HOTEL/OWNER ITEMS 1. Minutes: the March minutes should be redistributed to the owners as it was the unapproved draft that was previously distributed.

Transcription

1 The Owners Council meeting was called to order by Matthew Ma, President, at 6:15 PM on. PRESENT Matthew Ma Eric Foos Michael Choi Edwin Shiu ABSENT WITH REGRETS Brent York Don Evans Colin Yip GUESTS: Trevor Graham Khaled Issa Chris Cameron Judy Ursulan Andrew Kirkham, Cressey Development Michael Walker, Miller Thomson Shooka Heirat, Berris Mangan, Strata Corporation Auditors Stewart Instance, Ashler Hospitality, Asset manager AGENT Barry Burko, Summit Strata Management Ltd. HOTEL/OWNER ITEMS 1. Minutes: the March minutes should be redistributed to the owners as it was the unapproved draft that was previously distributed. 2. Hotel Management Team/O Neill Hotels and Resorts (OHR) a) Hotel Operations Highlights: please visit owners website at Council expressed grave concern to the Hotel Management Team again on the poor sales and revenue performance of the Hotel, being ranked last

2 Page 2 of 6 amongst the competitive set in many measurement categories for the month of March 2010, and, with the declining trend that had continued since the midst of Owners Distribution: pursuant to council s direction at the last Council meeting and in response to questions posed by some owners, the hotel General Manager drafted a letter for council s review which describes the current cash distribution procedures and on whether they met the requirements of the HMA for distribution to owners of hotel residential lots. The conclusion is that the current distribution process is in accordance with the HMA contract with each owner and would require a change to the contract to handle it differently In addition it was decided that the Owners Council should also draft a letter for the owners indicating the council s position on this issue. Mr. Eric Foos was asked to work with Don Evans on this task and he accepted. The Owners Council Meeting was adjourned to hear the Strata Corporation s auditor s report The Strata Council meeting was called to order at 6:30 PM in Vancouver, BC. GUESTS 1. Strata Corporation Audit: Shooka Heirat from Berris Mangan, Strata Corporation Auditors, provided council with a review of their Strata Corporation audit for the fiscal year ended December 31, They indicated the reasons for the audit to take such a long time (over 6 months due to). 1) It was their first audit of this Strata Corporation, 2) they had to learn the hotel s accounting methodology, and 3) who to contact for answers to questions they may have. In all, it took over six months to have the audit completed. In their findings they indicated that all assets and liabilities were properly accounted for. They have some adjusting entries for hydro and other minor reallocations. After fielding questions from Council, the guests left the Strata Council meeting and left the council with an engagement letter for a 2009 audit. Berris Mangan quoted the Strata Corporation $5,500 for the audit and that was what was charged despite the significant costs overrun. However, the 2009 year-end quote was for $9,500.

3 Page 3 of 6 The guests left the council meeting and council discussed the auditor s findings and the problems they encountered during their audit process. The council felt that the quote for the audit for the fiscal year ended December 31, 2009 to be excessive and asked the agent to obtain quotes from other auditing firms. Additionally the auditors had 4 questions that required the council s direction. i) WRM Accrued Payable: it was moved, seconded and carried (unanimous) to write off the Whistler Resort Management (the previous strata management company) payable, to be recorded in a separate general ledger account GL so as not to mix up with the strata management fee for Summit. ii) iii) iv) Building Upgrade Fund: It was moved, seconded and carried (unanimous) to reverse and transfer an amount accrued in prior year for the possible fines/penalties by the RMOW in relation to the GFA issue (i.e. use of space other than as approved by the municipality) back into the Contingency Reserve Fund. Carpet Repairs and Replacement: The auditors pointed out that the carpet repairs and replacement expenses incurred in 2008 were recorded as operating expenses and not through the Contingency Reserve Fund. Council s opinion is that as the expenses in questions are for the repairs and replacement of carpet areas that were damaged, it is not necessary to be treated as a capital item. Council requested more information on this item from the hotel and the strata manager. Minor Reallocations: It was moved, seconded and carried (unanimous) to direct the auditors to change the allocation of the Asset Manager expense to the Hotel Strata Lot Types only for This is because the Asset Manager didn t begin his contract for the Strata Council until November Additionally the agent with the assistance of Eric Foos will look at all the expenses regarding legal fees and other consultant s fees to determine on their proper allocation to the various Strata Lot Types. The Strata Council meeting was adjourned temporarily.

4 Page 4 of 6 The Owners Council meeting was reconvened 4. Asset Manager Report: Council discussed the Asset Manager Report for the hotel operation for March Council felt the Report should be included with the Hotel Manager s Report and financial statements on the WWRS owners website information. It was moved, second and carried to approve that Owners Representative to place the Asset Manager s Report for March and all future months on the Owners section of the WWRS website with the Hotel Manager s report and the financial statements. There being no further business the Owners Council Meeting was adjourned. The Strata Council Meeting was reconvened. 2. Minutes: the March minutes should be redistributed to the owners as it was the unapproved draft that was previously distributed. 3. Budget Rounding Error: ongoing. Summit is working on determining the actual dollar amount. 4. Strata Audit: please see above. 5. Tourism Whistler Proxies: the agent reported that he has received Tourism Whistler Member Numbers for all of his other clients and the agent will on behalf of Trevor Graham send letters to those clients asking for their proxies. 6. Mountain Club Access: an application from the Mountain Club owners to install a lock system has been received by council. Council tabled discussion of the application until after the mediation sessions with Cressey. No changes are to be made until a decision is made. This was tabled to council s next meeting. 7. Status of Mediation with Cressey: the council met in-camera with their legal counsel to discuss the upcoming mediation. What can be reported in these minutes is that members of the Strata Council have met with their legal counsel in preparation of the mediation. The agenda and written briefs by both legal counsels will be sent to the mediator prior to the mediation session. The Strata Council will be negotiating in good faith and with an open mind with the aim of resolving the outstanding issues between the

5 Page 5 of 6 developer and the owners. Both parties have agreed on a without prejudice basis to pay their own legal fees. 8. Bylaw Contravention - Gym: this item was tabled pending the outcome of the mediation session. 9. Insurance: the agent has asked the Asset Manager for the loss-history of the property so that he can have his insurance broker provide a quote on the property. 11. Chiller Repairs: it was moved, seconded and carried (unanimous) to approve the chiller repair at a cost of $22, plus taxes. It was further moved, seconded and carried (unanimous) to declare this an emergency and expend the funds from the Contingency Reserve Fund. CORRESPONDENCE All correspondence has been tabled to council s next meeting. FINANCIAL The agent presented the Strata Council with a recent set of financial statements for their review. The meeting was adjourned at 9:30 PM Respectfully Submitted, Barry Burko (ext. 105) Strata Agent Summit Strata Management Ltd Millar Creek Road Whistler, BC

6 Page 6 of 6 V0N 1B Barry@summitstrata.com