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Barony Beach Newsletter

Steve A

TUG Review Crew: Veteran
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Dear Marriott’s Barony Beach Club Owner:

Summer greetings from your home away from home—Marriott’s Barony Beach Club. We have been hard at work planning and setting in motion updates and enhancements designed to make your next stay an unforgettable experience. Here are happenings at your resort through summer 2008.
Board of Directors Update

The Board of Directors met in the spring with a full agenda of topics. This was the first meeting under the new Board President, Steve Lide.
The Board of Directors reviewed the Association’s finances and the 2007 Audited Financials provided by PriceWaterhouseCoopers. The Operating Fund balance finished the year with a positive fund balance of $76,531.00. Even with an unexpected increase in Property Taxes, $66,824.00 more than budget, the Management Team exceeded the original forecasted total budget savings by $11,374.00. The Reserve Fund maintained a good balance of $2,716,255.00, which will help pay for the next refurbishment.

The Board of Directors and Management Team spent quite some time discussing the upcoming refurbishment. It is hard to believe that it is time to start the next refurbishment. The first phase was completed in April 2005 and the last phase of three phases was finished in April 2007. Normally, refurbishments are scheduled every five years and typically the process begins about two years before the actual installation and construction begin. The process from business and project planning, design, procurement and installation were carefully reviewed. Currently, replacement or refurbishment of all soft goods (carpet, upholstered furniture and bedding), limited case goods (some wood furniture, but not all), paint and possibly floor tile replacement is being considered. The project is scheduled to begin in December 2009.

Reserve for Replacement Projections
Over the past year, the Board of Directors and Management Team reviewed and analyzed the Reserve for Replacement projections from a 2007 Reserve Study conducted by Armstrong, an outside company specializing in reserve studies. In 2007, Armstrong recommended that the Reserve contribution increase by 15% every year from 2008 to 2014. At that time, the Board of Directors and Management Team wanted to analyze the study to understand the reasoning and to review alternative scenarios. Essentially, the Association must prepare for future projects and the rising costs in the construction industry, fuel costs and many other factors that play a key role in future costs. Appropriate preparations must be made and may require a substantial increase either in one year or over several years.

Refurbishments are the major cost as the financial outlook in future years is reviewed. The combined total costs of the three phases of refurbishments are estimated to cost over $10 million dollars from 2009 to 2012. When these types of numbers are put in every five years, it paints a real picture of how quickly fund balances can drastically change. In order to ensure your vacation experience is unforgettable, it is important to ensure the funds are adequate to perform these projects to maintain the premier status of Barony in the future. The Board of Directors and Management Team are working to determine the best way to address this as 2009 approaches.

Projects Around the Resort
The Management Team has been busy completing projects to enhance your stay. The most notable project was the construction of the new MAZE® (Marriott’s Activity Zone Experience) Pavilion. The project took approximately two months to complete and involved covering the previous MAZE Zone with a new, beautiful covered structure while maintaining the design theme of the resort. Other projects included:
New pool furniture at the Courtyard Sundeck, Outdoor Heated Pool and the Bayberry Spa
New enhanced furniture in the Beach Front Cabanas
Repairs, re-sealing and re-striping of the Folly Field Road entrance and the Garden Side parking lot
Resurfacing of all pool decks at the Ocean Front Feature Pool, Turtle Pool Deck, Bayberry Spa, Courtyard Sundeck and the Outdoor Heated Pool; the new deck surface has a five year warranty
Installation of enhanced Life Safety Features with additional sprinkler protection, centralized monitoring and improved monitoring of the pump station
Addition of three designated smoking areas located around the resort
Installation of electronic locks on all storage rooms to secure Association assets
Installation of compact fluorescent lighting throughout all villas
The resort also had several emergency repairs that arose this year. Those emergency repairs included replacement of the air conditioning unit for the Welcome Center, repair of the main water line to the Live Oak - 9500 Building, and replacement of tile floors in twenty-three villas.

Staff Transitions
We are pleased to announce several staffing changes at the resort. Scott Helms has taken charge of the Grounds, Pools and Infrastructure Team and Steve Mason has been promoted to Assistant Chief Engineer overseeing the Engineering and Villa Maintenance Team. Loss Prevention Supervisor,
Cory Crosby was promoted to Assistant Loss Prevention Manager. Katie Fatzinger-Hubner was promoted to Front Office Manager and Heather Mills was promoted to Front Desk Manager.
Winston Stubbart joined the team as Assistant Front Desk Manager. Autumn Brown joined the Food and Beverage team as the Assistant Food and Beverage Manager.

Reservation Requests—Understanding the Process
Most Marriott Vacation Club Owners make their reservations one year in advance of their planned visit. We do strive to accommodate as many requests as possible. With a high number of requests falling into the same category—building and or floor preferences—the history of the previous year’s villa location is used to determine the assignment of villas. A rotational system helps provide the fairest service to each of our Owners and guests. To help you with your planning, villa assignment requests are shown below in priority order:
Multiple-week Owner stays
Single-week Owner stays
Marriott’s Barony Beach Club Owners, returning on an exchange
Marriott Vacation Club multiple-week Owners on an exchange
Marriott Vacation Club single-week Owners on an exchange
Preview and Rental guests
Non-Marriott Vacation Club Owners on an exchange

Board of Directors Stay Connected
Marriott’s Barony Beach Club Board of Directors implemented an e-mail address for your use to communicate directly with the Board. Please feel free to e-mail your comments to ownerboard.baronybeachclub@vacationclub.com.
Update Your E-mail Address
The Association is sending future newsletters via e-mail. Please add or update your e-mail address via www.My-VacationClub.com. After logging in, select “Manage My Account”, then “Account Profile”, and enter in your new information. You may also contact Owner Services at
1-800-845-4226 with your updated information.

Golf
Are you aware that Golf Central offers discounted rates at several area courses? If you are thinking of playing golf while on vacation, please contact the Golf Central at 843-686-7105. The team will be happy to answer questions or arrange tee times for you. Golf packages are available at Old South with four (4) or twelve (12) rounds of green fees at discounted rates. Old South is a beautiful course along the marshes and May River in Bluffton. It is an excellent course that you don’t want to miss. Discounted rates are also available with the Heritage Golf Group that includes all the courses at Port Royal, Oyster Reef, Palmetto Hall and Shipyard. Remember when you are planning your vacation and your golfing options contact Golf Central.
As always, we value and utilize our Owners’ input regarding how we can further improve your vacation experience. Please remember to fill out the in-villa questionnaire along with the on-line Guest Satisfaction Survey when you return home. Your feedback helps us continue to be one of the premier resorts in our system. Again, we look forward to welcoming you back to Marriott’s Barony Beach Club.
Best wishes,
Erac Priester
General Manager
Marriott’s Barony Beach Club
Message from the Board of Directors

Dear Fellow Barony Owners,
As you should be aware, the Barony Beach Club Owners’ Association, Inc., is operated under a management contract with Marriott Resorts Hospitality Corporation. This information was provided in your purchase documents at the time you bought your property.
The current management contract with Marriott expires on December 31, 2008 and has a provision for the contract to automatically renew for an additional five (5) years, to December 31, 2013, unless a majority of the Owners elect to not renew the contract. Any non-renewal requires written notice be given to Marriott not less than ninety (90) days prior to the contract expiration date.

Your Board of Directors believes it is in the best interests of the Owners and the Association to continue the current contract with Marriott.
Since the agreement bestows upon the Owners the right to not renew the agreement, the Board believes it has a duty to make all Owners aware of the non-renewal option so the Owners can independently comment upon this decision.

If you desire not to renew the current management contract with Marriott please send your written comments, including an identification of the unit(s) you own, to the following address at your earliest convenience:
Barony Beach Club Owners’ Association, Inc.
5 Grasslawn Avenue
Hilton Head Island, SC 29928
Attn: Board of Directors

Thank you for your consideration of this matter. If you have questions please feel free to contact the Board of Directors, at ownerboard.baronybeachclub@vacationclub.com.
Respectfully,
Steve Lide, President
Karl Meurlot, Vice President
James Stark, Treasurer
Donald Anderson, Secretary
Douglas Wamsley, Director
 

AMJ

Tug Review Crew: Rookie
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Thanks for posting the newsletter. I purchased a platinum resale at Barony, but I am waiting for Marriott to recognize me as the new owner of the week. It will be awhile before I am emailed the newsletter.

Joyce
 

aka Julie

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Resorts Owned
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Barony Beach (2 silver)
Reserve for Replacement Projections
Over the past year, the Board of Directors and Management Team reviewed and analyzed the Reserve for Replacement projections from a 2007 Reserve Study conducted by Armstrong, an outside company specializing in reserve studies. In 2007, Armstrong recommended that the Reserve contribution increase by 15% every year from 2008 to 2014. At that time, the Board of Directors and Management Team wanted to analyze the study to understand the reasoning and to review alternative scenarios. Essentially, the Association must prepare for future projects and the rising costs in the construction industry, fuel costs and many other factors that play a key role in future costs. Appropriate preparations must be made and may require a substantial increase either in one year or over several years.

Refurbishments are the major cost as the financial outlook in future years is reviewed. The combined total costs of the three phases of refurbishments are estimated to cost over $10 million dollars from 2009 to 2012. When these types of numbers are put in every five years, it paints a real picture of how quickly fund balances can drastically change. In order to ensure your vacation experience is unforgettable, it is important to ensure the funds are adequate to perform these projects to maintain the premier status of Barony in the future. The Board of Directors and Management Team are working to determine the best way to address this as 2009 approaches.
I wonder if this is our first hint of a large Replacement Reserve increase for 2009? The 2008 increase was 6.5% for RR, less than half of what the outside study recommended beginning with 2008.
 

bwenzel

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I wonder if this is our first hint of a large Replacement Reserve increase for 2009? The 2008 increase was 6.5% for RR, less than half of what the outside study recommended beginning with 2008.
Unfortunately, I think it is, or a one year special assessment.:(
 
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