Download THE RESIDENCES AT THE CHATEAUX CLUB ASSOCIATION

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THE RESIDENCES AT THE CHATEAUX CLUB ASSOCIATION
SECOND QUARTERLY MEETING
Wednesday May 22, 2013
Directions present: Mr. Cibotti, Mr. deLaski, Mr. Resnick and Ms. Shostack
By invitation: Mr. Olsen, Mr. Flick, Mr. Gendron and Mr. Lundskog.
The meeting was called to order by the President at 5:00 p.m. EST. The Minutes of the March 6, Meeting
were unanimously approved.
The President began with a discussion regarding the filling the Board seat of Rick Frimmer, who stepped
down in March. Legal background was the key priority for candidates, as none of the current Board have
such a background, and it is important that Board Members bring expertise to the Board and have skills
that are useful to the operation of the Club. After a review of Members and discussion with Greg
Gendron, Vicki Dorsey, long-time Member, was proposed for election to Rick Frimmer’s seat. The
President circulated Mrs. Dorsey’s bio to the Board prior to the Meeting. Several Board members knew
the Dorsey’s and recommended her highly. The President moved that Mrs. Dorsey be elected to fill the
remainder of the year, and be placed on the Annual Meeting proxies for a two-year term. The motion
was seconded and unanimously approved. The Board will welcome Mrs. Dorsey at the September
Meeting.
The President then updated the Board on the Sacks/Root arrearage and reported that on May 17, the
Penthouse of these two Members was sold. The buyer is already a Member. The Residences will book a
loss of approximately $13,000 in 2013 for Mr. Sacks’ failure to pay dues for 18 months. The Board will
discuss tightening up on payment dates, and having the managing agent create a more useful tracker for
Member payments and well as an improved follow-up procedure to prevent dues payments from going
more than three months past their Invoice date.
Mr. Lundskog then reviewed the financials for the first calendar quarter. Net Income was $16,851
better than Budget. Capital expenditures totaled $2,379.78. On the balance sheet, Mr. Lundskog noted
that the failure of Congress to retain the $250k FDIC insurance on CDs, brought the insurance amount
down to $100k for such instruments. Accordingly, placing Residences’ Reserves cash into short-term
CD’s in the future will require placing more CD’s at lower amounts. Mr. Lundskog was asked to prepare
a plan and strategy for protecting our cash that will be distributed to the Board.
Next on the agenda, the President asked Mr. deLaski to present a proposal for conducting a third-party
annual accounting REVIEW of The Residences’ managing agent’s financial accounting. The Chateaux
condo side arranged for such a review of 2012, which is currently underway. After discussion, the Board
asked Mr. Lundskog to talk to the firm that is doing the condo Review to negotiate a price that takes into
account that Residences’ business is only a “marginal” addition to their current work on the Chateaux
HOA, as both phases use the same databases, and get back to the Board.
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Mr. Olsen and Mr. Gendron then gave the Management Report. Mr. Gendron reported that occupancy
was up 7% during the quarter, compared to 2012, largely due to new Members. Currently 47 Members
have signed up with 3rd Home to date, and several Members have already utilized exchanges for weeks.
Residences was closed for deep cleaning and maintenance of Units in April. Several water leaks were
repaired, and general repairs and painting were reasonable. Staff will be shrinking for the summer. The
Condo side of The Chateaux will be hosting several large events during the summer.
Mr. Olsen reported that SELMC, managing agent for The Chateaux, has purchased from Silver Lake, the
developer of The Chateaux, all of Silver Lake’s assets, which include the rental business of the condo
operation, the food and beverage assets, and the event facilities, along with various parking slots and
storage areas. Sara Werbelow, exclusive broker for Silver Lake, will now work for SELMC, handling resales for owners at The Chateaux.
In the local area, Mr. Olsen said that prices and sales were improving, although at least one of the new
high-luxury developments has only sold 30 out of 80 condo Units. This bodes well for The Chateaux’
competitive image.
There being no further business, the President moved for adjournment. The Meeting was adjourned at
6:00 p.m. EST.