|The Manhattan Club Timeshare Association, Inc.|
|2010 Timeshare Operating Budget|
Footnotes to Schedule C
Condominium operations commencing January 1, 2010.
1. Common Charges $ 4,774,063
This estimate is based on the sum of all expenses described in Schedule C. Each Unit Owner will be responsible for paying its share of the Common Charges in accordance with its Common Interest unless otherwise noted herein.
1. Labor $ 0.00
Labor costs are included in the repairs, maintenance and supplies line item of this budget.
2. Heating $ 902,679
Steam used to operate the heating and domestic hot water systems for the building will be supplied by Con Edison. The budgeted amount is based upon Con Edison steam bills for 2008 and 2009. Based upon the 2008 and 2009 bills we should experience a 6.22% increase in heating expenses for 2010.
3. Electricity $2,067,956
Electricity for the building will be supplied by Con Edison. The budgeted amount is based upon Con Edison electric bills for 2008 and 2009, plus a 3.25% increase for 2010.
4. Water charges and sewer rents $ 432,672
The budgeted amount is based upon New York City water charges & sewer rents for the building for 2008 and 2009, less a 7.16% decrease for 2010.
5. Repairs, maintenance and supplies (Excludes Hotel) $331,956
The budgeted amount reflects all the costs associated with the tasks of cleaning and performing miscellaneous repairs to the General Common Elements for the Timeshare Units only. The Hotel Unit provides for the all the costs associated with the tasks of cleaning and performing miscellaneous repairs to the General Common Elements for the Hotel Unit in its respective annual operating budget. No provision has been made to cover the cost for any major capital expenditure.
6. Service Contracts $650,801
Contract Provided By Budgeted Amount
Elevators, Fire Alarms, Other Park Central NY $650,801
The Condominium Board has the right to add to, modify, renew or replace existing contracts or to enter into new agreements to satisfy the operation and maintenance requirements of the Condominium. The budgeted amount covers only services to be rendered to the General Common Elements.
The Hotel Unit Owner will provide management service for the General Common Elements of the Condominium at no charge.
8. Insurance (Excludes Hotel Unit) $243,000
The budgeted amount includes the following insurance coverage recommended for the Condominium by AON Risk Services and Dann Brothers, Inc. The policies will include a waiver of co-insurance clause, replacement cost and terrorism coverage. The insurance coverage will contain all coverage required by the Timeshare Documents. The premiums listed below for The Manhattan Club are actuals based upon current policy premiums.
The Manhattan Club (Floors 31-26, 25-14, 12,2)
Blanket Coverage $ 200,000,000
Annual Premium 168,000
Per Occurrence $ 1,000,000
General Aggregate 2,000,000
Umbrella Liability Coverage:
Per Occurrence $ 200,000,000
Total Premiums $ 243,000
Director’s & Officers Liability:
Limit $ 1,000,000
Annual Premium 7,295
9. Legal and audit fees (Excludes Hotel Unit) $ 120,000
Estimated auditing, accounting and legal fees of $120,000 are projected in connection with the preparation of audited financial statements and tax returns and legal issues for the Timeshare Units.
10. Contingency (Excludes Hotel Unit) $ 25,000
The budgeted amount, to be used at the discretion of the Condominium Board, is intended to benefit all the Unit Owners by providing a fund for unanticipated expenses not included in the budget and for possible increases in one or more items of operating expenses above the amounts projected. Such fund is not intended to cover the cost of major capital repairs or replacement items, for which no budget item is provided.
In the opinion of the Condominium Budget Expert, the projected receipts are adequate to meet the expenses of the Condominium for the year commencing January 1, 2010. The foregoing budget, however, is not intended and should not be taken as a guarantee. It is likely that the actual Common Expenses for the 2009 calendar year operations will vary from the amounts shown in Schedule C.