Marina View Vacation Club Manager Report AGM 2016 2016 MVVC AGM General Manager 1
Portofino Management Occupancy Report Portofino Portofino Occupancy is up by: 2010 = 32 % 2011 = 49 % 2012 = 55 % 2013 = 62.5% 2014 = 55% 2015 = 50% OTHER INCOME Other Revenue Income 2015 Revenues= $ 22 726.94 Bonus week= 12 $ 5 653.73 Sold weeks= 13 $ 13 581.75 Upgrades Bi to Annual= 19 $ 2 717.00 Late Payment fee= $ 1741.35 Sign back members = 38 Member Report Red - Annual Red Bi-Annual Even Red Bi Annual ODD Total Total Members Weeks required Beginning of Period 313 96 123 532 Total Members 2015 Sign Back -13-16 - 9-38 2015 Sold 2015 Upgrades +13 +19-7 -12 13 19 Current 2016 2016 Released 48 weeks for sale 332 72 102 507 Total Membership 2016 414 Annual Total Annual Available 624 2016 MVVC AGM Manager Report 2
2015 Occupancy Portofino Report Occupancy & Rental Income 2015 GLRC XCHG Villas Nights Rental House Total Hospitality Hospitality Internet Internet Room & Room & Week Owners RCI Rented Rented 7B/St Use Units DLLS Pesos DLLS PESOS UP G/pesos UP G/DLLS Week 52 2 3 0 0 0 0 5 $330.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 51 4 5 0 0 0 0 9 $310.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 50 10 1 0 0 0 0 11 $743.24 $0.00 $0.00 $0.00 $0.00 $0.00 Week 49 9 1 0 0 0 0 10 $415.00 $1,760.00 $0.00 $0.00 $0.00 $0.00 Week 48 4 2 0 0 0 0 6 $265.00 $1,040.00 $0.00 $0.00 $0.00 $0.00 Week 47 3 4 0 0 0 0 7 $460.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 46 4 5 0 0 0 0 9 $395.00 $1,040.00 $0.00 $0.00 $0.00 $0.00 Week 45 3 8 0 0 0 0 11 $595.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 44 1 6 0 0 0 0 7 $525.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 43 0 2 0 0 0 0 2 $350.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 42 1 2 0 0 0 0 3 $130.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 41 1 1 0 0 0 0 2 $110.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 40 0 0 0 0 0 0 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 39 0 0 0 0 0 0 0 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 38 0 2 0 0 0 0 2 $130.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 37 0 6 0 0 0 0 6 $370.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 36 2 5 0 0 0 0 7 $310.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 35 0 7 0 0 0 0 7 $395.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 34 1 2 0 0 0 0 3 $305.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 33 0 2 0 0 0 0 2 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 32 1 3 0 0 0 0 4 $195.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 31 0 7 0 0 0 0 7 $265.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 30 0 5 1 1 0 0 6 $330.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 29 1 6 0 0 0 0 7 $330.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 28 1 6 0 0 0 0 7 $450.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 27 1 5 0 0 0 0 6 $350.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 26 1 5 0 0 0 0 6 $305.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 25 0 6 0 0 NO NO 6 $325.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 24 0 5 0 0 NO NO 5 $285.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 23 0 5 0 0 NO NO 5 $285.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 22 1 3 0 0 NO NO 4 $175.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 21 1 5 0 0 NO NO 6 $350.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 20 1 4 0 0 NO NO 5 $130.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 19 2 5 1 5 NO NO 8 $420.00 $840.00 $0.00 $0.00 $3,500.00 $0.00 Week 18 2 4 1 2 NO NO 7 $305.00 $0.00 $0.00 $0.00 $1,800.00 $0.00 Week 17 2 4 2 11 NO NO 8 $285.00 $0.00 $0.00 $0.00 $0.00 $896.00 Week 16 5 2 1 1 NO NO 8 $375.00 $0.00 $0.00 $0.00 $0.00 $80.00 Week 15 3 1 1 4 NO NO 5 $195.00 $0.00 $0.00 $0.00 $4,200.00 $0.00 Week 14 3 5 0 0 NO NO 8 $395.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 13 4 4 0 0 NO YES 8 $440.00 $910.00 $0.00 $0.00 $0.00 $0.00 Week 12 1 3 0 0 NO YES 4 $175.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 11 2 4 1 4 NO YES 5 $350.00 $0.00 $0.00 $0.00 $0.00 $601.00 Week 10 3 3 1 1 YES NO 7 $310.00 $780.00 $0.00 $0.00 $0.00 $99.00 Week 9 1 2 0 0 YES NO 3 $175.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 8 1 5 0 2 NO NO 6 $705.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 7 4 3 0 0 YES NO 7 $1,170.70 $0.00 $0.00 $0.00 $0.00 $0.00 Week 6 2 6 1 3 YES NO 9 $195.00 $0.00 $0.00 $0.00 $0.00 $362.00 Week 5 6 3 2 6 YES NO 11 $415.00 $0.00 $0.00 $0.00 $0.00 $297.00 Week 4 3 3 0 0 NO YES 6 $460.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 3 3 2 2 6 NO YES 7 $240.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 2 4 4 2 5 NO NO 10 $310.00 $0.00 $0.00 $0.00 $0.00 $0.00 Week 1 7 1 3 13 NO NO 11 $355.00 $0.00 $0.00 $0.00 $0.00 $1,158.00 Total 2015 111 193 19 64 321 $17,188.94 $6,370.00 $0.00 $0.00 $23,558.94 $3,493.00 Surcharge 111 193 19 64 $17,188.94 $6,370.00 $0.00 $0.00 $23,558.94 Total Units Available 12x52 624 Exchange Exchange Unused Inventory 50% 321 $17,188.94 $435.00 $1,610.00 $3,493.00 Occupancy % 50.00% Grand Total 2015 $22,726.94 2016 MVVC AGM Manager Report 3
CLOSING REPORT GLRCC Due to major cash flow shortages the GLRCC B.O.D.'s held two (2) meetings in September 2015, which I (OMC) did not attend. After those meetings, we received an email from the secretary of GLRCC, Mr. Wittal, stating that the board had discussed to offer the club for sale to numerous entities, one which was suggested by you and another by Mr. Wittal and asking me if I am interested and to submit a proposal for both entities GLRCC and Baja Investment Inc.. 2. A few days later OMC submitted a proposal. 3. Followed by a B.O.D.'s meeting, where the board made the decision to ask the membership giving 3 options: implement a Special Assessment, Privatize, or Shut Down the club. 4. At the same time management had already finalized a member survey specifically oriented to improve customer service, the board asked if management OMC could include the directors letter and implement the boards options: Special Assessment, Privatize, or Shut Down the club. 5. Management agreed and suggested to take out the option to shut down the club as this option would severely damage the Baja Investment Inc. investors investment. 6. The survey was submitted to all members of GLRCC and out of 13 questions there was 1 questions in regards to privatizing. (Privatizing the club, what would you like to see?) 7. The result was that the membership would be privatized for the benefit to decrease member annual fees by decreasing expenses such as the management fee. 8. December 1 st, 2015 we took over GLRCC, the cash flow at the time of $ 605.00 in the GLRCC account stayed in the GLRCC bank account. GLRCC Financial History GLRCC Cash Flow: Receivables May 25 th, 2015 $ 6232.00 July 10 th, 2015 $ 1369.00 August 13 th, 2015 $ 1852.00 October 27 th, 2015 $ 2408.00 November 30 th, 2015 $ 605.00 August 12 th, 2015 $ 306 000.00 November 30 th, 2015 $ 234 000.00 Income $ 72 000.00 Actual Operating Cost $ 126 647.00 August 15 th to November 30 th, 2015 Deficit $ 54 647.50 (paid by OMC) 2016 MVVC AGM Manager Report 4
GLRCC Liabilities November 30 th, 2015 - (CDN Dollar) 1. Banked weeks with RCI & DAE for 2013 to 2019 2. Reservation reports up to 2016 Total 495 weeks at $695 = $ 320 570.00 Deferred 2016/2017 maintenance fees $ 122 320.00 (Funds received and used) Payables- Canada $ 5 310.00 Payables Mexico $ 19 800.00 Total liabilities taken over by OMC $ 465 000.00 Plus deficit of operations paid by OMC for up to November 30 th, 2015 $ 54 647.50 Insurance Claim Hurricane Odile The final insurance documents were submitted to the owner in November 2015, during the time of finalizing the claim our Baja group purchased the resort. We are currently waiting for our Baja group to finalize legal matters in Mexico to be able to receive the funds of $ 39 534.87 US Dollars minus legal cost of $ 2500.00. Other Closing Issues of GLRCC: Payable to Baja Investor Group For: 2014 Renovations villa 6b,7b, and studio Total renovation expenses of $ 19 381.00 for building construction for villa: 6B, 7B and the Studio How did this came about? PRIOR To Baja existence 1. September 2013 Resort appraisal was done for negotiations to purchase the Portofino 2. January 2014 we constructed 3 balconies, 6b,7b,studio. New kitchen counter and bar chairs 6b, new entrance to studio, glass door, 3 windows, studio furnishings. 3. It was recorded as a receivable as per board minutes prior of the constructions, from the GLRCC investor group as the renovations were done after the appraisal 5. Gaining approx. a minimum of $ 90 000.00 in assets for the owner of the land and buildings After numerous board meetings and discussions about the cost in 2014 GLRCC financial statements it was recorded as a receivable in the amount of $ 21 648.00 this included the renovation cost $ 19381.00 as well as some legal expenses paid by GLRCC $ 2267.00. In April 2015 OMC mistook an email from one of the executive board members and transferred funds back from Baja to GLRCC. Shortly after an agreement was established between GLRCC and Baja that funds to be returned to Baja, as soon as GLRCC has funds available. Unfortunately GLRCC never had the funds to pay back Baja group, this issue requires now to be resolved between OMC and Baja. Baja group is requesting from OMC to refund the funds. 2016 MVVC AGM Manager Report 5
Capital Improvement Budget 2016 to 2021 Portofino Capital 2016-21 Plan 2016-2021 YTD Jan-Jul 2016 Remainder 2016 Aug-June 2017 NOTES Note: Budget is done in US dollar Capital Expenditures Allow ance for Emergency Repairs 15,000 Total Allow ance for Emergency Repairs 15,000 - - - 1650 - Grounds 1650 Drainage, Landscaping, 15,000 1650 Check Waterlines 1650 New Patio By Pool Area 4,000 1650 Hand Rails= BBQ area, 6B, 1,200 1650 Signage and Public Lighting 2,500 1650 Fence around Lot 15 (Baja group) 800 1650 Total Grounds 19,500 4,000 - - 1670 - Villa Building Improvements 1670 1B & 3B - Create hallw ays - sepperate bathroom entrance 8,000 8,000 1670 New Air Condition= 2A,1A,3A,4A,4B,5A,5B,6,7, Studio 32,000 1670 Finished Air Condition= 1B, 3B 4,000 1670 Villa BBQ on Patios x12 4,400 1670 Entrance Doors= 1B,3b, 4b, 5b,6,7,2a,3a, 4,000 1670 Repair-Window s (screens & reseal incl) 10,000 1670 Roof Repairs 5,000 1670 Hot Water Tanks = 6 4,000 1,200 1670 Remodel bathrooms = 17 68,000 8,000 1670 Kitchen Cabinets 5 20,000 1670 Kitchen Countertops (4b,5b,7) Finsihed, 1b,3b 3,000 2,000 1670 Painting & Minor Trim Repair 5,000 1670 Pool Flooring - 5,000 1670 Hot Tub - outdoor - relocate 2,000 700 1670 Pool Filter/Cleaning 800 1670 New Flooring reception area 5,000 1670 Pool Sundeck 25,000 Total Buildings 201,200 15,900 8,000-1601 - Furnishings & Upgrades 1601 Living room furniture 2,000 12,000 1,600 1601 King Mattresses 2a, 3a,4a, 4b, 5b 8,000 8,000 1601 Bedding ($400 X 17 bedrooms 2017) 6,800 1601 Bedroom, kitchen, bathroom lighting 13,500 1601 Upgrade bedding and tow els (Inventory Purchase) 2,000 1601 Sofabeds 2,500 1601 Blinds, w indow coverings 25,000 10,000 1601 Kitchen Utensils 3,000 1601 Major Appliances in villas- fridge, stove 12,000 1601 TV's (9 @ $400) 3,600 1601 Patio furniture replacements ($400 X 10) 4,000 1601 Pool area - new furniture 10,000 1601 Main Reception area - new furniture 5,000 1601 Laundry - Appliances 3,000 Total Furnishings & Equipment 100,400 12,000 19,600-1750 - Computer- Internet and Telecommunications 15,000 1701 - AOther 1701 4A Flat Roof - Improvements 15,000 1701 Pool Electricial panel 2,500 1701 Fans 400 Total Other 15,000 2,500 400 - Total Capital Expenditures 351,100 34,400 28,000-2016 MVVC AGM Manager Report 6
2016 MVVC Budget BUDGET Budget 2017 Maintenance Fees 2017 $ 302,374.00 Rental Income / Bonus $ 35,000.00 Upgrades / Sale of weeks / 48 wks @ $ 2500.00 $ 120,000.00 VAT Tax $ 48,179.84 US Exchange $ 83,690.00 Subtotal $ 589,243.84 Expenses Resort Expenses $ 305,000.00 Management Fees $ - Misc/ Exchange loss $ 1,500.00 Property Management System / OSI $ 6,700.00 Legal $ 1,500.00 Telephone $ 1,200.00 Newsletter Print & Mailout $ 2,500.00 Interest and bank charges / bank charges, credit card, $ 16,900.00 Capital Improvements $ 28,000.00 VAT Tax Payable in Mexico $ 67,360.00 US Exchange Loss in income $ 83,690.00 Bad Debt - Delinquent Members $ 35,000.00 Subtotal $ 549,350.00 Contingency Fund 9% - Based On Resort Expenses $ 27,982.00 Net income or loss $ 11,911.84 Member Capital Improvements 2017 Curtains: 3A, 2A,4A, 1B, 3B $ 10,000.00 Furniture for living room: 5B $ 1,600.00 Fans 5b $ 400.00 King mattress & Bedding: 5B, 2A, 3A,4A $ 8,000.00 Bathroom 4A, 3A $ 8,000.00 Total $ 28,000.00 2016 MVVC AGM Manager Report 7