PENÍNSULA TORRES II

NOVEMBER 2010 NEWSLATTER

One year ago this November, Torre II homeowners took complete independent control over its management and operations from the developer. Attached is list of some of the many projects completed and accomplishments in our first full year of control. Many tasks and projects are completed, some are "in process" and others are being planned for future consideration.

Since our annual Homeowner Assembly in March 2010 we have been very busy with the special projects authorized by the owners, switching accountants, accounting systems, bank accounts and dealing with "unexpected surprises" inherited from the developer.

Our web site is almost done and data is being downloaded in both English and Spanish which will provide homeowners with a direct source for up to date information for Torre II. The web site address is "peninsulahoa.com". There you will find such things as: By-laws, Monthly Financial Reports, Rules & Regulations, Individual Owners Payment Records, Current Events, For Sale or Rent postings, etc. Of course, all sensitive information is password protected for each owner.

We are pleased to report that two major projects, balconies and outside painting, are nearly completed (at last count only three terraces remain to be completed) at a cost well under the proposed budget. The bad news is that we had some large unexpected expenses such as a major overhaul of the water pumping system costing about 250,000 pesos which was not in our 2010 budget and tower A/B elevator repairs of over 120,000 pesos. This included additional smaller water pumps and a filtering system. The bottom line is that we are overall staying within our 2010 budget.

The many tasks were efficiently completed due to three main factors. First, we have an excellent staff working at Torre II. They work as a team and take pride in their accomplishments. Secondly, we have implemented many cost saving programs involving utilities, elimination of some costly services from outside contractors and lowering costs of supplies. Thirdly, the vast majority of homeowners (over 90%) pay their cuotas, reserve fund and assessments on time or in advance. This allowed us to purchase supplies, hire contractors and staff to complete the jobs without costly delays and penalties.

Thanks to our staff many defects in poor workmanship inherited from the developer have been identified and corrected. We do expect more "surprises", but we feel most have been identified and corrected. As a result, Torre II is in much better condition today than it was when the developer turned it over to us.

Unfortunately, while we are spending within our budget, because there are a few owners not paying their share of Torre II expenses our cash flow is very tight. Owners more than thirty days delinquent in their fees have their electrical service terminated. THERE ARE NO EXCEPTIONS WITHOUT THE PRIOR CONSENT OF YOUR TORRE II HOA BOARD OF DIRECTORS.

The construction of the new bar and game room has started. By popular owner demand it is located in the smaller lobby room across from the theater. There will be a pool table, poker table and bar. We are very excited about the plan hope to have it ready for use by the end of November, if not earlier.

We are also trying to deal with some more problems created by the developer. Tower I (under the developer's control) is not paying its one-third share of the pool and water expenses. We are working closely with Torres III to correct the situation and so far we have been somewhat successful in convincing them to pay their bills.

We are pleased to report that the past "strained" relations with Torre III have improved greatly. We are communicating and working openly and constructively with Torre III for the betterment of common areas of concern at Peninsula. Torre III owners are welcomed at Torre II and Torre II owners are welcomed at Torre III. Also, Torres II owners can use the pool and spa located in the T1 lobby and terrace.

I am sad to report that someone wrote on one of the painting is the basement. If anyone knows or has any information as to who did this please contact the office. If we all want Peninsula to look nice and such vandalism can not be tolerated.

It is important to report that thanks to Dr. Romo, Ramon (Soto) and the administrative staff we have acquired stretchers, a complete first aide kit (including splints, neck braces, wheelchair, etc.). In addition the entire building has emergency signage for exits and procedures posted. Torre II is the only Torre certified by the City of Puerto Vallarta as being in compliance with their programs and recommendations for emergency services, staff training and medical supplies.

We owe equal appreciation to Dewey Desler who was able to arrange free donation of fire fighting gear for T2. Our head of security, Roman Soto, is designing and training our security staff in proper procedure, techniques and use of fire equipment and first medical responder duties in case of an emergency.

Based on demand from many owners we have developed a limited property management services program for owners who need someone to take care of the condo when they are gone. The details of this new service are explained fully in our web site.

Owners have received new instructions on how to transfer or deposit their cuotas, assessments and electrical purchase directly to our new Banamex accounts. It is very important to read and follow the instructions carefully. This will insure that you receive proper credits in your account. Also, please notice that we set up a separate account for cuotas and fees and another account for owners electric purchases, which will no longer be co-mingled with our general revenues.

Torre II Administration

Cecilia F. Delgado