Ocean Pointe 2023 MF's - More Than 25% Increase !! / Kingfish Roof [MERGED]

[rudy]

Just took a quick glance at my Ocean Point Association fees. Everything went up 10% or less, EXCEPT for the reserve fee which increased by nearly 50% - This cannot be correct? (wishful think on my part) Is it?reserve fee jumped from 535.74 to 1011.27 with an increase of 475.53 for an. 88% increase. To add insult to injury the added a special reserve fee 198.24. How can this be justified

 

[Fasttr]

Is this from an invoice, or from a proposed budget. If proposed budget, it likely is based on fully funded reserves, which likely will be waived, so final would be less.

 

[rudy]

Is this from an invoice, or from a proposed budget. If proposed budget, it likely is based on fully funded reserves, which likely will be waived, so final would be less.

It came in the mail with the notice of the annual meeting, so you are probably correct in that it is a proposed budget. Thanks for saving my night's rest

 

[dougp26364]

There was a post on an Ocean Pointe FB Group complaining that the fees for OP went up 28%.

I haven’t been home yet to check, but if true that means my MF are nearly $500 higher this year and the fee to DC point ratio is about dead even.

I’m beginning to wonder of the TRUE motivation is to equal the MF/point ratio to be dead even so as to remove any possibility that owners can say, I’d rather keep my deed than convert to pure points.

 

[dougp26364]

If memory serves me correctly, it’s up approx $500. A FB group posted it’s a 28% increase and I don’t doubt it.

I want to know why the cash reserve fee is over $1,000. Did they fail to waive the requirement to fully fund the reserve? NONE of the other resorts require that sort of cash reserve.

Marriott Ocean Pointe - 3BR Platinum Oceanfront Annual

Total: $2993.19

I don't recall what 2022 was, so unsure on % increase. I'll try to find, and if so, update. The MVCI website unfortunately isn't showing last years Ocean Pointe maintenance fee deck :/ .

Fiscal Year Description	Amount Due
2023 Florida Club Fee	4.00
2023 Property Tax Fee	282.36
2023 Replacement Reserve	1087.92
2023 Operating Fee	1618.91

 

[dougp26364]

Has anyone noticed this years MF’s? They’re u substantially with cash reserves on a 3 bedroom over $1,000.

our silver season 3 bedroom is $2,886 this year. Last year it was around $2,400. They haven’t posted the budget yet but I really want to see how they validate this sort of increase

 

[pedro47]

Has anyone noticed this years MF’s? They’re u substantially with cash reserves on a 3 bedroom over $1,000.

our silver season 3 bedroom is $2,886 this year. Last year it was around $2,400. They haven’t posted the budget yet but I really want to see how they validate this sort of increase

Wow! That is over a 10 % increase.

 

[hangloose]

If memory serves me correctly, it’s up approx $500. A FB group posted it’s a 28% increase and I don’t doubt it.

I want to know why the cash reserve fee is over $1,000. Did they fail to waive the requirement to fully fund the reserve? NONE of the other resorts require that sort of cash reserve.

Edited my post, as I was able to find 2022 Fees. Up 26.1% for the 3BR OF Annual Plat. Ouch! That the highest increase I've ever seen for my MVCI properties, by far...even with hurricane adds, etc.

No detail from Ocean Pointe yet on why. Normally, they send a MFee breakdown with a newsletter as to why. Will move this to the normal MF Discussion thread.

 

[hangloose]

Just updated my 3BR OF Plat Annual. It went up 26.1% YTY. Ouch!

I would love to hear more on why, with input from the OP Board. Normally, the GM will send a newsletter I think attached to the MFee package. I haven't seen that yet. Rumor is that it's tied to the reserves increasing perhaps due to FL law changing, but not positive. Hoping this is just a 2023 increase, vs multi-year or ongoing. At $3k, OP is getting pricey. Maybe I need to think about using my MGV via Florida Club to trade in more often...as it's a little over half the MFees.

Do we still have someone here which sits on the OP Board? Missing the input from the prior Yahoo Group, which was always very helpful.

 

[SueDonJ]

Moderator Note: Posts from several threads have been moved to this one. Obviously the extremely high MF's increase this year at Ocean Pointe warrants its own thread. Please keep the discussion limited to this thread. Thanks!

 

[SueDonJ]

Based on the breakdown in the quoted info in Post #5 above, I'm guessing that the owners didn't vote in favor of waiving Fully-Funded Reserves this year. This thread has a detailed discussion about Fully-Funded Reserves mandates and waivers: MVC Trust Owners Association - Reserve Funding Waiver etc?

 

[DIB]

I recall hearing a month or so ago that the OP Reserve Fees were going up significantly due to a one time special assessment to repair the Kingfish roof which had some defects/Issues. But I can not verify whether or not this is true. And that the assessment was likely to spread out over a few years. No other info has yet been made available to OP owners that I am aware, but I am emailing the Board via MVCI as well as the MVCI admin person at OP who deals with the Board. My Platinum 3BR OF reserve fee went from $500 last year to $1087.92 this cycle. My Platinum 2BR OS went from $457 to $904.25. I do not know whether all of the increase is due to the Kingfish roof, or whether some is due to a desire to fund Reserves at a higher percentage than previously.

 

[dioxide45]

I would think MVC has considerable voting power on these things. IIRC a bunch of years ago the waiving of fully funded reserves failed at Cypress Harbour. I would think in order for something like this to fail it would require MVC voting their shares to not waive fully funded reserves.

 

[ruthquilts]

Based on the breakdown in the quoted info in Post #5 above, I'm guessing that the owners didn't vote in favor of waiving Fully-Funded Reserves this year. This thread has a detailed discussion about Fully-Funded Reserves mandates and waivers: MVC Trust Owners Association - Reserve Funding Waiver etc?

As an owner, it is 3 years since I received information about voting or about the annual meeting. Right now, there is a 1 hr wait to talk to an agent about verifying my email address, as I don't seem to be getting any information from MVC at all. Further, when I went to sign in it is now asking for my owner ID, and tells me I can find it by looking at the paper bill for maintenance fees, which I have not received in 3 years, or checking on the website, which I can't log into because it doesn't accept the owner ID I have on record to allow me to log in!

I would have voted in favor of waiving the fees. Maybe I am not the only one not getting information.

 

[pedro47]

Are the fees increasing over 10% in Florida because of all the serve hurricanes damages this past season ?
Are resorts insurance preimum costs sky rocketing for 2023????

 

[TheTimeTraveler]

As I understand it, the Kingfish roofing system needs to go thru a major structural rebuild and it's going to cost mega dollars (some serious issue recently discovered which should have been dealt with during initial construction back in 2006) I believe some of the building may need to be shut down in stages as this project proceeds.

I believe they will attempt starting this in January 2023 (last I had heard). And they say it will be very expensive!



.

 

[Superchief]

It's hard to believe that my silver season 2BR oceanside MF's at Ocean Pointe are now higher than my gold week at Oceana Palms. This is unacceptable and owners need to contact the board and MVC management. MF's are getting out of control as MVC is starting to treat owners like hotel franchisers and expect us to pay for all of their unnecessary buttons and whistles. Who is the GM now at Ocean Pointe? Is it the same guy who caused major increases when he was at Oceana Palms?

 

[Vacation fun]

Ok …I get it on everyone being upset … but it is my understanding that due to the roof replacement needed in Kingfish … it has resulted in a ONE time assessment fee of about $500 per unit for this budget . I know that is high and not want we want but to not do the replacement could result in water damages and water intrusion … so it is better to resolve it.

 

[dioxide45]

Ok …I get it on everyone being upset … but it is my understanding that due to the roof replacement needed in Kingfish … it has resulted in a ONE time assessment fee of about $500 per unit for this budget . I know that is high and not want we want but to not do the replacement could result in water damages and water intrusion … so it is better to resolve it.

Shouldn’t the SA be separated out in its own line item instead of being lumped in to the Replacement Reserves?

 

[Superchief]

?Shouldn’t the SA be separated out in its own line item instead of being lumped in to the Replacement Reserves?

I agree. Additionally, if it was a design flaw shouldn't MVC management be responsible for paying for these repairs? Do they get their 10% fee on this $500

 

[Wahoo]

Here is the explanation from the Ocean Pointe board, included with the annual maintenance fee statement:

"Dear Marriott’s Ocean Pointe Owner, The accompanying 2023 Operating Budget includes a line item for a “Special Reserve Fee” in the amount of $3,481,533. This is because, in November 2021, the Resort site team discovered that there were sections of the east elevation soffits of the Kingfish Building that were cracking and breaking free from the building. These are the building’s areas that are most exposed to the ocean and frequent storms, as this building is uniquely positioned adjacent to the Inlet, thereby sustaining direct wind/saltwater impact from the South and East.

After engaging a 3rd party engineering firm to review the issue, it was determined that the best solution to address the deficiencies was to replace the tile roof system, including the repair and replacement of roof trusses and supports. Additionally, a replacement was recommended for those soffits in their entirety, as well as to apply a coating to protect against future cracking and/or breaking caused by rust or corrosion.

The Resort Management team facilitated an extensive review of the project scope with potential contractors and secured a proposal to address all involved repairs at a cost of $4,460,731, a project that will span the period from late Winter 2023, through the end of the year. The Special Reserve Fee is less than total project cost due to our use of already existing Reserve funds previously allocated to roof replacement.

We very much understand and empathize with all owners as to the impact and magnitude of this required maintenance fee increase. We want you to know that we will work diligently, notwithstanding unforeseen circumstances, to moderate future maintenance fee increases to every extent possible, while at the same time providing the Resort services and amenities you deserve and expect. This includes current consideration of moving to a six (versus five) year villa renovation cycle in an effort to moderate costs. The Board of Directors truly cares for every owner, and genuinely appreciates your continued loyalty and support.

Sincerely, Ocean Pointe at Palm Beach Shores Condominium Association, Inc. Board of Directors"

 

[dougp26364]

Shouldn’t the SA be separated out in its own line item instead of being lumped in to the Replacement Reserves?

I agree it probably should have been set out as an SA rather than an increase to the cash reserves.

The BOD should also have been out in front of this and communicated with owners so we could plan for the financial impact, especially at this time of year.

Perhaps Abound Points affect how best to allocate this extra expense. Maybe by putting it in the budget as part of the cash reserve it’s added into the calculations for Abound Points MF calculations. IOW, this is how it must be done so points owners who have access to Ocean Pointe share in the cost, even if it’s just a small amount. If it was just an SA, perhaps the cost would be shouldered solely by Ocean Pointe owners?

Still, if the BOD had been out in front of this with a notification of the additional cost BFORE leveling owners with a larger than expected bill, it would have relieved some anxiety and anger when I received the bill.

Now I want to know what their thinking is going forward. Is this a one off expense and my MF’s return to a more normal state next year? Is this going to be the norm going forward?

Perhaps now owners see why FL has their fully funded law that just be waived by owners each year. Had the resort been fully funded, we might not have seen this spike. Of course the MF’s would have been extraordinarily higher each year, so a one time shot line this isn’t necessarily so bad

 

[dioxide45]

I agree. Additionally, if it was a design flaw shouldn't MVC management be responsible for paying for these repairs? Do they get their 10% fee on this $500

I believe in the situation with the Aruba Ocean Club where there were deficiencies in the roof construction, Marriott I think covered half the cost of the repair. In that situation the original builder/contractor was out business. It doesn’t look like MVC is covering half the cost here…

 

[hangloose]

Wahoo - Thanks for posting the board response.

All - Do we know if this is a 1 yr added line item, or will it be multi-year?

 

[dioxide45]

I agree it probably should have been set out as an SA rather than an increase to the cash reserves.

The BOD should also have been out in front of this and communicated with owners so we could plan for the financial impact, especially at this time of year.

Perhaps Abound Points affect how best to allocate this extra expense. Maybe by putting it in the budget as part of the cash reserve it’s added into the calculations for Abound Points MF calculations. IOW, this is how it must be done so points owners who have access to Ocean Pointe share in the cost, even if it’s just a small amount. If it was just an SA, perhaps the cost would be shouldered solely by Ocean Pointe owners?

Still, if the BOD had been out in front of this with a notification of the additional cost BFORE leveling owners with a larger than expected bill, it would have relieved some anxiety and anger when I received the bill.

Now I want to know what their thinking is going forward. Is this a one off expense and my MF’s return to a more normal state next year? Is this going to be the norm going forward?

Perhaps now owners see why FL has their fully funded law that just be waived by owners each year. Had the resort been fully funded, we might not have seen this spike. Of course the MF’s would have been extraordinarily higher each year, so a one time shot line this isn’t necessarily so bad

I agree, there should have been communication BEFORE sending out the MF bills. This would be like being an employee at a company and getting to your annual review for them to give you a “doesn’t meet expectations” rating. Shouldn’t this be part of ongoing communications by the board to owners? Does the board provide an annual or semi annual newsletter to owners?