Minutes of the 30th Annual Meeting held at 1100 on Friday 1 April 2022 at St Mellion Estate, also via Microsoft Teams.
Present
Committee Members:
Andy Martin (AM) Chairman
John Dalglish (JD) Secretary
Joyce Bloom (JB)
John Boardman (JBo)
Colin Rayson (CR)
Sarah Yardley (SY)
St Mellion Staff:
Matthew Pressman, Resort Director, (MP)
Matthew Hole, Hotel Manager, (MH)
Richard Hazell, Finance Manager, (RH)
Time Owners Attending in person:
Ron and Ann Westacott; Paul and Sally Nash; Richard Green; Tony Laurillard;
Patricia and Bob Locker; Diane Voight; Bobbie Yardley; Lynn Rayson; Jenny Martin; Louise Dalglish;
Roger Bloom; Lesley Boardman.
Time Owners Attending Via Microsoft Teams:
John and Rosey Foster; Nick Hollister; Graham Martin; John Jones; John and Ann Penny; Vernon Crittenden; Graham Chivers.
Apologies for Absence:
George and Rachael Curnow; Ian and Jo Munday; Pat and Mike Heritage; Michael Luntley; Peter and Julie White; Peter and Sandy Gower; Dr Catherine Bowness.
Following the welcome and opening remarks by the chairman, the minutes of the 29th AM, held on 7 May 2021, were agreed and signed by the chairman. There were no matters arising. This covers items 1-4 of the agenda.
Agenda item 5 – Chairman’s Report
AM presented his chairman’s report to the meeting. This is attached in full at Appendix A. A presentation was made to outgoing committee member John Boardman, who had served on the committee as both secretary and chairman.
Agenda item 6 – Statutory Accounts
These were sent to all owners with the agenda for the AM. RH highlighted to the meeting the bad debt provision in the accounts and that this was an ongoing issue. Any exit fee income is a one-off benefit and results in a further need to consolidate lodges.
In response to questions about the success rate in debt recovery, RH answered that this was limited and that there were still 34 debtors, mostly comprising the same group of people for 2 years running. In response to a question about previous debt write-off, RH confirmed that a significant amount had been written off and he took an action to provide the exact figure.
Action: RH to provide figure of amount of debt write-off by St Mellion/Crown Golf.
Agenda Item 7 – St Mellion Management Report
Presented by MP, Resort Director, appointed in June 2021. MP introduced his management team of Matthew Hole, recently appointed Hotel Manager, with responsibility for Time Share too; also, Richard Hazell, Finance Manager, appointed late 2021. MP explained that St Mellion, along with most hospitality venues, has had difficulties during lockdowns, staff furlough periods and loss of staff, who have left the industry. He is still rebuilding the team at St Mellion. Challenges remain in filling positions and the impact of Brexit was considerable, with lots of comings and goings. Its impact is still being felt.
On the senior management side Stephen Towers and Dan Fulcher have left the business. Following some venue sales, Crown Golf now owns only 7 golf courses, plus St Mellion Estate. Pine Ridge remains responsible for the rest of the group. The reporting line for the St Mellion Estate has changed, with MP reporting directly to Australia and not via Crown Golf Head Office. Jeff Chapman is still involved but has taken a step back, leaving Greg Thomas (Chief Business Officer) as the direct contact. Other senior positions are now filled by Matt Rawlinson, COO of Crown Golf, and David Bence, the new CFO. MP is the sole UK board member from St Mellion PM Ltd.
Time Share is managed on a day-to-day basis by Stephanie Latham and comes under the hotel management team led by MH. Steph is part-time, though there is the potential to expand her role and it is also the intention that hotel staff should be able to handle Time Share queries. Mark Webster has recently resigned his position as Deputy General Manager but will be retained as a consultant to assist with Time Share in the future,
MP has persuaded Jeff Chapman, with support from the CBO, to authorise funds for a programme of refurbishment at the hotel, starting with the hotel cottages, due to reopen in April this year. The plan is to make St Mellion more appealing as a year-round resort, adding capacity to attract the family leisure market. In line with this family friendly focus selected new cottages will allow dogs – within strict guidelines – but not in Time Share lodges at this time. This is part of a 5-year plan, which will be presented to the Australian owners when they visit this summer, led by Jeff Chapman.
Time Share has always been a significant part of the business since the 1980’s and 2022 will define how that part of the business will move forward. Since the first ownership opt-out scheme was issued in 2018 the weeks owned by Time Share have reduced from over 900 to around 290, with almost 100 owners leaving in the past 2 years. The revenue generated by those 290 weeks is insufficient to cover normal operating expenses. With support from the committee in finding ways to save money, it has been agreed that the hotel will take over lodge 37, which was only occupied for 9 weeks in the year, moving these owners, where possible, into lodge 35. Even this saving will not guarantee profits, so for 2022 no refurbishments will be made to any of the lodges – just essential repairs. Time Share is likely to survive only by drawing on its reserves, to cover losses, and so we must find an appropriate way forward, which needs to be discussed in an open and honest format, with owners included.
To this end, we will be issuing written details to all owners by email during the next 2 or 3 weeks in April, which will include exit options.
In general discussion relating to this agenda item, MP stressed that further consolidation of lodges will probably be required to ensure viability, noting that currently only just over half the weeks available are contracted by owners. Responding to questions about the future viability and whether the group intended to take over Time Share, MP agreed it would make sense, at least in order to consolidate but was not sure at the moment what would happen. He assured another questioner that it was not the objective of St Mellion to get rid of Time Share; however, it needs to remain viable economically and this has been an issue since 2018.
Questions were raised about potentially advertising and letting out empty Time Share weeks. MP commented the hotel had not done this so far but it was a possibility. MP acknowledged a comment from Patricia Locker that there is now a difference in the ‘look’ of Hotel vs Time Share lodges following the refurbishment, which would have to be reflected in pricing and would result in 2 different categories of accommodation.
JBo queried how the hotel might handle any instances of noise on site late in the evenings, which is more likely if clientele staying in lodges are much younger and staying for shorter periods. MP explained that there will always be at least 2 hotel personnel on site during night time, so they would be able to respond. AM noted that there was work to be done in marketing empty properties, which he would be happy to discuss with St Mellion. Ann Westacott asked whether St Mellion make use of social media for advertising the resort: MP replied that they do but that response and take-up are slow. MP believes that holidaymakers are trying go abroad again in greater numbers and looking for family-oriented holiday packages (hence the new focus at ST Mellion).
Secretary’s comment; see Chairman’s report for costs of new hotel lodges available to rent following refurbishment.
Agenda item 8 – Election of Committee
Nothing to report. There are no changes to the current committee. However, please see the Chairman’s report at Appendix A concerning a vacancy.
Agenda item 9 – Questions and Answers
The following is a list of questions received from owners prior to the AM, with answers in italics from outgoing St Mellion Deputy General Manager (DGM). Discussion points during the meeting are recorded at the end of the list.
Q. Is it the intention to arrange the lodge golf competitions and afternoon tea, both of which really help to engage with timeshare owners and generate a community spirit? (John and Ann Penny)
A. I am sure we can look to reintroduce.
Post-meeting Secretary’s comment: St Mellion advised after the meeting that there were no funds available to continue this activity. The committee has taken an action to try and come up with a solution, as the feedback at the meeting towards holding these social events was positive.
Q. I should like to hear about the plans for the future of the Time Share village.
(Richard Green)
A. Please see Resort Director’s Report.
Q. The Government has provided significant furlough funding nationally and also Covid related grants via Cornwall C.C. to the hospitality industry. Can the Directors confirm that they have maximised every opportunity to benefit from these payments and passed all appropriately apportioned benefits into the SMPML accounts? (Michael Luntley (apologies for absence))
A. We are not able to cross-charge labour unless it is incurred, so during lockdowns labour recharge to timeshare has been limited to those managers and staff still working. Business Rates reductions have been claimed.
Following Questions 1-3 posed by Ron and Ann Westacott
1 – Leases
We purchased Lodge 4 Week 38 in 2002 and received a signed lease. In 2019, with agreement with Steven Moss, we transferred to Lodge 5 Week 38. On three occasions since the move we have requested a new lease specific to Lodge 5 complete with full terms and conditions. So far, we have received nothing and on the last request in September 2021 I was told that a lease is not necessary by Emma Leslie.
Surely this is incorrect, especially if we consider selling or transferring ownership to another party?
A proper contract will be essential between SMPM and any new owner.
My questions are:
a) Can we please have a new lease issued in our names for Lodge 5 Week 38 to cover the outstanding period of the lease?
b) After the consolidation activity were new leases issued to owners to cover the reallocation of the accommodation?
A. Issue of a new lease implies this is a new transaction, with applicable cooling-off periods, which do not apply to lodge moves. Emma Leslie was quite correct that new leases should not be issued.
However, a letter confirming the change of lodge and/or week should be provided to any owner changing either week number or lodge number, and this is the process we follow currently.
2 – BBQ’s
I note from the minutes of the last AGM (Owners questions) that BBQ’s would be available upon request. Surely all BBQ’s should be returned permanently to each lodge as part of the inventory.
Incidentally the BBQ’s in Lodges 2,4 & 5 I know were gas heated, not charcoal.
There is no problem with charcoal but it is dirty and we would like to know if the maintenance staff will be cleaning the BBQ’s between weeks. If not, then we should stay with the gas charged versions.
A. Gas BBQs were removed from service in 2019, when a number failed annual safety tests. These were replaced by new BBQs for all lodges – these are charcoal, and available again from week 14 this year.
3 – Management Personnel
There has been an inordinate turnover of SMPM staff over the last 4 – 5 years, we are a little confused now as to who does what as there is conflict between the last AGM minutes and the Annual Report & Financial Statement e.g.
a) The invitation to the 2022 AGM was sent by Mark Webster but according to the 2021 Minutes he resigned in September 2020.
b) Ian Wylie, according to the 2021 Minutes was nominated as Head of Destination effectively replacing Mark Webster, he resigned 20th April 2021 according to the annual report.
c) Howard Jones, according to the 2021 Minutes was nominated as Managing Director of SMPM, he resigned 30th April 2021 according to the annual report.
Some clarification is required here considering that all the resignations were effective before the AGM 2021.
A. All businesses change Directors and Management Team from time to time. Howard and Ian left prior to the hotel reopening in May 2021. Matt Pressman is now Resort Director and responsible for the whole Estate.
Following 4 questions posed by John and Rosey Foster
Q 1. What progress is being made to collect overdue service charge fees?
A. Debt is down from £96k in Sept 2021 to £46k in March 2022. 20 owners now owe 2 years fees, with most non-responsive. A further 13 owners owe for 2021 fees, with collection attempts ongoing.
Q 2. What is the percentage increase on service fees for 2022/23?
A. Annual increase in the RPI-Services index from Jan 20 to Jan 21 is 6.8% – the guide for annual increase, as detailed in MW letter attached to invoices.
Q 3. Is the 5yr break clause due in April 2023 protected? Is the charge for exiting going to be the same as in 2018?
Q 4. How many lodges are now within the Timeshare facility following the consolidation in 2018?
A. I am not sure exactly what ‘protected’ refers to. There is no formula set out for exit, in owner leases or in the Deed of Variation. In 2018 this was however 2x annual fees. 2022 & 2023 exit fees will not be that high but are yet to be set.
Q 1. Who is looking after Time Share at St Mellion? (Graham Chivers)
A. Details were enclosed in MW letter with invoices to all owners. Steph Latham is the owners first point of contact for all admin and enquiries.
2. We have an unresolved issue concerning our week in 2020, which was banked with RCI (but never confirmed by them) – and we got nothing for it. We really want this to be resolved.
(Graham Chivers – joining via MS Teams from Australia)
A. MW has spoken with Graham Chivers in Mid-March and his issue has been resolved successfully.
A detailed question was submitted by Peter and Julie White, querying if there was to be a programme of further upgrades to lodge 35, identifying a number of issues with the lodge fixtures and fittings, whilst acknowledging the current state of tight finances. The reply from the outgoing DGM echoes the points made in the Resort Director’s report and the Finance Manager’s comments at the meeting, namely that there are no planned refurbishments in the foreseeable future, on account of the current financial position of the Time Share scheme, showing losses for both 2021 and 2022 (projected), after taking bad debts into account. Unless further consolidation happens (which would require approximately 40 owners with summer weeks opting to move to spring or autumn weeks) involving a reduction by a minimum of 3 lodges, a return to profitability is unlikely. The likelihood of further owner exits in the next break year (2023) would further reduce the funds received by the scheme.
In discussion of the owners’ questions, the following points are of note:
Leases – JB pointed out that the original leases were specific to lodges and relevant weeks, therefore any change of ownership of a lodge week should be formally recorded in the original lease and issued to the new owner to reflect such a change legally. Similarly, any lease held by an owner whose Time Share week and lodge had been changed, should be surrendered and the owner receive the original lease pertaining to their newly assigned week and lodge. This view was supported by Patricia Locker, who stated that any change of week and lodge allocation should be recorded in a continuation of the original lease dating from the first owner. MP agreed that the current situation looked anomalous and promised to investigate.
Action: MP to look at issue of leases with a view to ensuring the correct legal treatment of Time Share leases is applied.
Debtors – AM asked if there was a way of St Mellion taking the lease back from an owner, who refuses to pay the annual service fee. It should be feasible, according to the terms of the lease. This would free up the week in question for someone else to purchase. MP said that he would talk to Nexalaw, the company responsible for handling debts on behalf of St Mellion.
Action: MP to discuss with Nexalaw.
BBQ’s – Ron Westacott challenged the statement that BBQ’s had been withdrawn from the lodges on grounds of failing safety tests, stating that they had been withdrawn, along with several other items from lodge inventories, at the start of the Covid-19 pandemic. MP said he would need to check on status of BBQ’s (they will be issued this season), commenting that they would need to be returned for cleaning between occupancies. CR identified a line entry in the accounts, which confirmed that provision of charcoal is in the budget, so will be provided by St Mellion to lodge owners.
Lodge 35 – echoing the issues raised by Peter and Julie White, Patricia Locker commented on the poor condition of much of lodge 35. JB raised the related point about lodge 37 having been modernised under the last lodge refurbishment schedule using Time Share funds. This lodge has now been taken on by the hotel with no recompense for the refurbishment coming the way of the Time Share community. Ron Westacott mentioned that there is vegetation growing out of some of the lodge chimneys, which, if left unattended, could lead to structural problems. MP noted the above comments.
Agenda item 10 – AOB
Patricia Locker asked about exit fees. Is Time Share getting a proportion of the money arising from consolidation? AM replied that Time Share does receive a share of the proceeds.
Agenda item 11 – Closing Remarks
The Chairman thanked everyone for coming and for their participation. The meeting finished around 1215.
Post-meeting note – a number of owners attending the meeting via MS Teams reported that they could not hear the proceedings, apart from those sitting on the committee table. The committee acknowledge and apologise for this. We shall find a way of ensuring all participants can hear any future virtual meetings, also to monitor the screen for any ‘live’ feedback during proceedings.
John Dalglish (Secretary)
Appendix A
ST. MELLION TIME OWNERS COMMITTEE
CHAIRMAN’S REPORT ANNUAL MEETING
Conducted face to face at St Mellion Estate and via Microsoft Teams
Friday 1st Apr 2022 at 11am
The last year has been turbulent for all of us due to the pandemic. With the lifting of restrictions St Mellion is in a much better place and ready to welcome timeshare owners for their holidays this year.
To remind everyone, the Committee’s principal responsibility is to represent the views of current Owners at St Mellion so it has been a very busy year with you communicating through our website www.smtoa.co.uk (Please register if you haven’t already for the latest news).
Since my last report in May 2021, St Mellion management has become stronger with the appointment of Matt Pressman as Resort Director and Mark Webster as Deputy General Manager (Welcome back Mark). Matt reports directly to Jeff Chapman who is still at the helm in Australia. There has been a change of direction issued to St Mellion management with plans to upgrade the hotel accommodation and its facilities over the next 2 years.
Construction of new buildings, in particular any new lodges as envisaged under Phase 1 of the new development, is not going to happen in the near term.
The current aim is to retain golf as core business and to extend the scope for hosting that during quieter months by improving overall facilities. This has resulted in a £2million investment in the upgrade of the hotel lodges which will be available for rent early this month. Looking on Booking .com week 16 (which this year coincides with Easter). A 1-bedroom cottage is quoted as £2,122 and a 3-bedroom cottage is between £2824 and £3108 for 7 nights. This obviously does not include golf or breakfast, so makes the timeshare owners fee for the week look very good value.
We have been very proactive on your behalf and at every committee meeting requesting resolution to the following outstanding financial issues with St Mellion.
· Reconciliation of Exit Fees
· Access to and report on fee arrears
· Justifying administration costs attributed to St Mellion Property Management Ltd
St Mellion has engaged a legal company (Nexalaw). There is a total of around 35 people, who have not paid over 2 years. Action is in hand with Nexalaw, as legal letters are being sent by way of follow-up to the non-payers, who have not responded to demands
Appendix A
for payment from the resort. No owner would be allowed in unless they had paid their dues.
I am pleased to say SMTOA is in a much better place for the following reasons: –
· Statutory Accounts for year ending 31st March 2021 have been circulated in time for this meeting.
· Richard Hazel the new Finance Manager is circulating quarterly management accounts to each committee meeting so administration costs can be reviewed. Reconciliation of exit fees will also be reviewed on a timely basis.
· All timeshare leases are held at St Mellion so queries can be answered promptly.
The occupancy grid is regularly being monitored and an action plan is being formulated by St Mellion to promote vacant weeks. This is important as currently there are 289 timeshare weeks taken and if this drops below 200 weeks the financial viability of the scheme comes into question.
Committee Changes
As Chairman I would like to thank all the hard work of your committee during these challenging times and especially John Boardman who is leaving at this Annual Meeting after 8 years of giving valuable service as Chairman, Secretary and finance questioner. I have pleasure in presenting a small gift to John in recognition of his outstanding contribution to the committee.
Therefore, we now have a vacancy on the committee so if anyone is interested in finding out more, please contact me or John Dalglish and we will go through what’s involved.
Finally, I can confidently say the last two years have been challenging for St Mellion but now it has a bright future under new management and new investment to be a premier staycation destination for people to love for many years to come.
Andy Martin Chairman, St Mellion Time Owners Committee 4 Green Farm Close Castor Peterborough Cambs PE5 7BE
andy.martin@btinternet.com