NOTICE OF THE 2018 ANNUAL MEETING OF MEMBERS
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1 NOTICE OF THE 2018 ANNUAL MEETING OF MEMBERS September 2018 Dear Desert Breezes Owner: Please mark your calendar for the annual meeting of the members of the Timeshare Owners Association which will be held on Saturday, November 3, 2018 at 10:00 a.m. (Pacific Time) at the, Calle Las Brisas South, Palm Desert, California, The election of your board members will be conducted during this annual meeting, in addition to general business discussions. We have enclosed the following: the agenda, statements of board candidates, 2017 annual meeting minutes, the proxy form, and a pre-addressed postage-paid return envelope. Please complete and return the enclosed proxy form so that it is received at Trading Places International no later than 5:00 p.m. (Pacific Time) on October 31, 2018, even if you plan to attend the meeting. If an insufficient number of members return proxies, the meeting cannot be held and the association will have to incur the added expense of additional mailings to the members. Please help show interest in your association and your Desert Breezes ownership by returning the proxy form, or by attending the meeting in person. We look forward to seeing you there! Sincerely, By Direction of the Board of Directors Timeshare Owners Association The current board members and officers are: Brian Bowcock Jacques Peeters John Middleton Dorothy Fazio Clarke Schlabach Enclosures: President Vice President Treasurer Secretary Director-at-Large Candidates Statements 2017 Annual Meeting Minutes Proxy (Agenda on Reverse)
2 DESERT BREEZES RESORT TIMESHARE OWNERS ASSOCIATION 2018 ANNUAL MEETING Saturday, November 3, Calle Las Brisas South, Palm Desert, CA :00 a.m. (Pacific Time) AGENDA I. Call Meeting to Order Brian Bowcock, President A. Welcoming Remarks B. Introductions C. Establish Quorum II. III. IV. Approval of the 2017 Annual Meeting Minutes Resort Financial Report Overview Updates V. Appointment of Inspectors of Elections VI. VII. Election of Board of Directors (Two Open Positions) General Discussion / Open Forum VIII. Election Results Announcement IX. Adjournment In order to expedite the conduct of business, we ask that you please hold any questions and / or comments until the General Discussion / Open Forum portion of the meeting. If you have special items of business, you wish to have brought before the association you may contact a board member or management staff prior to the meeting. Thank you.
3 Candidate Statements (Two (2) open positions) Brian Bowcock (Incumbent) La Verne, CA I spent 56 years in public service dealing with cost accounting and capital projects, management and construction. I retired as a Public Works Director, City of La Verne after 30 years. Now serving a fourth 4-year term on a Regional Water Board serving 13 cities in L.A Co.; 520,000 people. I was President of a 300-unit condo assoc. for 12 years. I ve been on the Board for 5 terms and would like to continue as your representative. I m concerned about increased maintenance costs I want to: -Keep the rating as high as possible with II and RCI -Continue to refurbish all units as needed by doing what we can afford each year. -Rebuild our reserves while maintain quality. -Keeping the highest quality staff possible. We have a great team! Jacques Peeters (Incumbent) San Diego, CA I have been a board member for the past 21 years. I m proud to say that we ve never had to request a special assessment. We have been fortunate to be able to maintain a positive budget for all these years in spite of the hundreds of foreclosures. My objective has always been to maintain to the highest standard. Numerous projects have been completed this past year and some are still pending. We replaced our complete antiquated sprinkler system last year to meet with the drought crises. We are still working with our gardener replacing some grass areas with a Desert scene. Our pending projects will receive our full attention this year. They will be prioritized and completed within the constraints of our budget. Thank you for vote. 1
4 DESERT BREEZES RESORT TIMESHARE OWNERS ASSOCIATION 2017 ANNUAL MEETING DESERT BREEZES RESORT PALM DESERT, CALIFORNIA I. CALL MEETING TO ORDER A. Welcoming Remarks Saturday, November 18, :00 a.m. (PST) MINUTES President Clarke Schlabach called the meeting to order at 10:01 a.m. (PST) and thanked everyone in attendance. B. Introductions Jacques Peeters introduced each board member, Trading Places staff, and Mike Fitzgerald, the Association s Auditor. Board Members Clarke Schlabach Jacques Peeters Brian Bowcock John Middleton Dorothy Fazio President Vice President Treasurer Secretary Director Trading Places Representatives Joanne Hallert Director of Resort Operations Al Hippe Resort General Manager Casey Clayson Administrative Assistant Guests Mike Fitzgerald CPA, Fitzgerald and Associates C. Establish Quorum Clarke Schlabach announced that in accordance with the Bylaws of the Desert Breezes Resort Timeshare Owners Association, a quorum of 15% is required. A quorum was established by proxies on file as well as those who were in attendance during the meeting. II. APPROVAL OF MINUTES A motion was made by Donald R. Davis and seconded by Brian G. Brown to approve the minutes of the November 5, 2016 annual meeting. The motion passed unanimously. Annual Meeting Minutes November 18, 2017 Page 1 of 4
5 III. RESORT FINANCIAL REPORT The association s independent auditor, Mike Fitzgerald, CPA, presented the financial update for October 31, 2016 pursuant to his audit report. Mr. Fitzgerald stated that the association ended the year as follows: $2,397,915 in total assets $1,288,493 in total liabilities $3,020,471 in total revenue $3,020,253 in total expenses $218 in excess revenues $224,507 spent on repairs and replacements $30,633 decrease in bad debts/delinquencies IV OVERVIEW UPDATES Brian Bowcock gave a brief report on the repairs and the replacements the resort will be focusing on for He announced that for 2018 the resort would use funds for upkeep and smaller changes and that the board was always looking for ways to improve the resort. Al Hippe, General Manager, introduced himself and announced that the resort has started a new employee recognition program. The new program rewards employees who go above and beyond and who are mentioned on comment cards and who help fellow employees and owners in need. Mr. Hippe also reported that Desert Breezes has earned Gold Crown Status from RCI for 2018 which is a great accomplishment. In addition, he reported that the resort has been working to update ADA compliance with new wheelchair ramps in the parking lots and the 4 chair lifts installed at the pools. In 2018, the resort will be focusing on putting new TV s in all second bedrooms, replacing sofas, finishing the replacement of the shower valves, continuing ADA improvements, new carpeting in the upstairs units, and the landscaping. V. APPOINTMENT OF INSPECTORS OF ELECTION Owner Donald B. Davis volunteered to be the Inspector of Election and worked with management in the tallying of the ballots. VI. ELECTION OF BOARD OF DIRECTORS (TWO OPEN POSITIONS) The three incumbents Dorothy Fazio, John Middleton, and Clarke Schlabach were introduced and had an opportunity to express their desire to be elected. Candidates Robert Neal Jr. and Leslie Newquist were unable to attend and Joanne Hallert read their resumes aloud. Write-in, Brian G. Brown, expressed his desire to run for the Board of Directors. Clarke Schlabach then asked three times if there were any nominations from the floor. Hearing none, the nominations were closed. Annual Meeting Minutes November 18, 2017 Page 2 of 4
6 VII. GENERAL DISCUSSION/OPEN FORUM QUESTION AND ANSWER SESSION QUESTION/COMMENT What is bad debt? What happens if we do not pay maintenance fees? What happens when we rent our week? Why do we have no ice trays in the refrigerator? How come the rules in the pool are not being reinforced? Some guests are drinking and playing loud music. I called the after-hours service desk and nobody answered or addressed my issue regarding leaking water on the roof. Do we have personal liability if our units get rented and someone gets injured? Do we have a realtor to sell our timeshare? How come I can t give back my timeshare when I am willing to give it for nothing? How much are closing costs on a unit? How many units are in the foreclosure process currently with the county of Riverside? What s the estimated value of our unit if we want to sell it? ANSWER Bad debt is made up of owners who have not paid their fees and go delinquent. Please see your 2018 ABC policy by referring to the hard copy that was sent along with your maintenance fee statement or by visiting the Desert Breezes website. We use every channel possible to market rental inventory. You always have the option of pulling your week out of the rental pull. The board agreed that ice trays should be placed in the units. Management will be doing everything possible to reinforce the rules and regulations. We apologize, and we will investigate the incident and address it with the team. You do not have personal liability. No, but we do have an Owner Week for Sale program to list your ownership for sale. We don t have a direct sales program. You can talk to your friends or family who may be willing to take over the ownership for you. You can also try other sales options but be aware of companies charging fees in advance. Around $400-$500 for the title search/ transfer. Approximately 300 units. Whatever the market is willing to pay. It all depends on the seller s and buyer s agreement on the price. Immediately following the close of the general discussion/open forum, Joanne Hallert conducted the raffle drawing for two No Fee Exchange vouchers and one Experience TPI Week voucher. The raffle winners were as follows: Annual Meeting Minutes November 18, 2017 Page 3 of 4
7 Garry Nicholson Experience TPI voucher Janet Erickson & Bruce Prommersberger No Fee Exchange voucher George Eichel No Fee Exchange voucher VIII. ELECTION RESULTS ANNOUNCEMENT Following the collection of the ballots and review of the proxies on file by the Inspector of Election, the new board members were announced. The final tally was as follows: Dorothy Fazio John Middleton Clarke Schlabach Robert Neal Jr. 806 votes 772 votes 782 votes 119 votes Leslie Newquist Brian G. Brown John Kaylor 129 votes 1 vote 9 votes Dorothy Fazio, John Middleton, and Clarke Schlabach were each re-elected to a two-year term, effective immediately, through the 2019 annual meeting. Clarke Schlabach thanked everyone for their participation in the 2017 Annual Desert Breezes annual meeting. IX. ADJOURNMENT There being no further business to come before the annual meeting, Clarke Schlabach declared the meeting adjourned at 11:35 a.m. (PST). Submitted by: Trading Places International Managing Agent Approved by: Timeshare Owners Association By: Joanne Hallert Director of Resort Operations By: John Middleton Secretary Annual Meeting Minutes November 18, 2017 Page 4 of 4
8 ANNUAL MEETING OF THE DESERT BREEZES RESORT TIMESHARE OWNERS ASSOCIATION (A CALIFORNIA NON-PROFIT CORPORATION) REVOCABLE PROXY The undersigned member of the Timeshare Owners Association (hereinafter Association ) hereby revokes all previous proxies, acknowledge(s) receipt of the notice of the 2018 annual meeting of association members to be held on November 3, 2018 at 10:00 a.m. at the, California, and appoints the Board of Directors of the Association as the Assigned Proxy or a majority thereof, or (print name of another person assigned proxy). If no indication is made as to who the proxy holder is, the Board of Directors will be considered the proxy holder and may assign proxies in a reasonable and proper manner to vote as the board deems is in the best interest of the Association. By this proxy, the proxy holder shall have the power to represent the member at said meeting and any adjournment thereof in the same manner as set out below. Any act the proxy holder shall take pursuant to this proxy shall have the same effect as if the member were present and so acting. This proxy shall be used for the purpose of establishing a quorum and for voting if and in the manner the member so instructs and shall be valid for three (3) months from the date executed unless revoked prior thereto. With regard to voting on the matter specifically set forth herein below, the proxy holder is hereby instructed to use this proxy as follows: Use of proxy (check one): ( ) Vote as proxy holder deems proper (assign a proxy holder above or the board will be the assigned proxy holder) ( ) For quorum purposes only (do not vote below) ( ) Vote and cast the member s vote as follows 1. Election of Directors You may cast two (2) votes per interval owned and give your vote in any manner to the candidates listed below. Fractional votes will not be counted; please use whole numbers. The two (2) positions are for a two-year term. * indicates incumbent Brian Bowcock * Jacques Peeters * Write- in Write-in 2. Approval of the 2017 Annual Meeting Minutes ( ) YES ( ) NO This proxy will be voted as you have indicated above. If no indication has been made, this proxy will be voted as the proxy holder deems advisable on each of the matters set out above, or be used for quorum purposes only. It must be signed and dated to be valid. Printed Name Signature Co-Owner Name Date [auto-populated] # of Intervals Owned Owner # Do you plan to attend the 2018 annual meeting? ( ) Yes ( ) No Number of Attendees: PLEASE RETURN THIS PROXY IN TIME TO BE RECEIVED BY TRADING PLACES ON OR BEFORE OCTOBER 31, 2018 MAIL: c/o Trading Places International Attn: DRO ADMIN Commercentre Dr., Suite #100, Lake Forest, CA FAX: (949) droadmin@tradingplaces.com
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