SIMBA RUN CONDOMINIUM ASSOCIATION BOARD OF DIRECTORS CONFERENCE CALL
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SIMBA RUN CONDOMINIUM ASSOCIATION
BOARD OF DIRECTORS CONFERENCE CALL
April 15, 2015
A conference call was held on Wednesday, April 15, 2015 at 6:00 PM Mountain time. Board members
on the call were Graham Lythgoe, President, Gary Mah, Marty Levy, Brian Hay and Charlie Calcaterra.
In addition, Bridget Hitt and Anne Nelson were on the call along with twelve owners.
The meeting was called to order at 6:04 PM. Graham welcomed everyone and started with the
introduction of the Board members and the following comments:
Firstly the Board would like to acknowledge & thank the Management of Simba Run for a very
successful 2014/15 ski season ... Vail had record snowfall ... & ... commensurately Simba had record
visitors ... am sure that Bridget will have more to say in her remarks ... judging by the Trip Advisor
reviews our visitors are very positive with 89% of the reviews being in the Very Good or Excellent
category ... there have been a few that less than stellar for a variety of reasons ... however of special
note ... Bridget takes the time to respond to all reviews ... good or bad ... for the good a word of
"thanks" for the visit ... & ... for the less fortunate some remarks on what action may have been taken
&/or suggestions for future visits .. Thanks Bridget & staff for making Simba a very desirable visitor
friendly resort.
Secondly would like to update you on the Legal Disputes ...
o The Saxton Law Suit ... since we last got together Mr. Wayne Saxton (#1104) filed a suit on
March 4 against the Simba Run Owners Association in the small claims court of Eagle County ...
in an attempt to recover the parking fees that were attributed to their renters since the RBO
rules were introduced in January ... since the basis for the suit is somewhat similar to that filed
by Mr. Kleinman (#2310) our attorneys recommended that the suit be moved from the small
claims court to the District Court to be consolidated & thus treated in the same manner.... this
consolidation is being contested ... however proceedings are dragging since Mr. Kleinman left
Vail for approximately one month to go diving in Fiji & a personal visit New Zealand ... he was
granted an extension to respond till April 28
o The Kleinman suit... answers to the complaints for both the main suit & the Derivative suit have
been submitted to the court ... with both sides trading legal arguments
o Legal Expenses ... it is recognized that these law suits are beginning to add up unbudgeted
expenses ... & ... will continue to place a burden on the overall budget ... Allow me to run
through briefly a few key points
The majority of the legal defense expenses are being borne by the Insurance Company
... however we will continue to incur some costs of different aspects of the cases by the
Association Attorneys
Year to date ... through good expense control ... the additional expenses have not had a
significant impact on the overall financial health of Simba Run ...
Projecting out to the end of the financial year ... we should be in good shape
We will be shortly starting the budgeting process for 2015 / 16 ... & ... then we will be
able to better predict the overall financial impact of the cases & budget accordingly Please remember that neither Simba Run Owners Association nor any of the Board
Members wanted these legal actions brought on by Mr. Kleinman et al ... however they
need to be defended and defended professionally ... & ... should SROA prevail we will be
claiming recovery of all legal fees incurred as a matter of course after judgement.
Gary can answer any questions on budgetary concerns in his review
o I will report further on the legal proceedings ... as & when any substantive changes take place.
At this time I cannot report a great deal as the case is ongoing.
UNIT OWNER FORUM
Graham asked all owners if anyone had an item to add to the published agenda. Charlie Calcaterra said he had a
question as he was contacted by an owner who wants to enter into a long-term rental. Charlie asked if he was
correct that the RBO rules apply only to rentals that are short term - 30 days or less. The Board members agreed
that Charlie was correct.
There were no items to be added to the agenda.
APPROVAL OF MINUTES OF FEBRUARY 18, 2015 BOARD MEETING
Graham moved to approve the minutes of the February 18, 2015 Board meeting as presented. Gary Mah
seconded the motion and all Board members approved.
TREASURER’S REVIEW
Gary Mah began with the Simba Run Management company and said that it had been a successful ski season
and that many positive comments had been received. Financials at March 31, 2015 show income more than
$200,000 over budget. Variable expenses go up with higher occupancy, but other expenses have been
controlled and the bottom line shows Net Income of $110,000 over budget.
Don Heath asked a question about insurance coverage. He wondered at what percentage is Simba Run insured.
Bridget said she would get the answer and let Don know.
Gary reported that the owners association has less fluctuation than the management company because income
comes from the monthly dues. He noted that the one line item that is significantly over budget is Professional
Services. All other line items are within normal variances. Gary said that additional expenses are expected due
to the delay of the dehumidification project and skylight project. These expenses could include storage costs
and consultation fees when the projects start up again.
Gary also reported that the Capital Reserve balances total approximately $219,500 and that an additional
$10,400 is transferred each month through dues collections.
Charlie commented that the Professional Services show $20,000 of legal fees. Gary corrected that not all
professional services are legal. Anne Nelson stated that $3,400 was for the annual review and tax return
preparation. Anne broke down the fees - $3,400 for review and tax preparation, $1,300 for general legal advice,
$1,600 for Annual Meeting questions and preparation, $6,700 for RBO Rules and Regulations and $7,000 for the
Kleinman suit. Gary noted that these expenses were not foreseen at the time the 2014/2015 budget was
created.There was discussion about the RBO Parking Fee going to the Association, but Charlie asked if the RBO Resort
Fee goes to SRM or the Association. Gary said the Resort Fees stays with the management company to offset
the cost of amenities those guests and renters receive, such as DVD rental, pool towels, front desk, etc.
Charlie questioned the $6,800 income collected through March 31 vs. approximately $17,000 in legal fees and
asked why the Board is still pursuing the new RBO rules. Charlie sees it as a losing proposition.
Brian asked Charlie if he wants to stop paying his monthly dues, could he simply do that and have no one try to
resolve the issue to the benefit of the association? Charlie said that for 35 years, things have run smoothly and
he wonders why things changed.
Gary said that the Resort Fees were implemented because the RBO owners and guests were demanding the
same services as the SRM guests received, but they were not paying for them. Marty Levy agreed, saying the
playing field was never equitable. Marty also noted that the Kleinman suit is about much more than just the
RBO rules.
A question was asked about the status of the dehumidification project. Graham said that, unfortunately, there
has been no change as it is a part of the lawsuit filed by Kleinman. Graham said it is locked into the lawsuit and
therefore on hold.
Marty asked a question – as an owner. She asked if there is any possibility that the dehumidification unit could
be moved somewhere else. Graham said that they have been looking at other options, but the location is only
one point in the lawsuit. Also – the planned location is the most suitable.
MANAGER REPORT
Bridget reported the following:
Things went very well this season for Simba Run Management
The next three months will be slow in comparison
The Average Daily Rate is up 22% over last year
There are nine units for sale including one employee-housing unit. The asking prices range from
$324,000 to $625,000.
All employees made it through the season and stuck with Simba Run
The garage door is working properly; it is turned off during the hours when the van is running
The van will stop running on April 24
The Town of Vail and the Department of Transportation have marked trees that will be removed during
the underpass construction
Late word that the skylight project has been delayed another week
Charlie asked Bridget where her time is spent in a normal workday. Bridget said she is currently working to get
the grounds ready and on project issues – lining up all aspects of the projects including emptying the pool and
coordination. She also fills in at the front desk, handles rental issues – some of everything and every day is
different.ONGOING PROJECT UPDATES
Graham reported the following:
The skylights over the pool area … work will start on Monday, April 27 and last about three weeks.
During this time, the pool will be drained and the area will be off limits as there is some risk of flying
debris. The permit was finally received today for the skylights as that piece of the project has been
separated from the dehumidification project.
The Garage Door – Bridget has had quite a time over the past couple of months working with the various
contractors involved … however am happy to report the door and operating system is finally fixed
The Garage Repairs … still waiting for a quote from a specialist concrete company to repair the vertical
precast parts of the garage that have been damaged over the years by the humid air from the pool
venting into the garage (subject of the dehumidification project currently held up by the Kleinman law
suit). The general state of the garage is good, but it is in need of some repair.
Pool Heater – this will be replaced while the skylight work is going on.
The Water Storage Tanks in Building 2 will be replaced … also as the skylight work is going on.
At the February 18 Board Meeting we discussed ADA pool lift compliance. Upon further research by
Charlie and Graham, on the government ADA website regarding existing pools, we found that Simba Run
qualifies under the category of a Private Residential Community where access is limited to owners and
guests … in no way is Simba’s pool a ‘public’ pool … as such Simba Run is not covered by the ADA
accessibility requirements. Therefore, unless there are new requirements, it is not necessary to go
forward with a lift.
The Board will be announcing soon the appointment of a project committee to look at further long term
project needs
Graham asked if there were questions regarding projects.
Charlie said that one item that Bridget had brought up earlier was the need to replace the garage lights with
LED lights. He understood there was an energy credit available from Holy Cross and asked when that offer
expires. Bridget said that it is ongoing and there is no deadline at the time. Bridget said that the current
fixtures would have to be replaced and that there are quite a few fixtures in the garage (possibly 84). The
fixtures are expensive and a licensed electrician would have to install them. Holy Cross will reimburse 50%
of the cost of the light bulbs or the fixture if the lightbulb is a part of it. Gary commented that he
understands there is an issue with wiring and switches as well. Bridget agreed, saying the majority of
fixtures are so corroded due to humidity in the garage that an electrician said that we might as well wait for
the dehumidification project to be completed, as we would be throwing away our money until then.
Graham said this item would be added to the Capital Reserve project discussion.
UNIT OWNER COMMENTS & QUESTIONS
Graham asked if there were any final Unit Owner Comments or questions not already answered.
Don Heath asked Bridget what the LQA rating is for the Vail Racquet Club. Bridget said it is Gold –
the same as Simba Run
Graham asked Charlie if there is any update on the underpass. Charlie said the final decision would
be made by the Town of Vail on May 5. Bob Morrow asked Charlie – If approved, when would the work on the underpass begin. Charlie
said there were funding questions to be decided about how much CDOT would fund and how much
the TOV would have to fund. Construction is to begin during the summer of 2016 and is to take 1 ½
to 2 years.
Joel Feinberg commented that he wanted to thank the Board and Graham in particular, for hanging
tough with the lawsuit. Joel commented that there is more to the suit than the listed items, that it
is evil for an owner to sue the Association, and that the entity of Simba Run risks falling apart if it
this allowed to continue.
Rich Larson asked Bridget why we are shorthanded at the front desk. Bridget said an employee had
a family issue that had to be dealt with.
Rich Larson also asked what is happening with the money collected for the dehumidification project.
Anne responded that the money is being held in a separate account and has not been spent for
anything other than what was originally planned.
Bridget asked what happens with long term renters or owner guests that bring dogs? Brian Hay said
that the policy is that only owners can have dogs. Graham said that if anyone other than an owner
wants to bring a dog, they must have written approval from the Board. He also noted that an RBO
owner needs the rules about this written into the contract with a long-term renter. Marty added
that the owners should provide the Board a copy of their contract. Charlie suggested that the top
ten dangerous dog breeds not be allowed at Simba Run at all. Graham summarized by saying he
would put it on the Board’s agenda to create a policy and have it at the front desk.
With no further questions, Graham thanked everyone for participating in the meeting. He wished everyone a
happy summer and announced that the next meeting would be held on Wednesday, June 17, 2015.
The meeting adjourned at 7:03 PM.
Respectfully submitted,
Anne L. Nelson
Anne L Nelson, Recording SecretaryYou can also read
