Budget & Meeting

Harbor Ridge Condominium Association Special Meeting Agenda

December 2, 2017—10:00 a.m.

1. Call to Order

2. Roll Call of Officers

3. Consideration of ratification of proposed annual budget

4. Election of Officer

5. Transaction of such business as may properly come before the meeting

6. Adjournment

  

Harbor Ridge Condominium Association 2017 Budget
   
Income:  
Bonus Week Income    $   5,584.00
Club Interval Gold 3,672.00
Gift Shop 12,425.00
HR Rental 27,450.00
HR Rental Commission 32,750.00
HR Resale Commission 7,250.00
HOA Resale 1,000.00
Interest 1,350.00
Internet 7,475.00
Late Fees 11,275.00
Legal Fees 10,950.00
Maintenance Fees (2040 weeks at $480) 979,200.00
Miscellaneous Income 0.00
Owner Charges 7,509.00
Property Tax Revenue 92,075.03
Rental Income--Long Term 7,460.00
Sale of Used Property 750.00
Vending Machine Revenue 1,520.00
Total Income $1,209,695.03
   
Expenses:  
Advertising 2,800.00
Automobile--Fuel, Reg, Repairs 3,926.91
Bad Debt Expense 21,500.00
Bank Charges 19,510.00
Computer 2,975.00
Contracts 17,472.40
Contributions 50.00
Corporate Tax 0.00
Dues, Fees, Licenses, Permits 615.00
Employee Expenses 1,750.00
Gift Shop 6,475.00
Insurances 103,353.00
Miscellaneous 100.00
Owner Expenses 14,800.00
Payroll Expenses 502,582.00
Professional Fees 5,775.00
Property Tax Expense 92,075.03
Property Tax Interest Expense 0.00
Registry Expense 4,250.00
Repairs and Supplies 74,007.29
Reserves1 68,544.00
Seminars and Training 1,100.00
Supplies/Large Appliances 94,315.00
Utilities 171,719.40
Total Expenses $1,209,695.03

 

Harbor Ridge Condominium Association 2016 Budget
   
Income:  
Bonus Week Income    $   5,933.00
Gift Shop 12,250.00
HR Rental 28,750.00
HR Rental Commission 26,725.00
HR Resale Commission 6,500.00
HOA Resale 4,575.00
Interest 1,575.00
Internet 10,250.00
Late Fees 13,500.00
Legal Fees 10,125.00
Maintenance Fees (2040 weeks at $470) 958,800.00
Miscellaneous Income 100.00
Owner Charges 5,275.00
Property Tax Revenue 92,066.03
Rental Income--Long Term 6,160.00
Sale of Used Property 1,500.00
Vending Machine Revenue 1,650.00
Total Income $1,185,734.03
   
Expenses:  
Advertising 2,525.00
Automobile--Fuel, Reg, Repairs 5,351.91
Bad Debt Expense 29,750.00
Bank Charges 45,238.00
Computer 3,170.00
Contracts 18,102.60
Contributions 100.00
Corporate Tax 0.00
Dues, Fees, Licenses, Permits 615.00
Employee Expenses 1,750.00
Gift Shop 8,400.00
Insurances 116,328.00
Miscellaneous 100.00
Owner Expenses 15,050.00
Payroll Expenses 432,283.38
Professional Fees 5,775.00
Property Tax Expense 92,066.03
Property Tax Interest Expense 0.00
Registry Expense 4,250.00
Repairs and Supplies 102,589.71
Reserves1 67,116.00
Seminars and Training 1,150.00
Supplies 53,995.00
Utilities 180,028.40
Total Expenses $1,185,734.03

 

 Harbor Ridge Condominium Association
2015 Budget

   
Income:  
Bonus Week Income    $   5,235.00
Gift Shop 12,500.00
HR Rental 21,500.00
HR Rental Commission 21,250.00
HR Resale Commission 6,500.00
HOA Resale 5,200.00
Interest 1,225.00
Internet 11,250.00
Late Fees 15,500.00
Legal Fees 9,750.00
Maintenance Fees (2040 weeks at $462) 942,480.00
Miscellaneous Income 100.00
Owner Charges 6,575.00
Phone and Fax Revenue 50.00
Property Tax Revenue 92,122.61
Rental Income - Long Term 8,000.00
Sale of Used Property 2,500.00
Vending Machine Revenue 1,500.00
Total Income $1,163,237.61
   
Expenses:  
Advertising 1,920.00
Automobile--Fuel, Reg, Repairs 4,290.00
Bad Debt Expense 35,000.00
Bank Charges 17,250.00
Computer 1,150.00
Contracts 15,532.00
Contributions 100.00
Corporate Tax 0.00
Dues, Fees, Licenses, Permits 590.00
Employee Expenses 2,225.00
Gift Shop 7,875.00
Insurances 113,317.00
Miscellaneous 100.00
Owner Expenses 13,775.00
Payroll Expenses 399,500.00
Professional Fees 3,825.00
Property Tax Expense 92,122.61
Property Tax Interest Expense 0.00
Registry Expense 2,975.00
Reserves1 65,973.60
Repairs and Supplies 141,140.00
Seminars and Training 1,375.00
Supplies 59,977.40
Utilities 183,225.00
Total Expenses $1,163,237.61

 

Harbor Ridge Condominium Association 2014 Budget
   
Income:  
Bonus Week Income    $   5,264.00
Gift Shop 12,250.00
HR Rental 24,500.00
HR Rental Commission 19.750.00
HR Resale Commission 6,850.00
HOA Resale 4,500.00
Interest 975.00
Internet 7,750.00
Late Fees 10,250.00
Legal Fees 14,250.00
Maintenance Fees (2040 weeks at $457) 932,280.00
Miscellaneous Income 100.00
Owner Charges 6,200.00
Phone Revenue 100.00
Property Tax Revenue 92,066.03
Rental Income--Long Term 6,200.00
Sale of Used Property 1,750.00
Vending Machine Revenue 1,600.00
Total Income $1,146,635.03
   
Expenses:  
Advertising 1,836.00
Automobile--Fuel, Reg, Repairs 4,377.00
Bad Debt Expense 29,500.00
Bank Charges 12,049.00
Computer 1,349.40
Contracts 16,755.00
Contributions 0.00
Corporate Tax 0.00
Dues, Fees, Licenses, Permits 540.00
Employee Expenses 2,825.00
Gift Shop 7,750.00
Insurances 103,625.00
Miscellaneous 00.00
Owner Expenses 12,000.00
Payroll Expenses 399,500.00
Professional Fees 3,595.00
Property Tax Expense 92,066.03
Property Tax Interest Expense 0.00
Registry Expense 2,590.00
Reserves1 65,259.60
Repairs and Supplies 133,093.00
Seminars and Training 1,275.00
Supplies 72,000.00
Utilities 184,650.00
Total Expenses $1,146,635.03

 

 



1Seven percent of the assessment total is set aside in a reserve account for maintenance, repair and replacement on a periodic basis of common elements, limited common elements and limited common property for which the Association is responsible and to cover deductible amounts for any insurance policies maintained by the Association.

NOTE: The budget has been prepared based upon what Harbor Ridge believes to be the best current estimates of future costs currently available, such as current and past operation and maintenance costs of the property or of similar properties. In preparing the budget, Harbor Ridge has assumed that all the units will be occupied during the one-year period which the budget covers and that there will be a nominal inflation rate. These estimates are not intended, nor should they be considered, as guarantees or warranties of any kind whatsoever.

 



 

 

Harbor Ridge Board Condominium Association

Special Meeting ~ December 3, 2016

 

Tim Letourneau called the meeting to order at 10:00 AM.  President Tim Letourneau, Treasurer Jan Franz, Secretary Linda Connelly, Member Dianne Lytle, Manager Annette Bartlett, and Manager Margaret Austin were present. Member Jerry Williams was absent. Owners in attendance introduced themselves.

Consideration of ratification of proposed annual budget:  Annette discussed the Profit and Loss Previous Year Comparison in detail. 

Bonus week income is up due to Week 53 in 2016. Owners should review the 2017 dates according to the Harbor Ridge and/or Interval calendar.

Ten owners have become Club Interval Gold members this year. Management helps owners determine if this option would enhance their specific timeshare ownership.

Gift shop sales are up.  HR rentals of association owned weeks have increased.  The 100th anniversary of National Parks helped rental income this year for both owners and the Association. Rental and resale commission are up. Many existing owners have purchased additional timeshare weeks. Internet income was down because people are using hot spots on their cell phones. The Internet will be upgraded in two weeks with additional access points and double the bandwidth.  Legal fees are deed transactions completed on sales and transfer of ownership completed by the Association. Maintenance fee was raised by $10.00 for 2017. Due to the amount of work involved internal exchanges for owners will be $89.00, as compared to $189 through Interval International.  Rental income is from office rental and from our J1 visa workers. Sale of used property is ongoing based on available inventory.

Expenses:  Advertising is primarily for Trip Advisor and Trivago. This advertising has increased our income and helped owners rent their units.  Automobile expense includes the gas and repairs to the truck and housekeeping van.

Bad debt is up considerably, as management wrote off two years of maintenance fees. This was done with the accountant's approval for tax purposes. The bad debt weeks are non-performing weeks and weeks owned by the Association.  In the past, only one year was written off for bad debt.  Due to accrual accounting, all maintenance fees must be recognized as income, and then amounts due are in Account Receivable accounts. Some owners are on payment plans. Most non-payment owners are in collections. There are some weeks that should be foreclosed upon, which is a long, costly process. Management rents these non-performing units, which helps recoup the HOA overall costs. Management plans to offer a deed-back option to these owners. David Ezzio requested Management to create a profile of owners and trends to get an accurate picture of non-performers. Management responded that most are owners that were on tight budgets when they purchased.  He congratulated Management for having the resale board at the check-in desk and expressed the need to continue this type of option. Management rents empty units to local businesses that have traveling employees. The HOA officially owns 43 annual weeks and 88 biennial weeks. There are another 38 owners that owe 2 or more years of maintenance fees. Annette reported there are approximately 275 intervals listed for sale, and they are not on the web site due to attracting potential "scammers."  The web site states to contact Management for resales. 

Bank charges are credit card processing fees, which is a cost of business.  Gift shop purchases are down because the gift shop was closed for a time last year for renovations. Insurance expenses are down due to a better experience rating with Worker’s Compensation.   Harbor Ridge has a $5,000 insurance deductible when a claim occurs. Interest expense was for the heat pump loan that has been completely paid off.  Owner expense for the breakfast, s’mores, and the wine and cheese social is down slightly.  Wages increased in 2016 to retain housekeeping employees. The new increase in Maine's minimum wage will have minimal affect. Starting housekeeping wage is $11.00 with a $0.50 increase in 30 days. At this time the core housekeeping staff is solid and all earn above $11.50.

Repairs and supplies are lower due to the completion of the water side of all five unit buildings.  Over the last six years the total cost of this project was well over $775,000.00 and was completed without special assessments or significant maintenance fee increases. An owner asked Management to think about replacing the balcony door locks to prevent guests from getting locked out.  The Board will review new locks and ask Management to get quotes. Board members commented on the excellent job Management does to keep the resort up and in good shape. With that said, an owner asked if anything "scanted" in repairs. Flooring is the next issue being worked on. Building II master bedroom and stair carpeting will be replaced in January. Living room chairs are on order.  Since the older chairs are still in good shape, they will be moved downstairs. Management does massive and minor replacements as needed.

Utility costs are stable.  The heat pumps have lowered fuel consumption. Owners and guests have been very happy with the heat in colder months and the air conditioner option in warmer months. The net income is much higher, and it was noted there is still December to reduce net income for tax purposes. It was reported the net value according to the Town of Southwest Harbor is approximately $12.4 million. Harbor Ridge has a good relationship with the Town of Southwest Harbor and taxes have remained stable for three years. 

Tim Letourneau asked for approval of the budget as presented. All owners present motioned to accept budget as proposed. Motion passed.

Transaction of such business as may properly come before the meeting.

An owner expressed concern about the fire pit again. He stated that having the fire pit causes smoke on their balcony and smoke in their unit in Building I. He stated that smoking is not allowed, yet smoke comes up for 3 hours on both Mondays that they are at Harbor Ridge. He requests that owners present, the Board and management re-evaluate the fire pit. An owner in attendance asked if they tried to mitigate the fire pit evening by closing windows. The reply was no because they prefer to leave their windows open for the fresh Island air. The owner’s wife asked to be recognized and stated that they love fire pits when camping and have a fire pit in their back yard. She loves their Building I unit and likes the look of the fire pit. The owner stated he has a more sensitive nose than his wife and feels there's a time and place for a fire pit and not at Harbor Ridge. The owner was asked if he felt we could place the fire pit elsewhere. The response was Harbor Ridge does not have the footprint to move the fire pit anywhere that would not be an issue. A question arose to see if Harbor Ridge could have propane or gas. It was stated that the tanks would need to somehow be hidden and concerns of children around the tanks was an issue. It was stated by another owner that gas or lp option would increase costs. It was mentioned to try charcoal. The owner was asked if he would consider bringing charcoal for his two weeks and he replied yes. Another owner also suggested that we could use a portable propane tank during the owners two weeks. This option would only function if Harbor Ridge converted to a propane fire pit.  A Board Member mentioned the Board requested Management to follow up with guests and owners at check-out about the fire pit and all comments were favorable and all enjoyed the fire pit. After many months of evaluations, all comments were positive and there were no other complaints. In closing of this discussion, the owner with the issue and all owners present agreed to compromise with the owner bringing charcoal for the two weeks they are at Harbor Ridge.

An owner again requested a bike house to protect bikes. Management has reviewed options and it has been placed on the wish list. Location of the bike house would also need to be evaluated.  A location suggestion was by the laundry room. Management will ask the contractor how much a 16X10 storage space would cost.  Management is in strong support of this request, as it would be dual functioning for winter storage.  Guest bedroom TV's currently are a greater priority.  Priorities are set by reviewing Interval evaluations, Trip Advisor comments, owner requests, and guest verbal and written comments. At this time it was reported the interior of the townhouses need updates, guest TV's, and the sauna request are currently top priority.

David stated that Margaret and Annette do an exceptional job. He asked if the board has a plan should Margaret and Annette both resign at the same time. Tim Letourneau stated that management companies exist, but that would come at a high cost. It was also mentioned other Maine timeshares help each other and staff could step up to the plate.  Tim Letourneau stated the Board would discuss it.

The meeting adjourned at 11:50 AM. 

Respectfully submitted by,

Linda Connelly, Secretary


Harbor Ridge Board Condominium Association

Special Meeting ~ December 5, 2015

President Tim Letourneau called the meeting to order at 10:00 AM. Treasurer Jan Franz, Secretary Linda Connelly, Member Dianne Lytle, Member Jerry Williams, and Managers Margaret Austin and Annette Bartlett were introduced.  There were an additional 26 owners in attendance, along with special guests David Callaghan and Bill Dwyer from Interval International.

Consideration of ratification of proposed budget: Margaret discussed each line item of the 2016 proposed budget.  Bonus week income is from fees paid for off-peak weeks to be deposited into the exchange company. The gift shop was remodeled and restocked this year.  Rentals were up due to exposure on Booking.com.

David Ezzio requested clarification on the following items.  Annette reported over 30 weeks were sold in 2015, and many HOA weeks were sold to local people. Payment plan options for maintenance fees have been working well. Margaret explained that property taxes are paid in arrears. Management wrote off the 2011 delinquent annual assessments, and they are generally written off after 4 years. Management works with delinquent owners to pay what they can to encourage reengagement into their ownership. Annette reported that the HOA owns 86.5 weeks, and there are about another 25 weeks that should be foreclosed upon.  There is approximately $94,000 in receivables for 2015. These delinquency rates are below industry standards.

Seacoast Security now monitors the units for furnace failures and low temperatures in the units. Dead River discontinued this service last winter under the Presidential Plans. Several Fairpoint phone lines were removed and the new monitoring devices are more specific about the problem locations.

Wendy Kuda inquired about guest fees. Margaret explained that non-owners pay $5.00 to use the pool when accompanied by an owner, and the revenue is listed under Owner Charges.

Mr. Geraldo asked if management saw any savings from the installation of the heat pumps. Margaret reported the heat pumps have not been in long enough to report on specific cost effectiveness; however, she feels it has been worthwhile.

David Ezzio asked about utility costs for 2015. Margaret reported the fuel expenses were $52,000 and electricity was $54,100.  He also asked if the board had explored solar panels. Tim responded that the Board reviewed it a few years ago, and the cost would take 40 years for a return.  He also noted that the Board reviewed windmill possibilities, and Dianne mentioned that local and National Park ordinances are very restrictive for our location.

David Ezzio also asked about reserves and how the resort handles the reserve fund. He subscribes to the Timesharing Today magazine and many articles discuss the need to have high reserves for capital improvements.  Margaret said that since we are a not-for-profit organization, we are not allowed to make a profit without paying corporate income taxes. David is concerned that the resort may not have sufficient funds to cover an unexpected capital expense.  Margaret said management will review the issue with their accountant again. David commended Annette for her article submission to Timesharing Today.

David asked if management could consider providing a building for bikes when it rains, which could then be used to store items in the winter. Wendy Kuda agreed.  The Board and management will review.

The maintenance fee was raised by $8.00 for 2016.  The proposed budget was moved and seconded, and the budget was approved unanimously.

Transaction of such business as may properly come before the meeting:  Tim announced that Interval International representatives were available to speak with owners after the special meeting.  David Callaghan, Vice President of Resort Sales and Service, reported that Harbor Ridge has a 96% guest services rating from exchange in guests, which is highly commendable.

Peter Kuda, owner of Unit 13, proposed moving the fire pit. He said they smelled smoke in their unit when people used the fire pit. He said that we have a no smoking policy, and the fire pit causes an undesirable smell. The Kudas do not believe the fire pit belongs where it is located. Other resorts have fire pits, but they are located away from the actual buildings. He proposes the Board discuss and move the fire pit to another location away from the unit buildings.  David Ezzio asked if people could start fires on their own and if it was possible to move the pit to another location. Annette answered yes to both questions. Another owner asked if there were other complaints regarding the fire pit, and Margaret reported that no other complaints were filed and that the guests have been extremely pleased with the new amenity. Wendy Kuda said that Building One may be more susceptible to the smoke. It was recommended that the Board and Management review and come up with an alternate location.

Tim reported that some owners had an issue with the new no lock on the lockers policy, but no one was in attendance to discuss it. Management is working on providing alternatives for this issue.

Annette reported that an owner had requested a sauna. She anticipates that it would cost around $5,000, and owners in attendance expressed interest in that possibility. Management will do more research on adding this amenity.

The meeting adjourned at 11:15 AM.

 

 

Harbor Ridge Board Condominium Association

Special Meeting ~ December 6, 2014

President Tim Letourneau called the meeting to order at 10:00 AM. Treasurer Jan Franz, Secretary Linda Connelly, Member Dianne Lytle, and Managers Margaret Austin and Annette Bartlett were in attendance.   Jerry Williams was absent due to wintering in South Carolina.

Board Member Election:  A quorum was obtained with owners in attendance and submitted proxies.  The vote for the two open seats were tallied and announced. Jan Franz received 222.5 votes, Tim Letourneau received 230.5 votes, and Kurt Zemba received 103 votes. Jan Franz and Tim Letourneau were re-elected.  Owners were reminded that each week owned is allowed one vote, and alternate year owners receive half of a vote.  Many proxies were received without selections.  Jan and Tim accepted the nominations. Dennis Connelly motioned to accept the elected Board Members. Joan Letourneau seconded the motion, and the motion passed.

Ratification of proposed budget:  The board had presented the budget in the October newsletter, and the maintenance fee was raised by $5.00 for 2015. Management met with the HBR Accountant, Lee Brown, on December 5, 2014, and they reviewed the financial status. The accountant recommended financial options before year-end to lower the net income to minimize the amount of corporate taxes paid to the IRS.  Dennis Connelly motioned to accept the budget as proposed. Joan Letourneau seconded motion, and the budget was passed.

Transaction of such business as may properly come before the meeting:   Annette reported that one of the owners requested a topic to be discussed at the annual meeting. The owner has requested that some type of hand railing be placed at the top of the loft steps.  The maintenance department will be installing the railings in Units 52 and 47 for evaluation.

Tim Letourneau asked if all units had carbon monoxide detectors. Tim recommended that carbon monoxide units be placed in the guest bedrooms since they are closest to the boiler units. Annette reported that not all units have carbon monoxide detectors. All units have smoke detectors on all floors, and as needed, the detectors are being replaced with combination smoke detector and carbon monoxide units.  Dennis Connelly motioned that management purchase the carbon monoxide detectors before December 31st , and have them installed immediately. Joan Letourneau seconded the motion, and the motion passed.

Dianne asked if management could use biodegradable plates and cups rather than styrofoam. Management reported they have checked into alternatives and other options are much more expensive.

Annette reported that various beds were replaced in Buildings 1, 2, and 5. Building 1’s lower level now has a full bed and a twin bed.  Most guest bedrooms in the other buildings have two full beds.  Some king size beds were also replaced.

Margaret reported that heat pumps would be installed this month.  The hope is that the savings will help with completing the door, window, and siding project in the remaining units in Buildings 4 and 5.

Adjournment:  Tim adjourned the meeting at 10:28 AM.

Respectfully submitted,
Linda M. Connelly, Secretary

 



 


Harbor Ridge Condominium Association

Special Meeting Minutes ~ December 7, 2013

President Tim Letourneau called the meeting to order at 10:00 AM. Treasurer Jan Franz, Secretary Linda Connelly, Members Dianne Lytle and Jerry Williams, and Managers Margaret Austin and Annette Bartlett, and our HOA Accountant Lee Brown were in attendance. Owners present at the meeting introduced themselves.

A quorum was obtained with owners in attendance, association-owned weeks, and submitted proxies.  The vote for the two open seats were tallied and announced. Dianne Lytle received 230.5 votes, Linda Connelly received 220.5 votes, and Kurt Zemba received 120 votes. Dianne Lytle and Linda Connelly were re-elected.  Owners were reminded that each week owned is allowed one vote, and alternate year owners receive ½ a vote.

The president opened the floor for comments on the non-smoking policy vote.  Bill Leatham asked if there were any backlashes from smokers. Margaret replied that some heavy smoker owners have commented on the policy revision vote. She also said the proxies received reflected a majority vote to change Harbor Ridge to a non-smoking campus.  Annette explained the high cost incurred when smokers smoke in the unit. Heavy smoking in units cause a large cleanup process, which often lead to painting walls and deep cleaning of carpeting. Dennis Connelly said he was in favor of non-smoking but asked where designated areas would be located. Tim responded not near the tennis court or playground. Margaret said that someone recommended a smoking gazebo be made available for smokers. David Ezzio agreed that a designated area should be discussed. John Hanson stated that changing the policy to non-smoking is a positive step toward following state law. He said many other businesses adhere to the law. He proposed that specified areas be identified. Lori Wiswell stated Harbor Ridge needs to specifically clarify smoking locations when implementing a specified area. Annette said that as stated in the motion, the entire Harbor Ridge property would be considered smoke free.  Tim reported that proxies came in with no smoking votes of 276.5 and smoking votes of 20.5. John Hanson made a motion to have Harbor Ridge units become non-smoking units. Bill Leatham seconded the motion, and the motion passed.

John Hanson made a motion to approve the budget then Management could discuss the budget details. David Ezzio seconded the motion. Margaret reviewed each income and expense account line by line on the Profit and Loss Statement and reported that many income budgeted line items may be understated for 2014, as the 2013 actual to-date figures are much higher than anticipated when the budget process began in July.

Dave Ezzio asked how bad debts of the unpaid maintenance fees are handled. Margaret reported that management attempts to collect maintenance fees for a reasonable length of time inhouse and with a collection company before moving the fees owed to the bad debt category. Annette said bad debts are charged off when the Association sells the units below what is owed. There are 60 units that are not paying fees. 

Management reported that they have sold used furniture by word of mouth, Craig’s List, Facebook, and newsletters.

Annette reported that savings on fuel were offset with rising water and sewer cost under the utilities section. Tim reported that he has been researching compressed natural gas, and the campus would not reach minimum amounts needed for delivery. One furnace has been converted to propane to test if that will be a more cost efficient solution campus wide. Solar panels were evaluated but the initial cost was too substantial. Annette said Harbor Ridge does not qualify for many tax incentive benefits, because we are a not-for-profit corporation.

Dave Ezzio asked about Corporate Taxes. Margaret reported that the association had built up a large reserve fund and had to pay taxes. She said we are required by State law to keep 7% of the assessment fees in a reserve account, and we were over the 7% mark, as we had built up reserves to use for major building repairs. Margaret said bad timing caused the tax situation. Lee reported that as long as we keep it at 7%, we should not have to pay much tax. Also, if the reserve account falls below 7% due to repairs, we may qualify for a tax refund.

Bill Leatham asked where the money comes from if a unit needs additional cleanup or repairs due to heavy smoking. Margaret reported that when a person comes in, they sign the registration form saying they are responsible for damages. However, we experienced a $1,700 cost due to replacing carpeting and the guest called their MasterCard and disputed the charges. Management spoke with MasterCard, and MasterCard upheld the guest’s dispute. In these cases, the cost comes out of the Repairs and Supplies category.

Dave Ezzio asked why a prepaid maintenance fee is considered a liability. Annette explained that prepaid maintenance fees are recognized as revenue on January 1, 2014, and July 1, 2014.

Dave Ezzio commented that Margaret and Annette do a great job handling all aspects of management. He asked if HR could do an audit of the books once in a while, such as every three years. He stated that performing a periodical audit is a good business practice. He provided examples of various businesses in Maine. Margaret asked an owner in attendance who was an accountant to report costs, and she responded that her business charges $18,000 to do an audit. Margaret said HR looked into performing an audit 2 years ago, and the cost would have been approximately $20,000. Lee reported that he does a basic review of the books, but not a full audit. Margaret recommended that the Board discuss it in their executive meeting.  The meeting adjourned at 11:09 AM.

Respectfully submitted,
Linda M. Connelly, Secretary

 



 


 Harbor Ridge Condominium Association

Special Meeting Minutes ~ Saturday, December 1, 2012

Tim Letourneau, President, called the meeting to order at 10:00 AM.  Treasurer Jan Franz, Secretary Linda Connelly, Members Diane Lytle and Jerry Williams, and Managers Margaret Austin and Annette Bartlett, and our HOA Accountant Lee Brown were in attendance. Owners in attendance introduced themselves. 

John Hanson recommended changing the annual meeting to another weekend. This weekend is a busy weekend in Bangor and perhaps this is why the owner representation is low. A quorum was present in person and by proxy to hold the meeting. Mr. Hanson suggested we proceed with meeting. Mr. Hanson moved to accept Jerry Williams for a five year term on the board. Dave Ezzio seconded, and the motion carried.

Margaret Austin and Annette Bartlett reviewed the financials and budget with the owners.

Income: More bonus weeks sold. The gift shop has done well. HOA rentals are up. Resales improved--19 HOA weeks and 24 owner weeks sold. HOA weeks are sold at a low cost, but generate ongoing maintenance fees. Interest is lower due to bank rates. Internet fees are up as demand increases. Late fees are lower, as management waives late fees if an owner calls to set up a payment plan. Maintenance fees are recorded on an accrual basis.

Charging for the internet was discussed at great length, including the option of it being offered free to owners, the limitations of our internet infrastructure, including the cost in the maintenance fee, etc.  Management has researched other timeshare establishments. The Board will include this topic on its agenda for further discussion and make a final decision.

Expenses:  Advertising is up due to a new Trip Advisor listing.  Bad debt expense increased due to defaulted owners. With an accrual accounting system, maintenance fees for unsold weeks are recognized as income, but not actually coming in as cash. We need to remove the bad debt incrementally.

Bank charges will be lower with the new credit card processor secured in October. The website upgrade increased costs. Contracts were down this year due to switching to Green Thumb for pest control. We have presidential service plans on our boilers.  Health insurances rates have risen.  Our insurance portfolio was reviewed extensively this year.  Food costs increased for the breakfast and wine and cheese social hour. Payroll expenses are up due to raises. Professional fees are down, because there was no foreclosure auction this year. Registry expenses are up due to clearing title on defaulted owners.

Property taxes rose because of the mill rate increase, even though our property assessment decreased. Property taxes are collected in arrears from the owners. Mr. Ezzio asked if we could change the annual meeting to January to reflect the full year. The by-laws state the meeting must take place on the first Saturday in December. End of the year profit and loss figures will be included in the April newsletter.

Building 3 repairs are paid in full and included under Repairs and Supplies.  Some funding comes from reserves.  We are required to have 7% in reserves at all times. Mr. Ezzio asked if the 7% number is sufficient for necessary capital expenditures. HR uses the reserve fund as emergency funding.  If the reserve amount increases too much, then we pay corporate taxes.  We would like to pay minimal taxes, so we can use the money for improvements.

Seminars and training are up slightly per board recommendation for management to remain current on the timeshare industry.

Three pieces of fitness equipment were added this year.  Utility costs are stable, as staff is diligent on checking for lights, heat, etc.

Mr. Ezzio suggested an owners section on our website for blogging and discussion. David Keating asked if HR puts contracts up for bid. Our current contractor was recommended by our insurance adjustor, and we are very pleased with him. Mr. Keating also asked about the possibility of having the Island Explorer shuttle bus pickup at HR. We do not have enough participation to warrant it.

Mr. Ezzio recommended offering owners or referrals a great deal for the unsold weeks. We have done so in our newsletter and the weeks are on the Resale List. Some resorts in highly seasonal areas are closing down for 6 to 8 weeks. We are not planning on doing this, but the seasonality makes it difficult to sell these weeks. We are negotiating a plan to work with a sales team. Most of these weeks purchased are used for exchanging. Historically, presidential election years are difficult times for timeshare sales.

Mr. Ezzio asked how management felt about the resort’s financial position since the 2008 financial crisis. HR is financially stable, and it has come out much better than many other resorts. Our percentage of bad debt is much less than other New England resorts.

Dennis Connelly asked if there’s a plan in place to repair the other buildings. The plan spans another 2 years for completion.

Mr. Hanson moved to accept the budget as presented.  William Leathem seconded, and the budget passed.

Other Business:

Mr. Ezzio asked for an update on solar and wind power. There was no funding available for homeowner’s associations. It would have taken over 20 years to recoup solar costs. Our solar proposal stated that our sun exposure is limited. The panels would also need to be placed on the end of buildings. Wind power would probably not be approved per discussions with town officials. Electricity Maine does not take business customers at this time.  Natural gas is only in development stages in this area, and propane is not efficient enough. The Board will continue to review geothermal and other options.

Mr. Ezzio brought up a smoke-free campus. Our attorney recommended amending the by-laws to do this. Due to the high cost of changing the by-laws, management is tracking all necessary by-law changes.  Mr. Hanson thanked the Board for their efforts.

Mr. Keating asked about the water hardness. We recently lost three water tanks due to age, not hard water issues. HR is on town water and sewer, which has been undergoing improvements. The pool uses well water in the summer.

Mr. Hanson moved to adjourn. Mr. Ezzio thanked the Board for their work and answering questions.  Mr. Leathem seconded the motion, and the meeting adjourned at 11:22 AM.


Respectfully submitted,
Linda M. Connelly, Secretary


 



 


Harbor Ridge Condominium Association
Special Meeting Minutes ~ Saturday, December 3, 2011

Tim Letourneau called the meeting to order at 10:00 am.  Tim introduced the board members and management.  The owners present introduced themselves.  Most members present have been owners at Harbor Ridge for more than 15 years.  A quorum of the members was present in person and by proxy. 

Ratification of the 2012 Budget was presented for consideration by John Hanson and seconded by Donovan Lajoie.  Margaret Austin and Annette Bartlett went over the 2011 Income and Expenses to November 30, 2011.  An owner requested management provide year end results prior to the next year’s meeting.  It was suggested to forward the information by the website, email, or newsletter. Harbor Ridge’s website also needs a major overhaul, and it is estimated at $2000, which does not include an owner’s only section, which has been suggested by owners.  The management and board will make a decision at their next Executive Board meeting.  Owners were reminded that owners can avoid late charges if they make payment arrangements prior to the due dates.  Advertising expense has a significant increase for 2012 due to marketing for resale of owner and homeowner association weeks that have been obtained primarily through foreclosure. Management feels that bad debt expense has leveled off for the next year.  A member present wanted to encourage owners to pay their maintenance fees by check to lower bank charges due to credit card processing fees.  Insurance expenses have significantly risen due to increases in all insurance policies.  Payroll expenses were down due to labor shortages in the housekeeping and office departments, which was covered unfortunately by management.  Professional fees and registry expenses were over budget due to the foreclosure auction and a heighten number of owners transferring ownership.  Repairs and supplies were up due to the playground and some unbudgeted expenses, such as the replacement of the resort’s entire phone system and spa pump replacement. The supplies account was under budget, because management had to reallocate funds for the utility increases in oil, water, and sewer.  Our occupancy in the late fall has increased, which results in expenditure increases. 

The foreclosure auction generated much discussion.  Eleven weeks were sold out of 41 on the day of the auction.  A handful of weeks have been sold since the auction as well.  The resort received $14,400 from the auction purchase price.  In addition, the new buyers were required to pay a $200 deed work fee and the first year’s maintenance fee at the time of sale.  Costs associated with the auction included attorney fees of approximately $1400, advertising of $2269, postage costs of $670, and registry costs of $2100.  Bad debt write-offs totaled $22,164.  In addition to the auction, the owners association has sold 23 weeks (owner owned and association owned) this year. 

An owner present questioned where the homeowner association owned weeks appeared on the financials.  The income associated with the weeks is first applied to past due receivable amounts, and extra funds are applied to a Resale Income account.  A member felt that the association has excess funds, which is not the case due to the timing of some capital improvement expenditures.  Management is following generally accepted accounting principles and works closely with their accountant and our Association’s Treasurer, Janet Franz, who is a certified public accountant.  There was a suggestion to have our accountant present at next year’s meeting. Management also reminded owners that the $20 increase in the maintenance fee was primarily dictated by the significant costs of utilities. 

Management noted the biggest wish list item among owners and guests is to have a television in the lower bedroom.  The costs will exceed $25,000 for equipment and internal wiring.  Unfortunately, there are more pressing issues at hand. 

The budget passed with a majority vote.     

The board did research on installing solar energy at Harbor Ridge.  The initial expense was too costly for the association at this time, as the payoffs exceeded 15 years.  Only three buildings are correctly positioned for consideration of solar power, and there are limitations on space required for the solar equipment.

The association is considering making the units non-smoking.  Initial findings require a review of the resort’s Declaration.  We are awaiting legal counsel to review the documents.  We believe a vote will be required at next year’s meeting regarding this issue.  Owners will need to watch their newsletters for further announcements.  Due to significant costs, the association will also be making amendments to the rules and regulations of the association at the same time.

John Hanson made a motion to adjourn the meeting, and Donovan Lajoie seconded the motion.  The meeting adjourned at 11:55 am.

Respectfully submitted,
Jerry Williams, Secretary

 

 



 

 

Harbor Ridge Condominium Association
Special Meeting Minutes - Saturday, December 4, 2010

President Tim Letourneau called the meeting to order at 10:02 am and introduced the board members and management. Tim asked the owners present to introduce themselves.

John Hanson requested the approval of last year’s minutes. Mr. Hanson then moved to accept the December 5, 2009 minutes. John Bushman seconded the motion, and the motion passed.

Tim Letourneau asked if the members present wanted a line-by-line proposed budget review or highlights.  John Hanson recommended the same format followed as in the December 2009 meeting, with highlights and focus on substantial changes. Margaret Austin provided the highlights. She explained the reasons for the high Bad Debt Expense. The larger amount is due to owner foreclosures and this year’s first foreclosure auctions.  Foreclosures never occurred for 2007 through 2010. Management held off to see how other resorts handled foreclosure auctions.   The Developer also held two foreclosure auctions, which now allows the HR Association to bill the Developer for maintenance fees for unsold Developer foreclosures. Discussions took place on owners receiving emails listing foreclosures and resales, or seeing available weeks on the web site or in the newsletter. Questions also arose on how the foreclosed values were determined.  Margaret explained the foreclosed values were determined in a board meeting with a decision made on selling units at a reasonable cost to have a stable owner on board and achieve ongoing maintenance fee income. Annette also explained that she tracks owners’ email information when provided by owners.  John Hanson recommended adding a section in the newsletter asking owners to provide email addresses if they are interested in additional low-cost weeks.

Mr. Hanson motioned to discuss the 2011 budget. Frank Zito seconded the motion. Dave Ezzio thanked Margaret and Annette for the details provided. Frank Zito asked for a payroll breakdown by department and Margaret reported the total payrolls by department. John Buschmann questioned the property tax amount and Annette explained that HR maintenance fees are billed in arrears. Frank Zito questioned the legal income amount. Annette reported this fee is bundled in with registry expense. Mr. Zito also asked why Management chose a lawyer from Portland and if a local lawyer would be more cost-effective. Margaret said there are very few timeshare attorneys and none in the local area. Tim Letourneau added that timeshares are a different entity and very few people know how to handle the legalities. John Hanson moved to accept the budget as presented and Diane Zito seconded the motion. The motion passed.

Tim Letourneau introduced alternative energy options as other business discussion.  HR pays $35,000 per year in electricity charges and alternate solutions could help curb the cost. Tim asked if anyone present would be willing to research windmill, solar, or other alternate power resource. Owners felt Southwest Harbor neighbors may not appreciate or approve a windmill. Owners also felt solar panels or an alternate electricity provider could be an option. Tim shared that a business alternate electricity resource may save Harbor Ridge up to 15% per year.  Owners agreed that advantages and disadvantages of windmill, solar panels or alternate energy resource should be reviewed and asked the board to pursue. 

John Hanson asked if  weekend getaways were still in effect.  Margaret answered yes; charges are $95.00 per day or $125.00 for a two-day weekend.  Discussions took place regarding smoking in units. Owners present prefer to have smoke-free units and buildings.  The current smoking policy encourages smokers to smoke outside. Annette reported there are no huge problems with the policy except for winters. In these instances, carpets are cleaned and units ionized. This is an additional cleaning cost for maintenance. John Hanson motioned to refer smoking in units for the board to research legal ramifications and the best way to deal with this request. Diane Zito also asked the board to consider attaching a non-smoking clause for on-going deeds, at which time she seconded the motion. The board agreed to discuss the legalities and best way to achieve the smoke-free requests and the motion passed.

John Hanson motioned to adjourn and David Ezzio seconded the motion. The meeting adjourned at 12:30 PM.

Respectfully submitted,
Linda M. Connelly, Secretary