Information Meeting presented by the «Association des syndicats de copropriété du sommet du Mont-Plaisant» Tremblant Congress Center, 160 Curé Deslauriers, Mont-Tremblant Saturday, April 16 th, 2016 at 10:30 am 1. Word of welcome Mr. Lambert welcomes the co-owners and thanks them for coming to the information meeting. He will present an update to better understand the important issues we must address at Cap Tremblant and also to facilitate the assembly of each syndicate this afternoon. Mr. Lambert thanks the members of the board of Directors of the «Association des syndicats de copropriété du sommet du Mont Plaisant». In 2015/2016, the Board of Directors met six times, mostly by conference call. Sitting on the board in 2015/2016, Marc Tremblay, Graham Thorpe, Claude Lizotte, François Nasraoui, Pierre Lasselle Simon Larocque and Luc Lambert. Mr. Lambert would specifically like to thank Mr. Marc Tremblay who is a founding member of the Association since 2010. Since 2008, when the Corporation de développement Intersite stopped managing the properties at Cap Tremblant, Marc Tremblay got involved in setting up a comity to frame the activities of the new property management company. Marc has given a lot of his time in the past 8 years to benefit all co-owners at Cap Tremblant. Marc Tremblay is retiring. Following his retirement and the resignation of Simon Larocque, two new directors have been elected on the Board of Directors for 2016/2017: Mrs. Martine Comeau and Mr. Milan Plentai. Again this year we have important issues facing us, namely the municipalisation of our infrastructures. Rest assured that your board of Directors will make every effort to address these issues while making sure that the autonomy of the 23 syndicates is respected. The Board of Directors wishes that co-owners and guests at Cap Tremblant appreciate their resort experience. As an owner, do not hesitate to share your comments to your Board of Directors or to Alain Tanguay, the General Manager of the Association. Directors are primarily responsible for protecting your investments namely your Manoirs. These major or minor maintenance and repair decisions fall on your lap. The capitalisation of the contingency fund should be a priority for all co-owners. 2. Explanation of the role of the Association Last March, some changes were made to the Association regulations and also to its mandate. In 2008, when the Property Manager decided to stop managing the syndicate of Cap Tremblant, Mr. Tremblay realized that some Syndicates had insufficient amounts in their contingency fund. Sentinel was given the contract and took over as Property Manager, then they were sold to Gestion de copropriétés Mont-Tremblant (GCMT). We realized then the importance of having a Property Manager. Mr. Lambert reminds us of the role of the Association: 1
Installations liked to each syndicates by easements (pools, spas, tennis) Manage all other common expenses of the 23 syndicates for syndicates that wish it (insurance common area of the Manoirs, snow removal, landscaping) Support the syndicates in the protection of the Manoirs for syndicates that wish it Our goal is to make it easier for each co-owner. 3. Financial situation of the Association Mr. Lambert summarizes the financial situation of the Association. Last March, all the Syndicates received the financial statements of the Association. In the balance sheet, the total assets were $173K and the total liability was $82K. The balance sheet shows a net value of $92K. For 2015, there is not much variance between the budgeted amount and the actual amount. From one year to the next, almost half of the budget is allocated to operating, maintenance and repairs of the pool sites. An amount is also planned for the pools surveillance which is contracted to Gardium Security (approximately $2,800 per month). We can see an important expense in the replacement fund. An amount of $18K for the construction of a dry sauna in the Ocean Pavilion. Concerning revenues, the budget is similar as last year. The surplus in the operating fund is transferred to the infrastructure fund to be able to make repairs in the event of a major failure in our infrastructures (aqueduct, sewers, main road). Mr. Tremblay specifies that it will not be possible to make the transfers until agreements are signed. Mr. Lambert agrees with him; transfers will be done as soon as the agreements are signed. The signature of those agreements are planned for the September 24 th meeting; distinctive agreements will be written for each phase. Question: Did you plan the chimney-sweep? Answer: Yes, the chimney-sweep is planned for the 23 Manoirs every year. Question: What is for the amount of $15K under «other common expenses»? Answer: This amount will be used for unplanned work. Since there is also a line for «unplanned», we will combine the two amounts on the same budget line. Question: What is the amount of $15K under «other common expenses» planned for? Answer: Mr. Tremblay specifies that this amount has been put aside for the implementation of some projects planned in 2016. A discussion on those projects already took place and will continue at the next Annual General Meeting of the members of the Association (69 directors) which is planned on September 24 th. You will be informed soon as there is more substance to those projects. Question: Why did we hire an administrative assistant in addition to the General Manager? Answer: We need an administrative assistant to improve communications and to prepare all the documents pertaining to the different meetings. Furthermore, her hiring is linked to the project in progress which you will be informed later. Concerning the hiring of the General Manager, we realized that managing 23 syndicates is not an easy task. We need a person on site to coordinate operations on site, and plan all the work to be done in the Manoirs. 2
We are aware of the actual economic context and we wish to reiterate the fact that each dollar spent will be well invested. The Syndicates pay also fees of $4,000 yearly per Manoir for the services of the property manager (GCMT); its mandate is mainly to look after financials and follow-ups on receivable account (late condo fees). Question: Why the deficit is higher than last year? Answer: We do not necessarily want a surplus. The surplus belongs to the 23 syndicates and has been divided between them. Question: Why do certain co-owners pay their condo fees by check instead of doing automatic payments? Answer: The Association can propose but cannot impose a payment method to co-owners. Some owners are not comfortable with automatic payments. It would be ideal if all co-owners payed their condo fees electronically. 4. Municipalisation of the infrastructures - updates Mrs. Comeau explains the steps taken to resolve the rocks problem. It was decided on March 5 th at the Annual General Assembly of members of the Association to form a special committee for the municipalisation. This committee is formed of Luc Lambert, Alain Tanguay, Martine Comeau, Gilles Huot, Francois Nasraoui, Robert Pigeon and Pierre Lasselle. The three owners of the land where the rocks are situated have been contacted because we need their authorization to move the rocks. The committee also met the City of Mont- Tremblant to validate, at first, if the interdiction of construction at Cap Tremblant is still valid as long as the infrastructures are not municipalised and to verify their interest in integrating in the loan by-law the cost for moving the rocks. The City confirms that Intersite cannot do any construction as long as the infrastructures are not municipalised. The General Manager of the City accepts to integrate the cost for moving the rocks in the loan by-law. Mr. Tremblay suggests that we validate the authorization with the clerk of the City of Mont-Tremblant. An action plan has been developed with the City to municipalise the infrastructures. The City will inspect the pumping stations within the next 2 or 3 weeks. The maintenance of the phase 3 booster pumping station is now being managed by the City. Next steps: Meeting between the City of Mont-Tremblant, the Association and the owners of the land where the rocks are located. Obtain a signed agreement with the owners of the land to authorize us to move the rocks. Some land surveys are needed in this process. 3
Comment: a co-owner informs us that he knows a contractor that may be interested in taking the rocks. This co-owner will get in touch with the committee if the contractor confirms his interest. Question: Who is paying to move the rocks? Answer: This decision has not been made yet; the decision will be made after consultation with the Board of Directors of each Syndicate. The following distribution is considered: 1/3 Intersite, 1/3 Excavation Gauthier and 1/3 co-owners. The portion of co-owners will be integrated in the loan by-law with the City of Mont-Tremblant. We have to validate if the proposal will refer to the frontage of each lot or to the surface area. Question: Do you expect any problems with the owners of the land where the rocks are? Answer: The co-owners have had quite a few bad experiences (formal demand, meetings not constructive) and they need to be reassured. They want to make sure that their land will still benefit of a right of way that gives them access to the Mont-Plaisant Street (valid easements). They are aware of the importance of the municipalisation and are willing to help us. Question: Did we consider building additional parking lots? Answer: No, this suggestion has not been considered. It would probably be difficult to find a good location because most of the space on each syndicate lots is already being used. Question: What is the short term advantage to municipalise, if we consider having to assume the cost? Answer: Co-owners will benefit with an increase of their property value when the infrastructures are municipalised. It is important to understand that municipalisation will help to sell properties because many potential buyers decide to withdraw from the process when they learn about the situation. The main roads will be paved and the City will install streetlights. Furthermore, if an aqueduct or pumping station fails, repairs and costs will be assumed by the City. Mr. Lambert thanks the members of the municipalisation committee for their involvement in the project. 5. Adoption of new by-laws Mr. Tanguay explains the new by-laws: 15.1.22 on administrative costs that GCMT charge to co-owners who are late on their condo fees (charge of $35 monthly). Each Syndicate will decide at their respective meeting this pm if they wish to adopt or decline this new by-law. 15.1.23 on floor coverings. This by-law is to frame the activities relating to replacing floor coverings. Mr. Tanguay explained the by-law modification: 15.1.11 on access code and keys. This by-law specifies elements regarding the Property Manager having access to the condos. 4
6. Settlement in the fireplace lawsuit (compartmentation) Mr. Lambert summarizes the latest developments and thanks Mr. Tremblay who piloted this project from 2010 to 2011. Co-owners at Cap Tremblant are suing Intersite, Dassigny Construction, the architects and the City of Mont-Tremblant. A settlement has been reached this winter and the Association recommends its approval. Once the lawyers and the APCHQ are paid, the Association of syndicates will receive an amount of $177 281 which will be divided between Syndicates. The Association submitted to the Syndicates the resolutions regarding the acceptance of the settlement. We were able to get the signatures from all the board of Directors. We are now at the step of the discharge of the settlement. You will find in your respective budgets the amount of the second settlement that your Syndicate will receive within the next weeks. We used the same repartition method as for the first settlement. We need to ratify the resolution of the Board of Directors related to the fireplace lawsuit. This ratification has to be done at your respective Syndicate meeting this pm in order to release the money. Mr. Tremblay recommends to send communications to all co-owners to get them informed of developments. Mr. Lambert proposes to co-owners that they contact their Board of directors if they need more information. 7. Comments on 2016 budgets for the syndicates As discussed in item 6, you will find on the third line of your revenues, the amount due to your Syndicate following the fireplace lawsuit. Except for this revenue, budgets are similar to last year, no major changes. Management fees represent the cost for the services of the Property Manager as well as a part of insurance cost. For Phase III Syndicates, you will also find some expenses for pumping stations and booster pumping stations (electricity, operating costs and maintenance). Next year, to help you better understand the budget, we will detail contingency fund expenses more precisely. Question: What is included in the replacement fund and in the contingency fund? Answer: The item contribution to the replacement fund represents the amount paid to the Association replacement fund linked by easements, which will be used to pay for major repairs to infrastructures (pools, tennis). For example, the construction of the dry sauna ($19,000) was paid by the replacement fund in 2015. Concerning the item contribution to the contingency fund, it is an amount transferred to the contingency fund of your Manoir which pays for major repairs of your Manoir. 5
8. Expenses planned for the contingency fund in the short term and the next contingency fund studies planned for2018 Mr. Lambert reminds us that the oldest Manoirs are 15-16 years old. Some Manoirs are not setting aside an inadequate amount in their contingency fund. However, some essential expenses are to be expected in the near future: Roofs (approximative cost $40K) We suggest at least the balcony caulking (joints between the balcony floors and the outer skins) because some outer skins rot prematurely Painting of the exterior building Recurrent expenditures for painting of the balconies and entrances Manoir inspections were done prior to this meeting and the results have been presented to your Board of Directors. Your directors are responsible to recommend the work they want done. We should plan an upgrade of the contingency studies within the next 3 years. Capitalizing on your contingency fund is a priority. The annual contributions suggested in our first studies for contingency funds was an investment of $12,000 annually. Up to now, our experience shows us that Syndicates that contribute for an amount lower than this sum will have to eventually proceed with a special contributions to be able to execute some of the work the building needs. 9. Major expenses coming for the short term or made recently for some syndicates Work done in fall 2015 Replacement of the smoke detectors: invoices will be included in your July statement Alain Tanguay told us that there are many projects to be done this spring and this summer. The work calendar has been produced according to work identified by each Syndicate. Mr. Tanguay hopes for a dry summer in order to respect the schedule, but historically, it is rarely the case. Painting: the two spas of Ocean Pavilion will be painted this spring. Painting of many balconies and some façades of certain Manoirs. Caulking Replacement of water heater requested by the insurers. o Only one Manoir to be done this year: Grand-Combin o Plus a few units in Manoir Valsorey Water heater inspections: the insurance company will soon conduct inspections and we will have to follow their directives, communications to follow. Comment: A co-owner mentioned that we should evaluate the status of some trees to avoid a disaster. Answer: Please advised Alain Tanguay if your judge that some trees are dangerous and he will take concrete steps to obtain a permit to have them cut. A contractor will be hired to cut those trees this summer or this fall. However, we don t need a permit to trim the trees. 6
Question: Did you ask Intersite to remove the foundations close to unit 300? Can we demolish this foundation? Answer: We will make this request to Intersite at a later date, our priority right now is to finalize the municipalisation. Question: What is the price to change the roof, the price for painting the Manoir, the balconies and entrances? Answer: Here are estimated prices: Roof: $40K Painting all the Manoir: $40K - to be confirmed because we are expecting some quotes Painting of balconies and entrances: $6K for all the Manoir if the wood condition is optimal. If not, there will be additional costs for repairs. 10. Signalling on the site Mr. Tanguay will replace the three road signs (pavillon du Lac, pavillon Océan and tennis). The cost to replace those road signs is already planned in the replacement fund. We can see that many of those road signs are old and faded. To replace those road signs, each Manoir needs to plan money on their respective budget. To insure uniformity on the site, please place your order to Mr. Tanguay for road signs or for parking signs. The cost for changing a road sign is approximately $500 or $600. Regarding the road signs for the Hôtel de Montagne Cap Tremblant, we asked Guymond Fortin to replace them before next year, if not we will have to remove them because they are old and faded. Question: Will you correct the situation concerning the water flowing onto the road during the spring? Answer: that part of the road belongs to the City of Mont-Tremblant. The City is aware of this problem and needs to correct the drainage on that part of the road and fix the asphalt afterwards. Question: The sandy portion of the road is full of cracks, will it be repaired? Answer: Yes, as we do every year, the road will be leveled after the thaw. 11. Insurance Mr. Tanguay reminds the co-owners that they have to give the Association a proof of insurance coverage for their private portion. The Association spends a lot of time to obtain those proof of insurance coverage and this task has to be done every year. To reduce this work load, Mr. Tanguay proposes to co-owners to sign an authorization of release of information giving the Association the authorization to receive their insurance certificate directly from their insurer or insurance broker. It is important that co-owners insure their condo. A follow-up will be done with co-owners who did not send their proof of insurance for their private portion. 7
12. Relationship with Hôtel de Montagne Cap Tremblant Mr. Nasraoui, President of the Liaison Committee with the Hôtel de Montagne Cap Tremblant presents to us the other members of the committee: Yolanda Banks, Armando Gomez and Greg Nikel. The committee has been formed to negotiate agreements with the Hôtel de Montagne Cap Tremblant and supporting owners who are in the rental pool. Mr. Nasraoui informs us that it is not easy to negotiate with Mr. Guymond Fortin but the Committee succeeded in obtaining some concessions. Here are some of the advantages obtained: Problem resolved on internet connections: all units now have a router which insure a higher quality of reception. There will no longer be a $5 or $10 dollar fee associated to changing lightbulbs, from now on Mr. Fortin will pay for the change. Mr. Fortin commits to paying rental revenues faster; the checks should be received by the co-owners within the first 10 days of February for rentals included in the December statement. For 2016, the cost for propane will be paid by the Hotel. The restaurant discount will increase from 15% to 30%. If you eat at the restaurant, you can use the money owed to the restaurant and ask to reduce the amount due for rental revenues. The virtual golf will be free for co-owners being part of the rental pool. The committee is in the process of negotiating to increase the percentage of allocated revenues to co-owners. In our rental contract, we are entitled to 3% of additional revenues during winter season if we don t rent our condo in advance. Note that we are allowed to reserve the condo up to 48 hours in advance if the condo is not rented, without affecting the 3% of additional revenue. We were able to offer this additional 3% also during the summer season (with the same conditions). Presently, we are negotiating to obtain this 3% without conditions and increase the percentage or co-owner s revenues from 52% to 55%. Question: What is your definition of winter period and summer period? Answer: Winter, from November to April inclusively and summer from May to October inclusively. Question: Can we divide the year in four seasons and insure that Annual General Meetings are not held during peak period so that co-owners can stay in their condo? Answer: the dates for the Annual General Meetings are scheduled during off-seasons (in April and September). Mr. Daniel Ferland suggests to the Liaison Committee to propose to Mr. Fortin to shorten the two periods of 6 months defined in the agreements by two periods of 5 months to release the months of April and September. The Liaison Committee will consider this proposal. 8
Mr. Nasraoui reminds co-owners who rent with the Hôtel de la Montagne to sign the authorization of information disclosure so that the members of the Liaison Committee have the contact information of renters. This will enable the committee to keep renters informed of the agreements concluded with the Hotel as well as any concessions received from the Hôtel de Montagne Cap Tremblant. 13. End of the meeting around 12:30 pm 9