November 14, Dear Marriott s Grande Vista Owner:
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- Blanche Rose
- 6 years ago
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1 November 14, 2016 Dear Marriott s Grande Vista Owner: Your maintenance fee billing statement is enclosed. This note provides background information on the Budget and the maintenance fee increase. The resort management team has worked diligently to develop a budget that reflects the rising cost of operations while maintaining a resort that is approaching 20 years old. Your Board of Directors has worked with the Management Company to justify every expense, while protecting the exceptional vacation experience that you have come to expect. Summary The overall maintenance fee for reflects an increase of approximately 4%. As you know, the maintenance fee is separated into three categories: Operating Fee, Reserve Fee and Property Taxes. Operating Fee This fee increases by 5.2% over A major challenge continues to be recruiting associates and is due to the ongoing development of the hospitality industry and related employment opportunities in the Orlando area. It has been necessary to modestly increase hourly wages for associates in labor intensive roles, such as Housekeeping, Engineering and Loss Prevention to remain competitive in the market. In 2016, Grande Vista benefited from lower gas and electricity rates. Usage continues to be reduced with the installation of new air conditioning units with improved SEER ratings and the use of LED light bulbs. Be assured your Board and the management team will be doing everything possible to find offsets to rising costs. Reserve Fee The Reserve Fee increases by 10.5% over This fee provides funds for maintaining your resort, from painting of building exteriors, renovation of villa interiors, a major modernization of elevators, replacement of appliances, gas grills, pool furniture, fire alarms, roof membranes, water heaters and tanks. New luggage benches and food pantries are being added to selected villas. The goal is to manage your reserve dollars through a long-range comprehensive plan to maintain Grande Vista as a great place to vacation both now and in the future. Property Taxes Timeshare properties located in Orange County, Florida have been subject to significant assessment increases over the past few years with two consecutive 10% tax increases followed by a 1.6% increase in Your Board of Directors has initiated a number of administrative appeals challenging the assessments. The appeals are in the process, and the Board remains confident that it is being done in the best interests of the owners. Below are some of the recent changes and enhancements that have occurred: 2015 Resort Enhancements Villa o Refurbishment of all 250 villas in Phase 1 (Buildings 80, 81, 82, 83, 87, 93, 94 and 95) o Replaced Champion toilets in all villas o Installed RFID locks o Installed new LG televisions in all villas o Painted exterior of eight buildings o Repaired roof in Buildings 77, 78, 79, 84, 85 and 86 o Repaired roof membrane o Replaced screens on patio lanais Replace fire alarm panel and devices Phase 1 Launch of clubthrive
2 Plaza Del Sol Pool renovation o Resurfacing of Pebble Tec o New pool furniture o Installed Self-service ice and water station Replaced many Luggage Carts Painted corridor hallways 2016 Resort Enhancements Villa o Refurbishment of all 196 villas in Phase 2 (Buildings 96, 97, 98, 99 and100) o Painted exterior of five buildings o Painted villa entry doors Replaced fire alarm panel and devices Phase 2 Pool equipment and resurfacing -97 Replaced weight machines and cardio equipment in Fitness Center Painted corridor hallways Permit pending approval regarding ADA compliance at kiddie pools Installed ice machines in three buildings Installed tile samples in corridor on first floor of Building 100 New pool furniture Pool 98 Modernization of elevator and refurbishment of cab Phase 1 (scheduled for completion in ) Pavement/Asphalt overlay (scheduled for completion in ) We hope your next vacation will be at Grande Vista, so you can see and experience some of the great things we have been working towards. Sincerely, Richard Kraemer President Grande Vista of Orlando Condominium Association, Inc.
3 GRANDE VISTA OF ORLANDO CONDOMINIUM ASSOCIATION, INC. Estimated Operating Budget PHASES 1 23, (900 UNITS) For The Period Beginning December 31, 2016 And Ending December 31, 2016 BUDGETED EXPENSES 46,350 APPROVED BUDGET 46, BUDGET VS BUDGET INCREASE/(DECREASE) APPROVED BUDGET TOTAL $ % $ 1 BEDROOM 515 BUDGET BY VILLA TYPE 2 BEDROOM 38,728 3 BEDROOM 7,107 Revenue GOLD (WEEKS 18-21,35-50) 1, , % 22,476, , , PLATINUM (WEEKS 1-17,22-34,51-52) 1, , % 37,767, , , Bank/Investment Interest % 40, Late Fees (0.87) (12.7%) 276, Maintenance Fee Interest Income (3.54) (22.0%) 582, Total Maintenance Fee Revenue 61,143,392 Expenses Accounting % 515, Activities % 1,124, Administration % 1,460, Audit Fee % 15, Bad Debt Expense (4.59) (37.8%) 350, Billing and Collections % 484, Board of Directors % 31, Cable Television (0.05) (1.2%) 184, Credit Card Fee (0.15) (0.8%) 897, Division of the Condominium, Timeshare, and Mobile Homes Fee (FL) % 92, Electricity (5.21) (17.4%) 1,149, Fees - Golf % 834, Front Desk % 2,600, Gas (0.85) (15.5%) 214, High Speed Internet (0.04) (1.0%) 184, Housekeeping % 11,039, Human Resources % 708, Income Tax % 39, Insurance % 1,692, Landscape / Grounds % 730, Legal % 100, Loss Prevention / Security % 1,237, Maintenance % 4,565, Management Fee % 5,476, Operating Capital % Other Expenses % Pest Control % 272, Pool Maintenance (1.11) (7.2%) 658, Postage and Printing (0.12) (6.1%) 86, Refuse Collection (0.37) (14.0%) 105, Rent for Recreation % Taxes upon Association Property % Taxes Upon Leased Areas % Telephone % 191, Water and Sewer % 482, Operating Fee % 37,527, , Total Net Operating % 36,628, Reserve Fee % 15,365, Operating And Reserve Fee 1, , % 52,892, , , Estimated Property Tax 1 GOLD (WEEKS 18-21,35-50) (17.34) (9.8%) 2,790, PLATINUM (WEEKS 1-17,22-34,51-52) (20.68) (9.8%) 5,460, Total Maintenance Fee Plus Property Tax 61,143,392 Club Dues % International Owners Surcharge % Owner Service Fee %
4 GRANDE VISTA OF ORLANDO CONDOMINIUM ASSOCIATION, INC. Estimated Operating Budget Notes PHASES 1-23, (900 UNITS) For The Period Beginning December 31, 2016 And Ending December 31, Notes to the Estimated Operating Budget 1) Florida law requires the Managing Entity hired by the Association to collect ad valorem taxes assessed by the Orange County Property Appraiser's Office. The exact amount of the taxes levied on each separate timeshare estate may vary depending on the value of the timeshare estate and will not be known for certain until November of the year of the assessment. So as to meet the statutory requirement that the Tax Collector's Office only accept "full payment", and so as to have the necessary funds on hand to make payment as soon as possible once the tax bill is received by the Managing Entity in order to receive a discount for early payment, the Managing Entity will bill owners for their proportionate share of the taxes in January. Accordingly, the amount collected each year will be an estimate of the amount of ad valorem taxes that will be levied against individual timeshare estates. When the final tax bill is available, the amount collected for each timeshare estate will be adjusted accordingly, and overpayments, if any, may reduce the subsequent year's assessment, subject to other budgetary factors. Estimated Ad Valorem Taxes AVERAGE 1 BEDROOM 2 BEDROOM 3 BEDROOM GOLD (WEEKS 18 21,35 50) $ $ $ $ PLATINUM (WEEKS 1 17,22 34,51 52) $ $ $ $ ) The Resort Affiliation Agreement (and thus membership in the Club for every Owner of a Timeshare Estate in Club Unit) is a Limited Common Element of each Club Unit. Costs assessed by the Club Manager or otherwise incurred by the Association pursuant to the Resort Affiliation Agreement constitute Multisite Timeshare Plan Common Expenses, to be apportioned only among Owners of Timeshare Estates in Club Units. 3) International Club Fee of seventy nine dollars and sixty one cents ($79.61), thirty four dollars and fifty cents higher than domestic, includes additional costs for postage, personal delivery, increased frequency of and costs associated with long-distance telephone calls, translation costs, telefacsimile communications and labor costs for additional, special support staff. The fee may, from time to time, be increased to reflect any increase in the cost of providing services, provided, however, any such increase shall not exceed one hundred and fifteen percent (115%) of the immediately preceding year's fee, unless approved in advance by the majority of all Owners. 4) Florida Law requires the Association to maintain reserves for deferred maintenance and capital expenditures, based on the estimated useful life and replacement cost of each reserve item. The Association is accumulating funds for repairs and replacements over the remaining useful lives of the components based on estimates of current replacement costs. Actual expenditures may vary from the estimated replacement costs. The itemized estimate of the remaining life and estimated replacement of the major components are listed below: * Roof Replacement includes both unit roof replacement and common area. * Furniture and Fixtures includes replacement of unit furnishings, equipment, and appliances. * Building Painting includes unit building painting. * External Building Maintenance includes unit building-related equipment items. * Pavement Resurfacing includes pavement resurfacing and striping. * Common Area Rehabilitation provides for site lighting, irrigation systems, and common area maintenance. Components Estimated Useful Life In Yrs Estimated Replacement Cost Estimated Remaining Useful Years Anticipated Beginning Fund Balance As Of December 31, 2016 Contribution For Roof Replacement 21 $7,193, $976,855 $533,441 Furniture and Fixtures 12 $104,573,953 7 $24,350,286 $9,834,872 Building Painting 6 $4,328,902 3 $2,895,335 $410,073 External Building Maintenance 18 $24,684,089 8 $5,670,666 $2,039,551 Pavement Resurfacing 13 $1,158, $756,949 $28,697 Common Area Rehabilitation 14 $19,642,630 6 $2,034,617 $2,518,392 TOTAL $161,580,814 $36,684,708 $15,365,025 As permitted by Florida Statute 721, reserve funds may be reallocated between the reserve components by the Board at a duly called meeting. At a duly called meeting of the Grande Vista of Orlando Condominium Assoc. Inc., a majority of the nondeveloper voting interests in person or by limited proxy voted to approve the reduction of reserves for capital expenditures and deferred maintenance. 5) The Marriott Resorts Hospitality Corporation ("MRHC") has been delegated the authority to provide all services incidental to the management of the Condominium, including Owner Services and all property operations. In connection with the performance of those services, all operating expenses will be charged to and paid by the Association to MRHC, including some that may be incurred through affiliates of MRHC. Certain of the operating expenses charged to and paid by the Association to MRHC may reflect economies of scale associated with the number of projects managed by MRHC and the affiliated relationship between MRHC and the developer. The amounts charged for such operating expenses may reflect pricing that is lower than what equivalent services would cost if charged on an independent case-by-case basis. The Condominium Property is one of several parcels which comprise the Plat. Pursuant to that certain Vista Declaration of Easements, Covenants and Restrictions, recorded in Official Records Book 5102, Page 2606, of the Public Records of Orange County, Florida, all of the parcels included within the Vista Plat are required to contribute a specified share of the costs of operating and maintaining certain roads, easements and facilities which will benefit all of the parcels within the Vista Plat. The estimated expenses for the Master Declaration Common Facility have been included within the various line items of the above estimated operating budget. The Component Site Reservation System is a Limited Common Element of each Non-Club Unit. Costs incurred by the Association in connection with the maintenance and operation of the Component Site Reservation System constitute Component Site Reservation System Expenses, to be apportioned only among Owners on Unit Weeks in Non-Club Units, and are not included in the Developer Guaranty. Notes From 2015 Audit: Certain services, including off-site accounting and administration, and reservations, are provided by MRHC and allocated to the Association based on the number of unit weeks, as a percentage of total unit weeks the respective service covers. Marriott Vacations Worldwide Corporation ( MVWC ), the indirect parent company of MRHC, pays all invoices on behalf of the Association, subject to reimbursement by the Association. The net amount due from (to) MVWC at December 31, 2015 and 2014 was $376,945 and ($3,536,552), respectively. MRHC collects annual maintenance fees on behalf of the Association. The amount of maintenance fees receivable due from MRHC at December 31, 2015 and 2014 was $4,486,036 and $5,837,540, respectively. The Board of Directors of the Association has approved a change in the Association s fiscal year to a calendar year commencing January 1,. This budget for fiscal year reflects the calendar year, plus one additional day at the end of December 2016 due to the transition from the 2016 periodic fiscal year to the calendar-based fiscal year.
5 Frequently Asked Maintenance Fee Questions Q. What are maintenance fees and who determines them? A. Maintenance fees are those funds collected by your Association to cover the cost of operating the resort, future maintenance and refurbishment. Maintenance fees are approved by your Association s Board of Directors and include: Operating Fees: These funds cover the cost of all resort expenses incurred on an annual basis, e.g. electricity, phone, maintenance and housekeeping. Reserve Fee: This is planned funding of capital replacement expenditures for replacement of large items, e.g. refrigerators, roof repairs and villa furnishings. Property Tax: These taxes are assessed by the county in which the resort is located and billed to each Owner through the maintenance fee. Florida Club Fee: This is a membership fee giving you the usage option to customize a vacation experience at the other participating Florida Marriott Vacation Club resorts without utilizing a third-party exchange company (such as Interval International ). For our international Owners, the fee also relates to the additional costs of providing services internationally (e.g. higher postage costs, higher long- distance telephone costs and translation costs). Reservation System Fee (Non-Club Owners): The fee for non-club Owners to cover the cost for Owner Services support. Q. When are maintenance fees due? A. Please refer to your maintenance fee invoice for your exact due date. Please remember to remit payments on time. Interest and late charges will be assessed on late unpaid balances according to your Association s guidelines. Q. What are my maintenance fee payment options? Option 1: You may pay 24 hours a day, 7 days per week at Option 2: Mail your check payable to Marriott Resorts Hospitality Corporation (with or without your maintenance fee coupon) to: Marriott Resorts Hospitality Corporation P.O. Box Pittsburgh, PA Please include your owner number on your check) Option 3: Contact a Financial Services Representative at or * Deliveries that require a signature (e.g. certified, registered, or overnight) should be mailed to: Marriott Resorts Hospitality Corporation Attn: Ross Street Pittsburgh, PA
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