Other RV Resorts: The President, General Manager, and the CFO visited with Outdoor Resorts Indio and discussed with their executive team how they were dealing with the problems outlined above. They currently have a Resort fee of $10 per day per Rental Unit, and are moving to $12 this coming year. They recognize the combined challenge of the historical bias towards renting as well as the need to find additional sources of revenues so as to minimize the necessary increases to HOA fees. Resort Fees: After review of all issues, the Board of Directors has voted unanimously to implement a $10 Resort fee replacing the existing $4 Resort fee, effective July 1, 2016. As well, the Board has voted to clarify the Rental arrangements so as to address the current interpretation of the Governing documents that allow many to claim an exemption from Resort fees. Beginning July 1, Renters will pay $10 Resort fee and included with that fee will be access to all ORPS facilities, at no additional charge, with the following exceptions;  The Owners’ Lounge and the kitchen facilities at ES and La Palma will remain solely for Owners and their guests.  Advance reservation for golf tee times will remain at seven days for Owners while Renters will enjoy a two day advance reservation privilege.  Owners will continue to have a one day advance activities ticket purchase before sales are opened to all. During the Board meeting open forum, there was considerable testimony from owners with an equal number speaking in support of or opposed to the increased fee. By necessity, there are many assumptions included in the decision to move forward as outlined. If adjustments must be made after a reasonable amount of data has been accumulated through user experience, the Board reserves the right to make whatever changes may be required.

The Board, Management and the Finance Committee have focused on ORPS financials from several vantage points:  Impact on HOA fees of rising expenses and reduced revenue, and, in turn, the impact that increased HOA fees have on potential purchasers;

 What alternate sources of Revenue may be available to offset significant increases in HOA fees;  The financial impact on ORPS, both this year and looking forward, of lower than forecasted revenues from all sources other than HOA fees; and  What other RV Resorts are doing about the economic challenge. HOA Fees: Looking forward, we must accommodate increased employee costs such as Health Care premiums, minimum wage increases, Cost of Living increases, and Contractor increases (no increases at all last year). As well, the Revenue from all other sources, other than HOA fees, are down YTD by $88,072. Our choices were to either have significant increases in HOA fees or remove all items that are subsidized, such as the Convenience Store, free coffee, and the printed copy of the ORACLE. As well, this coming summer we will again close the Satellites from June 1 to September 30. With these reductions, we were able to hold the increase in HOA fees to $4 per month per unit for Operations plus the $3 increase per month per unit (as per existing Board Policy) to Reserve Fund contributions, for a total of a $7 per month per unit increase, bringing next fiscal year monthly HOA fees to a total of $374. Alternate Sources of Revenue: Collectively, we have been looking at ways to charge Renters for the use of Racquet Sport Courts and the Fitness Center. The concept is simple; the Administration of such a plan is not! Additionally, the $4 Resort Fee currently charged to Renters only covers the operational costs of the Front Office reception necessary to accommodate Renters arrivals. The reception desk is staffed 7 days per week. The Resort does not benefit at all financially by the application of the current fee structure. Add to this situation, there are many Renters who manage to avoid paying ANY Resort fee at all! The final challenge is the cost of Renting at ORPS. It is far below the cost of Ownership, hence there is a bias towards Renting which in itself becomes a disincentive to Ownership.

to spread the word, while you are at home this Summer, about Outdoor Resort to your friends, neighbors, RV Club, Tennis Club, Pickleball Club, and Golf Club. Tell them about the amenities, activities,

and friendly people at ORPS. Invite them to visit and consider renting and/or buying a lot.

Owners are our best sales ambassadors for ORPS. Do your part in bringing our wonderful Resort to the

attention of as many people as you can! ORPS Ad Hoc Marketing Committee


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