QHRRP 7000-005

Amenity Administration Principles

 

Responsible committee
Amenities 13 May 2024
Reference
CCRE Article 1, Section 1.5
Purpose
Association Amenity principles have been established to provide…

  • a basis for consistency in evaluation and administration.
  • a framework for future decision making.
  • visibility and transparency to the community and amenity users.
Principle 1
All Amenities will be administered within a common framework structured by Amenity Tier and Fee Basis.
Principle 2
Certain costs for Association Amenities will be borne by all property owners (Basic costs) while others will be paid by the users (Fee for Service costs).

 

1.       Amenity Tiers – Amenities will be classified into one of three Tiers:

 

Tier Description
I Are assets and basic services available to all property owners for which there is no additional fee.  All costs for Tier 1 amenities are Basic.
II Are Association assets and services which are subject to a fee for service for the amenity. These fees are associated with…

·         The provision of additional assets or services in conjunction with Tier I amenity that exceed those provided as a Tier I amenity.

·         The usage of Tier I facilities by “special interest groups” (private parties, social groups and Clubs) that result in additional costs and or restrict the usage of the amenity for general use while in use.

·         Assets or services provided by the association solely to meet the needs of special interest groups

III Are those assets and related services and programs whose use is restricted to those who pay “user fees” which are based on the Full Cost  of the Amenity, i.e.,  all costs associated with a Tier III amenities are Fee for Service.

 

Note:  There are currently only two Tier III amenities. They are the Marina and the Golf and Country Club. (Although the Queens Harbour Golf Course and Country Club are third party owned and operated, they are an integral amenity of Queen’s Harbour. Because use is restricted to those who pay membership and user fees, it meets the criteria of a Tier III amenity).

 

2.       Association Amenity Costs and Fee Basis – The following criteria will be used for all amenities to determine Basic versus Fee for Service costs for property owners…

  • Basic – Costs of assets, services and programs that meet the broad-based needs of the community and are available to all property owners (See Attachment A) Basic Costs are paid by all property owners generally though annual assessments (dues).  Special assessments may be necessary at times to fund asset purchases or major improvements.
  • Fee for Service – Costs of expanded or special (supplemental) services and programs that are not included in the basic costs. (See Attachment A) Fee for Service Costs are paid for by the user of the additional services and programs in the form of service or use fees, membership fees or rent. Fees may be based on actual costs incurred, budgeted costs or cost-based formulae (e.g. average costs, projected future costs, amortization schedules etc.).  Any cash shortfalls that result due to differences between actual and projected/calculated costs will be borne by all property owners.

3.       Amenity Fee Oversight

  • The Association’s Board determines which services/costs are Tier II and Tier III (Fee for Service).
  • To ensure consistency, the services and fees associated with amenities will be analyzed on an annual basis and will be reviewed and approved by the Board.
Principle 3
A consistent cost-based methodology will be used to price Fees for Service for property owners for all Tier II and Tier III amenities. Fees for Service for non-property owners may be priced at or above property owner rates.
Principle 4
Fee for Service Revenues realized in excess of cost for any amenity will only be used to offset costs (current and projected) associated with the amenity for which the fees were charged or costs of other directly related amenities.

1.       Incremental Costs – Fees for Service for Tier II Amenities will be based on Incremental Costs for equipment or services provided above those specified as Basic.

2.       Full Cost – Fees for Service for Tier III Amenities owned by the Association will be based on the Full Cost of the amenity. Full Cost includes costs related to acquisition and improvements, operations, maintenance and administration.

3.        Deposits – will be utilized to minimize the risk of user default on payment for fees for Service and will be based on the potential cost to the Association.

  • A deposit will be required for all facility rentals (e.g., Multipurpose room, Lanai, and Marina)
  • Deposits or pre-payment may be required for equipment, services or common area rentals (e.g., tennis ball machine, tennis lessons, recreation programs, kayak storage and ARB reviews),

4.      Incremental Revenue – Amenity fees will be based on costs, however, a nominal profit component (Incremental Revenue) may be included in some Fees for Service. Incremental Revenue will be used only to offset costs associated with the amenity or costs of other directly related amenities (e.g. Marina Slip Fee revenue in excess of Marina costs may be used to offset operating and maintenance costs of the Lagoon System [a directly related amenity], but not other community expenses).

Principle 5
Approval of Major Improvement projects for new amenities or additional capacity / features to existing Association Amenities will be based on consistency with the Queen’s Harbour Vision and one or more of the following…

1.       The benefit of the project to the broad base of the community (not driven by external usage)

2.       Comparability of the project with amenities offered by benchmarked gated communities.

3.        Original intent of the amenity (for expansion of capacity or features)

4.        Ability of the project to be self-funding.

MAY 2024