Grand Summit Resort COVID-19 SUBJECT TO CHANGE
1) How are revenues of Grand Summit Resort calculated and what is the break-even on the HOA?
a. The Grand Summit HOA revenues are comprised primarily of HOA dues. Locker fees and
occasional non-recurring events, such as the sale of a repossessed unit, are minor
components.
b. The fiscal year of the HOA runs from May 1 through April 30 of each year. The budget is
ratified by owners and results are announced each year, prior to the HOA’s fiscal start.
The budget is prepared to project a break even based on HOA expenses. Therefore, the
HOA dues are based on the HOA’s projected expenses. Occupancy does not factor into
owner dues, except for the impact from variable expenses borne by the HOA such as a
portion of utilities.
2) Can our budget be amended during the fiscal year?
a. The EXB has reviewed our by-laws several times, and the HOA does not have the ability
to lower/change a ratified budget. At the end of the fiscal year we do have options
regarding shortfalls and surpluses. As we do not know how long the current situation
will last, or what extra expenses we may incur due to Summit County operating
guidelines, we do not know what savings will be garnered.
b. The Board has tasked All Seasons, the HOA management company, to draft budget
contingency plans based on reduced occupancy and will review it thoroughly once
received.
3) Can reserve funds be used to fund the operation of the Grand Summit?
a. No. The Declaration states ‘The Association shall establish and maintain a separate
reserve fund for maintenance, repair, and replacement of those parts of the
Quartershare Units that are anticipated to require maintenance, repair, or replacement
on a periodic basis.’ There is a similar clause for the common reserve. So, the reserves
cannot be used for operating expenses.
4) Can there be unexpected costs in the future?
a. Yes. We do not know what additional requirements will be stipulated by Summit
County. Vail and All Seasons have been in close contact with the county health officials
and we continue to closely monitor the situation.
5) What if Owners cannot pay their dues?
a. The Board is empathetic to the financial burden the pandemic is placing on people,
notably our owner community and resort partners. All possible cost cutting measures are underway. Specifically, all variable costs that can be cut have been cut or are in the
process of being cut.
b. In accordance with Section 14.5 of the Declaration, owners are charged 18% annual
interest on overdue accounts. If the delinquency persists, the HOA can take other
action, including garnishment of rental income and prohibiting owner use of the unit.
6) Will CVMA (entity that manages the Canyons Village) give us a discount?
a. The Board approached them last week and awaits their response.
7) Will All Seasons (our management company) give us a discount?
a. The Board approached them in April and awaits their response.
8) With the front desk closed, do we have security in the building?
a. Yes. We now have 24/7 security for our building. This was not a budgeted expense.
9) Is the pool open?
a. As per Summit County regulations, the pool and hot tubs are closed for the near term.
10) Is the gym open?
a. As per Summit County regulations, the gym is closed for the near term.
11) Does the HOA qualify for monies under the CARES act?
a. The HOA does not employ any workers directly and therefore cannot apply for the
Payroll Protection Plan funding. We recognize that some owners may have purchased
units purely as an economic investment and not a quality of life investment. We urge
those owners to reach out to their tax advisors to learn about remedies that may be
available to them as an individual/business.
12) What is the status of our HOA insurance?
a. Unlike auto insurance, facility insurance is not being discounted. The Board received
three insurance quotes and was pleased to receive coverage as per our budget. Last
summer’s fires in California and the recent earthquake in Utah were cited as reasons for
rate increases.
13) Do we expect to see savings on our utilities?
a. We approached our natural gas provider for a discount, and they declined as we have
agreed to an off-take agreement with them yielding our bulk discount. Regardless, we
do expect natural gas, water, sewerage, and electric costs to go down. We have cut
refuse removal to only when requested.
14) Has HOA staff been reduced?
a. Five staff positions remain open and will only be filled once the hotel is reopened. We
have staff onsite to ensure compliance with Summit County health regulations.
15) What maintenance work is being done?
a. The maintenance team has been doing standard shoulder season repair work, including
painting, plastering, and touching up wood-work throughout the building. As per Park
City Fire Department regulations, we are installing 900 alarm speakers and strobes. The
unit door lock replacement will start in June. The fail rate has been going up and
replacement parts are no longer available. The pool was drained/cleaned plus LED lights
were installed and heaters replaced. Air handler preheat replacement has been
completed.
16) While the hotel is closed, can owners use their units?
a. Yes, but realize there are no services being offered in the building. Summit County has
tried to dissuade second homeowners from coming to Park City, but they have not ruled
against it. Vail Resorts will not be taking non-owner guest reservations for stays prior to
June 1 and that is subject to change. If you have an RMA agreement with Vail, there is
no unit rental revenue during the closure.
17) If we have questions should we email them to info@gsowner.com?
a. Yes. We also recommend you visit gsowner.com/news for periodic updates.