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Notice of Consideration of Reserve Surcharge for Resort Improvements
March, 2008
Dear Cypress Pointe Resort II Owner:
Please take a moment to read this very important letter. Planning continues for significant improvements to the resort common areas and the interior of all condominium units. This letter provides the latest information available regarding the funding of this important project and the financial impact to you as an owner at Cypress Pointe Resort II. Much of the following information was provided to all owners in an Association letter dated June, 2007; however, new and additional information is now available regarding the cost of these improvements and the timeline for various projects.
Over the past four years we have made a diligent effort to address the furniture replacement needs of the Association on an "as needed" basis. This process has resulted in piece-meal replacement of unit draperies, furnishings, carpeting, etc. which leaves owners and guests with the impression of status-quo and fails to create any impression of improvement. Therefore, your Board of Directors, Resort Quality Committee, and management have decided to implement a unit improvement plan which allows for substantial unit improvements on a more regular cycle. Your Board, the three members of the Resort Quality Committee and management interviewed three professional interior design companies to do the unit renovations, and Images Gallery Design of Tampa, Florida was selected to complete a model unit as a prospective template for future unit renovations. The three bedroom model unit is complete and available for all owners to view, plus we have enclosed a few color photographs.
Anticipated resort improvements, to be included in the proposed improvement surcharge, include:
Unit interior upgrades
Interior improvements will include complete painting, carpeting, all new furnishings, new appliances, privacy wall and door in bathrooms of all one bedroom units, all new cabinets and vanities (solid wood), granite countertops and vanity tops, and much, much more.
Construction of a new laundry facility
When the resort was originally constructed, very little space was provided for maintenance and housekeeping operations and storage for both departments has never been adequate. The construction of a laundry facility will free-up adequate space for maintenance operations and storage, and will also allow Cypress Pointe Resort II to process all laundry in-house instead of sending laundry to a private service at great expense. It is projected that processing laundry in-house will provide very significant savings to the Association in the short-term, and will allow the Association to provide quality linen service to our owners and guests.
Replacement of all roofs in approximately five years
In prior Association newsletters, we advised owners of the defective roof construction which resulted in numerous leaks in many buildings. After speaking to legal counsel, it was determined that possible recovery against the original contractor would be difficult due to the age of the roofs and the fact that the contractor was no longer in business. Potential claims against the developer were pointless due to their prior bankruptcy and reorganization. In an effort to protect and preserve the buildings, the Association made roof repairs which provided a five year warranty against leaks with the understanding that the roofs will eventually need to be replaced. The current reserve plan and budget has roof replacement of the residential building commencing in the year 2011.
continued on reverse ...
8651 Treasure Cay Lane· Orlando, FL 32836· Telephone (407) 238-2300 • Fax (407) 238-7826 website hffp://wwwcypresspointe2.com
VACATION RESORTS
Pavers to be installed on both pool decks
Thin pavers will be installed over the existing concrete pool decks which will be much more comfortable and cooler, plus it will provide a fresh, tropical look to the entire pool area.
Installation of energy saving fluorescent lamps and light fixtures throughout the entire resort (already completed).
Installation of gutters and downsponts on all residential buildings
The original building construction did not include any gutters or downspouts which have resulted in moisture problems in the first floor units of most buildings.
Eight new golf carts to be used for housekeeping (already purchased).
These carts are used to transport linen to and from units and resort maintenance.
Construction of new tennis court by front entrance along with a shuffleboard court (construction will have commenced by the time you receive this letter).
It is important for all owners to recognize that our Association currently has over $2,573,000 in the Capital Reserve Account for projects such as those listed above; however, the necessity to replace all residential roofs could not have been anticipated and that expense alone creates a huge financial burden for the Association. Our sister Association, Cypress Pointe Resort, encountered the same problem with the construction of their roofs. Since their buildings were constructed prior to our Association, they were forced to take immediate action to replace all roofs at a cost approaching $3,100,000 whicb was also an unanticipated expense to their owners.
In order to meet our Association's long-term financial reserve needs, a resort improvement assessment will be considered by the Board of Directors at their meeting scheduled for May 2, 2008 at I] :00 a.m. which will be held in the meeting room at Staybridge Suites located next to Cypress Pointe Resort. The amount of the proposed assessment is currently anticipated to be as follows:
Payment Due 7/15/08
One Bedroom 479.71
Two Bedroom 576.40
Three Bedroom 673.00
In addition, and of utmost importance, it is anticipated that this improvement assessment, along with our long-term reserve funding plan. will properlv fund the Reserve Accounts so that future supplemental assessments should not be necessarv.
The need for an improvement assessment was not an easy decision for your Board of Directors to make, but after reviewing all the facts, discussing the pros and cons, and keeping our fiduciary responsibilities foremost in our minds, the final decision was based on what was best for Cypress Pointe Resort II in the long-term. Your Board of Directors, Resort Quality Committee, and management are confident that this assessment paid by each owner will be rewarded by many benefits in addition to refurbished units and renewed common areas. These improvements are being proposed to help maintain the value of your unit, increase our ability to acquire good exchanges as a result of higher exchange company ratings, and increase owner enjoyment and pride of ownership.
Thank you for your support.
Board of Directors I Cypress Pointe Resort II Condominium Association, Inc. Resort Quality Committee
THE CYPRESS POINTE RESORT II CONDOMINIUM ASSOCIATION, INC.
BOARD OF DIRECTORS/OWNERS MEETING AGENDA Friday, May 2, 2008
11:00 a.m.
Staybridge Suites, Lake Bueno Vista, Orlando FL
I. CALL TO ORDERIROLL CALL
II. NOTICE AND QUORUM VERIFICATION
III. APPROVAL OF PREVIOUS MEETING MINUTES
A.Approval of Regular Board Meeting Minutes (02/08108)
B.Approval of Organizational Board Meeting Minutes (02/08/08)
C.Acceptance of Annual Meeting Minutes (02/08/08)
D.Approval of Telephonic Board Meeting Minutes (03/07/08)
IV. FINANCIAL REPORT
A.Cash Balances
B. Balance Sheet and Comparative Income Statement
C. Accounts Receivable Summary Report
D.Cash Flow Projections
E.Collection Report
V. MANAGER'S REPORT
VI. OLD BUSINESS
A.Ratification of Contracts
B.Resort Improvements
C.Laundry Facility Update
D.Registered Agent for the Association
E.Assignment of Convenience Store Lease
VII. NEW BUSINESS
A. Approval of Renovation Assessment
VIII. OTHER
A.Next Meeting Date
B.Open Discussion
IX. ADJOURNMENT
March, 2008
Dear Cypress Pointe Resort II Owner:
Please take a moment to read this very important letter. Planning continues for significant improvements to the resort common areas and the interior of all condominium units. This letter provides the latest information available regarding the funding of this important project and the financial impact to you as an owner at Cypress Pointe Resort II. Much of the following information was provided to all owners in an Association letter dated June, 2007; however, new and additional information is now available regarding the cost of these improvements and the timeline for various projects.
Over the past four years we have made a diligent effort to address the furniture replacement needs of the Association on an "as needed" basis. This process has resulted in piece-meal replacement of unit draperies, furnishings, carpeting, etc. which leaves owners and guests with the impression of status-quo and fails to create any impression of improvement. Therefore, your Board of Directors, Resort Quality Committee, and management have decided to implement a unit improvement plan which allows for substantial unit improvements on a more regular cycle. Your Board, the three members of the Resort Quality Committee and management interviewed three professional interior design companies to do the unit renovations, and Images Gallery Design of Tampa, Florida was selected to complete a model unit as a prospective template for future unit renovations. The three bedroom model unit is complete and available for all owners to view, plus we have enclosed a few color photographs.
Anticipated resort improvements, to be included in the proposed improvement surcharge, include:
Unit interior upgrades
Interior improvements will include complete painting, carpeting, all new furnishings, new appliances, privacy wall and door in bathrooms of all one bedroom units, all new cabinets and vanities (solid wood), granite countertops and vanity tops, and much, much more.
Construction of a new laundry facility
When the resort was originally constructed, very little space was provided for maintenance and housekeeping operations and storage for both departments has never been adequate. The construction of a laundry facility will free-up adequate space for maintenance operations and storage, and will also allow Cypress Pointe Resort II to process all laundry in-house instead of sending laundry to a private service at great expense. It is projected that processing laundry in-house will provide very significant savings to the Association in the short-term, and will allow the Association to provide quality linen service to our owners and guests.
Replacement of all roofs in approximately five years
In prior Association newsletters, we advised owners of the defective roof construction which resulted in numerous leaks in many buildings. After speaking to legal counsel, it was determined that possible recovery against the original contractor would be difficult due to the age of the roofs and the fact that the contractor was no longer in business. Potential claims against the developer were pointless due to their prior bankruptcy and reorganization. In an effort to protect and preserve the buildings, the Association made roof repairs which provided a five year warranty against leaks with the understanding that the roofs will eventually need to be replaced. The current reserve plan and budget has roof replacement of the residential building commencing in the year 2011.
continued on reverse ...
8651 Treasure Cay Lane· Orlando, FL 32836· Telephone (407) 238-2300 • Fax (407) 238-7826 website hffp://wwwcypresspointe2.com
VACATION RESORTS
Pavers to be installed on both pool decks
Thin pavers will be installed over the existing concrete pool decks which will be much more comfortable and cooler, plus it will provide a fresh, tropical look to the entire pool area.
Installation of energy saving fluorescent lamps and light fixtures throughout the entire resort (already completed).
Installation of gutters and downsponts on all residential buildings
The original building construction did not include any gutters or downspouts which have resulted in moisture problems in the first floor units of most buildings.
Eight new golf carts to be used for housekeeping (already purchased).
These carts are used to transport linen to and from units and resort maintenance.
Construction of new tennis court by front entrance along with a shuffleboard court (construction will have commenced by the time you receive this letter).
It is important for all owners to recognize that our Association currently has over $2,573,000 in the Capital Reserve Account for projects such as those listed above; however, the necessity to replace all residential roofs could not have been anticipated and that expense alone creates a huge financial burden for the Association. Our sister Association, Cypress Pointe Resort, encountered the same problem with the construction of their roofs. Since their buildings were constructed prior to our Association, they were forced to take immediate action to replace all roofs at a cost approaching $3,100,000 whicb was also an unanticipated expense to their owners.
In order to meet our Association's long-term financial reserve needs, a resort improvement assessment will be considered by the Board of Directors at their meeting scheduled for May 2, 2008 at I] :00 a.m. which will be held in the meeting room at Staybridge Suites located next to Cypress Pointe Resort. The amount of the proposed assessment is currently anticipated to be as follows:
Payment Due 7/15/08
One Bedroom 479.71
Two Bedroom 576.40
Three Bedroom 673.00
In addition, and of utmost importance, it is anticipated that this improvement assessment, along with our long-term reserve funding plan. will properlv fund the Reserve Accounts so that future supplemental assessments should not be necessarv.
The need for an improvement assessment was not an easy decision for your Board of Directors to make, but after reviewing all the facts, discussing the pros and cons, and keeping our fiduciary responsibilities foremost in our minds, the final decision was based on what was best for Cypress Pointe Resort II in the long-term. Your Board of Directors, Resort Quality Committee, and management are confident that this assessment paid by each owner will be rewarded by many benefits in addition to refurbished units and renewed common areas. These improvements are being proposed to help maintain the value of your unit, increase our ability to acquire good exchanges as a result of higher exchange company ratings, and increase owner enjoyment and pride of ownership.
Thank you for your support.
Board of Directors I Cypress Pointe Resort II Condominium Association, Inc. Resort Quality Committee
THE CYPRESS POINTE RESORT II CONDOMINIUM ASSOCIATION, INC.
BOARD OF DIRECTORS/OWNERS MEETING AGENDA Friday, May 2, 2008
11:00 a.m.
Staybridge Suites, Lake Bueno Vista, Orlando FL
I. CALL TO ORDERIROLL CALL
II. NOTICE AND QUORUM VERIFICATION
III. APPROVAL OF PREVIOUS MEETING MINUTES
A.Approval of Regular Board Meeting Minutes (02/08108)
B.Approval of Organizational Board Meeting Minutes (02/08/08)
C.Acceptance of Annual Meeting Minutes (02/08/08)
D.Approval of Telephonic Board Meeting Minutes (03/07/08)
IV. FINANCIAL REPORT
A.Cash Balances
B. Balance Sheet and Comparative Income Statement
C. Accounts Receivable Summary Report
D.Cash Flow Projections
E.Collection Report
V. MANAGER'S REPORT
VI. OLD BUSINESS
A.Ratification of Contracts
B.Resort Improvements
C.Laundry Facility Update
D.Registered Agent for the Association
E.Assignment of Convenience Store Lease
VII. NEW BUSINESS
A. Approval of Renovation Assessment
VIII. OTHER
A.Next Meeting Date
B.Open Discussion
IX. ADJOURNMENT