Hotel on the Cay
Timeshare Association Minutes of the Board of Directors
Thursday, August 12, 2004
Meeting held via conference call and called to order at 7:03 EDT. Ira Braunschweig Secretary called the roll. Board members in attendance: Bill Denison, Ira Braunschweig, Dennis Denner, Dick Broad, Anita Rose, Belinda Fink. Finance committee members Charles Leach, Martha Scott. Guest Dr. Astill. President Bill Denison declared a quorum.
Revised minutes from board meeting to be placed on the HOTC web site this week.
Budget
Up to date Financial statistics as of August 12, 2004 include:
July occupancy rate (55%) was up substantially as compared with July 2003 (41%). Noted was increased usage by owners and paying guests and slight decreased usage by RCI members.
2002 Audit is complete, 2003 audit in progress and is expected to be completed by Sept. 30th (end of fiscal year). We plan to start the 2005 audit by mid-November and thus will be on target with that audit. This is a great improvement over how things happened in the past.
Board and Financial committee members will be receiving monthly budget status updates beginning with the new fiscal year.
Charles reported that his review of the budget year to date through July looks to be on target with respect to income and expenses.
Bill stated that our legal fees to date this fiscal year are $88,000. This includes the foreclosure on over 380 units being returned to the Association. Some of these legal expenses will not recur next fiscal year and have brought about returned income to the balance sheet.
A motion was made to accept the budget for the fiscal year from October 2004 - September 2005. Motion made by Dick. Seconded by Anita. Board voted in favor unanimously.
Solar Hot Water Heating for HM building. Dick Broad is in process of obtaining quotes for solar hot water for HM building (only building with electric hot water). Hope to have quotes in place by Labor Day.
High Efficiency Light Bulbs. Ira will obtain quotes for 300-400 high efficiency light bulbs. It is estimated that this will save us approximately 74% of our electric bills for providing incandescent lighting. Bill will provide list of needed bulb types and sizes. Anita will check with her electric company as to the efficiency of unplugging all TVs in unoccupied rooms to further decrease electrical expenses.
Room Maintenance. We are obtaining a quote for updating all remaining rooms without adding kitchens. We will hold off on the adding of kitchens at this time as funds are not available due to increased legal bills. The part of the main building facing the fort will be the first to receive kitchens when the funds are available.
Swimming Pool Carpet. We received a settlement of $5800 from the company that installed the pool deck carpet which has failed and must be replaced immediately. We have received a quote to replace the carpet for $11,375. Anita to check on the specifications of the proposed replacement carpet with assistance from Dennis. Motion made by Dick to approve funding for this project up to $11,375. Seconded by Ira. Board voted in favor unanimously.
Pool and Pond Maintenance. We have obtained an estimate from an outside company to provide maintenance for the swimming pool which is currently performed by our staff. Service would include cleaning of the pool twice/week with chemical maintenance as well. The cost would be $270/month + the cost of the chemicals. In addition, maintenance of the ponds would be provided for $585/month which would be performed once/week. Additional pumps, filters and piping would have to be installed to allow this maintenance to be performed. The cost of these items would be approximately $2000 plus the cost of piping installation. We are requesting an estimate on this before preceding. Discussion from multiple members of the board and the finance committee was in favor of this project as it will improve the appearance of these items and will substantially decrease our in-house labor cost which will more than offset the cost of the work done. Motion made by Anita to fund this project. Seconded by Dick. Board voted in favor unanimously.
Legal Update. $15,900 paid to Rodeo as the undisputed portion of his suit. Rodeo has agreed to mediation which will hopefully take place before Labor Day.
SBA continues to negotiate with the USVI government. This issue will settle or be in court hopefully by the fall.
Received a judgment in our favor on the foreclosure action taken to collect delinquent maintenance fees from Frank Mina. We were awarded $33,000 in maintenance fees plus $7,000 in legal fees which has been appealed.
No Old Business or New business.
Motion to adjourn made by Anita. Meeting adjourned at 8:01 EDT.