POINT PLEASANT VILLAS OWNERS ASSOCIATION

NEWSLETTER JUNE 2005

 

To: All Members of PPVOA

The board held a meeting on May 27, 2005 to conduct the on-going business of our association.  As we continue to face the many on-going challenges at Point Pleasant, I will summarize the results of our meeting. 

 

I am sorry to announce that the board accepted the resignation of Mary Ann Simensen at our meeting, as she closed on the sale of her unit the day prior to the board meeting.  Mary Ann served a few months shy of 3 years as secretary of the board and was the lead person in the revision of the declaration and by-laws.  We thank her for her many hours of service to our association and wish her well.  The board appointed Lew Wilson to fill the remainder of her term.  Lew is a former member and past president of the board who served in the early ninety’s and he brings many skills to the board.

 

There will be two positions open on the board at our annual meeting this October.  Any owner not in arrears is eligible to run for open board positions.  If you would be interested in serving on the board, please send a letter and resume to Walter Oliwa, chairman of the board nominating committee.

 

I am happy to report that the revision to the by-laws passed receiving more than the 66.6 percent necessary and will be posted on the web page.  Unfortunately we did not get the 75% needed for the declaration revision.  Even though only two owners voted against it, and even after numerous follow up letters and phone calls we could not get owners to send in their proxies.  It is unfortunate that after so many hours of hard work by Mary Ann Simensen and her committee, owners did not follow through and return their proxies.  It is the board’s intent to try again later to get a new vote and pass the revision to the declaration.

 

The board rewarded the many efforts of our property manager Gary Van Oosten with a promotion to the title of Manager of PPVOA along with an appropriate pay raise. Gary has been outstanding in his performance and is moving into picking up more of the management role instead of being just a trouble shooter.  As you know we have been slowly phasing out Bruce Watson’s role as management consultant and the position goes completely away on October 31, 2005.  At this point, we feel Gary will have been fully trained on all his tasks as Manager of PPVOA.

 

At our board meeting we approved a revised purchase of assets from Tim and Karen Reynolds which the board felt was in the best interest of the owners.  As you are aware, you authorized the board at the October 2004 owners meeting to purchase assets totaling $700,000.  The original offer could not be completed in terms acceptable to both parties.  The Reynolds’ recently presented a revised offer comprise of key assets desired to protect the association’s future interest, including the middle and upper pools, upper maintenance building, and the land on which the sewage treatment plant is located along with the land underneath the RO plant (1.83 acres).   In addition, the Reynolds’ agreed to grant PPVOA a utility easement to the ocean following the outflow line, and a lease for the well to serve Point Pleasant.

 

The price for this revised package is $210,000.  While still gaining control of the key assets by our association, we reduced the potential debt by $490,000.  Additionally, by securing the easement to the ocean, we ensure that the association will always have a backup source of water supply should anything happen to the well.  The board feels this purchase is important for the association in light of the understanding of recent occurrences in other nearby resort associations where assets of this type were not in control of the association, were sold to a third party, and then the associations were subjected to significantly escalated lease charges and user fees.  We believe this purchase will protect key elements of our infrastructure by remaining under our association’s control.

 

The final contracts are being worked on by both parties’ legal counsel and should be ready for closure in late June or early July.  In anticipation of reaching closure on the purchase of assets as described above, we have transferred $70,000 from the special assessment funds to the capital reserve account (ear marked for the required $60,000 down payment and the remaining legal and closing fees).

 

Finance still continues to be an issue that keeps the board and management in the difficult position of meeting all the demands of the property.  I am happy to report that only one owner is delinquent from the first special assessment in 2004 and the board is dealing with that situation.  A reminder that April 1 was the date for the first installment of the 2005 special assessment.  We still have 18 owners who have not paid their first installment and June 1 is the 60 day mark.

 

*   Remember an owner who is 60 days or more delinquent in payment to PPVOA will be subject to utilities being turned off without further notice.  There will be a $50 fee for utilities to be re-connected.

 

July 1 is the due date for the second installment of the 2005 special assessment.  The board would like to thank those owners who paid both installments with the first payment –  it helped our cash flow problems caused by delinquent owners.

As you know, I reported in my February newsletter that we had a problem with electrical consumption steadily rising from last August and charts were provided to explain the issue.  I am happy to report that thanks to the efforts of Gary, his staff and others involved, the problem appears to be solved.  With the help of an electrical engineer from St. Croix, a problem with WAPPA’s main meter was identified.  A new meter was installed and our engineer’s equipment then read the same usage as WAPPA’s new meter with our usage at 1/3 less than the previous six months.  This was in line with what our consumption was before last August.  We received our electric bills for April and our savings were $5,700.   (Had the billing cycle been the same, it would have been about an $8,000 savings).  Management and Tim Reynolds are now negotiating with WAPPA to attempt to recover some of the over charges due to their main meter problem.  The electrical engineer did recommend that we proceed with our scheduled cable replacement.  He stated that the cables do not leak voltage but they either work or fail.  We are continuing to move all non PPVOA facilities and PPVOA facilities that meet WAPPA codes to be on their own meters.  We expect by the end of June to have the “A” building, Fungi’s and the activities building on their own meters with WAPPA.  .We will continue to work to get other facilities on with WAPPA.  The more we can get connected to WAPPA the less money we will be putting up front each month, then having to bill those facilities. 

 

This of course will greatly  help with our continued cash flow problems.

 

There is much going on at the property, and the following is a list of projects and activities:

* The generator upgrade for the waste water plant is completed.

*   The B-29 project is completed and will come in approximately $3,000 under budget.

*   The lower high rise electrical upgrade contract has been assigned and parts are on order.

*   The contract for the telephone terminal block and wiring upgrade as been assigned and work has begun.  We anticipate this contract to also come in under budget.

*   Road repairs of some of the most critical areas are complete.

*   Templates to build replacement trash receptacles for our property are done and level concrete pads will be poured for these containers.

*   A large portion of our plumbing and electrical parts inventory has been completed.  This will save many man hours on repairs.

*   We are using energy efficient light bulbs for the common grounds pathway lights.  This is the second step in improving property lighting.

*   We have received the back up lift station pump and transfer pump.

*   We have updated and mapped the entire property with mandatory fire extinguisher locations to meet current OSHA regulations.

*   Our landscaping efforts are really starting to show around the property.  The combined efforts of Arts Landscaping, Point Pleasant staff and Antilles Resorts Management are making       noticeable changes in our property.  Please remember this is a never-ending task.

* Our security and parking issues are dwindling down.  We have enforced our no parking without the proper window pass policy and have issued parking violations to owners and guests when appropriate.  We were one of the few resorts that made it through carnival  without security incidents.

*   Our office and maintenance practices are starting to make progress. Maintenance requests are being taken care of much quicker and our revenue is increasing.

*   Other projects in the 2005 special assessment will be scheduled as funds come in from the second installment due July 1 and delinquent owners from April settle their accounts. 

The board would like to thank Tim Reynolds and Richard Locke for their continued participation in upgrading the property at Point Pleasant.

*   Richard has upgraded and redone the laundry facility and installed new machines.  We now have a functional laundry available to everyone.

*   Tim and Richard resurfaced the tennis court, put a new roof on the tennis hut and installed a new fence around the court. 

*   Tim did paving at the hilltop and fixed other pot holes on property.

*   Tim did a lot of new woodwork in renovating the office and activity area as well as a stone wall on the road under the activity building.

We have signed a master hotel rental agreement for the next 3 years with Antilles Management and Richard Locke.  Their efforts over the past few years have played a major role in bringing Point Pleasant back and we wanted to ensure a long-term relationship.

 

Property values continue to be attractive and as we continue to upgrade the property they should remain at that level.  While here for the board meeting, a one-bedroom unit closed for $260,000 and efficiency for $165,000.  At this pace we are protecting the investment of new owners who purchased at higher prices.

 

In closing, I have tried to point out the progress as well as the many issues still facing us as we move into the second half of the 2005 budget year.   We continue to make great strides; we have identified and corrected the large jump in our electrical usage; we finally have a spare parts inventory; our capital reserve fund is building; our maintenance staff has renewed pride in their work; and we are slowly getting to a better cash flow position.

 

If you have not been on property lately, you will be pleased on your next visit to see how good the property is looking.  Yes, there is more work to be done, but management and the board are on track to keep the progress going.  This is probably one of my longer newsletters, but so much is going on and I wanted to keep you updated.  We have one of the most beautiful properties on island and with all of us working together and individual owners meeting their financial obligations; we are well on our way to being a financially sound association.

 

Lastly, I hope you will keep October 22, 2005 open to try to attend our annual owners meeting.  This is a chance for you to see first hand our association working, have input to decision making, and meet the board and other owners.  We look forward to seeing you there. 

Jack Cistriano

President PPVOA