Vista PdB News 10/27/2007

Punta del Burro
October 27, 2007
Prepared by Patricia Will

Dear Neighbors:

During the summer, a number of us (Sergio Grano, Jim and Melinda Wilker, Pablo and me, Patricia Will) have been working hard on community improvements. Since Memorial Day week-end we have:

--Resolved all boundary differences with Costa Banderas, closed on the land outside our boundaries (per surveys) on Alta Vista, as well as an interior lot.

--Fenced the community, so as to establish permanent, visible boundaries

--Hired full-time 24/7 security, positioned at our new entry at Alta Vista and Bahia , and patrolling throughout the night

--Designed and constructed a permanent gatehouse at the new entry (almost complete)

--Began construction of a permanent office for our Community Association at the location of our old gatehouse.

--Cleaned the beach of seaweed and debris

Once construction is complete on the gatehouse and office, we plan to pave the road from the gatehouse to the beach (cobblestone), and landscape along the fencing.

These activities are but a prelude to perfecting our rights to privatize and secure Punta del Burro by registering our Association and its common areas, including the streets, with the municipal authorities. In Mexico this is done by registering our new Association as a “condominium regime,” which has nothing to do with the common connotation in the U.S. The new Association Board (Punta del Burro/”Pdb”)authorized us to move forward on this in July and the filings are in process. The “condominium regime” is the same entity used by Costa Banderas, El Banco, Pontoquito, and other nearby first-rate communities. Notwithstanding the Spanish name, “condominio,” there will be no encumbrance on your “escritura” the deed in fee or through a trust to your lot.

At Punta del Burro, water continues to be our most precious commodity. At multiple Board and Committee meetings (of the Water Company and PdB) we determined (with counsel and accountants) that it would be most sensible and economic to combine our new Association and our Water company into one entity. This eliminates material duplication in overhead, combines the capital resources of the two companies, and allows for one vehicle to provide our small community with critical services (security, utilities, common area maintenance.)

At a meeting on October 9, representatives of the water company (Operadora) and the new association (PdB) met to finalize how to proceed on a combination. Sergio Grano, our Board President, as well as Melinda Wilker, our Water Company President, were joined by Arturo (of the water company), our accountant April, Pablo and Kim Wilker. Multiple telephone conversations transpired with Patricia Will and our lawyer, Daniel Von Borstel. The following conclusions were reached:

Rather then merging the two entities, which has adverse tax and legal consequences, the existing water company will be liquidated after the new Association purchases its assets, including its infrastructure and improvements in progress on/and rights to use the Dahl well. The new Association will take over Water operations including sourcing, accounting, invoicing and collections. The Association will take full responsibility for delivering electrical power (to those who do not have a CDE connection) as before as well as water to all households/lots.

Finances will work as follows:

1. Equity investments of $4500 per lot will be carried over to the combined company.

2. Debt investments of $6500 per lot will be returned to each investor, as soon as is feasible, except to the extent that assessments are owed to the new Association.

3. Those wishing a full refund from the (liquidating) Water Company may receive same, but the new Association will not be required to provide services (including water) to non-participants.

4. Those properties (whether by prior owner or existing) that did not participate as investors in the liquidating water company will be asked to do so now.

5. The new Association/Water company will save substantial overhead every month through streamlined administration.

6. The interest on loans to participants in the Water Company will be eliminated, reducing monthly operating costs substantially.

7. The new Association is negotiating a long-term very favorable water contract with Costa Banderas, which has significant excess capacity. The cost per gallon is projected at less than half of our current cost. Economies of scale are the enabler.

8. The improvements completed on the Dahl well/ together with our agreement for water rights, will continue to provide a back-up.

Next on the list is the Federal Zone. Many years ago, Costa Banderas (which surrounds us) established a Federal Zone concession which included our beachfront. Costa Banderas ceased paying required annual fees long ago and many of our residents have successfully applied for (and some have received) new Concessions. At some point it was suggested that the new Association apply for the Concession along our entire beach front. Unfortunately, this cannot be done. First, it would leave the Association and its members joint and severally liable for individual violations. Second, a number of home owners have already obtained new Concessions and would not want their rights revoked. So, each property owner fronting the sea is advised to seek counsel and apply individually. Those of us who have completed or are in process (Refnes, Dahl, me) will be glad to explain the process.The good news is that we are not conflict with Costa Banderas, which has essentially revoked or withdrawn its rights.

Save the date. February 9 will be the next Annual Meeting of Homeowners. Please plan to be here if at all possible. That evening we are planning a Community gathering (aka party) at the home of Patricia and Ed Will (Casa Taupa).

We realize this is a lot of news, not easy to digest at once. That said, as you can imagine, it is easier in the telling than the doing, which has required many sacrifices.

We are available by e-mail to address any and all of your questions.

Best personal regards. Saludos,

Sergio Grano, President

Patricia Will, Vice President

Melinda Wilker, President, Operadora