PELICAN TAPRC

MINUTES OF 2^ND QUARTERLY BOARD MEETING

HELD AT PELICAN RESORT

JULY 18, 2007

 

In Attendance were the following Board Members: Jeff Pray, Chairman; Tom Hoshall, Legal Liaison; Jerry Luke, Treasurer; and Judy Young, Secretary. Dan Menniti sent his regrets. From Royal were: Richard Corso, COO; Luis Cabrera, Resort Manager; and Rodrigo Gamboa, Caribbean Division Coordinator. Also present was Frank Roozen, Antillean counsel. Len Matsunaga, US counsel sent his regrets.

 

Marina Project Update:
 
a) Building One status: interior and exterior finishes include tiling of corridor floors.

b) Central Building status: currently the roof of the last floor is under construction.

c) Building Two status: construction is up to the third floor and in some sections, up to the fifth floor.

d) The assembling of the Engine Room has begun.

e) Pool foundation is 80% complete.

f) As of June 26, construction is 56% complete.

 

The Resort is leasing land for US$2,000 a month for the next ten months, rather than the original storage space on the beach. This land will be used to store materials for the Marina Residence building.

 

Marketing:

 

Website Improvement Plan: The Pelican Resort web site has gone through some major improvements over the past 12 months which include: the Gallery, more detailed Resort Services and Activities, Rates and Packages just to name a few.

 

To be rolled out onto the web site over the next month will be the listing of all Pelican resale inventory. Pelican members will be able to review and purchase resale inventory online. Online inventory and inventory sold at the Resort through sales will have the same prices.

 

Newsletter: The monthly Pelican News has been warmly received by Pelican owners and guests and will continue to be published monthly.

 

The Pelican News will be joined by the Pelican Marina Residences News. This newsletter is meant for all Pelican Marina Residence members, Pelican members and anyone who has toured the model and asked to be kept notified of the progress of the project.  It is currently expected to be published every two months, with the first edition available any day.

 

Resort Insurance: The historical costs of insurance for the Resort were noted and discussed.

 

Projects:

 

“B” Corridors: Outside walkways will be redone with tile in order to prevent humidity and moisture from getting into the units.  We will be updating the handrails to match the new aluminum style we are currently using. This project is scheduled to start in May and finish in October.

 

Currently we have finished block one and two of the Beaumontia Building.

 

This project should be completed by week 48 (approximately December 1, 2007).

 

“A” Pool: The “A” pool was originally constructed with hollow concrete blocks and due to the terrain movements we have been experiencing cracks frequently, resulting in loss of water. The chosen option is a “Liner” and the tentative schedule for this project is from September 1 to November 30.  A 50% down payment is in place.

 

Wireless / Security: The cost for the existing Resort including 100% coverage of villas, the executive offices, sales office and lobby will be US$365,856.00.

 

“B” Building A/C in the living rooms: The project is under evaluation.  Tests were done in nine units with central type A/C at a cost of US$2,500 per unit. The total cost to do all 79 one-bedroom units at both “B” buildings is US$198,000. Electrical load consumption is less than current A/C units due to the fact that it is new, cost-effective technology.

 

Anti-Mildew Program: This program started in mid-February with a team of two people and now there are four people from the housekeeping staff. Their task is to clean and remove mildew stains from air conditioning units and bathroom tiles.  Currently, the staff is focusing on both “B” buildings where 90% of the Resort’s problems exist.  So far they have covered 83% (153 units) in both “B” buildings.

 

Insulation on One Bedroom unit’s ceilings: We have placed insulation in three “B” building bedroom ceilings in order to avoid transfer of cold to the units above that causes humidity.  This project will cost approximately $129,200 for 168 units.

 

Owner’s Storage Room: The old management area in the “F” building will be redone into an Owner’s locker room to keep items for long periods of time.  Currently the project holds up to 50 lockers and 250 are needed.  This project is under review and estimated cost will be US$40,000.

 

Beach Bar Extension: Remodeling of the actual bar facilities was discussed.

 

Legal Update:

Friendly Island Properties: There is an agreement by the Board and Royal Resorts that FIP votes “that are not in good standing” will be not be counted.           

 

Other pending items are all under discussion.

 

Concessionaires Report:

The Board reviewed the concessionaire financial reports for the following:

Los Gauchos Resort and The Pelican Bistro

Pool & Beach Bars

L’Aqualigne

Old Doctor’s Office (not rented to any vendor at this time)

 

Financial Information as of June 30, 2007: The financial information is available on the pelicanresort.com web site in the “Members Room”.

 

Maintenance Fee: The amount billed for 2007 was $11,978,415.50 and the amount collected was $11,641,026.94.  The unpaid balance was $337,388.56. There were 426 units where maintenance fees were not paid and these units were put into forced re-sales.  

 

Operations Report: Maintenance is on a continual basis.  Broken and nonfunctioning items have been repaired or replaced.  Vacant units receive touch up painting and repairs to appliances.  Generators are serviced and A/C filters are replaced. 

 

PRC 25^th Anniversary Program Marketing Events:

The following events take place weekly:

Booze Cruise on Sunday and Monday

Marina Cocktail Party on Monday

Movies at Marina Pool on Wednesday

Karaoke at Marina Pool on Thursday

 

Promotional items for the 25^th Anniversary - (all items can be purchased at the front desk):

T Shirts, Beach Bags, Caps, Coffee Mugs, Disposable Lighters, Koozies and Stadium Caps

 

Communication Materials: Pelican Resort News is issuing edition “Vol. 2 #6” (July 07) and it is available on the pelicanresort.com web site.

 

Training Program Update: The Resort continues with frequent training programs.

 

Dollar a Day Program:

Fund Contributors (2006 - 2007) are:

Pelican Resort Club

Sunterra Flamingo (Diamond Resorts)

Sunterra Royal Palm (Diamond Resorts)

Belair Beach Hotel

Oyster Bay Beach Hotel

La Vista

Sea Palace

Port de Plaisance

Ocean Beach Club

 

Fund Collection:

June 2005 through May 2006                                                US$81,638.72

June 2006 through May 2007                                                US$120,941.35

Total collected                                                                      US$202,580.07

Less Administration Fees                                                      (US$36,547.57)    

Net Collected                                                                         US$166,032.50

Total Paid Out                                                                        (US$63,961.03)

 

Net Balance as of 5/31/07                                                       US$102,071.47

 

Sponsored Projects:

2006

I Can Foundation: Planting of Trees

CIFSEF/Wifol Children’s Program                       

 

2007

Cultural Center: Emancipation Mural Painting

Starlight Foundation: Books for undocumented children

Cultural Awareness Foundation: Statue for school

Prison Guard Courses

No kidding with our kids foundation