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J.E. Irausquin Boulevard 53
P.O. Box 368 Oranjestad
Aruba, Dutch Caribbean
Tel: 297-524-3000; Fax: 297-583-8191
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 Post subject: Week 5 2020
PostPosted: Fri Feb 14, 2020 11:40 am 
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Location: South Carolina USA
From: 10:02 A.M. – 11:07 A.M.
Members’ Meeting week 5
February 4, 2020 (36 Members)
Occupancy: 87.69%
Hosted by Lisseth Urbina.
BOD members present:
Kevin Foley – Chairman and Arthur Langbaum – Projects Manager.

ABC Staff Members present:
Luis Bello – Controller; Donald Pieters – Chief of Security;
Leoncia Vrolijk – Human Resources Manager; Teresa Britten – Front Office & Reservations Manager;
Freddy Cuervo – Maintenance Manager; René Paesch – Membership Accounting;
Ida Piternella – Member Relations/Executive Assistant; Edrienne Rosario - Activities and
Amanda Singh – Executive Assistant.

Lisseth:
Welcomed owners to the meeting and introduced the Board Members, Staff present and herself, the new interim General Manager & Executive Housekeeper.
Requested owners asking a question or voicing a concern to please state their name and unit number.

Agenda – Lisseth:
Refurbishment
Occupancy percentage week 5 + Breakdown
Safety & Prevention
Activities
Questions & Concerns

Palapas at CDM – Lisseth:
ABC members are allowed to occupy a palapa at 7 AM, but not before. Any palapas not occupied by CDM Members and Guests at 7 AM may then be occupied by ABC Members. All other rules that apply to CDM Members, also apply to ABC Members.

Refurbishment update – Freddy:
Ongoing Refurbishment Projects;
Air-conditioning – duration of approx. 3 years to be completed
Electrical panels;
1st panel completed
2nd & 3rd panel - TBD
Batch 5: 158/ 258 weeks 7 – 11
Batch 6: 153/ 155/ 253/ 255 weeks 10 – 14
Batch 7: 157/ 159/ 257/ 259 weeks 11 – 15

The Story Board shows you the color schemes that will be used (Fabrics, Tile, Cabinets and Paint); can also be viewed on our website.
What is being done:
What is being done:
o New tile floor & new shower tiles
o Countertop (Quartz)
o Cabinets
o Appliances (Stainless Steel):
§ Stainless steel Stove Top
§ Stainless Steel Microwave
§ Stainless Steel Range Hood
§ White Refrigerator
o New Flat Screen HD-LED TV’s
o New artwork
o Fixtures
o Planned Power Outlets built into the lamps
o Planned USB Charging Station
o Additional Electrical Outlets
o New Furniture & Drapes
o New Housewares
o New Linen
o New safes
o Hi-rise Toilets

Occupancy – Teresa:
Greeted everyone present.
Occupancy this week is 87.69%. This time last year our occupancy percentage was 97.71%.

We have a total of 273 owners and guests registered. 57 units are occupied by owners and 52 are occupied by guest of owners. We have no exchange guests currently in house, 5 units are occupied by renters, 4 units are currently no shows and 12 units in the rental program.

Please provide us with your valid e-mail address so that we can update you as the renovations continue, so that you don’t miss out on any important information. You can do this with the Executive Office, or the Front Office agents and they will provide it to the office. – Updating on your home address and phone number also to be done in the Executive Office. If you have a second email address, please provide that as well.

Online forms: Please make use of this option as this is the easiest way to submit to the Reservation’s office the guest of member forms, rental forms or if you would want to rent from the Club you can also do so online. There is now a new payment link for these online forms where you can make immediate payment with your credit/debit card. In order to access these forms just create a username and password right on the website and follow the instructions. Should you encounter any trouble with your username or password just submit a ticket right on the website and the webmaster will assist you. Should you need extended assistance please contact Ida from Member Relations.

Owners please do inform your guest(s) that we are undergoing renovations and should your room that you rented to them be worked on during their stay they will be relocated. A week before the owner’s interval week begins the Club will notify the owner should the guest(s) have to be relocated.

Confirm usage: You have the option to confirm your usage online right on our website – just click on the tab and following the instructions. It is important to confirm whether or not you will be using your week, especially now that we need rooms to relocate members during the refurbishment. Also to avoid having to pay the energy surcharge no show fee we encourage you to use one of these other options for not leaving your room unoccupied: The Resort’s rental program with a return to the owner of 85% of the rental rate, private rental or depositing your week(s) with the exchange companies.

Emergency contact: It is important to provide us with an emergency contact upon check in, especially those who are traveling alone.
Travel insurance: It is also very important to have because you never know what could happen, better safe than sorry.

Wi-Fi: Last year we had an upgrade to our Wi-Fi plan – now each package has been increased from 2 devices to 3 devices and for the additional $ 10.00 you can add an additional 2 more devices for a total of 5 devices max per Wi-Fi package.
The speed has also been increased – from 6 MGB download and 1 MGB upload to now 20 MGB downloads and 5 MGB uploads.
For any assistance with the Wi-Fi please ask at the Front Desk.

Energy Surcharge No Show: If an owner comes in one or two days after his interval week, didn’t inform us ahead of time and didn’t place these nights into the rental program, he will be charged for the energy surcharge for those nights. If he didn’t come for the whole week he will be billed the energy surcharge no show fee for the week and he will see it on his Club Dues statement.

Discount at Ling & Sons: Receive 5% discount at Ling and Sons on your groceries when presenting your membership card to the cashier prior to payment – no discount on Government priced items such as cigarettes and liquor.

6% Turnover Tax: As of October 1st of 2019 all businesses are required to include the 6% Turnover Tax into the prices which means that you won’t see this tax separately on your receipts any longer.

Friendly Reminder: Any room that is still vacant on Tuesday morning, whether it is in the Rental Program or not, will be subject to, and made available for major room maintenance work without any compensation to the owner. This is the only reasonable solution in order for our Maintenance Department to get the necessary repairs and maintenance done in our rooms to keep our Club a first-class timeshare resort. This may require relocation of a guest, which means that the owner of the room we relocate a guest to, will be compensated proportionately of the maintenance fee for that period.

Safety & Prevention – Donald:
Red flags on the beach; When you go swimming in the ocean, please be careful – this area is called the “Punta Brabo” – rough point, because there are 4 different currents meeting here. We have 3 red flags up on the beach which stay up. If you’re in the water with your float/noodle and it slips away, while you can still stand in the ocean, do not go after it and risk your life for a few dollars’ worth, just let it go.

There are buoys in the ocean, but they’re controlled by the Government; should you see one of the ropes are loose please notify us and we will inform them to come fix it.

We have new signs on the beach – no lifeguard on duty.

Stay hydrated; drink a lot of water, especially when you’re outside in the sun.

Balcony/patio doors must be kept closed to avoid mold and mildew. You will receive one warning, after that you will be fined.

Please double check if the stove knobs are completely shut off before leaving the room.

Anything left unattended under a hut before 6:00 a.m. will be removed.

Use of beach chairs and/ or beach lounges; If you take them close to the water please return them back once you’re done with them.

Hut checks 9:00 a.m. / 11:00 a.m., you have to be there for one of the checks. No reserving huts for others.

You are responsible for your towels so please keep an eye on them. You will be charged $25.00 for a lost towel. If it is within range of the cameras, we can try and track it for you.

Kids under the age of 16 must be accompanied by a parent or guardian.


Activities – Edrienne:
New activities schedule.
Bingo; Monday, Wednesday & Friday at 2pm, Cayenna Terrace, now $2 per card – new progressive. We also have free kids’ bingo on Thursdays – please sign up at the Activities Center.

Free family movie night every Wednesday from 6:00 p.m. – 8:00 p.m. under the Cayenna Terrace – please do sign up at least a day in advance at the activities center.

Zumba, Stretching & Water Aerobics with Imbert; Monday & Friday mornings in the Raymond Maduro Members Lounge. Water Aerobics right after in the ABC pool. Water aerobics at CDM on Tue-Wed-Thu. For correct times please check with the CDM Front Desk.

New ABCR logo caps for sale only $15.00 each, available colors are; navy blue, white, khaki and black.

Tito’s Tuesday’s beach party by Ricardo’s; all Tito’s drinks at $ 5.00 and BBQ at $ 20.00. Purchase tokens for this event at the bar. – Strictly 18+ only.

Upcoming carnival events:
Feb 7 Friday – 8:00 PM - 2:00 AM – Grand Tumba Contest – Carnival Village - San Nicolas
Feb 8 Saturday – 2:00 PM - 6:00 PM – Children's Parade Noord – Noord
Feb 8 Saturday – 8:00 PM - 2:00 AM – Unity Flag Fest – Carnival Village - San Nicolas
Feb 9 Sunday – 10:00 AM - 11:00 AM – Transfer of Command – Bestuurskantoor - Oranjestad
Feb 9 Sunday – 2:00 PM - 6:00 PM – Grand Children's Parade San Nicolas – San Nicolas

Lisseth:
Please support our concessions as they help keep the maintenance fees low.
The refurbishment FAQ sheet was distributed to the members present.

Q&A/Comments during the meeting;
Bridgette Caggiano #120: The new linen category, does that include upgraded mattresses?
Freddy: No, but the mattresses are part of the ongoing project we have.

Lisseth: The mattresses are changed every 5 years in sections; this year the mattresses in the high-rise and the West-wing will be changed.
Bridgette Caggiano #120: When you change the mattresses will you be replacing them with the same type/grade of mattress we currently have? Or will they be an upgraded mattress? The mattress in the CDM bedroom is much thicker, plushier and much more comfortable. I feel that our mattresses are not comfortable at all and many of us are here for many weeks so we’re sleeping on a mattress is just not comfortable; I have aches and pains, that I don’t even have at home, because of the mattress.

Mr. Foley: We are looking at other options; the Marriott has a line of mattress which is very well rated so we are going to look at them. It is interesting because some people love our new mattresses and other people don’t, but we are going to look into other options.

Gary Scobert #128: Something that has come up year after year is the Club’s website; it is so hard to get into, I’m pretty good with websites but this one isn’t very user-friendly so I could see why people would have trouble with it so I am asking again to see if anything can be done about this.
Mr. Langbaum: The website is in the process of being redesigned.

Bridgette Caggiano #120: I know the Board is aware of this and I just want to advise all the members; when you’re walking into the pool, the pool has been redone, the steps at the end have a little coping, which is similar to that around the pool, it’s very slippery so be careful when you walk in and that you keep your feet on the concrete portion of these steps because some people have slipped, they have not fallen forward, but if you’re walking in and you slip you’ll fall backwards so just a friendly advisory to be careful.
Mr. Langbaum: As you mentioned the Board is aware of this and it’s being addressed with the pool contractor.

Jean Valiquette #223: There are a couple of buoys that have come ashore, and they have been sitting there for the past month, they haven’t been moved and the water just brushes against them. Anything being done about those buoys or are they going to sit there for the whole year?
Donald: The buoys are controlled by the Government, the ATA (Aruba Tourism Authority) and I have called them numerous times and have left them several messages already regarding this.

Jean Valiquette #223: Maybe they should be pulled up before the tide takes them away.
Donald: I will look into this and see what can be done.

Robert Knauber #155 wk. 4 to Donald: I’ve spoken to you, Arthur and Kevin about changing the rules on the towels in the morning; I saw a woman come down with no towel, she may have had a towel in her bag, she took 2 chickees with just bags and when security came by and said something to her she took her phone, stuck it in her face and ignored them. I think there should be a rule that says “show your colors” when you’re out there because they’re taking chickees with bags and then, at whatever time I came down to get a chickee, there she was, with striped towels on 2 chickees. Your men were trying to do their job, but she just completely ignored them, put no towels out until later on. A suggestion that Kevin said was that when your men do their shift change, have them go through again at 7:00 a.m.
Donald: I will look into this.

Harvey Indeck #153: Does the Club have a clerk of the works hired? Usually, for the big construction jobs you’ll hire an engineer to go over and check all the work that has been done/ to go through the rooms one by one and nitpick them for every little thing that is not right and then he’ll make a punch list for the crew to come back and correct it and if it isn’t corrected he will not sign off the rooms. Do we have anybody on board that is going to do this for us?
Mr. Langbaum: We do have a program in place, the difference is we did not hire an outside contractor to do that survey. Each one of our Department Heads – our Housekeeping department, Maintenance department, before we release the room, they have to go through, they have to do the survey and accept that room. To go a step further we also have spot checks by other Department heads just so we have another set of eyes looking at what has been done.

Harvey Indeck #153: Not to belittle the people we have here but in cases of huge construction jobs like this sometimes a professional eye is a lot better than the local people who do this. When you build a large house, you’re a fool not to hire someone to watch over the construction for you. So I was just wondering, do we have the know how of picking out small things that could be wrong that you would obviously walk over. A civil engineer would walk in and know what to look for, know what remedies to use, and know what hasn’t been done.
Mr. Langbaum: As you know we are moving the stove from one side of the room to the other side, when that’s done we are actually going to bring in independent people to make sure we’ve done it correctly and make sure the gas lines are hooked up correctly. I do have to tell you that the staff here are extremely precise, I am extremely precise, but some of the managers were able to pick up things I didn’t see. Where we think its safety related, we will bring outside people to inspect it for us. Your point is well taken.

Harvey Indeck #153: The average person wouldn’t be able to interpret flaws in the painting or finished work and things like that, he may just overlook it and say I hope it works but there maybe something wrong there. We have people here that are capable of doing this?
Mr. Langbaum: Yes.

Jean Valiquette #223: I’m addressing a complaint I have heard for the past 42 years; for the lower units when somebody is moving furniture, a chair or something upstairs it makes a lot of noise/screeching sounds downstairs. I have a room downstairs that I rent and every time they tell me it’s so noisy. Is there anything going to be done about this during the refurbishment?
Mr. Langbaum: We are aware of this. Those chairs are very heavy and what most of us don’t know is that they’re a bit oversized meaning they’re deeper than a regular dining chair so one of the things we are going to be doing is looking at shortening that depth to standard dining room chair depth. We are also going to look into putting some type of clip/rubber cap or something of that sort at the bottom of the chairs. The only thing is when doing something like that at a resort you are going to have to maintain it constantly but it’s something we are addressing.

Member: One observation – I’ve seen pictures of the renovated rooms and they look beautiful but I thought that once they moved the stove to the other side of the room next to the refrigerator that they were going to extend that counter out a little bit for prep purposes but I don’t see that that has been done.
Mr. Langbaum: It is extended.

Same member: When is the projected finish year for the refurbishment?
Mr. Langbaum: It should take about 3 years to be completed.

Same member: How many units have already been refurbished?
Mr. Langbaum: 16.

Same member: How many rooms do we have in total?
Mr. Langbaum: 131.

Linda Meluski #402: The company that’s doing the refurbishment, where are they located?
Mr. Langbaum: The contractor is located in Aruba.

Linda Meluski #402: Where is the interior designer?
Mr. Langbaum: In Myrtle Beach, South Carolina.

Linda Meluski #402: Who is the manufacturer of the furniture?
Mr. Langbaum: Dillon furniture manufacturers in Dillon SC.

Linda Meluski #402: How often does the designer come onsite?
Mr. Langbaum: She was just here two and a half weeks ago.

Bridgette Caggiano #120: I’m getting ready to room change this Saturday and I heard that there was a change in procedure and I just wanted some clarifications. Can I keep my stuff in the refrigerator and when my new room is ready the bellboys will take them over? I did that last year and one of my friends switched rooms last Saturday and she said that you couldn’t do that anymore.
Teresa: Our room change procedure did not change. If you are moving to a room right next door or a few rooms down it would be easier to leave the refrigerator items in the room and just move them to your new room as soon as it’s done instead of taking out your items, bringing them all the way to the members lounge and then taking them back to that same area to your new room.

James Pullins #146 wk. 52: Now that we have 16 rooms done are we staying pretty close to the 25K budget per room?
Mr. Langbaum: No. based on what we have done on the first 16 rooms we are running at about 40K each room.

Member: Are the assessment going to be more?
Mr. Langbaum: We are not planning on that. You have to remember that we have only done 16 rooms so there is an extra cost associated to those rooms so when you “plug it in” right now today it comes out to 40K but that could change, it could be a little more or a little less.

James Pullins #146 wk. 52: Is it too late to make some modifications – i.e. the furniture manufacturer based in America rather than South America or Asia or something to give us comparable furniture. I am not aware of any places like this sourcing furniture from America.
Mr. Langbaum: We have looked at many furniture manufacturers in the US, we’ve seen samples from various manufacturers. I don’t think the Club, nor I, would want furniture out of pressed wood. Pressed wood on the Island I think would need to be replaced in a just 1 year, so some of the things that built up the cost is the material that we’re using.

Kathy Pullins #146 wk.52: Out of the 5.6 million that the assessment will generate for the Club, now you’re telling us that a little over 5 million that’s going to go just for the renovations? We’ve already done the pool. There are other things in that budget I don’t know whether the new handicap bathrooms are in that budget but are you putting a moratorium on those other things so that we don’t have to raise an assessment again?
Mr. Langbaum: What we are doing right now is we are tracking the cost of what was originally planned and things that weren’t necessarily anticipated. There is no moratorium in place at this point. If we start getting crazy and “out of control” we will deal with it but there are some things we won’t change. As an example, we are not going to change the floor. We started with the first 16 rooms – we’ve put the tiles down, laid them in a certain pattern and it’s going to stay like that for consistency. You wouldn’t want to see certain type of floor in one room and a different floor in another.

Kathy Pullins #146 wk.52: When we voted on the convocation there was the refurbishment but there were also other items listed, like the pools, can any of those things be postponed so that we could use that money for the rooms?
Mr. Langbaum: Probably not. As an example; the electrical panels were part of that budget. The electrical panels were 42 years old, so we had to do the electrical panels, the pools have already been done and the gas lines for the rooms. We’ll look at it again, we are extremely sensitive about this so we are looking at it, tracking it, and looking at what the unexpected expenses were but if we have to make adjustments we will.

Bridgette Caggiano #120: You are talking about the overrun in cost; where did you run into a problem? Have you discussed with the manufacturer of the furniture whether if you’re ordering it now or ordering it in increments, because it can’t be delivered, that they’re keeping the cost at certain amount and not raising it? Like if I order it now and then I have to order another batch 6-9 months later that they’ve doubled the price on it.
Mr. Langbaum: There are 2 categories;
1. The moving of the stove tops from one side of the room to the other we needed to move the gas lines. When you move the gas lines you got to do it in accordance to the regulations, in this case the DTI. So now there is an additional cost, just in labor, to move the lines from one side of the room to the other. The valves are 42 years old and currently does not meet DTI’s standards, so we have to replace the valves and put new valves. You may say but a valve only costs 20-30 bucks but add the labor to it and it becomes 100 bucks, so that was an unexpected expense.
2. The floor: When we originally priced out the floor and designed the room the floor was supposed to have square tiles in a standard pattern. It was decided to change the tiles to the ones installed in the refurbished rooms now that have a pattern. If you look at just the labor to lay a floor with standard square tiles in a standard pattern vs the long tiles in a pattern, it costs more. So, we got additional labor cost for the tiles, but we are committed to doing that and we’re not going to change it, but that is an expense that wasn’t originally budgeted for.
In terms of the furniture we are in negotiations right now with the manufacturer to have the furniture for all the 131 rooms manufactured and they have offered to store it in their warehouse and release them to containers. That will insure 2 things; we got consistency of the furniture and they’ll store it in an environmentally friendly warehouse.

Member: Since that’s double in labor to install these tiles, maybe it’s better to go back and redo the 16 and overall to have less expensive floors, go back to the square tiles and save us money.
Mr. Langbaum: Currently that is not in the plans at all as all the tiles have been purchased already. What we have done is, wherever we can, we’ve purchased items in bulk. All the tiles are purchased, all the countertops are purchased.

Jean Valiquette #223: I was taken aback when my wife mentioned that the new stovetops have 5 burners, who needs 5 burners? We cook a lot and she said 2 burners would have been enough.** other members present disagreed.
Mr. Langbaum: There was a comment brought up at a previous meeting that people didn’t think that they would be able to cook with a lot of pots and pans on the stove and that 5 burners was way too much. After that meeting the 2 female Board members actually went up and started putting the pot and pans on the new stove and it all fit so if anyone thinks that a 5 burner stove is going to be an overkill, it may or may not be, but all the pots and pans in the room will fit and it was more cost effective to get this 5 burner stove vs other stoves.

Kathy Pullins #146 wk.52: The 40K you’re giving us is that the cost for a Superior or are the Royals and Deluxes averaged into that?
Mr. Langbaum: We’ve only done Superiors right now so the 40K is based on the units that we’ve done and the costs associated with them.

Kathy Pullins #146 wk.52: So, it’s likely that for a Royal and a Deluxe it will go up?
Mr. Langbaum: It may or may not, I don’t know, we haven’t gotten into those rooms yet. As soon as we get the rooms, if we find any “surprises” it may go up. The contractor now is kind of in a cycle of how to do things, and even though the rooms are laid out a little differently, it may go down.

Kathy Pullins #146 wk.52: Will they have the gas problem?
Mr. Langbaum: No, they won’t.

Kathy Pullins #146 wk.52: How about the floor?
Mr. Langbaum: These are larger room that take more tiles.

Harvey Indeck #153: I’ve seen some of the work that’s been done so far, and I think it looks terrific. We’re committed now to this pattern, there will be no change in the floor tile or bathroom tile, whatever is there is what it’s going to be throughout the whole unit. So, there won’t be units over here with one tile and another one over there with another tile?
Mr. Langbaum: No, all the tiles will be the same.

Member: Didn’t you get quotes for each type of floor and what the costs involved were to be before making this decision?
Mr. Langbaum: I’m new to the Board and I’ll answer this question the best to my ability. I’m just completing my first year on the Board and some of the decisions were made prior to me actually sitting around the table and being on the Board, it’s not an excuse but a reason why I may not be able to answer some of the questions. The original concept was to lay square tiles in a standard pattern of which a quote was received, during the process it was brought up why don’t you go with a little more modern tile, with a little design in it and lay it in a pattern, the Board accepted it and have gotten a proposal. Originally, I didn’t even know that the labor was going to be twice as much, I figured that there might be a little bit more extra money involved. The tile is being subcontracted; the general contractor hired professional tile men. We have monitored and have seen them laid the tiles and it does take more time because there is a pattern and the tiles are smaller.

Same member: You did a quote for the square tiles, but you did not get a quote to know that the smaller tiles were going to cost more in labor?
Mr. Langbaum: No, we did not.

Same member: You have to compare apples and apples; you have to know the installation costs for each type of tile.
Mr. Langbaum: We understand that but unfortunately, we are where we are. The decision was made to change tiles, if it was made in error so be it, the first 16 rooms are done.

Linda Fritsch #233: I think the tiles look beautiful, I don’t know what the additional cost is, but it’s been done, and it will bring us more up to date with the trend. ** Other members present agreed.

Member: I’m trying to understand, when you sign with a contractor and that contractor hires a subcontractor, why do we have to pay for that mistake?
Mr. Langbaum: If you build a house, or an addition, I don’t know of one that does not have add-ons to it. There is always changes and add-ons when you’re doing construction.

Same member: If a hire a professional contractor to build my house I would expect him to meet the exact contract and if not then that person is responsible. If they made a mistake why are we held responsible?
Mr. Langbaum: They didn’t make a mistake, we made a change. If you’re building a home and the contractor is laying square tiles in your home and you change your mind in the middle of it, every contractor that I’ve dealt with, is going to say to you there will be an extra charge because it’s not the same as what you’ve contracted with me.

Member: I’ve been a contractor all my life, I’ve built many houses and the process you’re talking about is correct, it’s called a change order but there is a price for that change order and the customer then has the ability to make the choice of whether they’re going to go with that extra cost or not. Are you are telling me that you were never priced on how much more it was going to cost to lay the tile that created the doubling of the labor cost?
Mr. Langbaum: I can’t answer that question as I wasn’t there at that point in time.
Mr. Foley: Arthur was not, as he stated, on the Board when we decided on a quartz square tile. After Arthur came on the Board somebody recommended and showed us a different tile, which was an improvement, we decided to go with a different tile. We expected it to be an additional cost, just as you’ve explained, but the change was made after we saw the better-looking tile, more modern if you will, trying to appeal to a younger generation; Look around the room, we’re all going to be gone very shortly and the point is we are trying to look at the future of the Club. If we want to be able to sell the units to a younger generation, they want a more modern looking resort. We started with one tile, we got the quote but then we made a change, we knew the labor would be more but we wanted better looking tiles.

Same member: I understand this, but I wanted to know if the normal procedure was followed – you got a quote and you knew it was now going to be double the labor installation when you approved that.
Mr. Foley: Correct.

Bridgette Caggiano #120:
The cost of the installation of the new tile isn’t the total cost increase, there are other things that go into it. What we might be able to do is maybe you can get someone else who can do that same job more quickly and just as efficiently in the other rooms that haven’t been done yet. I used to be a Board member in a condo that had about 120 rooms so a lot of times when we had overruns in anything that we were doing we had a repair & replacement fund or a capital reserve fund, that being the case we would use monies from one of those two funds to offset an additional assessment.
Mr. Foley: We do have a reserve fund.

Bridgette Caggiano #120: But that isn’t the purpose of a reserve fund, is it? Isn’t a reserve fund more for an emergency?
Mr. Foley: For unexpected expenses.

Linda Fritsch #233: What would be the breakdown of the overrun over the course of 52 weeks? What would be the actual cost per year per week or two?
Mr. Langbaum: I don’t know yet, we have only done 16 units.

Linda Fritsch #233: I don’t know what the overage was just for the floor, was it $3,000 or $1,000? Over the course of 52 weeks/over the course of a year, we’re not individually carrying the burden for that, it’s over the course of the year, the cost to me maybe $100.00.
Mr. Langbaum: We haven’t calculated it that it cost x amount of dollars divided by how many weeks divided by how many owners.

Linda Fritsch #233: It would be a good breakdown to know to ease some of the agita that’s going on.
Mr. Langbaum: It’s a good suggestion.

Member: Could you repeat what she said, I couldn’t hear her very well.
Mr. Langbaum: the question was; How do you amortize the cost over all of the rooms on all of the owners and her thought processing was if you do it over 52 weeks by x amount of owners, what is it going to cost per owner per week and we are in the process of detailing that now. Her comment was; it could only cost $ 100.00 bucks. It could cost $ 400.00; I don’t know but we are going to make that calculation.

Member: As an estimate of the override, we’re talking about a 40% override right now so the surcharge is going to hit 40%.
Mr. Langbaum: Not necessarily because that was based on the first 16 rooms as there were some unforeseen expenses on those first 16 units. We now have a plan in place, we’ve got a “rhythm” in place and it will probably go down. A question was asked and I’m trying to answer it very honestly basing it on those first 16 rooms and not basing it on finishing 89 Superior rooms.

Member: For all the years in construction myself there’s always overrides, and people have to understand this. Just try to minimize it and we’ll all be satisfied. We got a great place here and it’s going to be beautiful when it’s all done and everyone is going to say hey, what a great job you’ve done.
Mr. Langbaum: What we’ve all got to understand is it’s your money, it’s my money, it’s Kevin’s money, everybody on the Board has an investment so it’s not like decisions are being made where we’re saying it doesn’t affect us, they can afford it, that’s not the case.

Mr. Langbaum: I would like to thank those members who have responded to our reservations department and allowing us to use their rooms during the renovations. We have got some challenges in front of us where we’re renovating rooms and didn’t have place to put people that own those rooms into other units. There are a lot of owners that have stepped up and told us we could use their rooms and that resulted in us being able to relocate owners into other rooms, if they didn’t step up we would have had some other issues.
This is extremely important; in reference to relocations of rooms, if any of you are going to rent your rooms, you must tell your renter that he may not, and in some cases, will not be, in the original room you rented to them. Especially when it comes to beach front Royals and Deluxes. The problem is there’s a certain amount of them, they are limited and once you’re working on that room type, you’re in them 5-6 weeks. For example; if you own #163 and you rented it privately knowing it was going to be undergoing refurbishment during your week when your guest arrive he will be relocated. That is one of the reasons we’re putting the schedule up. We just want to avoid problems when guests arrive because if it’s a private rental, we’ll have to turn it back to you because the Club was not involved in that rental and we want to avoid headaches for our Front Office staff and the owners who are renting privately and not advising their guests about relocation.

Kathy Pullins #146 wk.52: This time last year about 17% of the assessment was delinquent, probably maintenance too. I was wondering this year where we are with that. I’m worried about some countries that have some serious problems etc. and I just want to know as far as collection of the assessment and maintenance fees.
Mr. Foley: I suspect most of you know we’ve had some issues with our Venezuelan members and we’re trying to be somewhat sympathetic, but it is still a business. Last year we took back 107 units, 44 of those were Venezuelan, but all the Board has agreed that anyone who’s unit has been repossessed/foreclosed, if they want to pay up all their arrears, we will give it back if it’s still available. We are keeping all of those rooms until the renovation is completed because we are going to need them as the occupancy is so high and as Arthur mentioned, we’re having a bit of a problem moving people around but in the industry we are less then 5% delinquent for the year, in this industry that’s pretty darn good.

Kathy Pullins #146 wk.52: Where are we now with the Dec. 31st and Oct. 31st collections?
Luis: We’re down 20%. It fluctuates year by year, but it usually stays around that percentage.

Kathy Pullins #146 wk.52: Last year we were at 17% and I think by the time we left in almost April it was at 15% so I just wanted to know where we were because now we’re looking at a 40% increase in expenses and we got to be careful about that income coming in.
Mr. Foley: A lot of people in that percentage pay before their week. We give folks a year to pay up and a lot of them do pay up within that year.

Raffle was held after which meeting was adjourned. 11:07 A.M.


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