MINUTES ROCHE LAKE RESORT LESSEES/OWNERS Meeting Roche Lake Resort Lodge Saturday, April 30 th, :30 PM

Transcription

1 MINUTES ROCHE LAKE RESORT LESSEES/OWNERS Meeting Roche Lake Resort Lodge Saturday, April 30 th, :30 PM PRESENT: Lauren and Neil Wilson, Resort Owners, Dell Bauer and Marita Woitas (9B), Larry and Ann Cardus (13B), John and Janet Eastman (1B), Cal and Adele Eshuis (15A), Gord and Jasha Ramsay Latter (10B), Keith and Jackie Locke (10A), Ted and Rae Moir (11B), Tony and Carol Nesci (7A), Joe and Karen O Donnell (12B), Stuart and Teresa Reid (11A), Adrian and Gail Vandermey (4B), Harvey and Ruth Watson (9A), Russell Wilson (14A), Rob Wilson, Juliann Butler, Andrina Benazic, C.A. 1:30 pm Lauren Wilson offered everyone to help themselves to the freshly baked Danish, coffee and tea while waiting for Pat Adams to arrive for the meeting. 1:40 pm Lauren W. called the meeting to order. A. INTRODUCTIONS Lauren W. began the meeting by welcoming everyone, introducing herself, Neil Wilson, Russell Wilson, Juliann Butler, Rob Wilson, the new Chartered Accountant for the Resort Andrina Benazic and the new chef Terry Berke and invited all present to do the same. B. OLD BUSINESS - (reported by Lauren Wilson and Neil Wilson, in the absence of Pat Adams.) 1. The resort roads (both upper and lower) and the chalet stairs have been re-graveled. 2. Liability coverage for non-rental guests of all owners has been a concern for the past two years. This question has been answered by insurance agent Ann Hogg (see attached #A). 3. Neil W. reported that he had three estimates for the external refurbishing of the units, ranging in price from $50, to $104, He noted that this work would be deferred until such time as the exterior replacement fund was built up enough to cover the costs. He further noted that concerns about water entering and damaging the units would be allayed by using a low pressure wash. 4. Lauren W. introduced Andrina Benazic, Chartered Accountant for the resort, who would be addressing the financial statements in the next section of the meeting, and would report on the proposed new financial structure. Absent Pat Adams, Andrina noted she would speak to the period of November 5 th 2010, to December 31 st, 2010 and, if possible, answer those questions relating to the January to November section. C. FINANCIALS - Financial statements were distributed at the meeting (see attached #B & #C) 1. January 2010 to November 5, November 5, 2010 to December 31, Year end statements for all Lessees (#B) and for Rental Pool Participants (#C): MINUTES OF A MEETING OF THE OWNERS/LESSEES OF ROCHE LAKE RESORT Page 1 of 6

2 Andrina reported that in response to ongoing requests from the Lessees to streamline the financial reporting process and the statements, they were now divided into separate reporting statements (#B) for all Lessees and (#C) for rental pool Lessees. In a move to clarify income and expenses for the various components of the resort, there would now be separate statements for rental pool monies and proportionate share monies, rather than one which started out as a combined statement and was only separated for reporting purposes. This would eliminate the line items of owing to and owing from. Andrina noted that there was no money in the Exterior Reserve Fund bank account - the account now stood at some $7.00. She anticipated that actions would be taken to build it back up. The Exterior Reserve Fund and the Interior Reserve Fund bank accounts had been closed, due to the expense of keeping open empty accounts. 4. Receivables: Andrina reported that Accounts receivable, which were actually outstanding payments owed by various Lessees, amounted to approximately $35,000.00, which meant that there were no funds to cover current expenses or pay out the rental pool Lessees who were owed money. John Eastman questioned what action he might take regarding monies paid to previous resort owner Pat Adams, as per her letter of request sent to all Lessees dated April 8 th, (The Wilsons had been advised of this letter by a Lessee on April 19 th and then followed up with an to Lessees on April 21 st, 2011, clarifying the payment process.) Those Lessees who had remitted funds following Pat A. s instructions were invited to discuss a resolution of their concerns with Andrina Benazic. Andrina further noted that statements for each Lessee reflecting their individual accounts will be issued within two to three weeks. Those who had requested information for tax purposes could use the statements as distributed. Ann Cardus stated that she planned to ask Pat Adams for a detailed accounting of the rental history of their unit, how many day it had it been rented for and for what income. She suggested that other Rental Pool Lessees do the same, although she was aware that the rental income was pooled and the information might be difficult to recover. Under the Wilson s new management, a new computer was installed at the front desk and a computerized reservation system was purchased and installed. The new reservation system will keep records of dates booked and income generated, as well as tracking usage on all units. Further to receivables, Andrina noted that of the $30, marked as owing to the rental pool on the new statements (see Balance sheet for Proportionate Share (#B) some $25, was unclear as to its origin, as discussed at previous owners meetings (see minutes of meetings 2008 and 2009). She will undertake to discover what these monies represent in order to clarify how they should be accounted for. Andrina further stated that items of shared expenses would be reviewed to determine what was to be allocated to proportionate share or would be considered a rental pool expense. As an example, Gord Latter said that previously the line charges for the telephone bill had been allocated to the proportionate share expenses, and long distance charges had been considered rental pool expenses, as the majority of calls would concern reservations etc. MINUTES OF A MEETING OF THE OWNERS/LESSEES OF ROCHE LAKE RESORT Page 2 of 6

3 Regarding outstanding accounts, Gord L. asked how these monies would be collected, as their lack affected all owners. Neil Wilson replied that as owners of the resort, the Wilsons would undertake that responsibility. Jasha RL. noted that previous legal costs for collecting these outstanding debts had been paid by all Lessees would this continue to be the case? Lauren replied that action would be taken in a timely manner and with a view to keeping costs to a minimum as these costs would indeed be considered a shared expense. Andrina B. stated that going forward, bookkeeping and accounting expenses would be broken out separately, and agreed that breaking out legal expenses would also be useful to understanding the financial statements, and would be done. She also noted that a system has been created whereby staff time and therefore wages and benefits, will be allocated to specific areas of duties and thereby be either shared proportionate costs or rental pool costs. Concerns had been frequently voiced as to how it was determined from which account various staff were paid, as it appeared there was some ambiguity about their duties. Neil Wilson noted that propane expenses had risen from 49.9 cents per litre to 59.9 cents since taking over the resort, and he expected them to continue to increase. He has requested that CalGas order a bulk amount of propane at the lowest (summer) rate, so it could be available to the resort in winter, when rates were higher. Ted Moir noted that this price was a commercial rate and that Kamloops residences paid some 80 cents per litre. To Jasha RL. s query as to whether this new (and well received) financial reporting process needed some form of mutual agreement by owners and Lessees, Lauren W. replied that this streamlined format would be inserted as component of the (to be proposed) new management agreement, and would be accepted by all Lessees as part of their accepting that agreement. Andrina also reported that the HST has not been filed for the Oct 1 to Dec 31, 2010 filing period. The balance should be in a refund position and the former owner believes that the refund should cover any penalties and interest for late filing Andrina also acknowledged that funds were owed to rental pool participants and that only if outstanding accounts were collected could they be paid. The bigger issue was that of repaying the exterior reserve fund (some $10,000.00) and that the rental pool, unfortunately, might not be funded for payment any time soon. In closing this portion of the meeting, Andrina Benazic said she was very receptive to answering questions as they might arise from previous payment questions, or from these statements. Lessees who have questions are advised to Lauren Wilson at info@rochelake.com. If Lauren is unable to answer queries, she will contact Andrina to arrange for them to be addressed. 5. Budget and Capital Plan: Lauren spoke to these items, noting that neither has yet been prepared, due to the time crunch created by receiving financial information a week and a half prior to the meeting and then having to prepare financial statements in time for this meeting. She stated that from now on, a budget for each year will be presented to Lessees, and a long range forecast will be developed to forestall necessitating assessments for large capital expenses (such as the anticipated need for refurbishing the chalet exteriors). Lauren W. and Andrina B. declared their intention to have financial information available to Lessees in the early part of 2012, sometime in mid February to late March that this meeting, held so close to tax deadline, was exceptional due to the present circumstances and was not to be regarded as setting a MINUTES OF A MEETING OF THE OWNERS/LESSEES OF ROCHE LAKE RESORT Page 3 of 6

4 precedent. The financial statements prepared for 2012 and future years would be sent out regardless of if or when a meeting of owners and Lessees was scheduled. Keith Locke asked for clarification of Andrina s statement at an earlier point in the meeting, referring to differing payments of proportionate share and management fees.were some Lessees paying different amounts? Lauren replied that due to the HST coming into effect in July of 2010, and some Lessees having pre-paid their proportionate share and management fee, there was a difference resulting in a small receivable. She assured the meeting that all Lessees paid the same amount for both proportionate share and management fees. Ruth Watson stated that due to ongoing problems she had experienced with her cheques being cashed, she now deposited them directly into the Roche Lake Owners Association bank account. Lauren replied that this was fine to continue, and that she had attempted to set up a direct deposit process with the bank, but had been discouraged to do so by its excessive cost. She therefore was in the process of trying to secure Roche Lake Resort Ltd. as an authorized payee to facilitate payment of accounts and reduce errors. Theresa Reid noted that Roche Lake Owners Association was not technically an entity, but that Roche Lake Resort Ltd. is one. Any monies paid to Roche Lake Resort Ltd. but owing to Roche Lake Owners Association could be easily transferred. D. NEW BUSINESS 1. Property taxes: Lauren reported she had requested a meeting with the tax department to review the property taxes with a view to decreasing them for next year. 2. Rules of the Resort: Lauren stated that, as outlined in the Lease Agreement, she would be drafting a set of rules for the resort that would guide Lessees, renters, guests and campers alike. She acknowledged Lessees complaints and concerns about excessive noise coming from campsites. Lauren advised she had two volunteers willing to work on the rules with her, Jasha Ramsay and Ann Cardus. Ann Cardus volunteered to represent Rental Pool participants and Jasha RL. volunteered to represent Lessees. 3. Management Agreement: Lauren noted that there was a need for a new management agreement. Several issues she considered important, that were not currently covered in the latest contract dated 2002, were receivables, winter use costs, winter use time of week before and week after for rental pool participants only and not all lessees, financial reporting format, operating season period, etc.. Specific to one of these items was the cost to Neil and Lauren to carry proportionate share receivables but no method to recover these costs. These carrying costs should be reimbursed by those in arrears. Gord L. noted that the most recent newly drafted management agreement had been designed unilaterally by the resort owners and presented to the Lessees without their input. This had been a change from earlier in the resort s history, when Lessees had been involved with the process of creating the agreement. Could current Lessees expect to be allowed input to a new agreement? He indicated that if mutual interests were met, such a collaborative process might prevent refusal to sign. Lauren W. spoke to the Wilsons willingness to create the new proposed management agreement in consultation with those who wished to have input. 4. Operating Season: The operating season of the resort will be kept officially as May 1 st to October 31 st, with possible allowances made in case of inclement weather. It was agreed that those who wished to make MINUTES OF A MEETING OF THE OWNERS/LESSEES OF ROCHE LAKE RESORT Page 4 of 6

5 Reservations up to that date would be accommodated as possible and weather permitting, and that a firm opening and closing date for the season would permit Rental Pool participants to make their plans for occupation for their free two weeks for upgrading or improving their unit. 5. Non-Seasonal (winter) Use: Lauren noted that the winter (off season) rates were $20.00 per night, $15.00 of which went towards propane cost and $5.00 towards electricity. There was also a re-winterizing charge of $ The first winterizing after the season was done at no additional billing to Lessees. Neil W. asked that those Lessees who may be replacing their faucets be certain to install those with a round ring on the inside. This would make filling the lines with antifreeze easier, as the square types were next to impossible to pump antifreeze into. Ruth Watson asked if any thought had been given to operating the resort in the winter. She and her family had noticed frequent occupation by groups of people in the off-season, snowmobiling etc. Neil Wilson replied that at this point, weatherproofing cabins not built for winter use would be cost prohibitive, and that though they planned to continue to enjoy having a seasonal celebration at Christmas and New Year, the resort would not be open to the public in the winter. 6. Rental Pool Agreement Non-Seasonal (Winter) Use: There was some discussion regarding those free weeks, and Lauren pointed out that although Rental Pool participants were currently able to have one week before the season opening and one week after closing at no cost, for the purpose of upgrading, improving or reconditioning the unit, this was nowhere stated as being true for non-rental Lessees. Theoretically, they should be charged for this time at the winter rate of $20 per day, although this had not been the case to date. Lauren planned to address this matter in a new management contract. OTHER BUSINESS: Teresa Reid reported that their boat motor had been stolen from their boat moored at the Owners Dock last season (Cal Eshuis also had his motor stolen). Since it is easy to boat from the government campsites or public launch site to the Roche Lake docks, it was an unobserved action. She requested motion lights be installed at the end of the docks to discourage a repeat of this insult. It was agreed by those present that this matter required attention. Neil W. will source out the lights, their price and what work code must be followed. A group of Lessees volunteered to make themselves available for digging out foundations and assisting, where possible, the certified electrician who would be hired to install these lights. A certified electrician had already been hired to make repairs and improvements to the electrical panel in the Lodge. Russell Wilson reported that in an effort to prevent a repeat of such thefts, shrubs had been removed where they had blocked the boat launch areas from easy view. All boat owners were reminded to secure their motors and engines and other valuable boating items with chains and locks, and also engrave them with their driver s licence for police identification. Adrian Vandermey noted that due to the large number of boats moored at the Long Dock, both renters boats and those designed for rental by the resort, there were instances of boats being damaged. He suggested extra rental boats might be kept instead at what is now the Owners Dock. Should extra rental boats be required, they could be brought over from the other dock (such a plan might depend on water levels). Ted Moir suggested boats should be tied up by stern anchoring, rather than bow; this would reduce damage caused by them banging together. MINUTES OF A MEETING OF THE OWNERS/LESSEES OF ROCHE LAKE RESORT Page 5 of 6

6 Neil W. reported that the Owners Dock needed immediate repairs to allow it to be used for the season, but long term plans included replacement of that dock and possible plans to re-configure the Long Dock. He also noted that he had discussed with Koyne Watson (9A), who is a road builder by trade, the possibility of pushing a road through behind the workshop to create additional space where infrequently used boats and trailers could be stored during the season. Neil W. also asked that all Lessees with abandoned or stored boats or trailers or any other equipment on the resort take action to remove them or let the Wilson s know whose they are. Several unknown boats were in the woods near the entrance and needed to be removed. He will work with those who need to arrange some sort of storage space. Janet Eastman asked how many days Rental Pool participants had to use their unit. Lauren replied that they had 28 days, plus a week before and a week after the season for the purpose of upgrading, improving or reconditioning the unit. Janet further asked about the process of Rental Pool participants reserving time. She recalled that in years past a form had been circulated requesting reservations are made by November. Even then sometimes they had been disallowed due to previous bookings and had been told there were bookings four years in advance. Lauren assured the meeting that they did not have any reservations for years in advance. Ruth W. also expressed her disappointment at not being able to use their unit due to bookings by renters. Lauren responded that the management would do their best to accommodate rental pool participants, and would move guests to other units, if available. She encouraged those in the rental pool to reserve their times as soon as they knew when they wanted it. (The Rental Pool agreement states that the Owner shall notify the Manager, in writing prior to the end of the preceding Operation Season, of the period or periods of time the Owner wishes to occupy the Unit in the following Operating Season, but if the Owner has not done so, the Owner may reserve the Unit through the rental pool reservations system on a space available basis; ). Jasha RL. brought it to the attention of the meeting that the Wilson family had generously offered to plant a Blue Spruce tree near the conference centre in honour of Roy Adams, who had died February 16 th, Jasha asked those present if they would consider contributing toward a bench to be placed near that tree, with a plaque speaking of Roy s love of the lake. She will consult with Neil W as to the best type of bench and research some possible costs and all Lessees with the information so they may take part if they so wish. This will be done in a timely fashion and with an eye to informing Roy s family, who plan to scatter his ashes at the lake at some future date. The meeting closed with an enthusiastic thank you to Andrina Benazic for her work on the financial material, and a warmly voiced recognition of the hard work the Wilson family and staff had put into preparing the resort for the season. Meeting adjourned at 3:25 p.m. Minutes respectfully submitted by Jasha Ramsay Latter (10B). MINUTES OF A MEETING OF THE OWNERS/LESSEES OF ROCHE LAKE RESORT Page 6 of 6