Minutes. Presentation of the financial results for the period ending December 31 st, 2016
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1 Information meeting presented by l Association des syndicats de copropriété du sommet du Mont-Plaisant Country Club de Cap Tremblant 400, Mont-Plaisant Street, Mont-Tremblant Saturday, April 22nd, 2017 à 8 :30 a.m. Minutes 1. Word of welcome Mr. Luc Lambert, president of the Association des syndicats de copropriété du sommet du Mont-Plaisant, welcomes the co-owners who are present. Mr. Luc Lambert will take care of the presentation in French and Mr. Régent Desjardins, member of the Board will translate in English. 2. Explanation of the role of the Association The Association has been formed for the common management of infrastructures such as the swimming pools and whirlpools, the tennis, the road and other common projects. In summary, this represents 50% of the costs to the Syndicates budgets. The other 50% of the costs is attributable to the direct expenses of the Syndicate. 3. Financial situation of the Association Presentation of the financial results for the period ending December 31 st, 2016 For the fiscal year ending December 31, 2016, revenues were $ 623,000. A transfer of $ 18,000 from the operating fund to the replacement fund had been budgeted to meet the cash requirement, but the transfer of funds was not required. Total expenditures in the range of $ 648,000 include expenses for the operation of swimming pools and whirlpools, for site maintenance and administrative expenses. Some unbudgeted but necessary expenditures, such as the $ 11,000 for the municipalization project and the standardization of fire hydrants, have affected expenditures. The fiscal year ended with a deficit of $ 24,000 compared to an anticipated deficit of $ 42,000. At the replacement fund level, revenues are in the order of $ 32,000 and expenses are $ 38,000, leaving a deficit of $ 6,000. Presentation of the budget for the Operating Fund and the Replacement Fund for 2017 The operating budget passes from $ 621,601 to $ 453,240 as a result of savings and transfers of certain expenditures directly related to the syndicates to be assumed or adapted to their needs.
2 The replacement fund budget of $ 73,000 provides for repairs to the pool and replacement of the Pavillon Ocean pool heating system in Municipalization of the infrastructures update Municipalization of infrastructure involves the transfer of roads, water and sewer systems to the Ville de Mont-Tremblant. In order to do this, they must be upgraded or have the possibility to be upgraded with the payment of the related costs. The major problem is that the water system is buried under 10,000 cubic meters of rock and that it would cost $ 120,000 to $ 180,000 to move them. Mr. Christian Joly, real estate developer of the Lac Desmarais project, issued an offer to buy Mr. Charest's land where the rocks are located. He plans to build 50 to 70 semi-detached houses of 2,500 sq. ft. in the spring of 2018 and this could regulate the situation for the owners of the Cap Tremblant at little expense. However, he must have to purchase a portion of the land at Manoir Beausoleil. Discussions are currently underway with the Board of Manoir Beausoleil and the Association. Mr. Marc Tremblay intervened to mention that he endorses the project as a whole. In addition, the Phase 2 pumping station was transferred from a Syndicate s lot to a separate lot. This work has been completed. Concerning the pumping stations and the Phase 3 water pressure station that are subject to legal hypothecs, we are currently working to have these mortgages removed. 5. Comments on the 2017 budgets for the syndicates This point has been discussed at point No Report by the General Manager Mr. Pierre Lasselle (GM) mentions the hiring of an engineering firm (CIEBQ) to take readings at soil level of certain buildings to determine if the building is 3 or 4 floors, as requested by the Régie du bâtiment du Québec. Mr. Pierre Lasselle reviews the contracts for the management of water basins, shuttles, landscaping and snow removal. He lists the different levels of progress in the following sectors: Organization A full-time superintendent has been hired and a second worker is currently in evaluation for the day-to-day tasks and the maintenance of the site. A tight monitoring of the pool's expenses is carried out. Spring work A work planning table for the Replacement Fund is presented. The work schedule will be very tight and they are weather dependent. 2
3 Pool maintenance contract and lifeguards Since the installation of our surveillance cameras, we are astonished by the magnitude of incidents that we were able to see. These include problems with alcohol and drug use, obscenity and overcapacity. Shuttle bus Through the negotiations we have conducted directly with Galland, we have achieved savings of $ 20,654. It would be possible to reduce costs if we opt for a "school bus". The interior layout of this type of bus is similar to the one we currently have, but this type allows to put our skis outside the vehicle, thus facilitating embarkation and disembarkation. This way, we might save a sum of approximately $ 5,000, which would allow us to add time slots of service we did not have before (summer and school breaks). A vote by show of hands is held and the majority of those present are in favor of choosing the school bus. City permits for major works Mr. Pierre Lasselle mentions that all work over $ 10,000 require a permit issued from the City. The cost is $ 50 per Manoir. Access to the "locker" of the Manors and the local HQ Some locks are outdated and need to be changed. We recommend replacing them with code locks for the lockers and retain the key system for those of Hydro-Québec. The price we have obtained is $ 255 plus taxes per lock. A vote by show of hands is held and the majority of the Syndicate present are in favor of the motion (except Brévent which has already a code lock). Régie du bâtiment du Québec The Régie du bâtiment du Québec is questioning the number of floors of some Manoirs (3 or 4 floors). Mr. Pierre Lasselle points out that 17/23 of the Manoirs have an amount of $ 1,150 in their respective budgets to cover the cost of the technical expertise. The Manoirs that are not concerned for the moment have been inspected two or three years ago. These can still be inspected. In order to be well prepared, we have consulted Me Raymond L Abbé and Mr. Pierre Beaupré of the CIEBQ. In order to collaborate with the RBQ, we will measure the height of our buildings. 7. Accès au condo et assurances Access to the condo is essential for certain work or for emergencies and a double key or a number code must be provided to the administration. Reminder of the proof of insurance of the co-owners to provide to the administration or sign the power of attorney to that effect. Insurable value Mr. Luc Lambert mentions that according to the discussions held at the last Special Assembly of the Association of last September, we had the insurable value of our contracts adjusted in order to match the reconstruction value. Doing so, we had the buildings of 9, 10 and 11 units re-evaluated. As of November 15, 2016, the maximum total assessment is $ 2,900,000. The coverage in the insurance contracts correspond to this amount. The insurer has agreed to withdraw the proportionate rule from all contracts. 3
4 Thermostats and fire extinguishers Mr. Pierre Lasselle confirms that all the thermostats of the mechanical rooms have been changed. Following the recommendation from the insurer, it is strongly suggested to allow the Association to change the thermostats of the condos for pre-programmable electronic thermostats set to a minimum of 15 degrees Celsius. This item will be placed on the agenda of the AGM of each of the Syndicates. Mr. Pierre Lasselle adds that an annual inspection of fire extinguishers is suggested and may include the verification of the smoke alarms. 8. Web site Mr. Claude Lizotte explains that a web site is an appreciable tool in co-ownership in order to distinguish itself from hotel management. There will be a public version where any co-owner can gather background information, such as the mission of the Association, rights and obligations of owners, shuttle and facilities schedules, the location of the Ecocentres, a map of the Cap Tremblant site, etc. In order to have access to archive documents, such as invoices, insurance certificates, this tool is very convenient. Mr. Claude Lizotte adds that the directors will receive privileged access and that he will add specific information to your Syndicate as they go along. For example, Syndicate' administrators will have access to their respective financial statements and budgets. The cost of the web site is $ 75 a month for the next 3 years and then $ 35 a month. There is a possibility of cost-effectiveness in offering advertising. A few hours of training for a future administrator of the website would be sufficient to be at ease in order to change the data of the site. 9. Tennis courts Concerning the tennis court that is near the Pavillon Océan, we are currently studying the avenue to hold a one-day reservation at a time in order to control access. Mr. Régent Desjardins reminds that owners who are not in the "rental pool" cannot use the tennis courts located near the reception. Mr. Luc Lambert mentions that swimming pool staff could be involved in the maintenance and the organization of tennis courts. Mr. Pierre Lasselle adds that the subcontractors would take care of the maintenance once a month and moreover, the staff in place would be trained to proceed with the daily maintenance. He mentions that the broom and the roller would be accessible to the users. 10. Cap Tremblant clientele Mr. Luc Lambert mentions that the co-owners who have the most power over the problem of Cap Tremblant's customer behavior are those who are in the rental pool with l Hôtel de Montagne Cap Tremblant. These co-owners should in principle receive from the hotel manager, on December 1st of each year, the details of the group bookings for the winter months. They can either advise the hotelier not to book these groups or to reserve their unit for their own use for these dates. 4
5 Mr. Régent Desjardins adds that the valued clientele for Cap Tremblant is the one of families and sportsmen. Needless to say, the party animals will probably cause condo damage, create noise nuisance, consume alcohol and drugs in aquatic facilities, and drive families away. He also adds that we do not have control over the clients that come from the rentals managed directly by the owner. Changing the situation will take time, involvement and some important decision-making. Mr. Luc Lambert said that it is no longer necessary to accept undesirable groups in order to boost the occupancy rate, because Intrawest is leased at full capacity almost every winter weekend for the last two years. He adds that the difficult times for the tourism industry in our sector are things of the past. Mr. Pierre Lasselle emphases that the majority of the co-owners who rent through the Hôtel de Montagne (approx. 110 units) are not present over the weekends and are not aware of the problem. In addition, the only source of information for these owners is the hotel manager. In summary, the Association plans to put in place rules and solutions to improve these points with Mr. Guymond Fortin, the hotel operator. The meeting is ending at 11:15 a.m. 5
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