The Lodge Intercom Mountain Lodge Association Snowshoe, West Virginia 26209 Newsletter #74 March 2014 MOUNTAIN LODGE OWNERS MEETING REPORT 1. CONVENE MEETING: Sam McKeen, ML Association President, opened the ML Owners Meeting on March 22, 2014, at 5:10 p.m., in the Bobcat Room. He introduced Scott Millican, and then turned the floor over to him. 2. REAL ESTATE REPORT: Scott Millican (Broker, First Tracks Realty). There are 236 properties on the market at Snowshoe, as of this date, with 9 pending Sale Contracts. There are 6-8 foreclosures pending across-the-mountain. Mountain Lodge report: 1 pending sale, no foreclosures, 1 short sale, 2 offers on units. Comparative Market Analysis @ ML: 1-BDRs: Past 12 months-–181 Days on Market/Sale Prices averaged 9% below Listed Prices. 2-years ago—113 Days on Market/Sale Prices averaged 10% below Listed Prices. 3-years ago—209 Days on Market/Sale Prices averaged 12% below Listed Prices. 2-BDRs: Past 12 months-–266 Days on Market/Sale Prices averaged 12% below Listed Prices. 2-years ago—91 Days on Market/ Sale Prices averaged 11% below Listed Prices. 3-years ago—390 Days on Market/Sale Prices averaged 14% below Listed Prices. The majority of current purchases are “cash deals”. Local banks offer best options to obtain long-term financing. The Whistlepunk complex has sold; plans include reopening restaurant, fitness center, and bar. The “Ridiculous Pass” seems to have caused some customers to shop real estate. 1 3. SNOWSHOE REPORT No representative from Snowshoe attended. Consequently, Sam reported highlights from recent Snowshoe Association Presidents’ Meeting held 2/22/14: --It was a good year overall for Snowshoe, with better than average ski conditions. (The summer was slow, and rainy periods diminished portions of December.) --“Net Promoter Scores”, which seek to measure “how likely a Guest is to recommend a resort to a friend”... increased to 68, from 62 in 2013. --Snowshoe is seeking to change its image from “Ski Resort” to a “Mountain Destination”. Expanding summer activities through enhanced “pin pointed marketing” and additional new packaging offers, e.g., Adventure Pass, Couples Adventure Package, and a Family Adventure Package. Additional activities/group events include STIHL Timber Sports, Wanderlust Yoga and Wellness Festival, and USA Cycling Collegiate Mountain Bike National Championships. GNCC has been a great success; and additional growth in the mountain biking sport will be actively promoted. Established events are being reevaluated to either freshen or eliminate them, e.g., the Chili Cook-off has lost popularity. --The proposed Resort Area District (RAD) continues to navigate a prescribed review/approval process. The County Commission is reviewing Snowshoe’s Petition, and hosting discussions and public meetings. One advantage of a RAD would be the ability to apply for grants and other public sources of funds. Also, the ability to provide more localized law enforcement. “Checks and balances” continue to be discussed, with a pledge of no assessments during its first 3 years. --Power outages, especially this year, have caused operational problems for Snowshoe and others. MON POWER is being pressed to improve its system’s reliability. It has agreed to increase/improve maintenance and overall reliability. --Cell Phone service has been improved for AT&T users. Verizon is negotiating with AT&T to gain access to its infrastructure to better service its customers. --A local property owner, who represents Citynet, a WV company, which solves internet problems, has received a $700K grant to pursue a network of microwave transmissions of broadband internet service into the area. This will provide some competition to Frontier, who is currently the only internet service provider. **ML Owners at the ML Meeting questioned Snowshoe’s motives for more than doubling its pool/hot tub fees for non-Snowshoe Rental Program Guests. This is 2 reportedly an effort to maximize the value of its amenities to its Rental Program Guests. At the suggestion of ML Owners, the board is pursuing an option to buy a “condo season pool/hot tub pass”. 4. WELCOME NEW OWNERS TO ML Sales Activity at ML –6 properties were sold and settled since ML’s fall meeting; 2 of these were bought by existing owners. New Owner Michael Richard, who purchased Unit 290, was in attendance and welcomed to the Association. 5. FINANCIAL REPORT: FY 2014 Operations Summary (October through September)— It has been a good operational ski season for ML thus far (net position about $44,000 ahead of Budget, with $34,000 of this resulting from Housekeeping operations). Total volume of room nights, cleanings, resulting revenues and certain associated expenses are higher than budgeted. Capital Reserve Fund Balances: --“OLD” (Fund balance prior to roof loan)..… $126,759 --“NEW” (primarily used to repay roof loan)… $70,271 6. BUILDING MAINTENANCE/IMPROVEMENTS COMPLETED SINCE FALL MEETING: --Internet WiFi—ML’s basic system capacity was essentially doubled prior to this ski season. The expanded capacity substantially reduced Guest complaints. Additional improvements have been promised by Frontier. (A ML Owner volunteered to review ML’s current setup and offer improvement suggestions.) --Metal “Fire Doors”—were serviced or replaced on the first floor. The center poles were removed from the 3 doors between the Elevator Lobby and the “B Wing”; magnets were added on the 2nd doors, which lacked them. --Digital Thermostats—were installed in nearly half of the Living Rooms (only) to replace older equipment in an effort to improve comfort levels throughout the building. ML is offering to install matching digital replacement thermostats in other rooms... for a flat cost of $50/thermostat... installed. 3 --Ballhooter Walk Areas—Abrasive strips were secured to sections of the wooden “walkway deck” at the Ballhooter Exit to improve pedestrian safety. These did not hold up. There is a “paint on” product, which will be applied. --Building Hot in Summer—Mike Frizell inspected air handlers/smoke dampers on ML’s roof to determine their operating condition as part of an effort to evaluate the extent to which summer core building temperatures can be economically reduced. Pursuant to Mike’s guidance, Simplex Grinnell, the fire alarm maintenance firm, installed manual controls to permit ML staff to access (turn on & off) the emergency smoke exhaust system’s fans to help remove hot air from ML atriums, when needed. Thanks to Mike for his efforts. --Repainted 1st & 2nd floor areas of Sawtooth. --Replaced lights and wiring in crawl space under “A-Wing”. Electrical outlets were added to the Main Entrance area. 7. BUILDING IMPROVEMENTS PENDING/UNDER CONSIDERATION for 2014 (and beyond): --Improve Appearance of Trash Compactor Area—A building to provide covered storage for ML’s trash compactor, truck and other outside maintenance items will be constructed in the spring. This project is moving forward with Architectural Review Committee approval obtained, and contractor bids being solicited. --ML’s PBX is obsolete and needs to be replaced—Various capabilities and pricing options are being evaluated. Bids have been solicited, with initial estimates ranging from $32,000 -$45,000. This system will be replaced ASAP. (ML currently lacks “voice mail” capabilities with its deteriorated system.) --Metal “Fire Doors”—on the 2nd & 3rd floors will be serviced or replaced as needed. --Leaks Around/Through Windows Persist—Although the number of leaks has been reduced, efforts are ongoing to determine what further repairs and/or replacements are needed. A line of replacement windows has been identified. A list of Owners, who wish to replace their windows and/or slider doors, is being compiled in the Office. Please add your name... if interested. --Ballhooter Exit Area Freezes Up—Insulate exposed interior pipes; convert fire sprinklers in the area from “wet” to “dry”; upgrade existing heaters to put out more heat. (Portable back-up heaters are also being purchased for use where needed.) 4 --Trash Room Roof Leaks—Repair in the spring. 8. FILL 3 EXPIRING BOARD POSITIONS (2-Year Terms) ML’s Board of Directors consists of: --Sam McKeen, President, --Jay Irons, VP/Treasurer --Peg Mahler, Secretary --Dave Hunter, Member at Large --Wes Brendsel, Member at Large The highlighted positions expired at this Meeting. All current Members agreed to be considered for another term. No other Owners either stepped forward, or nominated others to be considered. An Owner voiced a Motion to reelect all 3 (expiring) Members to serve another 2-year term. That Motion was seconded, and a subsequent voice vote confirmed the proposed action. No Owner opposed. 9. OTHER ITEMS: User Fees for Housekeeping continue to be evaluated. A variety of aggressive costreduction measures have permitted the Housekeeping Department to operate w/o increasing rates to ML Owners for several years. (Rates last changed in 2008.) The current billing methodology, i.e., a fixed rate is charged for 1-to-3 nights; plus a second fixed rate is charged (in addition to the first) for occupancies, which exceed 3 nights. A few Owners have complained about this billing methodology. Alternatives include developing a fixed rate for a 2-day minimum, plus an additional daily charge per night occupied thereafter, to fund overhead, daily maid service and the cost of supplies. (Owners were invited at the Fall Meeting to submit suggestions regarding a more equitable billing methodology to a member of the Staff or Board. No viable alternatives were suggested.) SN is proceeding to establish a Resort Area District (RAD) via legislation to institute a new formalized entity to manage/maintain the mountain’s common elements/services & infrastructure. SN has been working directly with property Owners in order to disseminate information and answer questions. (NOTE: The ML Board does not oppose the establishment of a RAD.) The Pocahontas County Public Service District has requested approval for a new sewage rate structure, which would increase the basic rate for residential units (up 5 to 2-BDRs at Snowshoe, et al), from $33/month to $71.28/month ... a 116% increase. The PSC may waive a formal rate hearing... “in the absence of substantial protest”. (The projected cost to build a new, state-of the-art waste water treatment plant to service Snowshoe and surrounding areas... exceeds $27 million.) Any increased sewage rate charges will continue to be paid centrally by the ML, on behalf of its Owners, but will need to be passed through to Owners/collected from Owners, in order to recover the amounts needed to pay the PSC’s monthly billings. The potential threat of bed bugs was discussed. A source for bedding enclosures has been lined up. Pricing for pillow and bed enclosures, which can protect property, is shown below on Page 7. Please notify the ML Office if you wish to obtain any of these enclosures for your condo property, and have them installed. Recycling was suggested. Good options do not seem to be readily available. Nonetheless, additional research will be conducted. ML’s Website is up and running—good feedback has been received. Additional information can be added..., with a variety of possible uses, e.g., as a Directory of Owner areas of expertise and talents, which can potentially benefit the Association. An Owner suggested the Board consider using audio conferencing to permit Owners not present to monitor/participate in ML Owners Meetings. An Owner suggested the establishment of a fire pit and/or BBQs for summer use..., with a potential location outside the Ballhooter Entrance. 10. SCHEDULE SPRING MEETING and ADJOURN This Meeting Adjourned at 7:20 p.m. ML’s Fall Meeting will be held on September 13, 2014 @ 3 p.m. ------------------------PLEASE MARK YOUR CALENDARS------------------------- 6 CleanRest® Pro Encasements MOUNTAIN LODGE--PRICE LIST PRODUCT PRICE Mattress Encasement Twin Full Queen King $35.00 $45.00 $50.00 $55.00 Box Spring Encasement Twin Full Queen King $30.00 $35.00 $40.00 $45.00 Pillow Encasements range from $11 to $13 each. $25 fixed-price installation fee per set (per bed... any size). Helps to keep bed bugs from infesting. CleanRest Pro is waterproof. 7