Dear Fellow Owners,

There have been a number of recent developments regarding our property about which I, on behalf of the Board, would like to update our fellow owners.

Board of Directors Election

There were three candidate profiles submitted for the three open board positions. Such a low number of Board applicants has never happened before, and the existing Board is struggling to understand the messaging in this. Either everyone is happy with the job the current board is doing, or everyone understands the amount of work involved in a board position and decided to pass. In any event, the result is that the three candidates have been elected via acclamation.  Since we do not need to have a formal election, we will be saving $5,000.  Congratulations to Tim Hall, Peter Wells and Bruce Clay who all will have two-year terms starting November 15, 2023.

Unforeseen 2023 Expenses

We’ve had a few key projects come up this month, most of which were unexpected.

Mechanical projects | $45,000

  • The pump which circulates heat and AC in all the hallways and was rebuilt about five years ago has to be changed out.
  • We need to rebuild pump 3, which is what circulates water throughout the building.
  • The spray pump for the cooling tower, which is central to our heating and cooling system, is 18 years old and is now needs to be changed out. This part is what sprays water to cool down the fans. During the AC outage last August, we replaced the motor.

Hot tub repair | $50,000 
As Claudine mentioned in her recent letter to owners, our #1 hot tub was leaking.  What we hoped would be a small repair was not, and as a result, the tub needed to be ripped up so that the leak could be found, and then rebuilt.

Bats | $61,000 
If you have been reading The Aspen Times, you may have seen an article about the high numbers of bats in the downtown Aspen area. As it turns out those little critters found their way through the smallest cracks in our roofing system and were living in our building above the ceilings. They are a health hazard and have to be caught and removed. The area had to be cleaned, and some parts repaired. We moved forward with the least expensive estimate that we could find and this work has now been completed.

Redesign Underway
The two-phased refurbishment of the rooms started at the beginning of October. The third and fourth-floor units and the common areas are being done now, and the first and second floors will be done in the spring. We have learned very quickly that the beauty of our building with all its nooks and crannies and no two units being exactly the same, has turned out to be as much a curse for us, as it is a pleasure to look at/stay in. 

Timeline
Planning and pricing the redesign with all of the unique characteristics has been very challenging for the vendors working on the project. To make things worse, we have a very short window of 10 weeks to get everything done this fall, and only 9 weeks to get everything done in the spring. If even one key item is delayed, which other tasks depend on, it makes subsequent things impossible to finish on time.

On top of that, we have to work within our governance documents which only allow for the board to take time in two consecutive years (for us its fall 2023, and spring 2024). These short windows and a constrained budget mean that we cannot do a comprehensive refurbishment all in this rather limited time frame.  As a result, some things we had hoped to do will need to be deferred.  For example, we understood early in the process that we could not entirely redo the bathrooms. We will be updating the lighting, some new bath fixtures, and mirrors.

Air Handlers
We also have uncovered some very unique problems during our remodel. The plan was to replace all the “air handlers” in our units (that provide the heat and cooling in each unit). You may have never seen these before because they are mounted behind the ceiling and covered by a thick layer of plaster.  Each time one of these air handlers needed maintenance, the ceiling needed to be opened up, the unit serviced/repaired, and then the ceiling re-plastered and re-painted.  This creates a lot of work and a big mess as you can imagine, even to deal with only one. 

The air handlers are now at the end of their life. The plan is to replace all of these units during the room refurbishment, an “infrastructure need” that you might not see visually but that is absolutely necessary. This is a very dirty and rather complex job, so the plan is to replace these first so that the rest of the unit upgrades – none of which are as messy or disruptive – can be completed afterward.  In the future, the air handlers will have an access panel that allows maintenance to the units when needed so that this scenario is avoided.

Budget
The point is that this is just one of many things that need to be completed in a very short timeframe. The global pandemic slowdown on producing and shipping goods continues, and this has delayed some of our furniture deliveries into mid-December.  Lastly, you should know that the cost of the refurbishment will be well in excess of the money set aside over many years, as the combination of the passage of time, supply-chain disruptions, tight labor markets and inflation has sharply pushed up costs.  The excess cost will need to be funded with a special reserve/refurbishment assessment this cycle, which the Board is working on sizing now. 

Setting Expectations
So, what can you expect at the conclusion of phase #1?

We have a very capable general contractor (PCL) working multiple shifts. This fall we will be replacing as many of the air handlers as we can. All units will be getting a complete paint job. The plan is to replace all the hard and soft goods in the units, but PCL can only install the furnishings that are delivered. This means the units will not be 100% completed by December 9th. Units may have a mix of old and new furnishings for several weeks. 

Our staff will do their best to swap out old legacy furniture for new furniture as the new furniture arrives. Some of this can be done during housekeeping services, or scheduled at times owners will be out of your unit. It’s not a perfect scenario, but the very best we can do under the circumstances.          

As always, any member of the Board is available to address any queries or concerns you may have.

Best,

Al Kenney                                                                                                                                                                   
President, The Aspen Mountain Residences HOA Board
860-354-7979
al@bluewaterfractionals.com

Board Members and Owner Director Contact Information:

Joe Ferguson – jferguson@rjrcapital.com

Tim Hall – timhl9999@gmail.com

Tom Kaplan – tkaplan@kkladvisors.com

Peter Wells – petercwells@yahoo.com

Bruce Clay – bjc2115@gmail.com

Trust – Appointed Member to the Board:

Jami Champagne – Jami.Champagne@vacationclub.com

Dear Fellow Owners,

As we move quickly into the fall, I hope your summer went well and this letter finds everyone in good health and happy we will soon have cooler weather!

Annual AMR Board Elections:

Our annual elections are coming up in about a month and we are looking for anyone who might want to run for the board to submit their profile so they can be included in the upcoming election.

Please use the profile submission document you will find by clicking here or on our owner’s website. Three positions are opening up and each is for a two-year term. If you are interested in running for the board and would like to ask questions about the workload, feel free to contact me. Please submit your profile directly to Claudine Grondin, whose email address is at the bottom of the submission form. To be considered, your form must be received by October 13, 2023.

As always, any member of the Board is available to address any queries or concerns you may have.

Best,

Al Kenney                                                                                                                                                                   
President, The Aspen Mountain Residences HOA Board
860-354-7979
al@bluewaterfractionals.com

Board Members and Owner Director Contact Information:

Joe Ferguson – jferguson@rjrcapital.com

Tim Hall – timhl9999@gmail.com

Tom Kaplan – tkaplan@kkladvisors.com

Peter Wells – petercwells@yahoo.com

Bruce Clay – bjc2115@gmail.com

Trust – Appointed Member to the Board:

Jami Champagne – Jami.Champagne@vacationclub.com

Dear Fellow Owners,

I hope your summer has been going well and this letter finds everyone in good health and high spirits. I would like to update everyone on a few of the things happening at the property.

Hot Tub
The hot tub closest to the road has a leak and is currently out of order. We brought in a professional team to perform repairs, however, the issue is more extensive than originally thought. To avoid construction disruption during the busy summer months, repairs have now been rescheduled for the fall. For safety reasons, I just want to remind everyone of our most important hot tub rules concerning children.

Children age 6 and under are not permitted in the hot tub

Children age 7 to 12
• Allowed if they meet the minimum height requirement*
• Not wearing diapers
• Accompanied by an adult at all times
• May not exceed one 15-minute cycle

Children under 10
• Allowed if they meet the minimum height requirement* 
• Must avoid full body immersion in the hot tub: they should sit with at least half of their body out of the hot water at all times

*No child can use a hot tub until they are tall enough to have their head completely above water when they’re standing on the bottom of the deepest point of the tub.

Visit our New Pizza Bar
We are currently trying a different concept for our bar area. It’s more of an owner-centric setting with the hope of getting owners and their guests to the area for conversation, food, and drinks at some of the most reasonable prices in Aspen. We have a full bar serving wine, beer, and mixed beverages, and new pizza ovens for hand-crafted pizzas. We hope you give it a try soon!   

Weekly Owner Activities:
Susan and team have been working on ways to get our owners together to socialize and have fun. They have expanded the list of complimentary summer activities for owners and immediate family, and are available to guests for a fee.

• Historical downtown walking tour with The Aspen Historical Society
• Stand Up Paddle Board or tube float through North Star Nature Preserve with Aspen Adventure Company
• Tour of world-famous Smuggler Mine
• Private E-bike tour to Maroon Bells hosted by Susan

Program Use of Elite Alliance Exchange 
Owners using EA for exchange has continued to increase since last summer.

• 137 weeks have been deposited for points
• 48 vacations have been taken to 37 locations including Italy, Mexico & Bermuda
• 10% of our owners have used the program
• Some of our owners have even used the program to get more time here in Aspen!

If you have extra time in Aspen you will not be using, you may want to consider depositing it in EA instead of trying to rent it. If you do so the points you receive will be good to use for up to two years. 

Finance Committee Needs New Members
As we approach our planning season and continue working on our long-term strategy, we recognize the need for one or two qualified owners to help take over the financing/treasury work. Specific candidate credentials include:

• Experience in managing low-risk investments like US Treasuries and CDs.
• Understanding cash flow forecasting mainly related to property upgrades & projects.
• Ability to work collaboratively with East West Hospitality’s controller and/or finance team to develop budgets and monitor budget performance. Also stay in touch with insurance, receivables collection, bad debt expense, etc.
• Present regular updates to fellow Board members regarding the operating performance of the property, along with potential property issues relating to operations or capital expenditures.
• Think collaboratively with the Board on any and all issues relating to future project operations that might involve positive or negative financial variance risk.
• Liaise regularly with the property GM and other on-site property management to understand variances and potential risks.
• Work with East West Hospitality and management, help the Board “size” our annual assessment to ensure that there is adequate cash on hand to run the business, and ensure that the resources accumulating in the Reserve Fund sufficiently align with the most recent (June 2023) Reserve Study to finance our future.

If you have both an interest in joining the committee and the related experience we are looking for, please reach out and let me know. 

As always, any member of the Board is available to address any queries or concerns you may have.

Best,

Al Kenney                                                                                                                                                                   
President, The Aspen Mountain Residences HOA Board
860-354-7979
al@bluewaterfractionals.com

Board Members and Owner Director Contact Information:

Joe Ferguson – jferguson@rjrcapital.com

Tim Hall – timhl9999@gmail.com

Tom Kaplan – tkaplan@kkladvisors.com

Peter Wells – petercwells@yahoo.com

Bruce Clay – bjc2115@gmail.com

Trust – Appointed Member to the Board:

Jami Champagne – Jami.Champagne@vacationclub.com

Dear Fellow Owners,

I hope this letter finds all of you well. I wanted to give you an update on our property:

Remembering Ralph Lombardi:
Our heartfelt condolences go out to Ralph’s wife Gail and his family. Ralph passed away in December. He grew up in Vallejo California. After graduating from law school, he joined the U.S. Air Force Reserve and served as an officer in the Judge Advocate General Corps. He was later sent to Vietnam. Upon his return, he began practicing law and had a long career spending 46 years as a trial lawyer and mediator. His peers remember him for his honesty, humanity, warmth, and integrity, all of which made him an excellent trial lawyer, mediator & family man. Ralph, was one of our long-term owners and was a member of, and a great help to, our legal committee. His many contributions will be remembered.

Litigation/Arbitration:
We have been assigned dates for our arbitration with our former attorneys for our hearing October 30 – November 3, 2023, with the decision entered by December 8, 2023. Our lawsuit against our former president will take place after that date.

Legal Committee:
We are currently looking for another member for our legal committee. You must be or have been an attorney, have a litigation & arbitration background, and have ample time to review legal documents as we make our way through the arbitration process. If you have this background and the time to serve on our legal committee this year, please reach out to me via email and send me your background. The legal committee will review all submissions and make the selection in the next few weeks.  

2024 Float Time Selection Process:
The documents including instructions for submission of your float weeks for 2024 were sent earlier this week via email. Completed priority sheets should be sent back via email to the East West Hospitality reservations dept at AspenRes@eastwest.com or Fax: 970-393-5016 By Jan 31, 2023

Owners WILL NOT receive an email response that their sheet has been received. Rather, an email will be sent the first week of February ONLY if your form was NOT received. The East West Hospitality Owner Relations Department will make the float week selections according to your priority numbers beginning in February.

You will be notified of your completed reservations by email in mid to late February.

Add Multiple Numbers to our Owner Texting List:
If you want to keep informed and ensure you always receive our correspondence, please contact East West Hospitality Reservations at AspenRes@eastwest.com to add one or more cell numbers so we can add you to our texting list. Make sure you let them know what unit number the phone number is associated with. This list is only used by the board and East West Hospitality to notify you of the important information you should know. 

On behalf of your board,

Al Kenney
President
The Aspen Mountain Residences
860-354-7979

Board Members and Owner Director Contact Information

Joe Ferguson – jferguson@rjrcapital.com 

Tim Hall – timhl9999@gmail.com 

Al Kenney – al@bluewaterfractionals.com

Thomas Kaplan – tkaplan@kkladvisors.com

Peter Wells – petercwells@yahoo.com

Bruce Clay – bjc2115@gmail.com 

Jami  Champagne (HPC Contractual Appointed Member of the Board)

 

Notice is hereby given pursuant to Section 3.4 of the Bylaws of Association of a  meeting of the Executive Board to be held both at The Aspen Mountain Residences Business center and via Zoom teleconference on Tuesday, Jan 17, 2023, at 11:00 AM Eastern Standard Time.

The proposed agenda for the meeting is as follows:

  1. Approval of the 11-14-22 meeting minutes
  2. Upcoming float selection process and timing
  3. Automating the process of updating the owner list, voting docs, and rotational float selection
  4. Update on lobby re-design
  5. Update on transfer of commercial units
  6. Discussion on two opportunities for the ski shop for May 2023 start
  7. Owner questions

Owners are welcome to attend the meetings provided:

  • You notify me at least 5 days prior to the meeting;
  • You submit any questions you may have at that time; and
  • If you wish to address the board, you will be given up to 3 minutes to do so.

I will then send you the Zoom meeting information.

If you have any questions, please contact me.

Al Kenney

al@bluewaterfractionals.com
860-354-7979
President
The Aspen Mountain Residences Condo Association, Inc