Surfside Resort Condominium Trust Annual Meeting Save the Date! Saturday October 27, :00 a.m.
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1 August 2012 CALL FOR NOMINATIONS Enclosed is a Candidate Nomination Form which must be completed by any owner who wishes to be on the ballot to run for one (1) Board position, for a three (3) year term. Please remember that participation as a Trustee does not include compensation for one s time, but does require a lot of love and caring for Surfside Resort. You must be willing to attend meetings at the Resort, telephonically or at locations deemed most convenient to a majority of the Board. Our next Owners Annual Meeting is scheduled for Saturday, October 27, 2012, 10:00 a.m. at Christ the King Church. Prior to this meeting you will receive a short biography on the candidates. Enclosed with that mailing will be a Proxy to use if you cannot attend the Annual Owners Meeting. It is most important that you return the Proxy if you cannot attend. We, the current Trustees, wish to thank our fellow owners who have been of tremendous support to us in the past. Please return the Nomination Form by September 14, 2012 to the following address: Secretary Post Office Box 399 Hyannis, MA Mark Your Calendars! Surfside Resort Condominium Trust Annual Meeting Save the Date! Saturday October 27, :00 a.m. Christ the King Church Please mark this date on your calendar and plan to attend. Further information on the Annual Meeting will be included in the next edition of the newsletter. Inside This Issue Important Message From Your Board Supplemental Assessment Owner Updates Preliminary Renovation Plan Candidate Nomination Form
2 IMPORTANT MESSAGE FROM YOUR BOARD 2013 SUPPLEMENTAL ASSESSMENT Dear Fellow Owners: As we move toward the fall and another annual billing cycle, we felt it important to review how things were going at our resort and to bring you up to speed on general happenings, achievements and critical decisions that will affect you in the upcoming year. Please take the time to read this newsletter carefully. With that said, it s hard to believe that we are halfway through another summer season at Surfside Resort. Cape Cod is busy as ever and so far the weather has been cooperating by providing a nice back drop for vacationers. The resort is looking nice and the team is working hard to help guests relax. Despite a mild winter, snow wise, Surfside was pounded by relentless wind and rain storms. It is amazing to see how the wind actually changes the topography of our land especially on the south side where we had lost almost 20 feet of beach. Worry not however, as the sand was replaced and the beach looks great! Over the winter, we were able to get various projects completed including replacing sections of rotted wood and fascia trim as well as refinishing the furniture in a dozen units. Surfside has enjoyed years of a viable financial operation while supporting both owners and guests with a very satisfying vacation experience. We have improved operations, dealt with the results of a demanding (although very pleasant!) climatic environment, and redesigned aspects of the facility to maximize our resources and reduce maintenance costs. Over the last few years we have completed projects that included, resurfacing the outdoor pool, new pool heater, roof repairs, replacement of various sections of exterior fascia and trim as well as updating the indoor hallway carpet and paint. This year we had planned on more exterior trim replacement, painting and new mattresses; however, these plans were put on hold in February when one of the three septic systems for the resort began experiencing issues. After much due diligence, it became apparent that we would have to replace the system. In May, we secured a local engineering company and began working with the Town of Falmouth as well as the Conservation Commission to design a new system. Our General Manager, in conjunction with VRI, our Management Company, made arrangements to move owners and guests during the three week construction period in June. We are pleased to report that the new system is installed, working well and with limited disruption to guests given the nature of the repairs. While the final costs have yet to be tallied, we estimate it will be over $200,000. Every year we have worked hard to keep fees down while trying to provide good service and maintain a waterfront facility. To that end, we have been able to make progress on all fronts including building up reserves. Thankfully, we can say that we have been able to fund the septic repair in full. The resort is operating fine and we anticipate a continued good season. 2 AUGUST 2012
3 Important Message From Your Board Continued... However, the downside to a repair of this scale is that it has left us with little money in reserves. This means that scheduled projects like the continued trim replacement, painting and mattresses will not be done this year. Being surrounded by water on three sides, Surfside is in an extremely harsh environment and while we have addressed about half of the projects, there are still more items that need attention like additional wood, trim and roofing updates as well as unit slider replacement. On the inside, it has now been over five years since our last unit renovations and items like bedding, flooring, kitchens and furniture are in need of updating. We are in the process of outlining a 24 to 30 month renovation plan that will address these items and in conjunction with our completed Reserve Study, conducted by Advanced Reserve Solutions, should keep us delivering great experiences for years to come. We have estimated that the work outlined would create a deficit equal to about one year s maintenance fees. Please see ENCLOSED cost estimates and details. Having reviewed this carefully, it is the opinion of the property manager and the Board of Trustees that it is prudent to move forward with this plan in order to preserve the value of the resort and improve the overall vacation experience. To that end, as usual in September, you will receive a bill for your 2013 Maintenance Fees which are due and payable in full, no later than January 1, However, there will be a second bill for a Supplemental Assessment that will be about equal to your current unit assessment. This will be used to help fund reserves and the renovation plans over the next 24 months. The following payment options are being considered to assist you: 1. Pay in full within 30 days a. Receive an Interval International 7 night Accommodation Certificate. 2. Pay in full over 2 months in 2 payments: a. Receive a 3 night InnSeason Resorts Guest Accommodation Certificate. 3. Pay 12% down and then monthly over 9 months 4. Pay 12% down and then monthly over 21 months As we work on the 2013 Operating Budget over the next few weeks, we will look to finalize the assessment amounts and the payment plan options to present to you in the September billing. Additionally we are working hard to avoid any increase in fees for Finally, using the Reserve Study, in conjunction with continued close monitoring of expenses and a five year rolling plan, we feel confident that we will both improve the experience and limit any financial surprises. Additionally, we have been working hard to address delinquent and defaulted accounts which has been challenging in today s economic environment. Furthermore, there are a group of accounts that we cannot bring to a resolution, therefore, for the first time, we have chosen to initiate foreclosure proceeding on selected accounts. Once recovered, we will work to put these intervals once again in the hands of dues paying owners. For the foreseeable future, closely monitored collections and annual foreclosures will be a part of our world. It is important to note that Surfside has a great satisfaction rating with both owners and guests. InnSeason Resorts Customer Satisfaction Index January 2, 2012 through June 30, 2012 Area SFD 2012 SFD 2011 Diff Vacation Experience Rating % Core Deliverables Rating % Amenities Rating % Friendly Service Rating % Guest Satisfaction Rating % As you can see, it continues to be a desirable vacation spot. As a resort, it reflects owners who are enthusiastic about this special place and its operation, and want to keep it that way. As an exchange vehicle, it continues to increase in value and trading capability. We hope you continue to enjoy and support your resort as well as both your Board and Property Manager. Please check the website for further details and information. If you have more questions feel free to us at: surfboard@innseason.com Thank you for allowing us to maintain your resort as a great place to visit! Best Regards, ees Christine Barnes, William Curran and Robert Ferris Owner Updates An opportunity to learn more about vacation opportunities An Owner Update is a simple meeting (about 45 minutes)where we find out how you are doing, and what s new in your life and we let you know about new programs, improvements and changes in the VRI and InnSeason Resorts properties. Our ongoing goal is to make sure that you and your family enjoy and make full use of your vacation investment. To make it a little easier, if we have available units in any of our properties, during the time you choose, we would be happy to offer you a complimentary overnight stay. Simply call an InnSeason Customer Care Representative at to schedule an appointment. AUGUST
4 PRST FIRST U.S. POSTAGE PAID CURLEY DIRECT P.O. Box 399 Hyannis, MA ADDRESS SERVICE REQUESTED Important Numbers and Vacation Resorts International (VRI) Surfside Resort (508) Central Reservations (800) Fax (508) Information and Assistance General Mgr - Michael MacDonald (508) Fixed Week Reservation Website Float Week Reservation Bonus Time Exchange Information Rental Program Interval International (800) Deposits with Exchange Company RCI (877) innseason@vriresorts.com VRI*ety (888) Still Need Assistance Vacation Owner Services / VRI (800) VRI Corporate Services (508) Maintenance Fees VRI Fax (508) Payment Plans Changes/additions to Ownership nememberservices@vriresorts.com Managed by Vacation Resorts International Perfecting the Art of Hospitality
5 InnSeason Resorts Surfside Preliminary Renovation Plan 8/7/2012 $ 413,000 Est. Exterior Costs $ 1,113,495 Est. Interior Costs $ 1,526,495 Est. Total Costs $ 816,272 Est. Additional Assessment Cash $ 710,601 Est Month Reserve Cash $ 1,526,872 Est. Total Cash Available Over 36 Months $ 377 Est. Reserve Cash Position Sum of Est. Cost Area Building Total Ave Per Unit 1 Bedroom Bathroom $ 58,000 $ 2,000 Furniture $ 143,985 $ 4,965 Kitchen $ 87,000 $ 3,000 Misc $ 81,200 $ 2,800 Flooring (Carpet/Tile) $ 304,500 $ 10,500 1 Bedroom Total (29 Units) $ 674,685 $ 23,265 2 Bedroom Bathroom $ 6,000 $ 2,000 Furniture $ 21,810 $ 7,270 Kitchen $ 9,000 $ 3,000 Misc $ 9,000 $ 3,000 Flooring (Carpet/Tile) $ 49,500 $ 16,500 2 Bedroom Total (3 Units) $ 95,310 $ 31,770 Studio Bathroom $ 25,000 $ 1,000 Furniture $ 82,875 $ 3,315 Kitchen $ 47,500 $ 1,900 Misc $ 38,125 $ 1,525 Flooring (Carpet/Tile) $ 150,000 $ 6,000 Studio Total (25 Units) $ 343,500 $ 13,740 Exterior (Trim, Roofing, Sliders, Paint) Grounds $ 40,000 $ 702 Pool Building $ 5,000 $ (16) $ 103,800 $ 6, (11) $ 99,400 $ 9,036 U-Building (30) $ 164,800 $ 5,493 Exterior (Trim, Roofing, Sliders, Paint) Total $ 413,000 $ 7,246 Grand Total (57 Units) $ 1,526,495 $ 26,781 Notes: Preliminary plan with basic costs estimates. Finalized plan will be posted to the Online Owner's Area of along with progress updates and photos throughout the renovations.
6 Candidate Nomination Form The following information is needed to place your name on the ballot for election to the Board of Trustees. This information will be summarized in the next notice mailed to all owners. Please be brief and write legibly. Name: (Please print) Interval Week(s) Owned: Address: City: State: Zip: Telephone Number(s): (Home) (Work/Cell) Address: Education: Qualifying Experience: Objectives: Candidate s Acceptance Signature: Date: Becoming a member of the Board of Trustees is a major responsibility and requires a firm commitment. Please do not volunteer unless you are willing and able to make this type of commitment to your Resort. In order to ensure that your name appears on the ballot for consideration by your fellow owners, this data must be received by the Secretary on or before September 14, Mail or fax this Candidate Nomination Form to: Secretary P.O. Box 399 Hyannis, MA Fax No.: PLEASE FOLD OVER, SECURE STAMP AND MAIL TO ADDRESS ON REVERSE
7 -Please Fold Here- PLACE STAMP HERE Please check if new address Secretary Post Office Box 399 Hyannis, MA Please Fold Here-
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