A PROPOSAL FOR A NEW RESORT MEMBERSHIP
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1 Copyright VALE DO LOBO 2010 PROPERTY OWNERS ASSOCIATION ANNUAL GENERAL MEETING
2 ALL ABOUT VALE DO LOBO INDEX 1. CURRENT SITUATION 2. THE INTEGRATED SERVICE RESORT MEMBERSHIP 3. HOW TO CREATE A FAIR SYSTEM FOR ALL THE PROPERTY OWNERS 4. THE ADVANTAGES OF THIS PROPOSAL 5. QUESTIONS AND ANSWERS 2
3 1. CURRENT SITUATION RELATION WITH POA POA vs VDL History Since the new Management took over, nearly 7 years ago, the relation between VDL and the Property owners improved significantly: - The two Associations existing at the time (CMA and APVAL) were merged into one: POA in VDL has had regular meetings with the POA, where all important issues related to our Resort were discussed. 3
4 1. CURRENT SITUATION RESORT SERVICE CHARGES Existing Resort Service Charges include: - Security, CCTV room monitoring and first aid - Daily door to door back-up collection of domestic refuse - 24 hours Reception facilities; - Provision for renovations, alterations and/or services imposed by law, by the local authorities or government towards the infrastructures and networks in the Resort; - Beach refurbishment. Despite the efforts of both VDL and the POA to demonstrate that the Resort Fees are the equivalent of a Condominium fee and crucial to maintain the quality of services and facilities in VDL, there was little change in the final outcome. 4
5 1. CURRENT SITUATION CLUB MEMBERSHIP Existing Club Membership includes: Vale do Lobo Card discounts 2013 Club Courtesy Card Family Card Information Golf Green Fees 55% 50% Club Hire 45% 45% Trolley Hire 45% 45% Private Lessons up to 40% up to 40% Buggy Hire 25% 25% Wellness Royal Spa Treatments 20% 10% Fitness Centre 20% 15% Tennis Academy Pool Free Free Gym 50% 40% Court Hire 50% 40% Weekly Membership 50% 30% Coaching 20% 15% 5
6 1. CURRENT SITUATION CLUB MEMBERSHIP Existing Club Membership includes (cont.): Vale do Lobo Card discounts 2013 Others Club Courtesy Card Family Card Information Circuit bus Free Free Funzone Free Free Breeze Rotunda Pool Free Free Beach (Sunbed hire) 20% 10% Beach Garrão Nascente (PRIVATE AREA) reservations until May 40% 40% NEW! Beach Next to Swimming Pool (PRIVATE AREA) reservations until May 40% 40% NEW! Beach (Water Sports) 15% 10% Kangaroo Club 50% 25% Vale do Lobo Accommodation 20% 20% Vale do Lobo Auditorium Room Hire 20% 20% Concert Tickets up to 20% up to 20% Car Hire 20% 10% Restaurants / bars 10% 5% Resort Shops 10% 10% Beauty Centre 10% 10% Supermarket 5% 5% Medical Centre 5% 5% New Discounts (external) Herdade da Malhadinha Nova 20% NEW! Restaurant Paixa 10% 5% NEW! GMS Store (Apple Premium Reseller) up to 5% NEW! 6
7 1. CURRENT SITUATION CLUB MEMBERSHIP (cont.) Existing Club Membership includes (cont.): New services to be launched in 2014: One Free House Check per Year (technical check of gas, water, electricity, telecomunications, alarms and electrical appliances). Discounts on Petrol under negotiation. New Golf Tournament only for Club Members (free of charge) One Golf Tournament (Silver Salver) per year for Club Members and friends (free of charge) New promotions launched in 2013: Platinum Auto Valet summer promotion, Interior Decoration, Spring cleaning, Garden services Spring Offer, Alisuper home delivery services. New Services introduced in the last 2 years: Improved facilities at the Club of Clubs creation of Business Centre with 4 additional workstations, upgrade of 3 new apple computers; this area also hosts Members activities such as Bridge / Painting classes. Refurbishment and improved facilities at the Praça pool complex. New internet service at competitive rates and promotions on telephone line rental; New alarm services and technical assistance contracts; New on site insurance broker Tranquilidade; 7
8 1. CURRENT SITUATION CLUB MEMBERSHIP (cont.) Existing Club Membership included (cont.): New Services introduced in the last 2 years: New dental clinic; New Vale do Lobo beach concession; Beach Water Sports; Tax information and invitations to seminars; Blacktower, Schroders, Deloitte; Children s entertainment and live music at the Praça during the summer; Property Services Activity Reports; Reduced prices on Welcome Cards for family and guests; New reduced Welcome Card for circuit bus use only; Invitations to events; the VDL Summer Party, weekly Cocktail parties, concerts and events (either free of charge or at reduced prices); Golf; Preferential rates for property owners, family and friends, twilight offers, Open days, junior green fees; 8
9 1. CURRENT SITUATION Division between Property Owners in Vale do Lobo - Oct Total Units 100% RSC Payers 79% RSC Non-Payers 21% Club Members 65% Non-Club Members 14% 9
10 2. THE INTEGRATED SERVICE - RESORT MEMBERSHIP THE PROPOSAL To integrate the Club Membership and the Resort Service Charges into the NEW RESORT MEMBERSHIP 10
11 2. THE INTEGRATED SERVICE RESORT MEMBERSHIP The NEW Resort Membership - Only one payment to VDL (RM), instead of the former two payments (Resort Services Charges and Club Membership). - Club Members will pay exactly the same amount as previously (RM = The sum of the former Resort Services Charges + the former Club Membership), with additional advantages (discounts on services inside and outside the Resort, golf for friends, etc.) - VDL will create special conditions to attract the former non- Club Members into becoming Resort Members. 11
12 2. THE INTEGRATED SERVICE - RESORT MEMBERSHIP The NEW Resort Membership - Easier system for the Property Owner without any additional costs, with new and improved services and discounts than before. - The success of this system will be directly linked with the quality of the services provided. - The increases in the annual fees will vary in accordance with the inflation rate, always subject to the POA s approval (who as before, will continue to be the PO representative body). 12
13 2. THE INTEGRATED SERVICE RESORT MEMBERSHIP Level of Service RESORT MEMBERSHIP Services Provided Nr. of people assigned Frequency of Service Vehicles Assigned equipment Quad Motorbikes Emergency equipment Security, CCTV room and first aid days a year/24hrs a day Extra Security, CCTV room and first aid Summer Period 8 June to August/24hrs a day Resort Reception days a year/24hrs a day Daily door to door back up collection of domestic refuse Daily Proprietors Club 5 5 days a week/8 hours a day Internal Bus circuit days a year/12hrs a day June to September/24hrs a 4 Internal Bus circuit summer period 4 day Club of Clubs acess 365 days a year Total
14 3. HOW TO CREATE A FAIR SYSTEM FOR ALL PROPERTY OWNERS How to be fair to everyone About 5 years ago, despite of some initial opposition, VDL merged the two golf course memberships into one, which was highly successful. WHY? Because VDL was fair to everyone! With the New Resort Membership, we will follow the same principle, and it s up to each Property Owner to evaluate the quality of the service provided. 14
15 4. THE ADVANTAGES OF THIS PROPOSAL Proposal for Property Owners who are currently Club Members (pay both Resort Service Charges and Club Membership ) They will pay exactly the same amount as before RM = The sum of the former Resort Service Charges + the former Club Membership, with additional advantages as explained ahead. 15
16 4. THE ADVANTAGES OF THIS PROPOSAL Proposal for Property Owners who are currently Club Members (pay both Resort Service Charges and Club Membership ) (cont.) Rooms Resort Service Charges (1) Club Membership (2) Annual Amounts Total (1) + (2) Resort Membership Increase % % % % Note: - If the Property Owner is considered a resident or has a second house, a discount of 420 per year will apply. In case of a second house the discount is only applicable to one of the properties. - Information based on 2013 prices. 16
17 4. THE ADVANTAGES OF THIS PROPOSAL Proposal for current Property Owners who are only Resort Service Payers - In the First Year Payment will be the same as before meaning only the former RSC and Free Club Membership - In the Second Year Same payment as before ( RSC ) + 1/3 of the former Club Membership Fee - In the Third Year Same payment as before ( RSC) + 2/3 of the former Club Membership Fee - From Fourth Year onwards, full payment of RM 17
18 4. THE ADVANTAGES OF THIS PROPOSAL Proposal for current Property Owners who are Resort Service Charges Payers (cont.) Annual Amounts Rooms Resort Service Charges (1) Club Membership (2) Total (1) + (2) Resort Membership Year 1 Resort Membership Year 2 Resort Membership Year 3 Resort Membership Year Note: - This offer is available from 10 th October to 31 st December 2013, during this period the Club admission fee is also free. - For the first year a 100% discount on the former Club membership fee will apply and the Resort Membership will progressively be increased during the next 3 years. - Information based on 2013 prices. 18
19 5. QUESTIONS AND ANSWERS Question 1. Since InfraLobo was established a number of services have been passed over from VdL to InfraLobo and moving forward some additional services currently managed by VdL should be passed over to the POA. Will this result in a corresponding reduction in the Resort Services element of the total costs and/or the overall fees due to the additional income ( 400k to 500k) generated from the additional contributions payable from the "new members"? Or will this be taken as additional income by VdL? Answer: The current services encompassed under Resort Services will not change with the implementation of the Resort Membership. The value of the Resort Services that you are paying now will simply be added to the annual Club Membership fee. Any future increase will be based on the Portuguese rate of inflation. In 2014 and in fact the following 2 years, there will be very little additional revenue due to the conditions of the offer. Any future revenue will allow Vale to do Lobo to carry out further improvements to the facilities and infrastructures throughout the Resort, from which all property owners will all benefit. 19
20 5. QUESTIONS AND ANSWERS Question 2. If the proposal is passed how will the new Resort Membership charge be levied? Will it be on a "per bedroom" basis (as with the Resort Services fee) or on a "per property" basis (as with the club membership fee), or on some other basis - perhaps a combination of both? The "per bedroom" basis alone is discriminatory as it takes no account of actual usage of services. Answer: For the next few years it is foreseen that the same criteria will be used i.e. number of bedrooms of the property + annual Club Membership fee. To date this has proved to be the fairest system, similarly to that used by Infralobo. Question 3. What services to the current club fees cover? Are the benefits that are available guaranteed to remain available? Answer: To complement the information already provided, each Member receives 2 Courtesy Cards, plus 6 free of charge Family Cards per year; for brothers/sisters, grandparents, children/spouse and grandchildren and as well as the many benefits and privileges already mentioned Membership also gives access to a wide range of property management services. In addition, Membership also provides that important personal contact directly with the dedicated team of staff of the Proprietors Club, who are always on hand to offer assistance. 20
21 5. QUESTIONS AND ANSWERS Question 4. Why should non-contributors benefit, whilst owners who have always paid, get no additional benefit? Answer: The proposed offer of reduced Club Membership fees over a limited time is being made ONLY to Resort payers, those owners who already contribute towards the Resort Services. It is essential that the offer is attractive, but at the same time Vale do Lobo realise that current Proprietors Club Members need to be reassured of our commitment to provide the best possible service available and that we will always endeavour to introduce new and innovative services and increased benefits and discounts over the coming years, in order to maximise the value of the Resort Membership. Vale do Lobo believe the implementation of the RESORT MEMBERSHIP is the way forward for the future of the Resort. 21
22 5. QUESTIONS AND ANSWERS Question 5. a) What happens if the owners who aren t currently paying for the Club, don t want to pay the additional money to join? Is this the only option available? b) After the first phase of transition, year 2 onwards, will it be possible for members to return back to a basic membership? c) If the new proposal goes ahead, will all new owners have to join? d) How do you intend to handle property owners who refuse to pay the non-enforceable resort services charges? Answer: The proposal is that the Resort Membership will be the only option available. Its implementation is believed to be the best way forward for the future of the Resort and current Club Members can be assured that Vale do Lobo will continue its efforts to provide the best possible services available, always endeavouring to introduce new and innovative services and increased benefits and discounts. We believe that the Resort Membership will increase the exclusivity of the Resort, helping to secure investment values, from which all owners will benefit. The proposed offer from Vale do Lobo has been made to attract the greatest number of property owners who currently contribute towards the Resort Services. Property owners who do not currently pay their Resort Services, will firstly have to settle any outstanding amounts. All efforts will continue to be made to recoup outstanding Resort Services and to convince this minority of property owners of the advantages of Resort Membership. 22
23 5. QUESTIONS AND ANSWERS Golf Question 6. Why are golf prices for VDL property owner s guests the same as are available from an agent eg. Florida Golf. Why are we not given beneficially discounted rates? Answer: Proprietors Club Members receive a standard 55% discount on Vale do Lobo green fees with the Courtesy Card and a 50% discount with the Family Card. The current green fee prices for 18 holes are: 69 Low and Mid season 78 - High season The Vale do Lobo Golf Club has also introduced preferential rates for Family& Friends, which are dependent upon the time of year. This rate is lower than the green fee prices sold outside by agents and Tour Operators. In addition, recently introduced Golf Open Days provide the opportunity for Non-Vale do Lobo golf Club Members to join Members and play the Vale do Lobo courses for as little as 50 (a discount of nearly 75%). Additionally the Members of the Vale do Lobo Proprietors Club can book the twilight offer 30 minutes in advance to the normal time available for visitors, and are welcome to bring guests to play at this times. Further details can be obtained directly from the Golf Club. 23
24 5. QUESTIONS AND ANSWERS Question 7. What is the fee for signing over a golf title? Is this just a small admin charge? Answer: A small transfer fee is applicable depending on the number of years remaining on the title. The Golf Club can provide further details on individual cases. Resort General Question 8 Noise pollution from building sites could it be made a requirement for all owners around a building site to be notified prior to the work? Could it be made a requirement that exterior building work does not take place during the months of July and August? Answer: When a property is built by Vale do Lobo, care is taken to minimise the disturbance to neighbouring property owners. For example, during peak season (July and August) large construction works which may cause excessive noise are avoided. Unfortunately, some owners use external building contractors who may not apply the same restrictions or have the same consideration to neighbouring property owners. As Vale do Lobo is not a closed condominium, if the legal construction regulations are being complied with, there is little that Vale do Lobo or Infralobo can do. However, they will always act in the interest of the property owner and try to resolve issues wherever possible. 24
25 ALL ABOUT VALE DO LOBO 5. QUESTIONS AND ANSWERS Question 9. Noise pollution from leaf blowers can any restriction be put in place about gardeners using leaf blowers at various times of the day, avoiding early morning and lunchtime? Answer: Vale do Lobo has specifically requested external gardening companies not to carry out works which provoke noise disturbance until after hours during the summer months (July to September). 25
26 Copyright VALE DO LOBO 2010 THANK YOU OCTOBER 2013
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