Questions and Answers 2018 Annual Club Cascadas Meeting

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Magdalen Lane
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1 Questions and Answers 2018 Annual Club Cascadas Meeting 1. Please explain the difference between the Board and Management and their duties/roles in decision making. Management supervises disbursement, prepares financial statements, keeps Association books and records, participates on the annual budget, coordinates meetings, property inspections, collection of assessments, membership transfers, owner roster, communications, website maintenance, etc. The Board hires and oversees management, approves budgets, special projects, insurance, approves renovations, discusses multiple affairs related to the Association. This is a general idea of the differences, you can find further information in the by-laws of the Association. 2. What is the progress on a smoking area? What can be done regarding smoking under the palapas? No consensus has been reached on this topic in Mexico for outdoor space. Members are courteous to one another and very few complaints are received on the subject. If you are inconvenienced during your stay, please notify the staff and a polite conversation will be held with the member to come to a solution. 3. Can anything be done about the music from 11pm to 4am because it s very loud with the bass and vibrates through the Club. The sound carries from the arroyo and public beach. How can we combat noise in the arroyo? Who owns the arroyo? Are the $20 massages from arroyo being offered affecting the spa? Multiple efforts are being made to this regard, including joining forces with the Hotel Association in Cabos and neighbor hotels. The land is presently in dispute and being fought in Court. Arroyos cannot be privately owned as they belong to the nation as running water channels and cannot be built on. Same as beach concessions, no permanent structures can be placed on them. The $20 massages are for a different type of client, the Cascadas spa operates in full compliance and to a high standard of quality for products, certified staff and hygiene. 4. Can each bedroom in a 2-bedroom unit have a safe? Many of us have another adult with us (couples/friends) when we use our timeshare. This is on the to-do list, there are multiple projects and enhancements to the units on the radar.

2 5. How long will bonus weeks be honored for? Please contact the Sales office at or call to review your situation. 6. We have been told Cascadas has over 200 employees. How many have worked over 20 years? Can you please identify who they are? Currently we have 11 Staff Members that exceed 20 years working at Club Cascadas de Baja. YEARS AT EMPLOYEE S NAME POSITION CLUB Burgoin Castillo Gloria Maid 31 Alma Rosa Almaraz Lara Admin 28 Alvarez Delgado Eduardo Gardener 27 Luna Mejia Javier Antonio Painter 27 Ceseña Agundez Mario General Storekeeper 26 Gutierrez Calderon Teresa Head of Housekeeping 26 Monica Pelagio Noelia Housekeeping Supervisor 26 Santiago Clemente Concepcion Housekeeping Supervisor 23 Santos Aguilar Salomon Gardener 22 Reyes Luna Javier Enrique Front Desk Manager 21 Guerrero Navarrete Alberto Security Supervisor Please discuss how over the past 5 years how the staff/ground keepers/security personnel increased. What portion of the budget goes to staff? It seems staff has grown considerably which of course affects the cost of maintenance fees. Club Cascadas takes pride on a very low turnover rate, while some positions have been added, others no longer exist. Wages, salaries & payroll taxes normally increase around 5-8% yearly. For 2018, payroll and its taxes represent 32% of the budget. Dues have not increased since What is our employee termination procedure? Was it followed with Aida Trujillo? If so, are you reevaluating the policy or if not, why wasn t the policy followed? Have you thought about offering Aida another position or working with her to transition back to sales? Yes, procedure was followed, policy under review. Another position is a possibility but a transition back to sales, not at this time.

3 9. Why are we not allowed to have any other grocery delivery on-site other then Cabo Grocery Girls? Cabo Grocery Girls is only a preferred vendor, there is certainly no obligation to purchase from them, all members are able to use the vendor of their preference. If you encountered a problem, please reach out to the resort through ownerservices@tradingplaces.com. 10. How do we handle the problem of drugs being offered for sale from vendors? How do you report solicitation of drugs when on the beach? The resort has direct contact with local police authorities where the reports are filed. There are no ongoing activities from any outside vendors within the beach concession area. 11. Why doesn t the Club own the restaurant, the mini market and the spa? Where do the proceeds go? The Club receives a lease payment, which is part of the annual budget, and it operates under a concession. The proceeds go to the company operating the concession. Discussion in process. 12. When is the restaurant closing for remodeling and what is the plan for food service during this time? The restaurant kitchen will be remodeled upon remodeling the Arco building, date to be determined. Food service would operate under a reduced menu during this period and is being considered as part of the entire building remodel. 13. Please explain the renovation schedule. Who determines what units get renovated, when, and what determines unit priority? What about Perlitas? Which villas will be refurbished next year and what weeks are involved? The Board determines and approves renovations, taking into consideration feasible schedules, cost, and logistics, with recommendations from the onsite team, COO, and Mark Giddings. Priorities are determined based on the collective benefit to the Association and responsible allocation of funds. There are 6 Perlitas yet to be remodeled where the Perla unit is already remodeled, and they re considered within the renovation plan. The rest of the Perlitas are planned to be executed when it s time for their respective buildings to be renovated. The 2019 schedule and units to be renovated will be determined at the Budget meeting in early October based on available funds, construction impact, and cost-benefit. 14. Will you add to the remodel of Perlita 19G? Yes, it is part of the building 19 remodel, dates to be determined.

4 15. Could Club build a solar parking structure? It could. Club had a vendor come in to review the area but there are multiple complications as it is currently not allowed to connect into the grid. This would cause Club to either find a way to store the energy or create its own grid, which involves several challenges and investments. 16. Is there any way for the annual meeting to be put on live stream so members who can t attend can watch it live? Currently, no, sorry. 17. Are there any plans to create a portal for owners to book/view all units available at any given time? This would include rentals, bonus weeks, exchanges, etc. The clubcascadas.com website has a booking engine for available units. Unfortunately, no, merging all inventory into a single matrix is not possible at this time. 18. It s really annoying to get s from Trading Places saying that we have not confirmed our plans. When I send my annual dues, I ve paid for the unit and whether I use it or not is my business. Please stop sending these s. What happens if we show up at Club for our week without this second confirmation? Will we be turned away? No, you will not be turned away. As a member in good standing with your maintenance dues, you have the right to use your villa during your week with or without a confirmation. 19. How many times can one be contacted asking if we will be using our week even after we said we are attending? We are asked on our maintenance fee bill and two more additional s. After your first confirmation, you shouldn t be contacted again. 20. What is the best way to turn my unit back in for rental if I m not using and would like my maintenance fees refunded. Sales office or TPI? Both offer the service; the choice is yours. For large or specialty units, it is recommendable to go through the sales office. 21. I have heard that the major storm water channel work that was built by the RIU was done without a permit. The city has stopped the work. There is a possibility that this work could impact Cascadas in a major rain event. Do we have anyone acting as a liaison with the city? A new RIU is being built around that same area with its corresponding permits. Even with a storm as strong as Lidia, the greatest in 70 years, Cascadas had no negative impact from it.

5 22. Can minutes of the annual meeting be posted to the website within 30 days of the meeting or mailed to the membership? Draft minutes will be posted under the Owners Corner of the club website within 90 days and will be formally approved at the next Annual Meeting. 23. Has the idea of recording the candidate statements by way of video been considered? It has not but thank you for the suggestion. 24. What is the reserve fund percent funded? No percentage is being utilized. The Board implemented a policy years ago that the reserve fund must never be below $750,000. The rest is being made available as we undergo unit renovations without special assessments and other Capital Expenditure projects (e.g., remodeling buildings. Replacing the Las Palmas building elevator t, pool & spa resurfacing, wi-fi improvements, etc.). 25. Will the financial reports of CVI be sent to the members? CVI Financials are to be consolidated as part of Club s Annual Financial Review conducted by an independent CPA, which are available to the members. Additional documents may be examined at Trading Places offices. 26. I m a firm believer in rules and consistency, so my question is why does it seem like the rules for the palapas don t always seem to be consistent or adhered to: Individual people playing music that others can hear & the 2 hours unattended palapa rule seems to apply to only some? Same rules apply to everyone, please feel free to reach out to the staff during your visit.

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