Jim Lewis called the meeting to order at 1:05 a introduced the board. John McGowan (legal), Leigh Anne Neiman, Yvonne Chang and Lawrence Smith (CFO) were present.
Lewis said that members could tape the meeting except for the general session due to "proprietary" information offered during that portion of today's meeting.
McGowan confirmed that the notice of the meeting was properly announced.
Lewis outlined the three motions before the board.
1. Any excess dues at the end of 2009 will be set aside for future major repairs.
Motion passed.
2. Budgets for 2010 were announced by Lawrence Smith - as already noted on the DIS. There will be a minor adjustment at most resorts due to the actual property taxes. OKW,BWV,VWL and BCV will have a credit of .01 per point adjusted with the 2010 dues. AKV will have a credit adjustment of .05 per point. HH and SSR had no variance as taxes equalled the projection already paid. VB will have an additional .02 per point added in 2010. BLT will have a credit of 0.78 per point and vGC will have a credit of 0.83 per point - both of these wll be prorate based on purchase date (just as the 2009 dues were prorated).
3. Resort Resolutions. Sonja Deese-Byrnres outlined the addition of a DME outpost for OKW. This will be located adjacent to the present Bell Services storage area and across from the Bell Stand. It will cost an additional 0.05 per point mostly covered by the reserve fund - resulting in a cost per point of .01 to members.
SSR will have an enlargement of the Paddock pool area - complete with waterslide. The pool will be almost tripled in size (to 3300 sq. ft.) with a 146 ft "curly" waterslide and a quick service dining option will also be added there. It will be a zero entry pool. The expense will be 0.41 per point with most covered from reserve funds resulting in additional cost of 0.11 per point covered by members.
At both resorts, future maintenance and support for these improvements will come from the operating budget.
All motions passed and the meeting was adjourned at 1:22. The member's Meeting will be convened at 2:00pm.
Jim Lewis began the Member's Meeting prompty at 2:00pm. At the Board meeting there were about 150 members present. That number has swelled to about 600 members for the Member's Meeting. The room was filled with some standing in the back. This meeting included interactive broadcast to include board members in CA.
Lewis began by introducing the board members present - which included all those who were part of the earlier meeting plus Jeanette Greene (voting representative for WDW
DVC resorts) and, from VGC, Lorraine Roe (voting rep for VGC) and Terry Furr (Hotel Rep from GC) via satellite connection.
As earlier, McGowan verified that proper notification for the meeting had been provided to members.
Motions wer made to include include CA representatives with other Board positions in the future. Current Board members were nominated for re-election for 2010 (Lewis, McGowan, Smith, Chang and Neiman) with Lewis and Chang as member representatives and McGown, Smith and Neiman as Developer Representatives. These motions passed unanimously.
Sonja Deese-Byrnes (DVC Resorts General Manager - and also GM for both OKW and SSR) explained the Resort Renovation at OKW and SSR passsed earlier.
Lawrence Smith presented the 2010 budget for each resort followed by a Q&A session for comments/questions realated to the budget. Lewis commented that DVC has never had a special assessment at any resort. He also showed data that DVC CAGR increases have been 6% over the past 5 years as compared to 12% as the industry average.
Questions included :
a comment/question about that statistic - that even though DVC may be well lower than industry the increases are still well above inflation and the CPI. Smith explained that the primary component of our dues is employee costs which are higher than inflation or CPI. Lewis interjected that they are aware of the need to maintain costs and strive towards that goal.
I asked about the current status of the loan provided by DVD to the HH owners needed to accelerate the reserve fund to cover needed repairs ahead of schedule. This was approved back in 2006 and caused a significant dues increase at that resort beginning in 2007. The loan will be paid back to DVD at the end of 2012, at which time HH dues will be reduced by the amount of the loan payment.
A member asked about averaging dues over all DVC resorts since points may be used at all resorts. Smith/Lewis explained that this is a common discussion within DVC and at this time they feel strongly that each resort needs to maintain it's own budget covered by the deeded owners. Lewis suggested that could change in the future, but no plans were in the works to accomplish such change.
Another member asked about perks (including Valet parking) and that was tabled until after the budget questions were complete.
A question was asked about the Transportation Budget at DVC resorts - with comment about inadequate service. The explanation was that DVC reporesents 15% of all WDW accommodations and share in transportation costs with all other resorts. Lewis indicated DVC would "look into" transportation issues.
A question was asked about cash rentals - regarding lack of DVC availability while cash availability remained and how do members benefit from that. The brief explanation was that members benefit from Breakage Income providing 2.5% of the operating income. No deeper explanation was offered about different inventories.
Another question was in regard to possible self-insurance by the resorts. Smith explained that is not practical.
The final Budget question asked about the 2.1 million $ front desk budget at BCV specifically being excessive and the response was that each resort strives to maintain costs as much as possible.
Following the Q&A session, the motion was passed unanimously by the board.
The next speaker was Steve Brettholtz (CPA) who explained the audit process for DVC and the fact that the recommendation by his firm was that the audit showed proper management. (This was a long, fairly technical explanation resulting in a significant bathroom break by many.)
Chris Stewart (Director of Legislative Affairs and Business Affairs) gave an overview of the American Resort Developers Association (ARDA) and what that organization offers to timeshare owners. Jim Lewis is president of that organization. They mentioned that any contribution from DVC members is voluntary unlike some timeshares. ARDA also supports a Political Action Committee (PAC) - lobby organization who strives to be the voice for timeshares regarding taxation of exchanges, etc.
Lewis added comments that DVC has not invested reserve funds in equities and has thus remained in good financial status unlike some other organizations. He offered comments about comparing DVC costs to current room rates and gave example of 1991 - when CT Tower rooms were $200 per night - they are now $300-400. Even though there have been some discounts offered by WDW, DVC will still remain a better bargain in the long run.
He added comments about the discontinued Valet perk for DVC members. Valet service was "owned" by a third party (not resorrts) who provided the free service to DVC members. When that contract was renegotiated this year, the 3rd party is no longer willing to offer than. Lewis stated that DVC will negotiate with the 3rd party for a possible discount. (It sounds like some discount will be forthcoming - but not a return to "free" in the near future.)
Lewis also commented about the RCI relationship stating that DVC is very pleased with RCI. The percentage of exchange matches - both instant and within 24 hours - has increased 44% over prior years with II and , at this time, 60% of exchange requests find matches within 24 hours.
This portion of the meeting adjourned at 3:15 at Lewis immediately launched into the next session when he was (rudely) interupted.
Thee interuption came from an apparent close relative (at least personality-wise) of spokeswoman Deevy Cee. His name was Presston D. Buttons, a Hollywood Director - complete with clothing appropriate for the Boulevard at DHS. He ordered that the first "scene" had been fine and that now he wanted to recruit Lewis as the star of the next scene. He was casting Lewis as the head of a timeshare group (
) and called in costuming and make-up to provide an appropriate look for the scene. Lewis was outfitted in a faux snake skin suit and hat. Moments later, after a phone call, he announced that Lewis needed to play a supporting role since 2 stars had been signed for the lead role - and introduced Mickey and Minnie. After a few moments Buttons recast Lewis in thee lead role again explaining that the stars were not allowed to work more than 3 minutes every hour. Lewis went to costuming again and returned dressed for a Hawaiian Luau. During his brief abscence, Buttons coached the audience to chant "We love you Jim" when "action" was called for the scene to begin - suggesting the audience do this "even if you don't like the Valet situation - but expecting that Lewis can negotiate it again for $11.50". There was some inclusion of members including a great spontaneous solo presentation of Zip-A-Dee-Doo-Dah by one DVC member.
At about 3:30 the program resumed with the "proprietary" portion offered by Leigh Anne Neiman which included sneak previews of "Alice in Wonderland" - starring Johnny Depp as the Mad Hatter, directed by Tim Burton (release date March 5, 2010 and "The Sorcerror's Apprentice" - starring Nicholas Cage in the live action movie produced by Jerry Bruckheimer - July 16, 2010 release. A trailor of "The Princess and the Frog" was also offered.
She next mentioned the Hands-on Network program offering free park passed in 2010 in exchange for volunteer service. (DisneyParks.com)
Comments about the opening of Kidani, THV, BLT and VGC were made along with the success of Doorway to Dreams in Chicago and on Long Island (look for more of these in the future).
A look at Ko Olina was offered including a video presentation from Joe Rohde, Imagineer for the project - who also headed the AKV project.
Next, Renee Langley (Director of Public Affiars for DVC, ABD and
DCL) gave a presentation about upcoming events for DCL (new ship, Disney Dream, launches in 2011 moving the Wonder to the west coast for summer cruises to Alaska and winter cruises to the Mexican Riviera in 2011.
Next, Sonja Deese-Byrnes provided a DVC resort overview:
OKW - new airline desk
SSR - Paddock Pool upgrade
Disney is listed as #3 for Greenest company in America.
Kidani - Builder Excellence Award from ABC (American Builders Corp.)
VB - Large Company of the Year for their employee volunteerism by the county.
DVC Member Surveys - "Excellent" or "Very Good"
Overall Member satisfaction - 90%
Member Services Satisfaction - 91% (2% increase from 2008 surveys)
Member Accounting - 89% (same as 2008).
Lewis indicated they are still not satisfied and continue to work to improve in all areas.
Mark Todd (Director of Resort Development ... ) described green/cost saving measures being undertaken - including replacement of incandescent bulbs with high efficiency CFC light bulbs, A/C replacement (as needed) with high efficiency units and "Free" energy for hot water at VB from installing solar panels which produce 40% of the hot water needed at the Inn.
Resort GMs were asked for an overview of 2009 and projects for 2010:
VB - Cheryl Koenes - 09 - Htng/AC improvements, soft goods refurb, sleeper chairs in all 1/2BR villas, internet in all rooms. 2010 - replce pool pump, refinish slide, update mini-golf.
HH - Paul Hart - 09 - Complete 3rd phase of exterior renovation, replace sleep sofas, flat panel TVs. 2010 - re-roof Mercantile, new playground bldg 24, new lighting Big Dipper Pool.
BWV - Dave Vanables - 09 - refurb outside facade, resort refurb of rooms (complete in 2/2010)
VWL - Doug Ford - 09 - Replace bedspreads, curtains, new pool furniture, refurb rocking chairs in Carrollwood Pacific Room. 2010 - new drapes, sheers, complete CarrWood Pacific refurb, MP3 clocks
BCV - Mim Flynn - 09 - refurb of all soft goods (carpet, bedding) , flat screen TVs. 2010 - exterior prehab, replace balcony furniture.
AKV - Kim Marinaccio - 09 - exterior building paint, covering walkway to bus stop. 2010 - Jambo - main pool rehab.
BLT - Thea Sargent - 09 - Opening 1 month early. 2010 - complete lighted jogging trail - ~1 mile, add fire pit near marina.
VGC - Jason Alexander - 09 - Opening.
OKW - Sonja Deese-Byrnes - 09 - fitness center rehab, replace playground equip, leisure pools rehab, awniings all bldgs, painting completed in 14 bldgs. 2010 - MAJOR REFURBISHMENT - begin spring 2010 - will take about 1 year. New drapes, interior painting, wood floors in areas, flat screen TVs, main pool refurb, airline center addition.
SSR - Deese-Byrnes - 09 Refurb HRS pool. 2010 - replaces soft goods, upgrade Paddock Pool.
Marci Reed - Manager Member Services - 09 - Online check-in, internet access at all DVC resorts. Coming in 2010 - Email confirmation of reservations, sending guest confirmation to guests instead of members, accepting multiple credit cards for room charges, securely keep credit card info on file (if desired by members), paying for
DDP at time of making the reservation and ... ONLINE BOOKING in the "NEAR" future - reportedly being phased in beginning fall of 2011.
Perks - member discount for Disney Family Fun Magazine, Merry Member Mixer.
This concluded the official reports from DVC. At 4:35pm the floor was again opened for Questions/comments from DVC members.
?? - Why don't DVC members have access to RCI perks offered to other RCI members. Lewis promised to "look into this" and see what could be done.
At this point there was a line of about 10 waiting for the microphone. I had wanted to ask when we might expect the 2011
Point Charts, but we had a dinner reservation for 5:10 at Ohana and had to leave. I noticed that DVC Mike has also included his report from the meeting. Hopefully he can fill in the holes in my comments.
This was, by far, the longest DVC Annual Meeting of the 8 or so I've attended. Certainly, some economy of time could be instituted at future meetings or at least have a morning session for the Board meeting and the member meeting after a lunch break. ( .02 )
If there are any questions, please ask.
