future development at Southcape Resort?
Answer: At this time negotiations for the purchase of the undeveloped land and the building of additional units continues.
Question: Will future development mean future expansion of amenities at Southcape?
Answer: I have no idea at this time of any future expansion, but feel that future development would necessitate expansion of the esisting Community Center.
Question: What about insurance coverage?
Answer: The property has liability coverage for $1,000,000. (Note: Each Owner can extend their Homeowners policy to list Southcape Resort as a secondary residency thus protecting them personally from any liability if a guest were injured inside the unit).
Question: Who approves the budget?
Answer: As part of the management contract and in accordance with the By-laws of the Master Deed, the Board of Trustees estimates the net costs and expenses to be incurred during each fiscal year. Each unit owner shall be subject to regular annual assessment no later than January 15. The Board consists of five members: the Resort manager, two elected Homeowners, and two appointees from
the Hallwood Group. (See Addendum).
Question: Do you foresee the maintenance fees increasing, and if so, approximately what will next year’s maintenance fee be?
Answer: Mr. Conforti stated that in January he requested a $250 maintenance fee which was vetoed by the Board of Trustees. With the increase in usage and labor cost, $250 will be a likely increase for 1986.
Question: Bonus days and check-out prcedures?
Answer: Mr. Conforti produced an occupancy status report showing the 521 of 529 bonus days for 1985 were taken between January and March 31st. As for check-out procedures each owner is responsible for calling 477-4702 when prepared to check-out, at which time a supervisor will be sent down to accept the keys and inspect the unit.
Question: The $35 split week fee should not be charged to owners who made their reservations in 1984 for 1985.
Answer: The January maintenance billing included a cover letter stating the $35.00 split week fee would be charged. The management team is empowered to make decisions in the best interest of all Owners.
Mr. Conforti concluded by stating that Management and Homeowners were working together in efforts to run an efficient business. This is not a hotel but rather a second home for all Owners. We are a non-profit organization that depends on a conscious effort by all to help implement the same energy and cost saving methods that apply at home.
Meeting adjourned at 12:15 P.M.
Addendum: Article IV, Section 3, of the By-laws of the Master Deed.
Section 3. Timing of Assessments: At least sixty (60) days prior to the commencement of each fiscal year of the Corporation (or in the case of the fist fiscal year, not later than sixty (60) days after the commencement of that year), the Board shall estimate the net costs and expenses expected to be incurred during such fiscal year for the operation of the Corporation and the maintenance, operation, improvement, and administration of the Community Facilities (exclusive of significant capital improvements and other extraordinary expenses covered by Section 4 of this Article), together with a reasonable reserve for contingencies and replacements.. Upon so determining these expenses, which shall be subject to regular annual assessment, the Board shall render, not later than January 15th, to each Unit Owner or Owners' Association, a written statement specifying his or its allocable share thereof. Such statement shall provide for payment of the assessment, which shall be due and payable no later than March 1st of each year. If the Board fails so to determine the new annual assessment prior
to commencement of the Corporation's fiscal year, then the previous year's assessment shall continue in effect until such time as the new assessment is determined by the Board and statements are rendered with respect thereto. In the event the Board determines during any fiscal year that the annual assessment so made is less than the net costs and expenses actually incurred, or in the reasonable
judgment of the Board likely to be incurred, for the above purposes, the Board shall make supplemental annual assessments and render statements therefor, which shall be due and payable within thirty (30) days of the rendering of such statements. In the event a Residential Unit is rendered uninhabitable by fire or other casualty, the Board, in its discretion, may abate all or a portion of any charges assessed
under this Article against the Unit owners of such Residential Unit while it remains uninhabitable.
