AGM MINUTES
These Minutes will be officially approved at the October 2011 Owners' Committee Meeting
MINUTES OF MONESS OWNERS CLUB AGM
Thursday 9th June 2011 – Flemmyng Room, Moness Resort, 1.30pm
Present: Terry Vose – Managing Director, representing Founder Member
Diane Norman – Finance Director
Julie Kilpatrick – Resort Director
Joy Boyle – Elected Member Owners Committee
Charlie Taylor – Elected Member Owners Committee
Heather Langhorn – Resort Services Manager, Minute Taker
27 owners
Apologies: Geoff Siden, Founder Member
Isobel MacNeill, Elected Member Owners Committee
Mrs Overend, Owner K73 18/19 & 20, S82 39 & 40
A letter from Mrs Overend was read out thanking all for their efforts in maintaining the Resort to such a high standard and praising the Resort Management for the friendliness of welcome that is always received when she occupies.
1. TO RECEIVE AND ACCEPT THE MINUTES OF THE 2010 AGM HELD ON 22ND MAY.
Duncan, Westray / 25 complained that the minutes had not been sent in advance, hence no time to read prior to meeting.
TV informed the floor that the “unapproved” minutes are available on request to all owners.
Macadam, Shepherd / 23 proposed that the minutes be accepted as a true and accurate record of the meeting.
Leggatte, Carron / 38 seconded.
2. TO RECEIVE A REPORT FROM THE OWNERS’ COMMITTEE
CT read a prepared statement outlining the challenges faced by the Committee. Copy attached (Appendix 1).
TV Asked for any questions from the floor.
Henry Johnson, BM6/ 23 asked why wireless internet connectivity had not been installed in the cottages when the contract was negotiated. He suggested that wireless would be far superior to the hard wired system currently in situ as multiple products could be used eg mobile phone,
i-pads etc. Mr Johnsons priority when booking accommodation was to ensure it has wireless in order to maintain communication. He feels the upgrade to wireless would bring extra value to the cottages and Resort.
TV advised that a considerable investment had been made in the infrastructure to improve TV, telephone, internet etc. He was not aware of any reason why wireless was not considered unless issues of cost or security. He advised that he would discuss with our IT provider.
Mr Govan, Quaich / 23 asked TV to also broach the subject of the very slow connection with them.
Mr Roy, Carron / 38 suggested alternative ways to access the internet.
TV committed to looking into it and reporting back to the Owners’ Committee at the September meeting.
Mr McAdam, Shepherd / 23 suggested that a mobile provider may be interested in installing equipment in return for sole access.
TV thanked all for their ideas.
Mrs Coulston, Gala / 35 – last year she asked about unsold weeks and how they could be used to make money for the Club. She now asked if the offers on the website were a direct response to her question.
TV responded in the negative but advised that the Company had been much more proactive about renting weeks generally. 25% contribution is paid on all rentals so the return helps.
Mrs Coulson asked if there was a direct website link where owners could book the unsold weeks direct.
TV confirmed this could be done.
Mrs Coulson assumed that 100% of that revenue would come into the Club.
TV replied in the negative, the arrangement is 25% of all rental revenue goes to the Club.
JB informed the floor that there was a large cost involved in the marketing and selling of rental weeks and that the Committee had negotiated and agreed that 25% of all rental income from unsold timeshares, not just the 300 owners weeks, but also the 1000 MGL stock weeks, would be allocated to the Club funds.
Mrs Coulson asked if it was possible for someone else to manage the 300 weeks.
TV agreed that they could.
Mrs Coulson thought this should be looked into as currently the Club weeks in stock were doing nothing.
TV disagreed, stating that the current procedures are expected to raise around £50k in revenue for the Club in 2011 and felt it unlikely that anyone could achieve anything like that from managing the 300 weeks.
3. TO RECEIVE A REPORT FROM (A) THE MANAGEMENT COMPANY
AND (B) THE RESORT DIRECTOR
TV issued a handout detailing the work of the Management Company on behalf of the Club in 2010. (Appendix 2) He invited all present to use the new Twitter and Facebook pages to comment.
JK issued a handout (Appendix 3) outlining the work done by the Resort Management and staff over the year.
4. RECEIVE A REPORT ON INCOME AND EXPENDITURE FOR THE YEAR ENDING 30TH NOVEMBER 2010
DN issued 2 handouts with a view to making the income and expenditure more transparent and easier to understand. (Appendix 4 & 5).
DN explained that the accounts to the end of Nov 2010 were printed on the back page of the newsletter. These were prepared by DN and had been audited by Bain, Henry Reid who have declared them to be correct in a statement at the bottom of the page.
She explained that some owners have been asking to view the “full accounts” but she explained that is not a term that is used for “non-profit making organisations” such as the Club. At the AGM in 2010 DN offered to supply more information to anyone on request. Only 2 such requests had been received to date.
She explained that as far as the Club was concerned the aim was not to make a profit or loss in any one year but to cover the costs of the running of the Club with a sinking fund available for refurbishment, emergencies etc where required.
In 2010 the accounts show a surplus of £22k compared to £55k loss the previous year. The Club is in a much better position and the sinking fund was topped up to £96k at the end of the year as a result.
DN explained the handouts issued were designed to allow the ownership a clearer picture of how the management fee income from Owners is spent. Large amounts such as those called Administration costs in the Bain Henry Reid published accounts have been broken down to show a fuller picture.
DN explained the main constituents of each category on the Piechart, showing how Owners’ fees were spent in 2010:
Premises: This cost includes rates, contracted out housekeeping and materials, electricity, water, repairs and maintenance, equipment rental including van.
DN was pleased to announce that by following up correspondence from Perth & Kinross Council re a bonus scheme for small businesses, she had been able to obtain a 100% rates rebate for the year 2010/11, thus saving the Club a huge £100k in Costs. DN expressed thanks to the sample of Owners who had filled in the application forms.
The Committee had voted to use this to make a 10% contribution to the Sinking Fund in 2010, as shown on the published accounts Note 1 (rather than the usual 5%).
This saving was the single biggest factor in turning around the Club’s results from the loss in 2009.
Staff costs at 41% of the expenditure are quite the biggest cost to the Club. This section includes 2 ½ dedicated management services staff, together with day to day accounting and payroll processing based in Bournemouth overall financial and operational Club management as well as proportionate costs of all Resort staff an average of 34 staff equivalent.
The “Other” section includes, IT cover and software licences, legal costs, trustee fees, audit costs, postage, stationery, bank charges etc. DN advised that funds had been accrued (not yet paid) with regards to the dispute with FNTC.
The leisure centre rent covers access to the leisure facilities; there has been a substantial investment on improving these which she hoped the owners had enjoyed. This project has been funded entirely outwith the budget of the Club.
Bad debts of around £20k had been written off this year.
The Sinking Fund can be seen as a “saving up account” for refurbishment. This year 10% of monies received on management fees had been set aside into the sinking fund.
The Factoral Fee is a payment made to the Management Company in accordance with the Management agreement with the Club.
TV invited questions from the floor.
Mr Govan, Quaich / 23 asked that the dispute with FNTC be explained.
TV advised that FNTC has been trustees of the Club since soon after the Resort started. The dispute started around the time of the Courtyard redevelopment. FNTC held the monies and there was difficulty in getting info from them regarding any detail; a complete lack of clarity. Also, there were small things like an invitation to attend the AGM; they would either choose not to come or charge mileage and hourly rate despite the retainer already paid.
About 3 years ago the dispute came to a head; on behalf of the Committee we approached another trustee who quoted to do the job for less. We voted at the AGM to change to Resort Fiduciary Services (RFS).
6 months notice was given as per the terms of the contract. However, Declan Kenney at FNTC was concerned about a few issues regarding the resignation; the main one being that our Company Worldwide Leisure Group (WLG) is a minority shareholder in RFS. They demanded proof that RFS is independent.
That proof was given; no one at WLG has any say or influence on RFS or how it is controlled. FNTC have not accepted that and still come back seeking clarification and will not resign. TV reported that it now appeared to have turned into a fight about money; FNTC saying they will resign if they get paid to date and the Club’s Committee saying that we will pay only to the date we gave notice.
TV is now seeking an opinion on the way forward and advised it may go to litigation.
Mr Govan, Quaich / 23 asked if the dispute was affecting the rights of owners to buy and sell properties.
TV advised that FNTC were still fulfilling their role as far as that was concerned and have been paid for that. It was only the retainer that was in dispute.
Mrs Coulson, Gala 35 asked if a mountain was being made out of a molehill, and wondered if it could not have been settled years ago.
TV thought that Declan Kenny had taken it personally but its business. They are appointed by the Club and if the Club thinks they can get as good or better job for less money then they are entitled to give notice, and FNTC should accept this. However, FNTC are going after the money and TV was resigned to going to litigation or mediation.
Mr Arthur, Pheasant / 23 asked if monies had been put aside to cover back payments to FNTC and if it included legal fees.
DN confirmed that was the case.
TV anticipated counsel fees to be in the region of £500 (one bill for £2227 has been paid so far).
Mrs Hogg, Colonsay / 27 told the floor she had been invited to join the pre AGM meeting as she had applied to join the Committee. She had been impressed.
She had asked last year if the Club paid 75% of the Leisure Club electricity and had been told “no”, however, if that was the case she could not see where the £50K difference between electrical income and expenditure came from.
DN apologised for the inaccuracy of previous statement and advised electricity paid on the Leisure Club was currently 80% to Club. She explained that smart meters were currently being installed in order to better understand the usage so that a fairer proportionate system of billing can be put in place and energy saving measures considered.
DN further explained that unoccupied cottages also accrue electrical costs as they have to be heated through long winter months to protect them from frost damage, with no charge back.
Mrs Hogg summarised that owners currently pay for the Leisure Club, a rental charge per month, 80% of the electricity costs plus a 15% factoral fee, and asked if any costs for the Hotel was included.
DN confirmed that the summary was correct and that all charges for the Hotel were met by MGL.
JK advised that the Hotel was gas powered and DN confirmed that the Club pays nothing towards gas.
Mrs Hogg referred to the rental income, shown as £28k plus £30k contribution. In 2010 Mrs Hogg had written to the Management Company asking about the contribution and had been advised that there was no obligation for the Management Company to continue making this contribution so potentially the income could be £30k down this year.
TV advised this was true but no decision had yet been taken regarding the contribution; it was in the best interests of Company to ensure the well running of the Club.
Mrs Hogg asked that one other point be clarified and that was the issue of the substation.
TV gave an overview. The Club and the Company have spent a fair bit of money on upgrading the substation. It was more than 20 years old and inadequate. We had suffered several power outages and had been advised that the power company could refuse to supply at any time. Now that the substation works were complete, the Resort is safe, can handle the demand even during the worst of weathers and has the capacity to expand if necessary.
DN asked that someone propose acceptance of the accounts as printed.
Macintosh V66 / 5 proposed and Mr Govan Q61, 22 & 23 seconded.
5. ANY OTHER BUSINESS
MacDonald, Birks 36 – advised they were coming out of RCI Points but had received worrying correspondence and wondered if RCI was in trouble financially.
TV reported that he had attended a meeting earlier in the year on behalf of the Committee, with local RCI reps and European Director Dimitri Manakis. TV explained that the original points concept had failed, RCI had accepted low value weeks from Resorts and were paying full management fees on weeks which were difficult to sell. RCI changed the points concept to Next Generation and converted as many people to that system as possible have been asking Resorts to take those original weeks back over the last few years and Moness had accepted many back. There are still weeks to come back which the Company have been refusing to accept, however we are keen to protect the interests of our owners and having RCI points fail does not do that, so will probably have to take them back next year if RCI honour their fee commitments on them this year.
Several owners gave their stories regarding problems with RCI and trouble making exchanges, both home and abroad and especially internal into Moness.
TV advised that that the Cedar Club was available for owners wishing to change weeks, cottage size or season and introduced John Mackenzie, Sales Advisor.
In the absence of any other business TV thanks all for attending and closed the formal part of the meeting.
Mrs Coulson asked if the minutes could be circulated prior to the next AGM and was informed that they would be put on the website or circulated with the newsletter.
An informal question and answer session followed the meeting.
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