Marriott Aruba Ocean Club Owners Being Ripped Off By Marriott - READ IF AN OWNER

[SueDonJ]

First you are making false assumptions, I'm NOT a member of any group.
Because I have some common concerns with other owners on some points doesn't make me a member of anything.

By your comments you're are acting like a loose canon who's firing on anything that's not a 100% behind whatever Marriott is doing.
Sorry I but I don't share your blindness.
When Marriott back the motto that the end justify the means I will not hesitate to say NO it don't.

The running candidates for the elections were all chosen by Marriott and Frank Knox BOD.
I repeat ONLY pre approved Marriott members were listed!
(Not a single member on your "conspirator group" there...)

And owners ARE NOT EVEN ALLOWED TO DECIDE which one.
Was it because Marriott allowed 3 incompetents and one excellent for this election?
Of course not! Marriott had clear preferences.
They were only willing to concede the appearance of democracy not the results that comes with it....
As an owner it is very troublesome that the man who was chosen by the MAJORITY of owners is now for the first time chosen by MVCI himself instead.

Remember that this is the person who is supposed to represent my best interests when negotiating with Marriott!
You can't hardly have a bigger conflict of interest...

As an MVCI owner, those interests are mine and I want Marriott to protect them.
Wrong again as this proves that Marriott only protect their own interest not yours.
And their interests are clearly not the same as the owners ones.

And if you want to add to this post that Marriott is always doing the right thing....
Yes but only for them...

This is rambling and disjointed, difficult to follow. Also, it doesn't appear to take into consideration any of the comments that have already been made by me and/or others which respond to your concerns.

You don't want the answers that differ from your opinion, you want validation for your frustration and anger. Fine, you've gotten that, if you would bother to read what's been written before. You also want a punching bag. That's not me.

 

[c20854@aol.com]

Rather than attack the messengers - Just blame me - Allan Cohen

I have been reading some of the recent comments since the posting of my statement from the Marriott International Annual Meeting and the Aruba Ocean Club Annual Meeting. I stand by my comments, my reputation and my continued efforts on behalf of the Ocean Club Owners.

The Owners at the Aruba Ocean Club want to understand the issues and get truthful and timely information. I have tried and will continue to try to get Marriott International to get involved in a resolution.

It seems some of you - just like to vent for Marriott, but you have not been constructive or a party to all of this. I am not shirking my responsibility since I have been on the Board, but I accepted Marriott's words without question and now feel responsible for not being more diligent. Yes, if it makes you feel better you can blame me!

It was not until I started questioning about complaints that Owners raised about the Building that I became a problem. Also, my questions regarding lost revenue from the lobby space etc have been a thorn to Marriott. Yes, they did pay us back over $100,000 for the nine years of lost revenue that they collected, but I still do not have an answer to what I consider potentially hundreds of thousands of dollars of lost revenue from their Sales desk. Since their attorney and the Boards do not agree - lets get an opinion and clear this up once and for all. Does this sound fair!

Also, the Board hired independent mold, environmental and structural consultants whose reports are not final, yet the Board has informed the Owners that everything is fine. They are now not going to review the concerns raised by the Boards hired structural engineers, rather everything goes back to Marriott's consultants. Why is the roof underlayment not mechanically fastened per mfg requirement? Have our consultants signed off on the roof load and drainage capacity? A licensed structural engineer is fine, but at least let us get a review of the issues that our consultants raised and what is wrong with asking Marriott for a hold harmless on all the work that is being done with their oversight.

To note a few, if any Owner had seen the workmanship on the atrium windows that our consultant showed me they would have been shocked. If you saw that the exterior wall behind the lobby front desk just went into the ground without any water barrier and thus leaked from day one you would have been shocked. No one should have accepted this workmanship.


The Owners have been paying for these and many other building failures time after time. Unfortunately, it was not until we passed the January 14, 2008 resolution threatening to forward all our issues to legal counsel that Marriott ever reacted. I feel that the past lack of oversight has cost us dearly.

The Owners need to see how much they have spent over the past years on repairs and maintenance for a problem building. Remember, the Owners are paying for all this. It did not make any Owner feel good to see the printed historical records of Aruba found recently which states:

"...There were more serious problems for two hotels under construction north of Holiday Inn, which were to be named Plantation Bay and Beta Hotel respectively. Before construction was completed, they ran out of money, the Italian contractors had left without notice and the unfinished buildings were left empty for years, like modern time ruins. The government was even considering blowing up the skeletons when hotel magnate Marriott took care of them. In the course of the nineties, the Marriott Aruba Resort (the former Plantation Bay) was finished, followed by the Marriott Vacation Club (the former Beta Hotel). In 2007, the enormous Marriott Surf Club completed the triptych. That was how one of the darkest pages of the history of tourism in Aruba ended. For the island and for the government of Aruba however, the misery was not over yet.: the companies that had begun developing these and some other never started projects with government guarantees, summoned the country of Aruba and its government in court in the United States and in Italy and won their claims. Tens of millions of dollars were at stake, guaranteed by the government at that time. The government had to comply and the financial obligations that were the consequence of this were an enormous burdon on the state budget, which still causes an increasing deficit on the state balance."

For many Owners this news and the lack of disclosure raises many concerns.

As I have stated before, anyone who wants to contact me, please feel free to do so. I do not see any purpose for the few of you who continue to vent against the Concerned Owners. I realize that Marriott reads these posts everyday, and my statement to the Board of Directors of Marriott International stand. I am willing to work with them at any time. I do feel that this can be resolved with some understanding. Unfortunately, MVCI cannot be the vehicle alone, they are too close to the situation.

If you talk to a concerned Owner in person you will not find them unreasonable, although everyone expresses themselves in a different manner. They only want fairness. Sometimes the blogs get out of control, especially when some of you just want to bait each other.

But every Owner is entitled to know what is going on. I do not feel that any information (other than maybe a personnel issues) that I as a Board member and Owner know could not be shared with my fellow Owners. I have been accused of telling Owners too much.

The Board should not be afraid of openness, we should be working together.

It is unfortunate that a few of those on this blog continue to bash those asking questions or providing information. Why not stop and work towards getting constructive answers from Marriott to the concerns raised about the building,management oversight, lost revenue and the costs that Owners have incurred.

This is my first post, since we have many issues and should be working together to resolve, you can email or call me directly with constructive comments in the future. Thank you.

Allan Cohen
Former President Aruba Ocean Club
c20854@aol.com

 

[ecwinch]

Allan,

Thanks for showing up. Early on when I asked the question of why you were not here to verify the information that Marksue was presenting on your behalf, Marksue responded that you were able to post on a public forum since you were a member of the BOD.

What has changed in that regard? Are you no longer a member of the BOD?

And can you articulate your plan to addressing the challenges that are facing the Ocean Club.

And if you were Bill Marriott, what would you do to resolve this situation. I would be interested in hearing what equitable relief you think should be provided. You speak of working together with Marriott while by-passing MVCI. Can you outline how you envision Marriott addressing your concerns?

Thanks

 

[lovearuba]

I
This is my first post, since we have many issues and should be working together to resolve, you can email or call me directly with constructive comments in the future. Thank you.

Allan Cohen
Former President Aruba Ocean Club
c20854@aol.com

Thanks Allan,
I am very proud of you and continue to be amazed at your honesty and commitment with this. I don't blame the board for not knowing what wasnt shared with them. I blame them for not seeking the transparency you do. It was hard to take much of the abuse that goes on with this thread and I am sure I irritated folks by my commitment to the cause but I am still proud to be one of the owners working for change. I am proud of you and Mark and any other owner who has continued to support this effort. Thanks again...

 

[modoaruba]

Allan's integrity is what is needed in a BOD that represents the owner's interest.
But integrity like this obviously comes with a price.
For owners to be complacent feeds the powers that be.

The unbiased knowledge of the history of the resort,the discoveries and findings are utmost in pursuing a solution.

I want to feel that my fees are going to legitimate uses without supporting a cover-up.

Do we want a checks and balances system with a supporting BOD that has the owner's interest foremost or pay the fees and shut up system?

All that is wanted is the questions answered truthfully and the rightful parties do the right thing.

 

[SueDonJ]

This is my first post ...

Welcome, Allan. I'm guessing that you are no longer a member of the board since the annual meeting and that must be why you are now able to post. It's nice to see you here - I look forward to anything new you can contribute to the discussion.

But first let me get some unpleasantness out of the way. It's best to clear the air, isn't it? I don't appreciate very much that in your first contribution to this discussion, you write:

"It seems some of you - just like to vent for Marriott, but you have not been constructive or a party to all of this."

"Sometimes the blogs get out of control, especially when some of you just want to bait each other."

"It is unfortunate that a few of those on this blog continue to bash those asking questions or providing information."

If you read through this entire "blog", you'll find that some of the critics here are most certainly owners at Aruba Ocean Club which makes them "a party to all this," and those non-owners who have also been participating in the discussion have written of their MVCI ownership as reason enough for them to be a party to this. I don't think it's up to you to decide if their reason is valid.

I would like for you to prove the incidents of "bait"-ing and "bash"-ing that you believe have occurred during this discussion. I'm open-minded enough to believe that questioning/suggesting/criticizing the methods that have been employed throughout the months that this situation has been developing, are not equal to baiting and bashing the people involved. Perhaps you can enlighten me?

I'd also like to point out that none of my words (or those of the other critics, as far as I can see) have been written with an agenda "for Marriott." It's up to every owner to understand exactly what his/her ownership in an MVCI property entails, and to gain a complete understanding of that it is necessary to realize the protections and obligations contained in the ownership documents as they pertain to the owners as well as the management company. Just because your critics have knowledge that allows us to believe that Marriott/MVCI/the BOD is entitled to perform or not perform certain actions, that does not mean that any of us has an agenda for Marriott. I personally resent the accusation.

And finally, I'm sure that this is entirely correct:

"If you talk to a concerned Owner in person you will not find them unreasonable, although everyone expresses themselves in a different manner."

But I also think that it would be entirely correct for any of us to extend that same courtesy to anyone who has participated in this discussion.

 

[marksue]

Allan,

It is great to have you on the blog. We have lost a big assest and the only one onthe board who I felt looked out for the owners. You openness and willing to share information on our investments was greatly appreciated. With you off the board now I do believe we the owners have taken a major step backwards, as the current board has proven over and over (not willing to open your proposals to address owner concerns) they are not looking out for what is best for the owners but what is best for them and Marriott.

Thank you for all your efforts and it is great to have you hear.

 

[tlwmkw]

Allan,

Welcome to this discussion! Hopefully you will be able to give better insight as to what is going on at Aruba Ocean Club. There have been talks of "secret information" and a general conspiracy which is hard to understand when those posting about it are talking at second, or third, hand. You have been involved directly and should be able to give another view point.

No one here is questioning your desire to have transparency and a dialogue with MVCI but the problem has been the methods you (and others) have used. You have managed to get some concessions from MVCI to cover the roof repairs, which is excellent, however in the process of all this you have stirred up the hornets nest to such an extent that you may lose MVCI and all their $$$'s behind the resort. It has happened before and could happen again. If that did happen you would then have all the costs of the roof and any other ongoing costs associated with the allegedly defective building.

Just because a building was stopped halfway through and left does not mean it is defective- it is happening all across the country at this time because of the economic downturn. At this time a large hotel project in my town has been stalled at the same stage that the Ocean Club/Beta Hotel was and will probably go into foreclosure- any future buyer will have to ensure that it is not damaged/compromised by being left open for a period of time. I'm sure MVCI will claim that they did that and to fight them on this could get very costly.

Your goals now should be to work with MVCI to get the building up to the Marriott standards so that it will have value in the future. If you cause MVCI to walk away from the Ocean Club you may be in a much worse situation. You cannot re-write the past but you should ensure that the future will not include the same mistakes that have already been made. This requires compromise and it appears that has been missing in all this. You need to be sure that the resort is appropriately funded so that you do not get large assessments- the MF's should be adjusted so that this does not occur in the future (and that will cause a rise in fees). Apparently the resort was underfunded up to now and that should be explained to owners (which I believe MVCI has done) so that they can understand why there has been a sharp increase in MF's.

Those of us posting on this haven't done so to annoy or antagonize but simply to try to prevent a bad situation from getting much worse. So far we haven't really achieved that but I continue to wish you luck with your goals for your resort.

tlwmkw

 

[lovearuba]

Constructive comments

I
This is my first post, since we have many issues and should be working together to resolve, you can email or call me directly with constructive comments in the future. Thank you.

Allan Cohen
Former President Aruba Ocean Club
c20854@aol.com

I got the impresssion, Allan wants folks to email him directly or to call him.

 

[Eric]

Although I don't know all the details of the past, one thing I have heard over and over again was Aruba Ocean Club was mis managed way before this roof issue. Just a wild guess but maybe that was the reason Marriott wanted Allan off the BOD and not because he was to much on the owners side. The roof aside, the resort was way under what they needed for reserves which will fall squarely on the hands of the past president. Just being a nice guy and wanted complete disclosure from the BOD does not make you an effective President. Before the AOC trio jump all over me, you would have no clue who was or wasn't to blame for this and I don't know for sure either but this is what I have heard so if you are going to defend him, do it with facts.

Allan,

Thanks for showing up. Early on when I asked the question of why you were not here to verify the information that Marksue was presenting on your behalf, Marksue responded that you were able to post on a public forum since you were a member of the BOD.

What has changed in that regard? Are you no longer a member of the BOD?

And can you articulate your plan to addressing the challenges that are facing the Ocean Club.

And if you were Bill Marriott, what would you do to resolve this situation. I would be interested in hearing what equitable relief you think should be provided. You speak of working together with Marriott while by-passing MVCI. Can you outline how you envision Marriott addressing your concerns?

Thanks

 

[taffy19]

Allan,

Welcome to this discussion! Hopefully you will be able to give better insight as to what is going on at Aruba Ocean Club. There have been talks of "secret information" and a general conspiracy which is hard to understand when those posting about it are talking at second, or third, hand. You have been involved directly and should be able to give another view point.

No one here is questioning your desire to have transparency and a dialogue with MVCI but the problem has been the methods you (and others) have used. You have managed to get some concessions from MVCI to cover the roof repairs, which is excellent, however in the process of all this you have stirred up the hornets nest to such an extent that you may lose MVCI and all their $$$'s behind the resort. It has happened before and could happen again. If that did happen you would then have all the costs of the roof and any other ongoing costs associated with the allegedly defective building.

Just because a building was stopped halfway through and left does not mean it is defective- it is happening all across the country at this time because of the economic downturn. At this time a large hotel project in my town has been stalled at the same stage that the Ocean Club/Beta Hotel was and will probably go into foreclosure- any future buyer will have to ensure that it is not damaged/compromised by being left open for a period of time. I'm sure MVCI will claim that they did that and to fight them on this could get very costly.

Your goals now should be to work with MVCI to get the building up to the Marriott standards so that it will have value in the future. If you cause MVCI to walk away from the Ocean Club you may be in a much worse situation. You cannot re-write the past but you should ensure that the future will not include the same mistakes that have already been made. This requires compromise and it appears that has been missing in all this. You need to be sure that the resort is appropriately funded so that you do not get large assessments- the MF's should be adjusted so that this does not occur in the future (and that will cause a rise in fees). Apparently the resort was underfunded up to now and that should be explained to owners (which I believe MVCI has done) so that they can understand why there has been a sharp increase in MF's.

Those of us posting on this haven't done so to annoy or antagonize but simply to try to prevent a bad situation from getting much worse. So far we haven't really achieved that but I continue to wish you luck with your goals for your resort.

tlwmkw

This is what I don't understand either and I have commented about it before in this thread. If the roof or windows were bad for several years and a lot of patch work had been done already then why didn't the HOA raise the amount for the reserves so that no big assessments have to be billed one after the other in such a short time?

Someone here is guilty of not keeping the books up properly. I don't know who is at fault but to me it looks like both are at fault. Isn't the Marriott part of the HOA too? They should have recommended the increase in reserves and the management company should have notified the HOA of the constant repairs. It is a big mess and I sympathize with the owners here. I am glad we can read the progress of what is going on and I hope that the Marriott management company as well as the HOA learn from this and won't make this mistake again here or at any other Marriott resort. Adequate reserves are very important if you don't want these surprises!

An act of God is something else but this is negligence or something else that was kept quiet, maybe? I hope not as most construction needs building inspections that the work has been performed to code and is correct unless the Government is corrupt and let it slide. That would even be worse as that is hard to prove.

For the record, we do not own here but as a single Marriott timeshare owner (luckily), I am concerned because it affects all of us and also the outcome eventually and I hope it is favorable to the owners at this resort.

The roof has had wear and tear from all the years you have owned the building(s) so Marriott will never pay for a whole new roof as that is the way it normally is, so you cannot expect that either.

Whatever you do, don't start a class action lawsuit because you will end up with nothing unless there is really a cover-up but I doubt it very much and these type of attorneys will get most of the proceeds and the Marriott will pass their expenses right on to you or all of us.

 

[ecwinch]

Although I don't know all the details of the past, one thing I have heard over and over again was Aruba Ocean Club was mis managed way before this roof issue. Just a wild guess but maybe that was the reason Marriott wanted Allan off the BOD and not because he was to much on the owners side. The roof aside, the resort was way under what they needed for reserves which will fall squarely on the hands of the past president. Just being a nice guy and wanted complete disclosure from the BOD does not make you an effective President. Before the AOC trio jump all over me, you would have no clue who was or wasn't to blame for this and I don't know for sure either but this is what I have heard so if you are going to defend him, do it with facts.

Eric,

Please apply the same standard to your arguments as you suggest for the AOC Trio. The other side provides enough innuendo and half-truths for most of us, no need to compound the problem.

 

[Eric]

My point was the reserve was underfunded and fees mismanaged for years whic was a major cause of these increases. That just plain fact. My point was is it the BOD's fault and mainly the Pres. or was there more factors ?

Eric,

Please apply the same standard to your arguments as you suggest for the AOC Trio. The other side provides enough innuendo and half-truths for most of us, no need to compound the problem.

 

[Eric]

Someone here is guilty of not keeping the books up properly. I don't know who is at fault but to me it looks like both are at fault. Isn't the Marriott part of the HOA too? They should have recommended the increase in reserves and the management company should have notified the HOA of the constant repairs. .

I agree 100%. Sounds like both MVCI & the Board made major mistakes. By Marritot offering to pay a percentage, I think thats fair. My whole issue here is the Board didn't exactly do their job correctly either yet Allan doesn't want to hear that.

 

[ecwinch]

My point was the reserve was underfunded and fees mismanaged for years whic was a major cause of these increases. That just plain fact. My point was is it the BOD's fault and mainly the Pres. or was there more factors ?

I do not think that is a fair indictment unless you have specific proof that there was sufficient information in a reserve study for the BOD to know that reserves were unfunded.

The fact that the reserves were insufficient to meet requirements is not factual evidence of mismanagement. As noted - unforeseen requirements, excessive inflation, etc. were contributing factors to both problems.

With only anecdotal evidence, it is no more fair to blame the previous BOD than it is to blame the current one.

 

[Eric]

Thats pretty much what I am saying. Anyone who was on the BOD anywhere from 1 to 5 years ago should share in SOME of the blame. I have nu clue who long Alan was the Preident but it looks like he had some if not most of that tenure. Saying Marriott dumped him because he gave to much information is only part of why he got dumped is my guess. In all my years in big buiness, its amazing that when someone gets fired, its always the companies fault, not the employees.

I do not think that is a fair indictment unless you have specific proof that there was sufficient information in a reserve study for the BOD to know that reserves were unfunded.

The fact that the reserves were insufficient to meet requirements is not factual evidence of mismanagement. As noted - unforeseen requirements, excessive inflation, etc. were contributing factors to both problems.

With only anecdotal evidence, it is no more fair to blame the previous BOD than it is to blame the current one.

 

[ecwinch]

Let me restate.

If is not fair to blame Allan for the reserve being insufficient unless you have specific proof that he knew the reserve was insufficient and he failed to act on it.

Why should he even share in the blame? He did not conduct the reserve study. I do not know him, but I doubt he is qualified to conduct a reserve study himself. So how could it be his fault in any fashion? Simply because he was BOD president?

 

[Eric]

It is the BOD job to make sure there is enough monies for future repairs etc. What do you think, every 5 years the "reserve fairly" leaves a note under his pillow ? This is something that has to be evaluated yearly. It is his job to know.

Let me restate.

If is not fair to blame Allan for the reserve being insufficient unless you have specific proof that he knew the reserve was insufficient and he failed to act on it.

Why should he even share in the blame? He did not conduct the reserve study. I do not know him, but I doubt he is qualified to conduct a reserve study himself. So how could it be his fault in any fashion? Simply because he was BOD president?

 

[ecwinch]

It is the BOD job to make sure there is enough monies for future repairs etc. What do you think, every 5 years the "reserve fairly" leaves a note under his pillow ? This is something that has to be evaluated yearly. It is his job to know.

Your wrong. It is the job of the BOD to use their reasonable business judgment in setting the contribution to the reserves. They do so based on the results of a reserve study. But they have no ability to know with 100% certainty what the future will hold - i.e will the rate of inflation exceed the studies assumption, will a hurricane hit, or will the cost of energy and construction materials exceed the rate of inflation. All things that happened at AOC.

By your standard every BOD should overfund their reserves to avoid being criticized for mis-management.

So back to my original point, do you have proof of that he knew the reserves were unfunded? No, you do not. You are engaging in the exact same tactics that many on this forum have taken Marksue to task for. You are using faulty logic to reach a conclusion that is not supported by the facts.

 

[cmed2c2]

THe saga of the Ocean Club

Below is an email that i sent Allan yesterday.

"

Allan,
First of all, let me thank you for all of your efforts on our behalf. My wife and I are 4 week owners at the Ocean Club and are truly upset and concerned at the apparant lack of caring by the current board and management.
We are going down the last two weeks of June and I have asked to meet the new GM with no reply so far.
If any other owners are going to be there from June 20 thru July 4, please let me know and maybe we can get together for a little info session.
Thank you again for your efforts and let us know if there is anything else we can do in the way of support
Thanks
Dick & Deb Farrar

Email: Cmed2c2@aol.com


THis is my first post here at this site but I have followed this controversy for a while now and am concerned.
I too have been a strong support of Marriott both with the timeshares and the hotel stays. The brand name is the primanry reason for buying our first timeshare in 1995 preconstruction in Fort Lauderdale (Beachplace)

Once again, if anyone will be in Aruba during the last two weeks of June, we would love to get together.

 

[lovearuba]

You will just miss us

We are heading there early June. I bought for the same reasons as you and hope to meet other owners while there. We can continue to provide contact information to them if they are interested in getting involved. They can make their own decisions on whether or not to join the effort.

 

[taffy19]

Your wrong. It is the job of the BOD to use their reasonable business judgment in setting the contribution to the reserves. They do so based on the results of a reserve study. But they have no ability to know with 100% certainty what the future will hold - i.e will the rate of inflation exceed the studies assumption, will a hurricane hit, or will the cost of energy and construction materials exceed the rate of inflation. All things that happened at AOC.

By your standard every BOD should overfund their reserves to avoid being criticized for mis-management.

So back to my original point, do you have proof of that he knew the reserves were unfunded? No, you do not. You are engaging in the exact same tactics that many on this forum have taken Marksue to task for. You are using faulty logic to reach a conclusion that is not supported by the facts.

Don't they use an accounting firm for that? They do with our independent resorts. We receive a report once a year. I am not sure if Marriott does this or not. I should check. It is normally done by a professional firm because board members may not be accountants or CPAs but the BOD have to give them the input for the figures. I also thought that reserves have to be funded in the account at a certain percentage.

Are there any CPAs here who read this thread?

 

[Dave M]

Yes, I'm a CPA.

Yes, the financial statements for all Marriott resorts are audited each year. However, it would be rare that an accounting/CPA firm would do a reserve study, which is not directly related to the financial statements. For large resorts and condo associations, that task is normally contracted to an engineering firm that specializes in such studies. That's because CPA firms usually don't have the necessary expertise with respect to how long it will take before a particular asset (roof, furniture, swimming pool liner, tennis court surface, etc.) will need to be replaced. My understanding is that Marriott has some in-house engineering expertise, so having an engineering firm do the study might be more costly, depending on the circumstances.

 

[timeos2]

Reserve studies can be good or bad

Yes, I'm a CPA.

Yes, the financial statements for all Marriott resorts are audited each year. However, it would be rare that an accounting/CPA firm would do a reserve study, which is not directly related to the financial statements. For large resorts and condo associations, that task is normally contracted to an engineering firm that specializes in such studies. That's because CPA firms usually don't have the necessary expertise with respect to how long it will take before a particular asset (roof, furniture, swimming pool liner, tennis court surface, etc.) will need to be replaced. My understanding is that Marriott has some in-house engineering expertise, so having an engineering firm do the study might be more costly, depending on the circumstances.

A reserve study is only as good as the information provided and the effort made. We have had quotes from companies for a few hundred dollars that purport to be all inclusive and detailed but are actually 99% boilerplate and meaningless. We have have others from $2000 - $7000 that go into varying levels of detail and on site inspection. All have to make assumptions about longevity of materials and buildings that may or may not come to pass. It is at best a reasonable guess as to future costs but usually far better than than no attempt.

Most resorts do one every 3-5 years and base the reserve collections at lest in part based on those reports. The more accurate they turn out to be the better the funding matches the needs. The worse they are the more likely costs will far exceed funding available. Can you say Special Assessment?

 

[Dave M]

I agree, John.

Further, if a resort has such studies done regularly, as Marriott and most big resorts do, it's rarely the Board's "fault" when a special assessment is needed. Such assessments are necessary when something major and unexpected happens (such as for Kauai Beach Club a few years ago), when assets wear out earlier than expected (sometimes due to adverse weather conditions) or when replacement costs increase much faster (e.g., through inflation) than projected in the professional reserve study.

The only way to be sure that there is never a special assessment is to fund the reserve account at such a high level that there is no possibility of a need for such an assessment. Doing so would boost our MFs unnecessarily high.

On average over the past nine years, only two Marriott resorts per year have had special assessments. That's a bit misleading because several resorts have spread such assessments out over multiple years and I included each year of such an assessment as a separate assessment.