THE MINUTES OF THE ANNUAL GENERAL MEETING OF THE PARADISE CLUB
(MONTEREY AND PARADISE RESORTS) HELD AT 10:00 HRS ON TUESDAY 4TH JUNE 2013
IN THE HOTEL GALA, AVENIDA ARQUITECTO GOMEZ CUESTA, 3, 38660 PLAYA DE LAS
AMÉRICAS - ARONA, TENERIFE.
The Committee Members present were:
Mr John Greengrass
Mr Philip Bickmore
Mr Mike Cook
Mr Philip Gallagher
Mr Bill Lawrence
Mr John Lomax
Mr Clive Morris
Mr James Taylor
Appointed Member and Chairman
Appointed Member and CLC World Club Secretary
Elected Member (Monterey Resort)
Elected Member (Paradise Resort)
Elected Member (Paradise Resort)
Elected Member (Paradise Resort)
Elected Member (Monterey Resort)
Elected Member (Monterey Resort)
In attendance:
Mr Carlos Monserrat
Miss Miriam Palazón Armas
Mr Tony Abello
Tenerife General Operations Manager CLC World Resorts and
Hotels
Paradise Resort Manager
Monterey Resort Manager
The agenda was as follows:
1. Chairman’s welcome and report.
2. Approval of the Minutes of the 2012 Annual General Meeting and the SGM held on 13th March
2013.
3. Election of Committee Members.
4. Resorts Management Reports.
5. Questions from the floor.
1.
THE CHAIRMAN’S WELCOME AND REPORT
The Chairman opened the meeting, welcomed all present and introduced the Committee
Members, Mr Monserrat, Miss Palazón Armas and Mr Abello. He then explained the rules of the
meeting and the agenda.
Chairman’s Report
The Chairman referred to his Chairman’s Report, attached at Appendix 1, which had accompanied
the formal AGM Notice and Agenda of the meeting and said that it stood as written. However, he
did want to add to the report concerning exchange companies.
At the very start of CLC’s involvement in the timeshare industry, there were two exchange
companies involved with the clubs, Resort Condominiums International (RCI) and Interval
International (II). Over the years, RCI became the major of the two for CLC but in 2013, CLC had
changed direction and decided to affiliate all new sales with II. This change would have no adverse
impact on existing Members, but there would be some advantages in the future in that Members
could decide to be a member of either RCI or II. For the time being existing RCI members would
see no change whatsoever as they could continue to deposit their weeks with RCI as before and
use RCI for exchanges. Only new CLC World members would join II.
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2014 Annual General Meeting.
The Chairman informed the AGM that the next AGM would be held on 3rd June 2014 in Tenerife.
2. APPROVAL OF THE MINUTES OF THE 2012 ANNUAL GENERAL MEETING AND THE
SPECIAL GENERAL MEETING HELD ON 13TH MARCH 2013
Miss Morris, a Member at Monterey, proposed that the minutes of the 2012 AGM be adopted as a
true and accurate record of the event. Mrs Taylor, a Member at Monterey, seconded this proposal,
and, there being no objections, the Chairman declared that the AGM minutes were approved.
Mrs Gallagher, a Member at Paradise, proposed that the minutes of the SGM held on 13th March
2013 be adopted as a true and accurate record of the event. Mrs Taylor, a Member at Monterey,
seconded this proposal, and, there being no objections, the Chairman declared that the SGM
minutes were approved.
3.
ELECTION OF COMMITTEE MEMBERS
The Chairman explained that at the current time the Committee consisted of six Members elected
by the individual Members and two Members appointed by the Company. As the Paradise Club
consisted of two resorts, Monterey and Paradise, the Committee was sub-divided with three
elected Members from each resort. Each Committee Member was elected to serve for a three-year
term in rotation and after three years they were required to stand down. However, they could put
themselves forward for re-election.
This year on the Monterey Committee it was Clive Morris’ turn and on the Paradise Committee it
was Philip Gallagher’s turn to retire. Both candidates had decided to stand for re-election for
another three year term. The Chairman asked if anybody else present on the AGM floor wished to
put their name forward for election, but there was nobody.
Both candidates were considered to have proposed themselves but needed somebody to second
their nominations. Mr Morris was seconded by Mrs Lawrence, and Mr Gallagher was seconded by
Mrs Lomax. Given that there were no objections, that both candidates were unopposed, and that
both had received votes by proxy, the Chairman declared Mr Morris and Mr Gallagher re-elected
to the Committee until the 2016 AGM.
The Chairman then informed the AGM that the Committee Members did a lot of work behind the
scenes on behalf of the membership without getting paid for it. They all did a sterling job and
needed all the support the membership could give them. There was a warm round of applause for
the elected Committee Members.
The Chairman then invited any Member interested in standing as a candidate for election to the
Committee at the next AGM to contact Mr Bickmore.
The elected Committee Members for the following year are as follows:
Paradise Resort
Monterey Resort
John Lomax
Phone: +44 (0)1792 402 963
e-mail: johnmlomax104@virginmedia.com
Clive Morris
Phone: +44 (0)1934 811 591
e-mail: clive.morris20@btinternet.com
Philip Gallagher
Phone: +44 (0) 1253 700 198
e-mail: gallapse@btinternet.com
James Taylor
Phone: +44 (0)1425 619 214
e-mail: jamestaylor4896@btinternet.com
Bill Lawrence
Phone: +44 (0) 1376 328 428
e-mail: bill.lawrence7@hotmail.co.uk
Mike Cook
Phone: +44 (0) 1344 456 569
e-mail: mjpdcook@hotmail.com
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4.
RESORT MANAGEMENT REPORTS
Miss Palazón Armas (Paradise) and Mr Tony Abello (Monterey) presented their respective Resort
Management Reports via PowerPoint presentations. A summary of these presentations is
attached as Appendix 2 to these minutes.
The Chairman said that the Committee had been to the resorts twice in 2013 and was delighted
with what had been done and the progress made, particularly concerning refurbishment.
5. QUESTIONS FROM THE FLOOR
The Chairman then opened up the meeting to questions from the floor.
General
Susan Gallagher, a Member at Paradise, said that the RCI Gold Crown status held by the resort
was prized and asked if it would be affected in any way by the new relationship with II. She also
asked if II had a similar grading system to RCI.
The Chairman did not believe there would be any change or effect in RCI rating because the new
relationship with II only impacted on new members to the CLC World group. However, something
that could affect the RCI rating was the reduction seen over the last few years of people using the
RCI service. Fewer weeks going into the exchange system meant fewer exchangees coming to
the resorts, and this in turn meant fewer RCI questionnaires, which could distort the statistical data
received by RCI. One person giving a bad score could severely affect the overall score, giving the
resort an uphill struggle to recover. While he could not see anybody giving the resort a low score
under normal circumstances, there was always that risk.
II’s position in the market was slightly different to RCI in that it considered all its resorts to be the
best possible. It did not have an equivalent rating system but did have a star rating of sorts.
Miss Caroline Morris, a Member at Monterey, commenced by praising the takeaway food service
available from the Sunset restaurant at Monterey. She then returned to an issue she had raised
previously concerning five or so apartments in Block E on level 6 at Monterey where the
refurbishment of the bathrooms had been outsourced. This had left some safety issues with the
angle of the bases of the baths which in her opinion needed to be addressed with some urgency.
Mr Abello acknowledged the problem and said that as an initial response to mitigate the slip
hazard non-slip bath mats had been issued to those apartments. Another issue arising from the
same bathroom refurbishments was the proximity of the toilet fitting to the wall. Although these
concerns were not within his resort report, they were being considered for corrective action in
2014. However, he would revisit the timescale for this action because of the safety implications
described by the Member.
Mr Monserrat considered that if there was a definite safety issue then it would need to be
addressed in a more permanent fashion rather than simply using mats, probably involving the
replacement of the baths.
Mrs Loudon, a Member at Paradise, felt she had paid an exorbitant management charge for many
years without a refurbishment and only recently had her apartment been refurbished. She pointed
out that her management charge had increased by €200 one year. She believed she could holiday
in a good four star hotel on full board for half the price of her management charge.
The Chairman, concerning refurbishment, explained that it would have been impossible to do all
181 Paradise apartments in one go. Firstly, it would have meant a significant cost in one year and
secondly it would not have been practical. So instead the total cost of refurbishment had been
calculated and that cost collected from Members over a number of years. The large increase
mentioned he believed was due to the sudden drop in the value of the pound against the euro in
2008.
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Mr Cook, a Committee Member representing the Monterey resort, knew he could get a hotel room
much cheaper than the cost of his management charges. Nevertheless, he chose to go to a
timeshare apartment each year rather than a box-like room in a hotel, for even a good hotel room
was still a box. Besides, if Members slept six in their two bed apartments then it became cost
effective compared with booking extra hotel rooms.
The Chairman said that it was probably always the case that a hotel room was cheaper than
timeshare, but what had changed was the easy internet availability of rooms and flights.
Mrs Mitchell said there were not many hotels that had balconies the size of those at Paradise.
Mr Ashard, a Member at Paradise, said he had recently stayed in a package holiday hotel and he
found the staff to be stand-offish and unhelpful. He preferred his timeshare because he knew
exactly what he would get. A hotel was not the same.
Mr Lawrence, a Committee Member representing the Paradise resort, said there was a safety
aspect to timeshare in that if anything happened to him he knew his family would be safe at
Paradise. That made the fees worth it to him.
Mrs Bosworth, a Member at Paradise, said that the staff at Paradise were always there to help and
offered a big thank-you for that. It was not the same in hotels. There was a round of applause.
Regarding the management charges, Mr Lawrence accepted they were high, but said there were
many things being done behind the scenes while Members were enjoying themselves in the sun.
For instance, how many knew that the buildings had been moving away from the mountain and
that it cost €390,000 to stabilise them, or that the water system was causing a lot of water to be
lost all over the resort and needed extensive work.
Mr Loudon said none of this costly work had been explained to the membership.
The Chairman replied that it had been presented at the AGMs and in the minutes.
Mrs Loudon said she could never find somebody to talk to to find out what was happening at the
Club.
The Chairman could not understand how this could be, as there was the Committee, the website
and Member Services plus others available to give help. Contact telephone numbers, email
addresses and web addresses were on every piece of Club documentation, online and in the AGM
minutes.
Mrs Taylor said there were six elected Members on the Committee whose names, telephone
numbers and email addresses were published in the AGM minutes every year and in other
correspondence. As a Committee Member’s wife she took numerous phone calls from Members,
and if an answer could not be provided then they would call Málaga and find out the answer. Mrs
Lomax, another Committee Member’s wife, verified this.
Mrs Bosworth, regarding earlier comments about a large increase in the cost of membership a few
years ago, said it had indeed coincided with the crash of the pound. She then mentioned a
recurring problem with the lifts at Paradise. Twice she had experienced a breakdown, and for one
of these events the lift alarm did not seem to work.
Miss Palazón Armas said that the lift systems were subject to monthly checks but that she would
get the systems checked again.
Mrs Bosworth asked why direct debits could not be renewed automatically every year.
Mr Bickmore explained that some Members had got upset when their direct debits had been
automatically re-applied and so a policy of re-initiating direct debits every year on individual basis
had been adopted.
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Mr McClure, a Member at Paradise, said that the membership appreciated the work done by the
Committee on its behalf. He asked what plans the elected Committee Members had to keep
management charges to a minimum as he saw this as being the greatest concern.
Before the elected Members spoke, the Chairman explained the process for deciding management
charges. Each year the management company submitted management charge proposals to the
two resort sub-Committees which were then debated at Committee meetings. Sometimes the
debate lasted all day and at other times it was much shorter. The biggest impact on management
charges over the last few years had been the exchange rate and not the increase in costs in
Spain. In 2008 the rate was around €1.50 to £1 but then dropped rapidly to near parity, meaning
an increase of around one third for UK Members. When the fees were collected in GBP more
money had to be collected to reach the required amount of euros to run the resorts. Since
collections have been made in euros increases have in the main been limited to the cost of staff
wage increases. In Spain, wage increases have been higher than RPI due to increases being
negotiated by unions through collective bargaining agreements (CBAs) which had to be complied
with and which ran for two or three years. Inflation did not really mean that much to a resort
because the typical basket of goods monitored for increases did not generally apply to a holiday
resort as 60 to 70% of costs were related to staff. So the recorded RPI was of interest but not
important, and if charges were only increased by RPI then not enough money would be collected.
This would lead to cuts in services. Obviously all Members would want lower charges, but as the
money collected covered the cost of what the Members actually got, a reduction in charges would
mean a reduction in service. Members should also be aware that the resort did not replace like for
like; it replaced like for better, the results of which could be seen in the TVs, kitchen worktops,
fridges and hot water tanks.
He recalled that a few years before a Member had asked at an AGM how another resort close by
could reduce its management charges by so much compared with those at Paradise. At that time
he could not answer, but he then found out that the resort in question had taken out all capital
expenditure from the management charge, as people had said they were more concerned about
how much they paid rather than having things replaced. The repercussion of that policy was that
last year that resort lost its RCI Gold Crown status, falling straight down to Hospitality. The resort
had failed its membership, because more members there exchanged than used the resort and so
the majority cared about the quality of their exchanges. The Paradise Club also had more
individual Members who exchanged than who came to the resorts, so in his view the Committee’s
role was protecting the exchange power of the apartments in the exchange marketplace. It was
therefore important to do the job well as opposed to doing the job cheaply.
Mr Cook endorsed the Chairman on this matter, as he also sat on the Committee at Beverley Hills,
the resort in question. His view was that at the Paradise Club, people were always looking for
improvements so it was natural that the management charges would creep up. People should also
remember that IGIC went up by 2% last year, meaning that the main factors contributing to
increases in recent times were tax increases, the exchange rate and Members’ demands. It was
also the case that the cost of electricity was high in Spain. To mitigate this cost, the resorts had
looked at solar photo voltaic panels but unfortunately there was nowhere to put them because of
the resort layouts.
Mrs Cook said she appreciated the new seating area with its stunning views at the Sunset
restaurant at Monterey but wished that the Happy Hour could be extended beyond two days per
week and that more choice of drinks could be made available.
Mr Abello said that the operation at Sunset was subject to commercial constraints but that he
would look at meeting the request.
Special General Meeting (SGM)
Mr Jim McClure, a Member at Paradise, said that the recent changes made at the SGM held in
March 2013 were of concern to him and that he had made a special trip to attend the AGM to
voice those concerns. Firstly he wanted to know why there were two Trustees for the Club and
what each actually held in trust.
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The Chairman explained that each Trustee held different Club apartments in trust. One Trustee
would have been adequate but it was something that CLC had inherited from the previous
administration and to change this arrangement now would be costly. The Trustees’ role was to
hold title to the Club’s apartments within owning companies.
Mr McClure asked under which law the Trustees operated.
Mr Bickmore replied that both Paradise Club Deeds of Trust came under Manx Law, as did the
Paradise Club Constitution.
Mr McClure said that the Chairman’s Letter issued with the SGM notice referred to 14% of the
weeks being owned by individual Members and asked if the owners of the other weeks were in
possession of Membership Certificates for their weeks.
The Chairman responded that there were 181 apartments at Paradise and a further 63 at
Monterey, meaning that in total there were 12,698 weekly occupancy rights in the Club. Each of
those occupancy rights had a Membership Certificate and had an owner; each owner, no matter
who that owner might be, paid the same management charge based on size and standard of
apartment meaning that each year 12,698 management charges were received. Each owner had
the same rights and same obligations.
Of the 12,698 weekly occupancy rights in the Club, 1,506 weeks, or around 12% of the total, were
currently owned by individual Members, people like Mr McClure and the others present, and
11,050 weeks, or around 87%, were owned by other holiday clubs such as Vacation Club,
Destinations, Options or the Fractional Property Owners Club (FPOC). This was not the same as
being owned by CLC World; in fact only 142 weekly occupancy rights were owned by CLC World
as matters stood, the weeks being held during the process of somebody being cancelled or
surrendering and the subsequent reallocation of the weeks to another owner.
Mr McClure, from what he had read in the Members’ Handbook dated 1992, believed that each
Membership Certificate represented 2,000 shares in an owning company held by the Trustees on
behalf of the Members under Spanish law and that the recent changes to the Constitution was a
means of unlocking that arrangement.
The Chairman pointed out that Mr McClure was referring to the share capital of the owning
companies, 2,000 shares per owning company. Upon formation of the Club the legal title to the
Club apartments was transferred to the owning companies and the Trustees were granted the
shares to be held in trust. There were not 2,000 shares per Membership Certificate, but 2,000
shares per owning company and an owning company could own title to many apartments. The
Club had no share capital for it was not a company but a club. The Members who owned the
12,698 weekly occupancy rights in the Club formed the Club. No Member held shares in the Club.
Mr McClure disagreed and referred to his Purchase Agreement dated 1992, which said the
Agreement could only be changed with the agreement of the Founder Members (Paradise
Timeshare Ltd and Paradise Timeshare Management Ltd) and the purchaser. He could not recall
being asked to change that Agreement. As far as he was concerned, the Club was a company as
it operated as a company and was subject to company law. (Addendum: The clause referred to
concerned only his Purchase Agreement and not other Club documentation with higher authority.
The opening clause on this Purchase Agreement in fact stated that the Member agrees to be
bound by the Constitution and the Deed of Trust.)
The Chairman explained that the Committee took extensive legal advice before it accepted the
proposed changes to the Constitution. It took advice from both Trustees and their respective legal
teams, from the CLC World lawyer and took generic independent advice from an independent
legal firm not directly involved with either CLC or the Trustees. If there was an issue with that legal
advice he recommended that Mr McClure write to the Committee to specifically define the issue for
it to be addressed by one of the legal team. If the wrong advice had been given then the
Committee would be interested to know.
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Mr McClure referred to the Chairman’s Letter from the notice of the SGM, specifically to the
mention of the sale of apartments. Amongst other things, he believed that any sale of apartments
should benefit the Members of the Club and that to sell apartments the Club was obliged by law to
get the cost or value of the apartments beforehand. He then moved on to the subject of a
diminishing membership, putting the blame on the rising cost of membership.
The Chairman corrected the Member in that the Paradise Club membership was not diminishing;
the Club was in fact fully sold. Reference to diminishment in his letter was concerning the overall
membership of CLC associated clubs, but not to the Paradise Club.
Mr McClure considered that the changes to the Constitution were detrimental to his rights and he
was prepared to challenge CLC World on that matter.
The Chairman said he was entitled to challenge the changes but added that the Member needed
to be careful with his terminology. Mr McClure seemed to have ideas that CLC World had
manipulated the changes for their own benefit, when the truth was that the Committee had taken
the decision on proposing the changes based on what was right for the Paradise Club, and the
members had voted in favour of those changes. It was not a decision made for the benefit of CLC
World. The Committee had considered three or four different aspects to this matter when faced
with the possibility of there being many unsold weeks in the future due to other clubs handing
weeks back.
The first aspect was to consider what the alternatives were to ensure the Club’s survival if its
membership numbers did decline. The main concern was not with individual Members leaving, but
with Vacation Club numbers declining. This would lead to Vacation Club having too much holiday
stock and hence too much cost for its reduced number of members. There was a risk that Vacation
Club, and other clubs, together with individual Members, would hand weeks back to the Paradise
Club with nobody to sell them on to. The Club would find itself in a position where there were less
weeks contributing a charge than there were in the Club. The choices would initially be to either
stop providing the same service or increase the management charges, but a third alternative
would be to sell apartments and reduce the size of the Club. The challenge was in how that could
be done and the Committee reached the conclusion that the only way would be to repeat the
changes already made to the Constitution at the SGM in March. This was because apartments
could not be sold unless the fixed occupancy rights were removed, which in reality meant a
change to floating occupancy rights to free apartments up.
The second aspect was how to provide continued usage to the membership. Under these changes
the Committee believed Members would still be able to use the same apartment and weeks as
stated on their Membership Certificates for at least the next 19 years and probably much longer.
The same applied with Members who exchanged as that same week in that same apartment
would be deposited so people would get the same exchange power. So from the perspective of
practical usage it would be exactly the same under these changes.
The third aspect was whether the changes being proposed were compliant with the Constitution,
the Management Agreement and the Deed of Trust. Legal advice told the Committee that the
proposed changes conformed and were acceptable. If the proposals had failed at this point then
the proposals would not have gone further.
Finally, the Committee looked at asset value at termination of the Club and decided that no matter
how many apartments remained in the Club the asset value to the individual Members would not
be affected. Currently, with the Club fully sold, a Member owning two weeks in a two bed
apartment would get two fifty-seconds’ worth of the net value of a two bed apartment upon
termination of the Club. If in the extreme the Club only had two apartments at termination instead
of the current 244, that same Member in a fully sold resort would still be entitled to two fiftyseconds’ worth of a two bed apartment. So it did not matter if some apartments were sold
beforehand as it would not affect the final net asset value to an individual Member.
Given that changes had to be made one way or the other, the Committee put a set of proposals to
the membership. There was strong debate at the SGM, with people for and against and people
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making the same points Mr McClure was making today. Firstly, only the votes cast by the
individual Members were counted, and the result was that a majority was in favour.
The Chairman held a proxy from the Vacation Club. However, the board of that club preferred its
vote to be used in line with the votes of the individual Members and so because a majority of
individual Members had voted in favour of the changes, the Vacation Club vote was cast to carry
the vote over the 75% required. He did not see that anything different could or should have been
done in the circumstances.
Mr McClure considered that the Chairman should know the value of the apartments.
The Chairman dismissed this remark, saying that he did not need to know what the apartments
were worth because there were no plans to sell them at the current time. The value would be
known at some time prior to any sale.
Mr McClure asked how Vacation Club could hand back weekly occupancy rights to the Paradise
Club when they had the same Membership Certificates and should follow the same Constitutional
rules.
The Chairman explained that Members were allowed to surrender their weeks under certain
circumstances, even though the Constitution said differently.
Mr McClure considered the Chairman was in breach of the Constitution for allowing this. The
Constitution was quite clear in that Members could not hand back their memberships and were
liable for management charges even after death through their estates. He felt this breach in policy
would lead to increased management charges.
The Chairman did not believe there would be any affect on the level of management charge
because of this policy of allowing Members to surrender, as another club would take on the liability
for the weeks surrendered and all weeks would remain sold. However, he thought the Member had
made a valid point and explained that whether or not to allow people to freely surrender their
memberships was an issue across the whole timeshare industry. The Constitution was indeed
quite clear that a Member retained all the liabilities and obligations of a Member even after death.
In fact the only way to stop being a Member was to get somebody else to take the Member’s
place. However, this was a totally impractical rule to enforce, for if anybody decided to not pay
their management charge it was difficult to get that money back. Taking a Member to court could
take an age depending on country of residence, and in the meantime the debt would build up and
the Club would become short of cash. Even if the Club finally did get court judgement, it did not
mean it got paid so from a practical point of view it was simpler to allow any Member to freely
surrender their timeshare and then pass the surrendered week on to a new owner who would
settle the debt and continue to pay for the week.
Mr McClure felt the Chairman had no right to be saying something that did not conform with the
Constitution. He asked for the surrender policy to be put in writing and for the correct position to be
stated.
The Chairman informed the Member that the facility to be able to surrender membership had
already been put in writing in the minutes of the 2009 and 2010 AGMs. He confirmed again that
the correct Constitutional position was that Members could not surrender their memberships, so
the current policy went against the Constitution. However, Clause 11.5.4 said that memberships
would be cancelled under certain circumstances which, all things being considered, amounted to
the same thing as allowing surrender.
Mr McClure disagreed and said the difference was that the Club could only cancel membership
when a Member was in breach of the Constitution and even then cancellation of membership
should not stop the Club going after the money owed.
Mr Loudon said he was told years ago there was no way to sell his week or to come out of the
Club.
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Mr Lawrence referred to the explanation given by the Chairman and said that Members could
leave the Club if they so wished under certain conditions. Although Mr McClure was concerned
that because the Constitution said otherwise the Club could come after Members’ estates after
their deaths, it was very unlikely to happen as Members would have letters from CLC saying all
obligations to the Club had ended.
Mr McClure, referring to the Supplemental Deed of Trust, was concerned that the amendments
enacted at the SGM had moved powers away from the Committee to the management company,.
The Chairman said that the only change was that the management company had been
empowered by the Committee and the SGM vote to sign the Supplementary Deed on the
Committee’s behalf on that one occasion, nothing more. He felt there was a danger in Mr McClure
picking out one part of one paragraph of one document and not considering the rest of that
document and the associated documents. He reiterated that full legal advice had been taken and
that full Committee review and discussion had taken place. The Committee had no choice but to
go with the advice received in the best interests of the Club. He again asked Mr McClure to put his
opinions in some summarised format that could be given to the lawyers who advised the
Committee, as it was these lawyers Mr McClure was challenging, not the Committee.
Mr McClure was also concerned that the Constitution had been changed to restrict Members to 10
voting rights, meaning if he was given proxy rights in excess of 10 he could not vote them all.
Mr Bickmore explained that this change had been proposed as a means to prevent outside
corporations from attempting to take over the Club, and was already in force in the Constitutions of
other clubs with no detrimental effect. It had been fully explained in the SGM documentation and
simply meant Members needed to apply for a letter of authorisation from the management
company if they wanted to vote in excess of 10 Membership Certificates at an AGM or SGM.
Mr McClure felt that the limit of 10 votes prevented Members taking out a class action against the
revised Constitution because they could not appoint an agent to act on their behalf.
The Chairman said that Mr McClure had misinterpreted this change. The Member had made his
point, and indeed he had been able to make whatever point he liked. He requested that the AGM
move on to another topic.
Mr McClure ignored this and said that Members could only sell their “owning companies” to people
who agreed with the management company, and made mention of his “owning company” and his
“shares” several more times.
The Chairman said that Mr McClure had misinterpreted the Constitution. He did not own an
“owning company” or “shares”. By virtue of his Membership Certificate he owned an occupancy
right.
Mr McClure disagreed and said that Paradise Timeshare Ltd had been obliged as soon as he had
bought his apartment to register that part of the apartment which he owned under his name in the
Spanish land registry. Nobody could take that away from him.
The Chairman said that Mr McClure was not correct in what he had said. The Club properties were
registered in the Spanish land registry in the name of the owning company. The shares in the
owning company were owned by the Trustee. Members did not own shares in an owning
company. The Constitution and Deed of Trust were very clear on this.
Mr McClure said that under the Constitution he had the right to ask for an independent arbitrator to
be called in to review the changes made at the SGM. He proposed that an arbitrator be appointed
and asked for somebody from the floor to second his proposal (there was nobody willing to do so).
The Chairman replied that Mr McClure could do whatever he wanted to do, but should be aware
that it would either cost him or the Club, meaning its Members, money. He suggested that Mr
McClure engage a lawyer or submit his specific issues to the Committee as he was trying to cover
too much ground and was preventing other people raising their questions. In any case it was too
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soon to consider arbitration (if the clause in the Constitution was indeed intended to apply in these
circumstances), as there was no dispute as such. Mr McClure had been asked to be specific with
his points and that the Committee would consider them. If Mr McClure was proven to be correct
the necessary corrective action would be taken. It was important that the Club got this right, and
he believed that it had. It was up to Mr McClure to prove otherwise.
Mr McClure reiterated that as an “owning company” he had the right under the Constitution to ask
for independent arbitration of his issues.
The Chairman told the Member again that he was not an “owning company”. He had not read the
Constitution correctly. For the sake of clarity, and for the third time, he explained that the
apartment in which Mr McClure owned an occupancy right was registered in the Spanish land
registry with the owning company registered as the owner of the apartment. The owner of that
owning company was the Trustee, not the Members.
Mr Bickmore intervened and read out the definition of “owning companies” as defined in the
Constitution as follows:
“…means the companies the names of which are set out in Appendix 1 Schedule 1 of this
Constitution each being the owners of Apartments, and any other company or companies
the Shares of which are issued or transferred to the initial trustee (as set out in Clause 7.4
hereof) or its nominee with the agreement of the Founder Members and the Trustee to be
held on the trusts declared in the Deed of Trust and “Owning Company” shall be construed
accordingly.”
He felt that Mr McClure was mixing up apartments and occupancy rights, and for the sake of clarity
stated that Members did not own any form of title to apartments. Members owned occupancy
rights.
The Chairman was of the opinion that Mr McClure had such a basic difference of opinion on this
subject and others that there was little point in going any further with it at the AGM. He again
asked him to submit a written summarised report of where he disagreed with the SGM changes to
the Committee who would consider and seek advice if necessary.
Mr McClure believed the Chairman had with this statement agreed to look at the points he had
raised and then appoint an independent arbitrator.
The Chairman denied this had been said, saying again that the Committee would look at the
differences and then decide what to do.
Mr McClure appealed to the elected Members on the Committee, saying that the SGM changes
were bad for the Members as it meant selling off parts of the Club which begged the question of
whether the Club had more value complete or in parts. As soon as the apartments were made
Retained Apartments the management charge went to CLC so it was doubtful there would be any
benefit to the Club.
The Chairman refuted all that Mr McClure had said, saying that he had a general misconception
about how the Club worked, how it was organised and who owned what. He also had not grasped
the meaning of the SGM changes. He asked once again for the Member to put his points in writing
to the Committee who would seek advice and reply. The elected Members on the Committee
outnumbered the appointed Members by six to two, so any view of the Committee would be the
view of the elected Members, not just the company.
Mr McClure then commenced a long criticism about the worth of the assets of the Club, his status
as an “owning company” and the management accounts. He then threatened to put a legal
injunction on “the company” (without making it clear to which company he referred) and suggested
arbitration would be the cheaper option for all concerned.
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The Chairman again clarified that Members did not own owning companies. He added that a legal
injunction would be against the Club as it was the Club, meaning the membership, which voted on
the changes.
Mr Lomax, Committee Member representing the Paradise resort, said that there had been a long
discussion on Mr McClure’s issues and many difficult problems had been covered with the
Chairman suggesting a way forward on the matter to Mr McClure. He then proposed the AGM
move on to the next question and asked for somebody to second his proposal, which Mrs
Gallagher duly did.
The Chairman made it clear that in his view this was a Members’ meeting and as such Members
could come, say what they wanted to say, and take as long over saying it as they liked. He was
sorry that Mr McClure was so upset.
Mr McClure denied he was upset and said the main issue was that the Club was taking away
something which belonged to him.
The Chairman reminded the AGM that the Committee only proposed the SGM changes. It was the
membership who voted in favour of adopting the proposals. Unfortunately, Mr McClure disagreed
with what was approved, but that was part of the democratic process. Technical points about the
SGM could still be discussed, but the changes had already been approved by the Members and
were in force. He asked for the meeting to move on.
Mr Derry, a Member at both Paradise and Monterey, said he agreed with much of what Mr
McClure had said. The rules for timeshare owners had been changed, yet CLC World were then
bringing in fractionals, a product very similar to what he thought he had bought in the first place.
Members’ deeds had effectively been bypassed making them worthless and the weeks were being
sold yet again.
The Chairman said again that it was the membership who approved the changes, not the
Committee or CLC World. He referred to his presentation on how the Club evolved made at the
2012 AGM, which showed how over time different holidays clubs acquired weekly occupancy
rights vacated by individual Members on the basis that by selling unsold weeks into these clubs
CLC could guarantee every week contributing a management charge and keeping the Paradise
Club viable. Today all weeks were owned by somebody. 12% were owned by individual Members
so 88% were owned by other clubs. However, CLC World had informed the Committee that
Vacation Club was not selling anymore so it could not guarantee all weeks remaining sold.
However, it had another product which could allow CLC World to continue that guarantee but
changes to the Constitution had been required to accommodate that product.
Mr Derry, given that the individual Members only owned 12% of the weeks, could not see why the
individual Members could not have been left alone and allowed to simply fade away over time.
The Chairman explained that the problem was that at least one individual Member had an
occupancy right in every apartment. Also, the Club could not be selective, as every Member of the
Club, including Vacation Club and other holiday clubs, had the same rights and obligations.
Accordingly, the rules had to be changed to facilitate the future sale of apartments and the rules
applied to every Member of the Club. But what had been done was to change the rules in a way
that the individual Members’ practical usage was unchanged. Members could still come to the
resort or bank with RCI the same week and apartment as they had always done. Of course there
was still the danger of not getting the same apartment for the same reasons as existed before,
because of fault, fire, flood, etc. He felt he could not be clearer on this.
Mr Derry said his concern was the scenario where he was denied use and then saw other people
in his apartment.
The Chairman assured the Member that would not happen. The fixed rights had to be taken away
as the Club faced the potential to go under if nothing was done. However, from a practical point of
view nothing would change. After all, there were only 12% of weeks in the hands of individual
Members, and probably 50% of those exchange so only around 7% of the membership were
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concerned about where they would stay. Nobody else would want to stay in their weeks in their
apartments because plenty of other weeks and apartments were available.
Mr McClure pointed out that according to the changes individual Members now needed to make a
request for accommodation each year. His unit was now only available to him as a convenience to
CLC.
The Chairman said that individual Members would still be automatically allocated the same
apartments and weeks as before.
Mrs Loudon, a Member at Paradise, was of the opinion that she still had a legal right to her
apartment in her week. She had a Membership Certificate and all the original documents, and was
prepared to go to the courts to defend her right to this occupancy right or send the documents off
to Brussels to get advice.
The Chairman did not think she still had a legal right but she would retain the practical usage of
the same apartment and week.
Mrs Loudon asked for the name of the lawyer who gave the independent advice.
The Chairman could not recall the name but said the lawyer was engaged by the Trustee to
provide that independent advice. However, there was no reason why the name should not be
made available. (Addendum: The firm that provided independent generic advice on the changes to
the Constitutions of various CLC-managed timeshare clubs including the Paradise Club was
Turcan Connell of Edinburgh)
Mr Loudon was disappointed that the Chairman could not provide the name and considered it poor
preparation for a meeting such as this.
The Chairman pointed out that he could not be expected to have information on every single
question that might be asked at the AGM. It would be different for the official AGM business.
Mr Lawrence, Committee Member representing the Paradise resort, said he had bought at the
Paradise Club many years ago as did many of the Members present. Prior to CLC’s involvement
with the Club, things were in a mess and he asked those present to remember that. When CLC
came in they made many improvements and kept the Club fully sold. The fact was that seven
years ago the Paradise Club had been in such a bad state that Members could have been left
without a Club had it not been for CLC.
CLC were now saying that they could continue to keep the Club fully sold and that although
changes to occupancy rights and other things had been needed, the Members’ practical usage
would not be affected. It was his opinion that the changes should be given a chance until Members
could prove CLC wrong.
Mr McClure informed the AGM that a police friend had advised him to report what CLC had done
to Scotland Yard as fraud.
The Chairman, wearily, said that the Member should then go ahead and do it. He could go to
anybody in the world and seek advice. In his view, individual viewpoints were somewhat
meaningless at this stage provided the changes had been carried out correctly in accordance with
the Constitution and the majority prevailed. If the Member did not believe it was done correctly
then he should seek expert opinion and have it checked out.
Mrs Bosworth said she and her husband were more than happy with what they had now compared
with what they had before CLC. Regarding the changes, her daughter was a contract solicitor and
had looked through the changes and was happy. Her only question was whether it was a solicitor,
barrister, QC or whoever that reviewed the proposals, saying that the name could possibly be
displayed online.
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The Chairman said he would look at what form the advice took, as it was probably in the form of a
review of the documents and a question of whether what was being proposed was correct, yes or
no.
Mrs Mitchell said that many of her concerns about the recent changes had been answered but she
asked if Members would now have to call CLC to book their weeks, as she had paid extra for what
she owned and had made many friends who came to that resort during the same period.
The Chairman said there would be no change. The same apartments and weeks would
automatically be allocated to Members and if people exchanged with RCI then that same
apartment and week would be banked. The Committee had been assured that Members would not
notice any difference to the way it was before. There was a chance that in 19 years or more
people would be asked to move and to this end the Committee felt that people affected should be
notified at least a year in advance.
Finally, Mr Morris, Committee Member for the Monterey resort, stood and said that the Committee
did what it did only for the benefit of the individual Members. The Members only saw their
representatives once a year but the same representatives had worked hard and spent a lot of time
in the background over the last year not only looking at management charges but also the other
legal and technical issues in the Constitution, including the reason why the changes were needed
and how the Constitution should be changed. He firmly believed that what the Committee had
come up with was, overall, for the benefit of the Club. Unfortunately, as the Chairman had already
said, there would always be those who disagreed with the proposals and the result but that was
the way democracy worked. In closing, he said that since the SGM none of the Committee had
had any contact at all with Members, despite all their contact details being published. He asked
Members to get in touch, as the Committee wanted to hear of Members’ concerns, whether from
Paradise or Monterey, as that was the only way they could properly represent the membership.
There being no more questions, the Chairman thanked all for attending. He asked for a big thank
you for the resort staff and to the Committee Members who did all that they did for nothing and did
what they thought was right for the Club. He ended the meeting to a warm round of applause.
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APPENDIX 1 - THE PARADISE CLUB COMMITTEE CHAIRMAN’S REPORT
Committee Chairman’s Report for the Annual General Meeting,
4th June 2013
I am writing this report on behalf of the Committee, as I do each year to make you aware of the major
changes that have taken place at the resorts over the past year. A full report will be given at the
AGM.
The Committee includes 3 elected members representing Paradise and 3 elected members
representing Monterey, each offering their services for a three year term and retiring in rotation. Phil
Gallagher (Paradise) and Clive Morris (Monterey) are each retiring by rotation this year and both
offering themselves for re-election. There are no other candidates.
The management company of Club La Costa has again retained the Quality Certificate ISO 9001/2000
and the resort questionnaires indicate that the vast majority of our members and guests are happy
with the service that is provided at the resorts.
th
The SGM to consider the changes to the Constitution was held on 13 March and following a healthy
debate, I am pleased to say that both resolutions were passed with sufficient majority. The
Committee understands the concern of members who voted against these resolutions, mainly due to
their fear that they would not be able to occupy “their” apartment in “their” week. We are confident
that this fear is unfounded, certainly within the next 19 years or so, and we would like to hear from
any member who is not able to occupy “their” week and/or apartment as stated on their membership
certificate.
The Club raises funds for The Smile Foundation each year. The funds are put to good use for local
charities. In the past year The Smile Foundation has made two significant donations, one to the
Association San Juan, a residential care home for the disabled, for a new kitchen. The other was to
the Association of Social Integration to pay for horse riding therapy sessions for children with
physical disabilities such as Cerebral Palsy.
Paradise Resort
I am pleased to report that the Paradise Resort achieved RCI Gold Crown status for the year
commencing September 2012, and that the scores for the following six months show that the level of
service required for this is being maintained. This should enhance the exchange power of members
using the RCI exchange programme.
During the past year a further 15 apartments received preventive maintenance, which included full
painting, changing any item that was broken and checking and replacing all electrical and plumbing
installations. A further 15 apartments will receive this treatment during 2013. Damaged furniture and
soft furnishings are also replaced in these and other apartments.
To date 155 of the 181 apartments have been refurbished. We refurbished 9 last year and we will do
another 9 this year, so there will only be a further 17 yet to be fully refurbished. One of the 9 this year
will be a two bedroom apartment where the bathroom will be adapted for use by the less able.
Around the resort, woodworm continues to be a problem but we are treating the worst areas, all
apartments and gardens receive regular fumigations against insects, work continues to minimise the
risk of Legionnaires disease, and the resort passed its annual check.
The whole of block G was repainted and the windows were replaced in blocks H, I and J. The
reception has been redecorated with changes made to the lighting and furniture.
The general water system requires renewing and it has been agreed to undertake this work over the
next 4 years.
Zachary’s continues to provide daily services with live music in the evenings, and various theme
nights during the week. It now offers a half board option where guests can choose to have breakfast
and dinner or lunch and dinner for €110 per person for 5 days. Sam’s Pantry now sells a greater
range of bread and some Tesco products.
You may know that the satellite TV service received in Tenerife may be affected by changes to the
satellite settings. This may affect our ability to retain the number of English speaking channels that
we currently enjoy. Enquiries are continuing to source satisfactory alternatives.
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Monterey
RCI Gold Crown status was again awarded for 2013 and the scores for the following six months
indicate that this will be retained for 2014. As with the Paradise Resort, the majority of members and
guests completing the exit questionnaire consider that they had an enjoyable holiday and that the
service standards are being maintained.
All apartments other than D901/2/3 and E905 and E906 will have been refurbished by the end of this
year. Preventive maintenance continues including all 26 apartments in Monterey Royale. The
bathrooms in A101 and A102 were refitted due to excessive water damage.
Around the resort, woodworm continues to be a problem but we are treating the worst areas, all
apartments and gardens receive regular fumigations against insects, work continues to minimise the
risk of Legionnaires disease, and the resort passed its annual check.
The main swimming pool was closed in January for a week for re-grouting, replacing the perimeter
filters and to replace the ladders. The main filters were also changed from the conventional sand to a
new silicone material and hopefully this will improve filtration.
A new perimeter fence has been erected along the pedestrian access route, which passes the lower
car park, and the ramp leading to the middle car park has been improved to provide a wider turning
point.
New lighting and furniture has been placed into the reception and further improvements to the
decoration will be undertaken during the year.
A new roof has been installed onto the terrace of Sunrise, and the terrace to Sunset has been
extended to provide sofas and armchairs for a more relaxed environment.
The same half board option to that offered at Paradise is available at Monterey.
The same issue with the TV service reported at Paradise will apply at Monterey.
The Committee met on the resorts during the SGM week in March, and we all appreciated the work
that has been done and the improvements that have been made to the facilities and the services
provided to our members and guests.
On behalf of the Committee we hope that you enjoy your time at the resort and benefit from these
improvements. If you exchange we hope that you enjoy that just as much. We would like to pass on
our thanks to the resort management and staff for the very good work that they do to make
holidaying at the resorts so enjoyable.
We do hope that as many of you as possible attend the AGM, and if you do, we look forward to
meeting with you.
JOHN GREENGRASS
Committee Chairman
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APPENDIX 2 – RESORT MANAGEMENT REPORTS
PARADISE RESORT
Guest Feedback
Feedback information is obtained from our clients’ suggestions in the weekly questionnaires which
are sent to every guest at the end of their stay.
On a weekly basis, the statistical data and comments are reviewed by the Heads of Departments
and Resort Management. With this information we prepare the weekly quality level indicator
charts, to measure whether established quality levels are being met or not.
The following are the most frequent suggestions and comments from our clients so far this year;
•
•
•
•
Facilities provided by the resort
Guests consider that the facilities of the resort meet their needs and expectations.
Excellent resort
Guests are very pleased with the staff and the service we provide.
Porter service; is only available on Fridays to help our guests when checking in and
checking out. There are a number of guests that have already been coming to Paradise for
years, so they do not need this service as they know their way around. Others feel that it is
good to have it.
The cleaning service; the majority of comments received are positive and scoring
provided by all guest types is very high. Guests are still commenting on the frequency of
cleaning days they receive, however the scores are still within our target range.
Questionnaire Results
Performance Indicators
We continue to publish our performance indicators on a weekly basis from the feedback that we
receive from the questionnaires on site. I can say that we are keeping up the high quality of
service that the people expect.
Check
General
Exteriors
Unit
Unit
In/out
Hospitality
Main
Hskp
2012
4.62
4.57
4.56
4.52
4.51
2011
4.54
4.53
4.46
4.47
4.51
RCI Questionnaire Results
Again last year we achieved the Gold Crown status at CLC Paradise. This year in all categories,
as you can see in the table below, the scores are within Gold Crown threshold. We are still
working on this to maintain the Gold Crown levels. We are hoping to continue improving these
results during the year.
Check
In/out
3 Month
average
Sep 12 – April
13
RCI Silver
Crown
RCI Gold
Crown
Rst
Hosp
Rst
Main
Unit
Main
Unit
Hskp
4.6
4.8
4.6
4.5
4.4
4.6
4.7
4.7
4.5
4.5
4.4
4.4
4.2
4.1
4.2
4.5
4.5
4.3
4.3
4.3
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Departmental update
Security
•
•
The CCTV equipment has been updated. We now have a more modern system.
In November 2012 the annual fire drill was successfully conducted without any issues.
Housekeeping
•
•
•
We continue with a mid week clean (cleaning and change of towels and linen) plus another
day of the week, to remove the rubbish and replace dirty towels if required.
With regard to replacement, we have placed some decoration items in the main bedroom
and living room. Also the bed covers, curtains and cushions have been replaced in those
apartments where necessary.
We now provide all apartments with disposable coffee machine filters.
Maintenance
•
•
•
•
•
•
•
•
•
•
•
Last year we completed 15 units under the Preventive Maintenance program at
Paradise. This year we are planning to carry out the same work on a further 15 units, 6
Two bedroom apartments and 9 one bedroom apartments. The job consists of painting the
apartments, checking the electrical circuits, plumbing and also the water tanks and
bathroom accessory repairs/replacements.
We have replaced badly damage furniture in several apartments. We continue replacing
them on an ongoing basis.
Woodworm is now less of a problem, but we are replacing and treating window frames,
main doors and some interior doors when necessary. We are continuing with this work in
order to eradicate the problem completely.
This year we fitted small mailboxes outside the doors of each apartment for the delivery of
any correspondence.
A new storage area has been built in block B, level 200, for the maintenance department.
All apartments have received fumigation treatment in order to minimize the presence of
insects.
The whole of G block has been painted, to bring it in line with the other blocks at the resort.
Last year we have replaced the outside window frames in blocks H, I and J. We have
removed the wooden frames and replaced them with aluminium frames.
We have had several problems with leaks in the water pipes around the resort. The general
water pipe in the corridor K300 has been replaced by a new one which had to be installed
in the ceiling down the corridor.
We have replanted all the left hand side of the main entrance to the resort as well as the
gardens in front of reception. New gravel has been spread on all the flower beds,
significantly improving the look of the area.
This year we have completed the new installation of the fire system in all apartments. This
project involved replacing all the wires in all the apartments and corridors and then reconnecting them again to the main alarm control panel in reception.
Reception
•
•
Last November the reception area received a facelift. It has a new colour scheme, a better
distribution of the furniture and a new image of the reception counter, as it has been recovered with wood. The old pigeon hole unit behind reception has been removed and
replaced by a wall giving it a much more modern look.
Last year we began a rotation program amongst the receptionists from all three resorts with
the intention of giving them the opportunity to see how other resorts and receptions
operate. We believe that this is enriching for the receptionists and gives them an
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•

•
•
opportunity to find possible improvements for their own workplace. We will continue with
this program this year.
We have changed the welcome folder for a different format with more information and a
better layout. We are planning to do the same with the apartment directories.
The quality audit was successfully renewed last year. They were quite happy with our high
standards and progress.
We now offer very low telephone rates for guests who want to use the telephone in the
apartments. For only 0.15€ per minute they can call a fixed line number in the UK, and UK
mobiles for 0.25€ per minute.
We are continuing with the annual staff training program. Different courses have been
arranged to reinforce areas that we detected were in need of improvement.
Zacary’s Restaurant
•
•
•
•
•
•
After a year running the Food and Beverage department under the new structure
established by the company, I am glad to say that the results obtained have been very
positive. There have been a lot of challenges for all members of staff and there is still room
for improvement.
A new format of the lunch menu has been printed and a few new dishes have been added.
We have introduced a half board offer to all guests. Guests can choose from our a la carte
menu and have breakfast and dinner or lunch and dinner for only 110€ per person for 5
days.
We are continuing to provide live music such us a guitarist, pianist etc, as entertainment in
Zacary´s while people have dinner.
The special theme nights continue to prove very popular amongst our guests.
F&B Questionnaires are processed on a weekly basis and continue to show a steady
increase in the level of customer satisfaction at the restaurant.
Sam´s Pantry
•
•
•
•
Several improvements have been made in our range of freshly baked products. We have
added 2 new types of bread (seeded and authentic Gallego). Along with flavoured muffins
and other pastries.
A deal with the importer of the Tesco branded food products has been secured; this will
increase our product line by over 50 new items. The pricing on these items will be very
competitive with any local supermarket.
The main entrance of the minimarket has been upgraded. We have placed new aluminium
sliding doors, a new electric roller shutter and a new red and white awning. By doing all this
we have given a fresher look to the entrance of the mini market.
Also the till area has received a facelift. We have re covered the counter with wood and
new furniture has been placed around it.
Team Marina

We continue providing different types of activities for adults and children alike. The most
popular activity remains the Quiz, followed by Mini Club and Bingo.
Resort exterior and Service Areas
•

•
•
•
This year we have re-upholstered 400 sun beds which have been placed around the pool
and in some apartments.
We have painted the communal areas, corridors, the metal cover of the manholes, lamp
posts, the doors of the pump room, the doors of the water meters of each apartment and all
the fixed metal bases of the parasols located around the pool.
In January 2013 the annual legionnaire’s inspection was conducted without any issues
reported.
15 fire hoses have been replaced with new ones and the rest have been checked for their
correct functioning. The fire extinguishers have also received the annual inspection,
several anomalies were found in some of them and they needed to be replaced.
The launderette area for our guests has been upgraded, as well as the two toilets next to it.
We have refurbished both of them and we have refurbished one for disabled use.
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Community (Balcón Andalucia)
•
•
•
•
All the garages (A,B,C,& D) have had the electrical installations upgraded. The fire
detection systems have also been installed in all of the garages, with the exception of the
enclosed garages, as we have to ask the owners for permission to open them.
This year we have fumigated all communal areas and gardens against insects.
The satellite TV providers are in the process of changing their signals which will see a new
UK spot beam on the Astra 2F satellite which could affect the future availability of UK
channels abroad. The external TV company we work with are looking at various options to
see what we can do once this happens.
We have a serious problem with the general water network in blocks F & G. The pipes of
these two blocks need to be replaced due to their state of deterioration, as this is causing
loss of water and flow reduction.
Apartment Interiors
•
•
Last year we re-upholstered the sofa beds of 25 apartments and this year we are planning
to do another 20 apartments. (This is a project that we have planned to be carried out over
a few years).
We have replaced kitchen cupboard doors in several apartments and throughout this year
we will continue with this work.
Refurbishment
•
•
From 2004 until now, we have refitted 155 apartments. There are still 26 left to do. In 2009
no refurbishments took place.
The refurbishment program last year was undertaken in 9 units, all of them have been
refurbished keeping to the same standard as the refurbishment done in 2010. This means,
that they have a washing machine, a dishwasher, an open kitchen and a different colour
scheme in the decoration.
This year we will be doing another 9 units, 8 one bedroom apartments and a two bedroom
apartment where the main bathroom will be adapted for disabled guests, but only in this
two bedroom apartment.
The Smile Foundation;



Continues to raise funds to support local charities. Last year we made several donations;
A 15,000€ donation to “Association San Juan” which is building a new residential centre in
the south. This donation will enable the centre to have a fully functional commercial kitchen
for the residents, all of whom have disabilities.
A 9,600€ donation allowed members from the Association of Social integration, to attend
Hippotherapy sessions at the “Centro Hipico Altoanna”. Using horses stimulates the motor
system, which proves very responsive for physical disabilities such as Cerebral Palsy,
Autism and Downs Syndrome.
Miriam Palazón Armas
Resort Manager ClC Paradise
20-04-13
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MONTEREY RESORT
This report is based on recorded operations at Monterey for the year ending 2012 and is presented in the
following order;
Guest feedback
Evaluation Results 2012
Departmental Update
Apartment improvements 2012
GUEST FEEDBACK
Internal questionnaires allow us to evaluate our performance and the following comments represent the
most repeated issues by clients;
Excellent Resort
Clients are very pleased with the general appearance and services provided by the resort; in particular the
personal welcome received from long standing members of the service team.
Facilities provided by Resort
The majority of our clients consider that the resort and its facilities meet and exceed their needs and
expectations.
Cleaning Service
A large proportion of comments received in 2012 were positive and scoring provided by all guest types is
very high. We continue to focus on maintaining service levels and deliver scores within the target range.
Maintenance replacement
The largest request for maintenance is to replace light bulbs. We are committed to changing our lighting
fixtures with LED bulbs in all areas of the resort. LED is well known for its energy saving characteristics and
longevity which is an important factor in reducing complaints and energy costs.
TV/Satellite Channels
In December 2012 the picture quality to satellite channels were seriously affected due to signal changes
made by the principle Satellite operator which provides SKY and UK free to air networks. We have since
recaptured these signals but have been informed this is possibly a temporary measure, therefore future
audio visual investment is on hold until the situation becomes clearer over the next few months.
EVALUATION RESULTS
The results for 2012 were very similar to those achieved the year before and exceed the minimum level
required in each category.
CHCK
I/O
RSRT
HOSP
RSRT
EXTERIOR
UNIT
MAIN
UNIT
HSKP
2011
4.66
4.66
4.56
4.51
4.57
2012
4.66
4.65
4.52
4.50
4.55
Internal Result
Our focus is to maintain a consistent service and return above average scores by adhering to the following
action points:
i) Support and implement comprehensive refurbishment programme.
ii) Focus on training and motivating managers and staff.
iii) Sustaining year round preventive maintenance programme.
RCI SCORES
Monterey was awarded Gold Crown status by RCI in 2012. This year the trend continues and results up to
April prove Gold Crown levels being maintained.
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(Feb 2013 to April 2013)
CHCK
I/O
RSRT
HOSP
RSRT
MAIN
UNIT
MAIN
UNIT
HSKP
Gold Crown
4.5
4.5
4.3
4.3
4.3
Average 3 months
4.8
4.8
4.7
4.4
4.7
CHCK
I/O
RSRT
HOSP
RSRT
MAIN
UNIT
MAIN
UNIT
HSKP
Gold Crown
4.5
4.5
4.3
4.3
4.3
2013 (Sep 12 to Apr 13)
4.8
4.8
4.5
4.3
4.3
Annual Evolution
Many refurbished units contributed to some of the higher scores in this category and trust this continues to
be reflected as the refurbishment programme progresses so more RCI affiliated clients can enjoy the same
standard.
RECOGNITION
The practice of maintaining a high service level requires attention all year round, which was rewarded when
Monterey achieved its ISO 9001 accreditation in November 2012.
DEPARTMENT UPDATE
Security
The external Security Company contracted to provide life guards and resort security provide an important
task and am I happy to report a competent service continues to be received at this time.
The annual fire drill at Monterey took place on December 29th December 2012. The outcome was positive
and all employees will attend annual refresher courses as required by law.
Housekeeping
The new quarters for the department have helped increase productivity and improve health and safety
standards at work which was one of the main motivators for changing to the current location.
Maintenance
The main swimming pool was closed in January for a week to carry out essential maintenance. The work
included complete re-grouting, new perimeter filters and entry/exit ladders. Also replaced were the main
water filters, changed from conventional sand type in favour of new silicone material. This will improve
filtration and increase the lifespan between changes.
A101 and A201 received new double bathroom refits. This work was necessary due to damage caused by
burst water pipes in February 2012.
Water level alarm monitors have been fitted to the main water deposit tanks in Monterey and Monterey
Royale. This serves as an early warning indicator in the event mains water supplies stop feeding the resort
leading to low or no water pressure.
New hard wearing, non slip tiles have been installed on the main stairs beside Sunrise restaurant leading to
street level. This will improve safety and reduce preventive maintenance to damaged tiles.
New perimeter fence has been erected along the pedestrian access route which passes the lower car park.
New planting will improve the view currently offered on the adjacent land and improve the aesthetic impact.
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The Ramp road leading to the centre resort car park was improved to allow a wider turning point for both
client and commercial traffic.
Fitness Centre – Following repeated requests by auditors to action Health and Safety issues we took the
decision to move the housekeeping and maintenance departments.
The external floor in front of reception, extending to Sunset restaurant will be re-laid with new tiles. This is a
part of a wider to plan to slowly introduce the same material throughout the resort, improving safety and
uniformity.
Reception
New lighting and furniture was introduced in March 2012, part of a mini facelift for the reception area. New
branded CLC logos will replace the old road entrance sign and main CLC Logo on the reception edifice wall.
A new granite wall behind the reception counter will replace the dated pigeon holes. The new wall will
house a new Reception sign and improve the aesthetic appearance.
Sam’s Pantry
The minimarket continues to provide early morning services in the way of freshly baked bread and pastries
and offer convenience on site.
The garden area in front of the store has been demolished to allow for better distribution of products e.g.
Daily newspapers, magazines etc. and allow better access to the store.
Restaurants
Sunrise
New UPVC roof tile panels installed to replace the old branch style. The new roof has resolved weather
sealing issues and improved the overall visual impact.
Sunset
Responding to client feedback to provide an alternative social area in the evening, Sunset restaurant has
introduced a new drinks lounge by extending the existing terrace. With uninterrupted views the area will
incorporate casual seating in the form of sofas and armchairs and offer bar and snack services.
Team Marina
Team Marina works to provide free entertainment for children and adults through its weekly activities. The
team is tasked with ensuring a competent excursion programme is maintained and quick to adapt to new
activities based on ever changing requests and schedules.
Preventive Maintenance 2013
Every year an established plan ensures predetermined units receive a comprehensive preventive work
schedule. Each apartment is taken offline for one week in order to complete repairs which would otherwise
be impossible in a normally occupied unit. This year in addition to decorating all walls and ceilings,
apartments received new internal wardrobe shelving, electrical fittings and single unit shower trays.
Refurbishment Plan 2013
In September 2013 we will begin to refurbish six T1 units in Phase II (D801 to D805 and E904).
Once complete, only five units based on the 9th floor; D901, D902, D903, E905 & E906 will be all that remain
before the current refurbishment cycle ends.
Refurbishment & Summary of Improvements 2012 - SLIDES
Prepared by:
Tony Abello
Resort Manager – CLC Monterey, Tenerife
04 June 2013
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