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Welcome to Pollard Brook Owners Association

Annual Owners’ Meeting

Welcome and Introductions

• Resort Team

• Board Members

• Management Team

• Legal Counsel

Today’s AgendaI. Welcome, Introductions, Call to Order

II. Approval of Agenda

III. Approval Previous Annual Meeting Minutes

IV. Message From The Board

V. Elections

VI. Management Reports

VII. Budget/ Finances

VIII. Communications and Interactions

IX. Election Results

X. Open Discussion – Q & A

Approvals- Motion to approve Today’s

Agenda?

- Motion to approve previous annual meeting minutes

Message From The Board• President: William Scanzani

• Treasurer: Dennis Ducharme

• *Secretary: William (Billy) Curran

*Incumbent

2016 was a Milestone Year…2017 was even Better!

• For the second time in our existence, we ended 2016 with a small positive Operating Balance and did not use any funds from next year’s maintenance fees.

• 2017 is on track for a similar positive financial operating position and 2018 should also be positive.

• We’ve done this with only incremental increases in maintenance fees (reserves mostly) and at the same time made many improvements to resort amenities and owner/guest services at the same time.

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• We have an aging resort with older infrastructure and a spread out footprint

• We continue to make major renovations and updates

• We are making excellent progress

• Good and bad – Good: Occupancy is up & reserve spending is up

– Bad: We have less units available for renovations and our available window for large projects that take time is smaller and smaller every year

2017 Continued Progress- The Facts Last Year - 2017 Continued Progress• Balanced operating budget and cash-flow

• Continued Improvement of guest experiences through memorable activities and renovated facilities

• More flexibility in accessing different unit types to support aging owner base with handicap accessibility

• Adding product support and education for new owners and existing owners alike

• More Focus on flexible payment options for owners

• Ongoing major improvements in units (Bathrooms/Kitchens)

2017 Year – Financial Stability• For the 2nd year in a row, we should end 2017 with

a small positive Operating Balance and will not use any funds from next year’s maintenance fees.

• 2018 looks to be on track for a similar positive financial operating position based on our conservative budgeting practices.

• All spending is carefully planned and approved by the Board.

• Joel and Frasier have 2 bibles. One they go to church with and the other is our Capital Improvement Plan.

2017 Continued Progress• Balanced operating budget and cash-flow – STABILITY!

• Be A Genius: Our new Owner Training Program has launched!

• Improving the guest experiences through memorable activities and renovated facilities

• Flexibility in accessing different unit types to support aging owner base – ELEVATOR in the works!

• Focus on flexible payment options of owners

• Ongoing major improvements in units (Bathrooms/Kitchens)

Major improvements in the last 3 years• Porta Cache replaced at the entrance

• The main driveway and parking lots have all been repaired

• The Wi Fi has been dramatically improved and there are no

dead spots or slow internet issues anyplace in the resort

• The Main Outside Pool, Inside Pool, the Jacuzzi, and

Kiddie Pool have all been redone or resurfaced

• All Kitchens have been updated

• Bathrooms are being done now.

• The Men’s locker room and showers have been completely

redone.

• All TV sets in the resort are now Hi-DEF Flat Screen TV sets. (Time Warner you promised but haven’t delivered) No Hi-DEF line yet.

• We are updating the landscaping on the grounds with new plantings and trimming of overgrown trees etc..

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• Pollard Brook is one of only a few resorts that has a balanced budget.

• We have made a good dent in known long term improvements that we know have to be made with well planned reserve spending

• We continue to budget and spend conservatively.

• The industry is finally catching up to my way of thinking on investing maintenance fees as other businesses can.

• Just want to remind you I’m up for re-election next year and have no clue what I’ll have to talk about.

Board Elections

Election Process • Your ballot will replace your Proxy (if

mailed)

• For Annual Usage owners, your Ballot will count for one vote for each interval you own

• For Biennial Usage owners, your ballot will count for one-half vote for each biennial (odd or even) interval that you own.

• We will elect One (1) board member

Background: Founder and CEO of InnSeason Resorts. A sales and marketing executive for more than 28 years he is also the founder of Curran Management Services, Inc., a successful family owned marketing business based on Cape Cod. This nationally recognized telemarketing business currently has offices in both Massachusetts and New Hampshire. In addition, he has developed six spectacular resorts in New England that together employed more than 350 people at one time.

Objectives: To work with the board to ensure the long term financial stability of InnSeason Resorts PollardBrook while maintaining its distinctive level of accommodations and services.

*Incumbent

Election Candidate William “Billy” Curran *

Interval Week(s) Owned: 1 week Winter Red Time (Float)Education: Associates Degree in Nuclear Medicine

Qualifying Experience: Time share owner for 28 years. Own another timeshare. Ex-military (U.S. Navy),maintenance experience and HVAC mechanic 20 yrs ago. Grew up in Vermont on a dairy farm. Conservativepersonality.

Objectives: I believe a timeshare should control costs but should have modern amenities and maintained andupdated. Every timeshare owner should be proud of their resort but cost increase should be contained withemergency funds available.

Election Candidate Roland Robillard

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Innseason Resorts Pollard Brook

Operational Report 2017Fraser Kirkpatrick – Assistant

General Manager

Occupancy – What’s happening?• Overall occupancy trending up to 75.6%

in 2017 from 71.6% in 2016. Representing a 4% increase year on year.

• In 2013 we had 54% year round occupancy figure, that has since increased to 75.6%, a remarkable jump.

• March, April and May have seen the biggest jumps in occupancy.

2016 2017

Month Occ. ShowsAvail Units

% Occ % Held Month Occ. Shows

Avail Units

% Occ

% Held

% +/-

Jan 2664 526 4123 64.6% 77.4% Jan 2900 229 4061 71.4% 77.0% 8.9%Feb 2822 397 3799 74.3% 84.7% Feb 2955 186 3668 80.6% 85.6% 4.7%Mar 2628 534 4061 64.7% 77.9% Mar 3028 216 4061 74.6% 79.9% 15.2%Apr 2260 594 3930 57.5% 72.6% Apr 2518 204 3930 64.1% 69.3% 11.4%May 2944 369 4061 72.5% 81.6% May 2757 224 4063 67.9% 73.4% -6.4%Jun 3128 167 3930 79.6% 83.8% June 2889 212 3930 73.5% 78.9% -7.6%Jul 3565 56 4061 87.8% 89.2% July 3575 73 4061 88.0% 89.8% 0.3%Aug 3400 88 4061 83.7% 85.9% Aug 3540 145 4061 87.2% 90.7% 4.1%Sep 2917 128 3930 74.2% 77.5% Sep 2870 62 3930 73.0% 74.6% -1.6%Oct 2977 207 4061 73.3% 78.4%Nov 2504 242 3930 63.7% 69.9%Dec 2544 272 4061 62.6% 69.3%

TOTALS 34,353 3,580 48,008 71.6% 79.0% TOTALS 27,032 1,551 35,765 75.6% 79.9%

Why is our Occupancy Increasing?

• Move to selling RCI Points in Mid 2014.

• Consistent delivery of great experiences…Owners, Exchangers & Renters across CSI Reports and Trip Advisor alike!

• Resort improvements – The Board has done an excellent job on the finances of the resort, and have thus been able to invest more into Capital Expenditure.

• Support to our Owners has improved; payment plans, flexibility on room locations and now the Timeshare Genius Program.

• Rental Marketing and Online Travel Agencies (OTA’s).

Rentals• Improving on Rentals through

2017

• Online Travel Agency (OTA) having a great effect on rental nights

• With increased rentals, comes increase in cost.

• Housekeeping Labor and Supplies adjusted accordingly to meet the demand.

Front Desk Improvements• Pre Arrival calls/emails prior to check-in, contacting

exchangers prior to arrival

• Proactive special request handling – ei, ground floor

• Email activity flyer ahead of arrival, so guests can look forward to the planned excursions and do their research

• Started welcome call program after guests check-in

• Improved rental oversight

• Promotion of Megan Wigley to Assistant Front Desk Manager

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Housekeeping Improvements• Introduced Standard Sunday Pay Rate

• Prioritize Owners units first on a Sunday

• Buffed all of the concrete walkways on property

• Started Room evaluation reports

• Promotion of Irene Caya as Assistant Executive Housekeeper

Engineering Improvements• Improved Landscaping areas around

property, adding several areas, and planting seasonally.

• Seasonal lightning on Driveway

• Decks have been replaced with a synthetic wood composite (goodbye rust and rot). Working on all decks on property

• Analysed all snow guards on the roofs around property. Replaced many

• Several in room Hot-tub replacements in Phase 6 and around property all installed from our own staff

Activities Improvement• Added a music man, acoustic guitarist

every week

• Added a DJ by the pool for the summer months

• Changed many of our trips and excursions that we do, and added in new exciting crafts, with emphasis on seasonality

• Adding a 2nd full time Activities Assistant for 2018.

• Added concierge time for that personal touch

Miscellaneous Operational Improvements

• Payroll System Updates - Finger print punch-in removes any card issues and buddy punching.

• ERS Energy Master Planning Audit – This will be implemented soon with a fast ROI.

• Updated the Guest Laundry Equipment

2017 Capital ImprovementsCapital Spending

• We read every single comment card that gets submitted.

• I personally keep track of complaints and requests.

• We try to formulate a capital budget plan which takes into account your feedback.

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$600,000

$650,000

$822,541

$670,101

$453,400

$659,442

$441,575

$436,543

$850,744

$403,742

$385,280 $337,828

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000$700,000

$800,000

$900,000

201820172016201520142013201220112010200920082007

Reserve Spending

Year

Reserve Spending

• Men’s Locker Room for remodel

• Jackman remodel, carpeting, painting, furniture and artwork

• 5 New Bathrooms in Mount Washington

• All new Flat Screen HD-TVs in all Master Bedrooms

• Pemi Building furniture update and artwork.

Men's Locker Room Jackman Remodel

Mt.Washington Bathrooms Master Bedroom Flat Screen TV’s

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Pemi Furniture Upgrades

For The Upcoming Year

Main Building Elevator

Will be able to serve 32 units connected to

the main building.

Streamside Appliances

New Sliders for all loft units

HD Fiber Optic Cable Service

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New Beds and Triple Sheeting for

Woodland and Liberty Buildings

Woman's Locker Room

Customer Satisfaction IndexStephen Furrer

Customer Satisfaction Year-Over-YearStephen Furrer

Question 2017 2016 2015 2014 2013 2012Vacation Experience Rating 90 89 88 90 88 89

Core Deliverables Rating 94 94 91 93 92 92

Amenities Rating 90 90 88 91 89 89

Friendly Service Rating 94 94 92 94 92 95

Guest Satisfaction Rating 92 92 91 93 92 91

Customer Satisfaction Index YTDStephen Furrer

Items RCI IIVacation Experience 92% 95%Resort & Area 92% 92%Resort Accommodations 91% 87%Guest Service 94% 92%Overall 92% 92%

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Financials +Stephen Furrer

• 2016 Review• Delinquency• 2017 YTD• 2018 Budget

Year End 2016Stephen Furrer

Area 16 Actual 16 Budget$ Diff

(Unfavorable)Operating Income $3,817,381 $3,580,015 $237,366 Payroll $1,575,270 $1,608,961 ($33,691)Operating $743,816 $898,975 ($155,159)General & Admin $855,256 $848,273 $6,983 Bad Debt $246,233 $223,812 $22,421 Net $396,806 ($6) $396,812

Area 16 Actual 16 Budget $ DiffReserve Income $596,759 $601,933 ($5,174)Bad Debt $48,254 $42,532 $5,722 Reserve Expense $822,541 $559,395 $263,146 Net ($274,036) $6 ($274,042)

Bottom Line $122,770 $0 $122,770

Collections Review

11.80%11.70%

10.80%

18.80%

16.10%

19.10%20.40%

10.20%

11.80%

0%

5%

10%

15%

20%

25%

2008 2009 2010 2011 2012 2013 2014 2015 2016

% D

elin

quen

t

Year

Delinquency

Fighting DelinquencySteps being taken:

- Pre-Payment Plans- Late Payment Plans- Internal Collection Efforts- External Collection Efforts- Renting Delinquent Weeks- Amnesty Programs- Deed-in-lieu- Foreclosure

2017 Year-to-date SeptemberStephen Furrer

Area 17 Actual 17 Budget $ DiffOperating Income $2,975,482 $2,721,123 $254,359 Payroll $1,282,450 $1,276,501 $5,949 Operating $551,690 $563,506 ($11,816)General & Admin $680,331 $668,864 $11,467 Bad Debt $186,068 $205,830 ($19,762)

Net $274,943 $6,422 $268,521

Area 17 Actual 17 Budget $ DiffReserve Income $456,890 $467,734 ($10,844)Bad Debt $32,824 $39,090 ($6,266)Reserve Expense $487,591 $428,644 $58,947 Net ($63,525) $0 ($63,525)

Bottom Line $211,418 $6,422 $204,996

2018 BudgetStephen Furrer

Area 2018 Budget 2017 Budget $ DiffOperating Income $3,800,811 $3,613,904 $186,907 Payroll $1,852,289 $1,699,743 $152,546 Operating $772,807 $755,230 $17,577 General & Admin $891,533 $871,492 $20,041 Bad Debt $284,182 $287,438 ($3,256)Net $0 $1 ($1)

Area 2018 Budget 2017 Budget $ DiffReserve Income $619,862 $622,384 ($2,522)Bad Debt $51,279 $51,581 ($302)Reserve Expense $568,583 $570,803 ($2,220)Net $0 $0 $0

Bottom Line $0 $1 ($1)

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2018 Fee ReviewStephen Furrer

YEAR UNIT OPERATING RE TAX RESERVES TOTAL % Per Night

2018 Fees ONE BEDROOM $479.11 $29.54 $119.45 $628.11 3% $89.73

TWO BEDROOM $621.10 $37.24 $129.36 $787.69 3% $112.53

THREE BEDROOM $703.70 $42.42 $161.47 $907.59 3% $129.66

2017 Fees ONE BEDROOM $482.34 $28.68 $98.79 $609.81 3% $87.12

TWO BEDROOM $620.19 $36.15 $108.40 $764.75 3% $109.25

THREE BEDROOM $700.39 $41.18 $139.58 $881.15 3% $125.88

2015 Annual Survey shows average fees at

$879 up 2% from 2014 $125.59

What We Spend On *Average Annually

Time Share $879

Coffee $1,092

Lunch $2,746

Cell phone $760

Pets $1,183

Beer $1270

Salon Trips $1800

Nails Only $572

Cigarettes $9200

*Google & ARDA

To RecapStephen Furrer

• Cash-flow is stable• Expenses are stable• Historical deficit down• Renovations happening consistently

and at a good pace• Satisfaction Scores are stable• Managing Delinquency and Default• Working to improve owner

experiences

Owner Support: Timeshare GeniusStephen Furrer

A genius is a person who displays exceptional

intellectual ability, creative productivity, universality in

genres or originality, typically to a degree that is

associated with the achievement of new

advances in a domain of knowledge.

full-time Team Members (Timeshare Geniuses)

o Dedicated to:o Welcoming new memberso Answering usage and travel related questionso Proactively contacting member who aren’t

usingo Conducting hands on training classes

regionallyo Conducting web based training classeso Updating and increasing educational materials

Owner Support: Our Goal

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Owners Inn

Available online now:• Administer personal account

• View demographic, contract, reservation and maintenance fee information

• Customized information and updates

Election Results

Open Discussion

• Please use the Podium and Microphone for all Questions

This Meeting and all other Open Meetings Will Officially Adjourn