THE RESIDENCES AT THE CHATEAUX CLUB ASSOCIATION
QUARTERLY BOARD MEETING
Wednesday, May 13, 2015
Directors present: Mr. Cibotti - President, Mr. Von Plonski – Vice President, Mr. Pederson – Treasurer, Mr. Edenton – Secretary, Mrs. Dorsey, Mr. Holly, and Mr. Rubin.
By invitation: Mr. Gendron, Mr. Olsen, and Mr. Lundskog, all from SELMC.
The meeting was called to order by the President at 5:05 p.m. ET (3:05 MST).
As the first order of business, the Minutes of the 3/4/15 Board Meeting were unanimously approved.
Mr. Lundskog was then asked to present the Year to Date Financials for the 1st Quarter. He noted the Balance Sheet is very clean with all owner dues being current and further noted multiple owners had prepaid Quarter 3 dues and that three owners have prepaid 2015 dues in full resulting in a very favorable total dues credit balance $49,773. The Total Reserve Account Balance ending March 31, 2015 has a current balance of $595,780. Turning to the Profit and Loss Statement, total Net Operating Income was $25,328 better than budget. Total YTD income was off 1% or-$5,685 to budget, most notably due to lower than expected occupancy from last minute cancellations resulting in lower housekeeping revenues. He did note that exchange fees charged to exchange guests generated $6,100. Total expenses were under budget by $31,013 or 5%. He noted that Guest Services Expense Category accounted for $21,537 of the $31,013 total expense savings. Mr. Lundskog also shared a Cost Per Occupied Room (CPOR) worksheet and a Year over Year expense summary comparing Q1 of 2015 versus Q1 of 2014 which showed an increase in revenues of $14,151, from dues and exchange fees, and showed that expenses were down year over year by -2.7% or -$17,588 from savings in almost all expense categories. The Board thanked Mr. Gendron for the positive financial performance during the first 3 months of the year.
Mr. Gendron then opened discussion on Capital Expenditures projects. There has not been any significant expenses year to date as approved projects will be completed during closure periods and balance of year. Regarding planned 3 year phased carpet replacement, the Board unanimously approved an additional $30,000 be allocated from existing Reserve Funds to replace all in-room carpet at one time, rather than staggering over 3 years so that all units would be consistent and to take advantage of economies by completing at once. Mr. Gendron will complete carpet in one unit immediately this spring to gauge its look and durability and then complete all units during fall closure. The Board also reviewed plans for the previously approved and budgeted Ski and Baggage storage area addition near the Club arrival entrance. After discussion, the Board unanimously approved the provided architectural plan to be completed in the fall as occupancy permits after Labor Day. Regarding the pre –approved Lobby remodel project, Mr. Gendron will share design plans at the Sept 9, 2015 meeting with completion slated during fall closure period. The project will include removing two pillars in front of concierge desks as well as paint, furniture, artwork and small lighting upgrades.
Mr. Gendron then recommended the Board consider using the approximately $17,000 of approved capital funds for general replacement of in room furniture and window coverings that were showing the most wear and tear, be used towards completing a full “model unit” consisting of paint, furniture, artwork and lighting. The model unit would then be use to solicit feedback from owners so that consensus could be reached to overhaul all units in 2016 culminating with the 10 year anniversary of the Club. After discussion, the Board unanimously approved using funds of approximately $25,000 to create the model unit.
Mr. Gendron then gave a quick update on the Chateaux Master Association capital projects, noting that the Trash Enclosure project was nearing completion; the in-room thermostats in Buildings A & B have been completed; and the changing out of all garage lighting to more efficient bulbs and ballasts is completed.
Lastly, Mr. Gendron noted that Stein Eriksen Lodge Management Corporation is funding the creation of a new Team Member Locker Room for Chateaux and Club Team Members. This project is underway and scheduled to be completed this fall and will include men’s and women’s bathroom area with showers, lockers and a break room.
Mr. Olsen then gave a brief report on the local market, and Stein Eriksen Residences, a new branded SELMC development which has had great pre-sale success and is due to open in full by winter of 2016. Lastly, he was proud to report that Celeste Armstrong, Guest Services Manager for The Residence Club was awarded Manager of the Year for all of SELMC at a recent luncheon and end of season party.
Mr. Gendron then presented the Management Report noting that a “Quit Claim Deed” had been executed as part of the legal documents of the Association (CC&R’s) where the developer / declarant or Silver Lake Associates deeded their rights to the Association (The Residences at The Chateaux Inc.) regarding the right of first refusal on any re-sales which was causing some pause with title companies closing on resales at the Club. He also gave general updates on: the Cadillac program, important club dates, the exchange program summary, the Re-Sale Committee, general operational statistics and lastly a Real Estate Sales Summary of pending / listed / sold.
Tom Cibotti informed the next Board Meeting will take place via teleconference on Wednesday, September 9, 2015 at 5pm EST.
There being no further business to be brought before the Board, the meeting was adjourned at 6:05 p.m. ET (4:05 p.m. MST).