HART RANCH CAMPING RESORT
BOARD OF DIRECTORS
ANNUAL MEETING MINUTES
June 17, 2006
President Dean Sankovich called the meeting to order at NOON on Saturday, June 17, 2006. Present were Sankovich, Kent Larson, Randy Baker, Dale Myren, Tracy Heitsch, and approximately 195 Hart Ranch Resort members. Keith Wurtele was absent for medical reasons.
Minutes of the February 11, 2006 Quarterly Meeting and the June 16, 2006 working session of the Board, were reviewed for the membership.
Randy Baker presented the Treasurer’s Report to the membership. He detailed the results of the 2005 independent audit. He also reported on the Resort’s Operating Reserve Fund and the Capital Reserve Account – you’ll hear more info on those funds today.
In the absence of Keith Wurtele, Kent Larson presented the Membership Report. As of 5-31-06, the Resort has 4544 current members with 1279 P, 899 A, 2189 B, 0 T, 150 C, and 27 Miscellaneous memberships.
Tracy Heitsch then presented the Management Report by introducing all the departmental supervisors, recognizing workampers and volunteers, as well as the hourly team members. She then updated the membership present on the new additions to the park in 2006. Kevin Root presented a Maintenance Report including an update on the Resort grounds and general maintenance issues and projects. Shirley Petro presented a report from the sales department, outlining RPI Preferred and the Golden Legacy program.
Under Old Business, Sankovich asked Scott Olsen, Hart Ranch Resort Member, to present a report on the newly created Membership Benevolent Fund. The fund was established to accept monetary donations for the benefit of the Resort.
Sankovich asked Dale Myren to present an Occupancy Report to the membership. Myren indicated that the Resort’s occupancy year to date was up 1.5% from the same time frame in 2005. CCC and RPI occupancy was up 3.4% for the same timeframe. Additionally, Myren informed the membership present that the return on investment on rental units averaged 6.5 years. Overall, the rental units netted $39,432 for the Resort in 2005 (after all expenditures). The average rental unit occupancy for our 100 day peak season was 74.3% between 2001 – 2005. The industry average is 62 – 68%. Average site occupancy for the same timeframe is 83%.
Sankovich then updated the membership on the status of our property taxes, utility expenditures, and the water and sewer contract negotiations. At the last annual meeting, it was reported that the Board had made the decision to hire an attorney and protest our assessment and its associated tax bill (over $110,000 per our 2005 valuation). The Board hired Melvin Wedmore, Hart Ranch Resort Member and local attorney, along with Jess Pekarski. We reached a settlement with the county that allowed us a 20% discount, leaving our 2006 valuation at the same level as the 2004 valuation. This equates to annual property taxes of approximately $86,000 versus the original $110,000 before our appeal.
Sankovich then asked Larson to address the Resort’s rising utility costs. The Resort’s utility expenses (electricity, water, sewer, natural gas) have risen 110% or $140,335 in 7 years (2000 – est 2006). The $1/day utility fee that was implemented in 2005 for all Resort users (still continues today) generated $58,707 in 2005. In 2006, we expect it to generate $61,055 based on a 4% increase in occupancy. With the total utilities projected at $268,000 in 2006, the $1/day utility fee will pay about 23% of the entire utility bill. The rest (77%) of the utility bill will be paid by maintenance fees. In 2004, 42% of the dues paying membership used the Resort. In 2005, 44% used the Resort. Therefore, 56% of the membership are paying their dues, but not utilizing the Resort. Since 2000, the annual maintenance fees have risen 7% (all in the past two years).
As for the water and sewer contract negotiations with the Hart Ranch Development Company, discussions began last August. In 2005, our water and sewer costs totaled $65,500, paying $6.02/1000 gallons of water and sewer. At the current negotiations, in 2006, our rate will be $7.25/1000, in 2007 $8.00/1000, 2008 $8.50/1000. At our current usage, that equates to $77,200, $85,200, and $90,500 respectively. As of the 2006 annual meeting date, there was no signed agreement – negotiations were ongoing.
Under New Business, Sankovich asked Election Committee Chairman Kent Larson to present the Election Results. Larson reminded the membership that because only two members submitted biographies for the two seats open on the Board of Directors, there was no candidate election in 2006. However, the membership did vote on the proposed comfort station #6 and the new housekeeping department. Larson thanked his Election Committee volunteers who put in long hours this week to count the large number of absentee ballots. Committee volunteers were Bob & Michaele Bienvenue, Travis & Donna Bierman, and David & Ruth Ott. Larson indicated that there were a total of 1452 ballots cast, representing a 32% member voter turnout. There were 1261 absentee ballots, 141 online votes, and 50 in person ballots cast. Of those ballots cast, 1311 voted FOR the comfort station/housekeeping department and 113 voted against, with 28 empty ballots cast. There were a total of 8 invalid ballots. Therefore, per the membership’s wishes, the construction of the comfort station and housekeeping department will move forward this fall, to be completed in the spring of 2007.
Sankovich then brought the membership current on the Long Range Plan that was established by the Board of Directors in 2005 and updated in 2006. Sankovich detailed the LRP using the power point presentation and informed the membership of the progress of the Strategic Planning Committee, comprised of one Board member (Dale Myren, Chairman), two Hart Ranch members-at-large (Cam Zabel and Roger Schneider), the Resort Manager and Assistant Resort Manager. The purpose of the committee is to research future strategic plans, in concert with the Long Range Plan, and make recommendations to the Board of Directors. You’ll hear more about the Long Range Plan today.
Sankovich asked Resort Manager Tracy Heitsch to address the membership regarding the Fall 2006 Capital Projects that have been tentatively approved by the Board. Heitsch described the tentative projects as follows: $40,000 for continuing the expansion of campsites, $30,000 for replacement of the Lodge roof, $5,000 for a repeater for radio transmission, $171,000 for five additional Cheyenne cabins, for a total of $246,000.
The next Quarterly Membership Meeting and Working Sessions will be held on September 1 & 2, 2006. The tentative Annual Meeting date for 2007 will be June 16, 2007.
Sankovich opened the meeting to comments from the membership.
Larson made a motion to adjourn the meeting at 1:18 p.m. Myren seconded the motion. Motion carried unanimously.
Respectfully Submitted,
Dale Myren, Secretary
