Trouble w-HOA Meeting at Seaworld

[Talent312]

This just in from HGVC...
Dear Orlando Vacation Suites Owner (Seaworld):

The Special Owners Meeting for the Orlando Vacation Suites II Condominium Association Inc. is just days away - and we need your vote now! ... At this time, not enough Owners have voted to constitute a quorum. [Emphasis Added] If the association fails to reach a quorum, then important business related to the ongoing maintenance and well-being of your Home Resort cannot be conducted. In addition, unless the membership votes to waive the statutory funding of reserves, the association will be required to increase maintenance fees for all Owners to meet the statutory reserve requirements...

<HGVC begging for participation>

 

[spike]

I got the same message. (Duh, I'm an owner.) Went to the HGVC site to read up on whatever, and then to vote but the site was slow or down down and I couldn't pull up anything.

I'm not sure what the issue is or how I would vote at this time....

 

[Carolinian]

If they are asking for a proxy but sharing no more information than that, it raises a huge red flag.

 

[Talent312]

I'm tempted to go to the meeting in person.
However, I'm fairly well satisfied that all they want to do there is maintain the status quo.
Hilton is usually straight about it plans and there is an invitation to attend the BOD meeting as well.

 

[Sandy VDH]

According to the paper documents I received, this is a special owners meeting, not the annual meeting.

Main objectives:
1)start the new fall annual meeting cycle
2) give owners the opportuntity to waive the statutory reserve requirement for funding of reserves prior to the distribution of the 2009 assessment Bills
3) and conduct any other necessary association business.

So point 2 is really the item of interest.

The paperwork states that under FL law HOAs are required to fund reserves at statutory levels. The state permits a waiver with an affirmation by a majority of the owners voting. The board is recommending that a logn-range cash flow method be used, as has been used in the past.

Normally we would vote for this is the spring, but since they are changing cycles and getting really for 2009 assessments they are moving this to the fall cycle and thus it requires a vote.

So it appears from the wording that it is business as usually, but a proxy and thus are needed since things have moved to a fall meeting.

 

[london]

Quorum's

This just in from HGVC...
Dear Orlando Vacation Suites Owner (Seaworld):

The Special Owners Meeting for the Orlando Vacation Suites II Condominium Association Inc. is just days away - and we need your vote now! ... At this time, not enough Owners have voted to constitute a quorum. [Emphasis Added] If the association fails to reach a quorum, then important business related to the ongoing maintenance and well-being of your Home Resort cannot be conducted. In addition, unless the membership votes to waive the statutory funding of reserves, the association will be required to increase maintenance fees for all Owners to meet the statutory reserve requirements...

<HGVC begging for participation>

HOA are always stressing the need for a quorum for annual and special meetings.

One time, one of our resorts failed to meet a quorum, and had to remail all the data and proxie out a second time, at a cost of 6K for the mailing.

Lately, we have met quorums.

 

[Zac495]

What do savy Tuggers suggest? I'll go on line and vote or whatever. I usually ignore those things.

 

[Talent312]

What do savy Tuggers suggest? I'll go on line and vote or whatever. I usually ignore those things.

I dunno why they suddenly decided they needed to move up the annual meetings, but at least vote to waive the statutory reserve requirement... as that otherwise will result in a significant MF increase.
= Rog' =

 

[Sandy VDH]

They decided to move the meeting to the fall, so that it is closer to the time the budget for the next year are approved. So the annual meeting and next years budgets are coordinated.

At least that is what I got out of reading the material.

 

[jin]

How exactly do I go about voting online, and when is the deadline?

 

[timeos2]

Easy to underfund reserves - high cost later

I dunno why they suddenly decided they needed to move up the annual meetings, but at least vote to waive the statutory reserve requirement... as that otherwise will result in a significant MF increase.
= Rog' =

Underfunding the reserves is an invitation to future special assessments and/or declining resort quality/maintenance. The statute requirements are minimal - why would they want to fund even less? Not a good idea IMO. Don't let the good condition of things TODAY make you think they won't need expensive replacement or upgrades in 5 -7 years. If they haven't put aside enough slowly you will be nicked for a far more painful assessment then. It is a foolish move.

 

[jestme]

As Hilton still owns some of the inventory there, it is to their benefit to delay reserve costs until later on, when it is fully sold out. However, in Hilton's defense, they have a lot of experience in hotel maintenance, and the reserves required, etc. I don't own there, but if you read the minutes of previous meetings, you will probably see something relevant in there regarding the reserves and the reasoning for the current schedule.

 

[Talent312]

How exactly do I go about voting online, and when is the deadline?

The meeting is Nov. 11th at 2PM, and you'd need to vote B4 then. If you are an owner at the resort, you should have received a couple of e-mails by now. If you think that you were overlooked, call the Club to find out why.

Here are the instructions they sent me:
"To view the meeting documents (including agenda and notice) and submit your proxy online, simply log in at [https://www.hgvclub.com/login.php ],
select the "Contracts and Loans" tab under "My Ownership" and click the "Vote Now" button beside your contract number.
--------------
A question for those who say that meeting the statutory reserve would save us from a special assessment down the road: If a dip into the reserve would save us from a special assessment, would we not then need an additional assesment to restore the reserve, anyway? To me, a cash-flow analysis makes more sense... Especially since Orlando is not subject to having the beach washed out from under it.

 

[Golfnow]

is there an annual budget that someone can upload. I don't own here, but want to see the difference in my DVC.

Thanks,

J

 

[Talent312]

is there an annual budget that someone can upload. I don't own here, but want to see the difference in my DVC.

The last budget I could find online for "OVS II" was for CY 2007...
omitting the "per 1BR, per 2BR, per 3BR" numbers:
448 Units (23,296 unit/weeks)

OPERATING REVENUE
Association Fees 12,529,677
Late Fee Income 121,859
Interest Income 33,102
Support Area 1 - Office 1,045
Support Area 2 - Retail 3,244
Support Area 3 - Pool Bar 5,406
Support Area 4 - Lobby Bar 1,045
Support Area 5 - Deli 5,406
TOTAL OPERATING REVENUE 12,700,784

EXPENSES
ADMINISTRATIVE
Annual Audit 7,500
Other Administrative Expenses 834,968
Board Reimbursements 3,656
Fees Payable to the Division 46,592
Financial Services/Accounting 215,488
Postage, Printing, Newsletter 250,556
Management Fee 1,322,761
..... Total 2,681,521

OPERATIONS EXPENSE
Office, Desk, Reservations, Bell Service 1,798,852
Housekeeping, Laundry, Supplies 1,872,045
Security Provisions 469,489
Uniforms 66,309
Grounds & Landscaping 424,849
Pool & Spa 106,627
Recreation & Concierge 172,498
..... Total 4,910,669

UTILITIES
Utilities Reimbursement (42,021)
Electric 875,118
Water, Sewer, Gas 617,558
Waste Disposal 74,891
Telephone 00
Cable Television 83,540
..... Total 1,609,086

BUILDING
Maintenance-Service, Equipment, Supplies 1,287,377
Building & Equipment Contracts 132,618
Telephone Contract 12,721
Elevator & Fire System Contracts 78,093
Garage Maintenance 33,424
..... Total 1,544,233

INSURANCE & TAXES
Insurance 1,895,651
Income Tax 59,624
Taxes Upon Timeshare Property (Ad Valorem Taxes) N/A
Taxes Upon Leased Areas N/A
..... Total 1,955,275

TOTAL OPERATING EXPENSES 12,700,784

OPERATING PROFIT/(LOSS) 0 0.00 (0.00) 0.00

RESERVE REVENUE 1,774,340

RESERVE EXPENSES
Capital Reserves:
Interior 1,217,700
Roof 84,230
Paving 140,562
Common Area Rehabilitation 267,517
..... Total 1,710,009
Painting Reserve 64,331
RESERVE EXPENSE TOTAL 1,774,340
RESERVE PROFIT/(LOSS) 00

There's some more numbers, but that's the gist of it.

 

[Golfnow]

Thanks, I really appreciate it.

If anyone has more budgets, I would like to compare those as well.

Thanks,

J