BOD Annual Meeting Minutes- June 16, 2007

President Dean Sankovich called the meeting to order at NOON on Saturday, June 16, 2007. Present were Dean Sankovich, Kent Larson, Randy Baker, Dale Myren, Robert Mallow, Tracy Heitsch, and approximately 195 Hart Ranch Resort members.

Sankovich introduced the Board members to the general membership.

Minutes of the February 17, 2007 Quarterly Meeting, June 17, 2006 Annual Membership Meeting were reviewed for the membership. The minutes had been unanimously approved at the previous day’s working session.

Randy Baker presented the Treasurer’s Report to the membership, using a power point presentation (attached). He detailed the results of the 2006 independent audit. He also reported that the Resort’s Operating Reserve Fund balance was $680,044 as of 5-31-07, with the Capital Reserve Account Balance at $161,578, the Short Term Reserve Fund at $263,587, and the Money Market at $1,250, all as of 5-31-07. Likewise, the Treasurer’s Report had been unanimously approved at the previous day’s working session.

Robert Mallow presented the Membership Report. As of 5-31-07, the Resort had 4452 current members with 1327 P, 842 A, 2113 B, 144 C, 2 D, and 24 Miscellaneous memberships. The membership report had been unanimously approved at the previous day’s working session.

Sankovich then asked Resort Manager Tracy Heitsch to present her manager’s report. Heitsch introduced all the departmental supervisors and recognized the Resort’s workampers, hourly team members and volunteers. Heitsch updated the membership present on the facility changes and additions over the winter, including additional expanded campsites, five new Cheyenne cabins, new Comfort Station #6 and Housekeeping Department, renovations to the rental cottages, the extensive asphalt work, the new playground, the addition of two defibulators, the extensive pool repairs and upgrades, the new windows based reservation software coming this fall, as well as the new 8 minute promotional DVD (which is available for sale to the membership for $5.25 through the Hart Mart). Shirley Petro presented a report from the sales department, outlining the Resort’s exciting new affiliation with Thousand Trails.

Under Old Business, Sankovich asked Heitsch to update the membership on the Membership Benevolent Fund. Heitsch reminded the membership that the fund began as an idea from a member at the Annual Meeting two years ago, as a tool by which members could leave money in memory of a loved one, for the benefit of the Resort. Contributions will be used for improvements to Resort grounds or facilities and not for general maintenance or operating expenses. A committee of three members-at-large will review suggestions and make recommendations to the Board for action. Monies expended will pay the entire cost of any approved project. Normal operating funds will NOT be used to supplement the project. Fund monies will not be expended until such a time as the fund contains enough money to complete the project. The status of the fund and any approved projects will be reported to the membership at each annual meeting. As of 5-31-07 the fund balance was $663. There will be two additional benches installed this summer, bringing our total to 6 memorial benches since the inception of the program in 2006! Thank you to the five families that have donated to the continued beautification of the Resort!

Additionally under Old Business, Sankovich updated the membership on the year to date occupancy of the Resort. Overall, year to date, Resort occupancy is up 2010 nights total (14,749 occupied nights from January 1 to June 14 in 2006 to 16,759 occupied nights for the same timeframe in 2007). CCC and RPI occupancy is up slightly – just 54 nights total, year to date. Based on current reservations, it appears the Resort occupancy will continue to be strong throughout the 2007 season.

Under New Business, Sankovich brought the membership current on the Resort’s updated Long Range Plan. He reminded the membership that the LRP is a requirement of the Resort’s Bylaws (Article III, Section 14 and Policy #11) and it is the job of the Board to update that plan at least annually.

The LRP encompasses 2009 – 2016 and is broken down into several components. The following is a breakdown of those categories, ideas of what’s included in each category, and the dollar value of those components over the eight year span of the plan.

Building and Land Improvements

• Additional Campsites
• Pool Pavilion Addition
• Additional Indoor Storage
• Additional Outdoor Storage
• Continued expansion of campsites/concrete repair
• Road maintenance
• Roofs
• Siding and/or Staining
• Utilities
• Lodge renovations
• Irrigation systems/landscaping
• TOTAL OVER 8 YEARS $2,114,000

Rental Units

• Begin replacement of Colt Cabins
• TOTAL OVER 8 YEARS $400,000

Hart Mart

• Equipment replacement $20,000

Vehicles $36,000

Maintenance Equipment

• Mowers, misc maintenance equipment
• Washers and Dryers
• Picnic Tables
• $115,500

Furniture and Equipment

• Upgrade playground equipment
• Computers & Software
• Office equipment
• Pool equipment
• Refrigeration equipment
• Cable TV Improvements
• TOTAL OVER 8 YEARS $298,500

The LRP is intended to be a framework from which to build/modify plans. It is a vehicle for idea generation. How is the LRP funded? It is funded by income generated by on-going operations, by return on investments, by fees charged to members and other Resort users, and by membership sales proceeds. These funds are saved in the Capital Reserve Account, created to fund the LRP. The plan requires a commitment from the Board, members, and staff to fund Capital Reserve Account according to LRP.

Sankovich asked Heitsch to update the membership on the tentative Fall 2007 Capital Projects. Heitsch reviewed the projects to include the following:

• Additional Expanded Sites $ 40,000
• New Windows Software System $ 23,000
• Cyclical Cabin Furnishings $ 15,000
• Gutters on Cheyenne Cabins $ 8,800
• Vehicle Replacement $ 9,000
• Picnic Table Replacements $ 19,500
• Landscaping/shade trees $ 14,000
• Pool (painting, spa replace, railings) $ 38,500
• Colt II Cabins (4) $ 67,200
• Stain Lodge Siding $ 20,000
• Concrete work near Activity Shed $ 4,000
• Lighting along Laramie Road $ 15,000
• Expansion of Storage Lot $ 60,000
• TV for Lower Lodge $ 3,500

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TOTAL $337,500

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Heitsch reminded the membership that the Board has not given final approval to these projects, rather, has given permission to the staff to seek competitive bids for all projects listed, bring such to the August Board Meeting, and the Board would make decisions at that time.

Sankovich then updated the membership on the progress of Rapid City Christian High School. As was reported several years ago, RCCHS purchased the large arena building next door and leased the facility to National American University for their equine program. NAU’s contract expires in the spring of 2008 and RCCHS plans on having high school classes in the building this fall, 2007. They are in the process of doing some remodeling for fall classes. They will be constructing a clear span building (74′ x 126′) on the south side of the existing arena, to supplement space. There will be a classroom structure brought in and placed on the north side of the arena for NAU’s classes for the 2007 – 2008 school year. That structure will be removed upon termination of NAU’s contract. The LRP for RCCHS will involve a football stadium/track, soccer fields, baseball fields, 450 seat indoor theatre, and full size basketball courts. The Board thanked Mr. Barry (RCCHS Principal) for attending the meeting and keeping the Board of Directors informed.

Sankovich then reminded the membership that volunteers are being sought for some pending committee work. Committees include: Membership Benevolent Fund Committee and the Cable TV Study Committee. If you are interested, speak with Resort Management.

Sankovich asked Election Committee Chairman Kent Larson to present the Election Committee Report. Larson thanked his dedicated committee members Bob & Michaele Bienvenue, Travis & Donna Bierman, and Tom & Maxine Harsch, for their many hours of dedication to the Resort. Larson indicated that the Resort had received 1148 absentee ballots, 74 online votes, and 43 in person votes, including 11 invalid votes. The Bylaw vote on the wording of Article V Section 6 (referencing cutting absentee ballots out of the Resort’s newsletter – whereas the absentee ballots are now mailed with the annual membership cards) was passed on a vote of 977 to 61. As for the Board of Directors election, Randy Baker received 991 votes, Dean Sankovich received 771 votes and Jim Walls received 631 votes. Therefore, incumbents Baker and Sankovich were reelected to the Board for three year terms. Sankovich thanked Larson and the Election Committee Volunteers for their service.

Sankovich announced that the next Quarterly Membership Meeting was scheduled for Saturday, August 25, 2007 at 10 am in the Pool Pavilion. The 2008 Annual Meeting is tentatively scheduled for Saturday, June 7, 2008.

Sankovich then announced that Resort Manager Tracy Heitsch had submitted her resignation effective June 30, 2007. Sankovich thanked Heitsch for her 12 ½ years of service to the Resort and presented her with a plaque in recognition of such. Heitsch thanked the Board, staff, and membership for allowing her to “be a part of the family” for all these years!

Comments were taken from the floor.

Mallow made a motion and Larson seconded to adjourn the meeting at 1:22 pm. The membership enjoyed a lunch following the meeting. Thank you to all the volunteer cooks and servers!!

Respectfully Submitted,

Dale Myren

Secretary