October, 2011

To All Ptarmigan Owners:

Thank you once again for your support and involvement in the Ptarmigan Property Owners Association. It is through that continued interest whereby we are able to contribute toward a valuable vacation experience for all who visit the Wyndham Pagosa property, and especially when staying in the Ptarmigan townhouses.

Annual Owners Meeting
Both Gerald Alger and Shaun McGuire have been re-elected to the board for a 3-year term. Their collective wisdom and responsible leadership will continue to be valued as we move forward through these challenging economic times.

Projects Update
The joint association committee established to evaluate and coordinate a new Association-owned
Recreation Center has made significant progress in laying the groundwork for construction of the new facility. The financial analysis shows our collective operating costs to be reduced over the current arrangement with the Pagosa Lakes Property Owners Association Recreation Center in less than 2 years from initial operation.

Our hopes were to have all legal arrangements and financial issues resolved in time for a late spring start on construction. Delays in establishing the property conveyance with Wyndham Corporate pushed the potential construction start too late into the summer months to allow for a closed structure prior to winter weather setting in. We fully expect to begin construction as early as weather conditions allow in the spring of 2012.

Budget Meeting
The Ptarmigan Property Owners Association Board held their annual budget planning meeting on October 15, 2011. This year's budget planning exercise proved to be the most challenging in my tenure on the board as we struggle with rising delinquencies and work at balancing the cost of ownership with the value of your vacation ownership interest. The effects of our sluggish economy and increased owner delinquencies heavily impacted our decision to hold fees at their current amount for the coming year while calling for a special assessment of $374 per interval. Highlights and explanation for the 2012 budget are summarized below:

• Primary drivers for the necessary special assessment were to stabilize cash flows and address chronic delinquencies
  • Foreclosure and bad debt expenses, coupled with significantly reduced sales of association owned weeks contributed to an operating budget shortfall for the last 2 months of the year
  • This is a challenge facing all associations at Pagosa as well as Nationwide
• Wyndham is working to provide a means for association owned weeks and foreclosure outlets for Ptarmigan
  • An arrangement is being worked that will allow for sharing of foreclosure expenses and rapid transfer of association owned weeks with assured payment of maintenance fees
• The assessment funds will be used to complete your refurbishment project that had to be delayed due to available funds
  • It has been 8 years since the last Ptarmigan refurbishment
• The Ptarmigan BOD is taking aggressive action to ensure that this is not necessary in the future

Your Board continues in their attempt to balance cost of upkeep against quality of your Ptarmigan Townhouses vacation ownership. This past year has been especially challenging with the obvious financial hardships felt by many owners. Your continued support and involvement is greatly appreciated by your fellow owners and resort management alike.

Input and feedback from Ptarmigan owners is always appreciated and your attendance at any and all of the quarterly meetings is continually welcomed. To view the current meeting schedule, please visit http://www.wyndhampagosa.net/ptarmigan_meetings.html.

Respectfully,

James P. Fernandez

Jim Fernandez
President
Ptarmigan Property Owners Association