HART RANCH CAMPING RESORT BOARD OF DIRECTORS
QUARTERLY MEMBERSHIP MEETING MINUTES
SEPTEMBER 2, 2006
President Dean Sankovich called the meeting to order at 10:02 a.m. on Saturday, September 2, 2006. Present were Dean Sankovich, Kent Larson, Randy Baker, Dale Myren, Bob Mallow, and approximately 155 Hart Ranch Resort members.
Sankovich introduced the Board members to the general membership.
Minutes of the June 17, 2006 Annual Meeting and the September 1, 2006 working session of the Board were reviewed for the membership. Dale Myren made a motion to approve the minutes, Larson seconded. Motion carried unanimously.
Randy Baker presented the Treasurer’s Report to the membership, using a power point presentation (attached). He reported that the Resort’s Operating Reserve Fund balance was $616,934 as of 7-31-05, compared to $634,982 on 7-31-06. Additionally, the Resort’s Capital Reserve Account Balance was $153,418 also as of 7-31-05, with the balance at $316,391 on 7-31-06. Baker reminded the membership present that the Capital Reserve Fund is the tool that funds the Long Range Plan through net income generated by the Sales Department and Resort Operations. Baker also reviewed the Resort financial statements as of 7-31-06, indicating that our net profit YTD was at $460,005, up 26% from 2005. Sankovich reminded the membership that Baker’s report was presented in full at the Board’s Working Session the previous day, and was approved unanimously at that time.
Bob Mallow presented the Membership Report. As of 7-31-06, the Resort had 4,538 current members with 1294 P, 887 A, 2182 B, 0 T, 149 C, and 26 Miscellaneous memberships. Mallow’s report had also been presented the previous day and approved unanimously.
Sankovich then asked Tracy Heitsch to present her manager’s report. Heitsch presented, via power point, the findings of the 2006 Membership Survey that was conducted in conjunction with the 2006 Annual Election (see attached). Heitsch also reviewed the details of the Fall 2006 Closing Schedule with the membership present (see attached). She also introduced all departmental supervisors for the 2006 season, recognized the hourly team members, the workampers, and the volunteers for their dedicated efforts this season. The workampers dedicated a combined 12,338 hours and the volunteers donated 1,134 hours….thank you for your dedication!
Kevin Root, Assistant Resort Manager and Maintenance Mgr, updated the membership on various maintenance issues including weed control, the construction of the Cheyenne Cabins, the timeline for construction of new Comfort Station #6, and the continued expansion of campsites. Additionally, Shirley Petro, Sales & Reservations Manager, updated the membership on RPI Preferred, the Golden Legacy program, and membership sales numbers, to date.
Under Old Business, Sankovich asked Scott Olsen, Membership Benevolent Fund Committee Chair to update the membership on progress of the committee to date. Olsen indicated that the committee had received enough donations to install four maintenance free benches on the Resort. The committee intends to continue the program, soliciting donations ($600 per bench). Once donations for four more benches are received, the committee will order the benches. They plan to work in orders of four. Olsen thanked his committee members Don & Ella Traphagen, Don & Marlin Blackburn, and Linda Berzina, for their work and dedication. Olsen indicated that while the committee is currently working on benches for the park, they also have lots of other ideas that they will be bringing to the Board of Directors in the near future. Sankovich thanked Olsen and the members who’ve donated for their work in continuing to improve the Resort.
Sankovich asked Larson to update the membership on the Resort’s utility expenses. Larson presented a report via power point that indicated that the Resort’s estimated 2006 end of year utility expenses would near $282,000 up $52,000 over the same utilities for all of 2005, a 22% increase. Larson also indicated that the current $1/day utility fee charged to all members and guests will equate to approximately $59,000 of income this year. The utility fee income, as a percentage of the entire utility fee expense equates to 21%. Therefore, the remaining 79% of the utility costs are borne by the maintenance fees. Larson questioned the viability of the maintenance fees continuing to bear a 79% cost of utilities with only 40.4% of the membership using the Resort so far in 2006. The Board will examine this situation closely as the 2007 Operations Budget is discussed in the coming months.
Sankovich updated the membership on the Resort’s Occupancy Trends for 2006. Our overall occupancy is up about 3% for the year, so far. However, reciprocal system usage (Coast to Coast and RPI) is down 10% and 3%, respectively. Sankovich reminded the membership that even though reciprocal usage is down, membership usage is up. Interestingly, however, the number of memberships that have used the Resort is 2006 is actually down approximately 6% from 46% in 2005 to 40.4% in 2006. Even though fewer memberships have used the Resort this year, those that are using the Resort are staying longer, thus our occupancy has increased.
Sankovich called upon Heitsch to explain the Diamond W Award. Heitsch indicated that the Resort had received the distinguished Diamond W Award in 2004, awarded to the top 4% of all Coast to Coast Resorts, and the top 2% of all campgrounds as listed in the Woodall’s Directory. This award is not automatically awarded each year, rather the Resorts must annually earn the distinction. Because of the concerted efforts of our Board, Staff, and Membership, Hart Ranch Resort earned the distinction in 2006 as well! Congratulations all!
New Business included Sankovich asking Heitsch to discuss a few changes in the Resort’s Rules, Regulations, Bylaws, and Policies. Heitsch indicated that there were changes made to three areas – Rule #6 of the Rules & Regs, Section 9 of Article V of the Bylaws, and the Lower Lodge/Picnic Shelter/Pool Pavilion Policy.
- Rule #6 of the Rules & Regs alludes to Conduct at the Resort. All verbage relating to the Blue Bag recycling program was eliminated from the rule, as the Resort does not have blue bags available any longer.
- Additionally, paragraph 8 of Rule #6 was clarified relating to gray water dumping at the Resort. That rule now reads as follows:
Recreational vehicles with gray or black water storage tanks must have a sealed cap except when using the dumping station or a sewer connection at a campsite. All recreational vehicles must have a sealed sewer connection through use of a sewer donut or other commercial adapter. No dumping of gray water, anywhere in the park including Meadowlands, per state law! FINES APPLY!
- Article V Section 9 entitled VEHICLE STANDARDS was revised to read as follows:
Section 9. CAMPING UNIT STANDARDS AND DEFINITION. Each occupied campsite is required to have one (1) camping unit, by definition. A camping unit is defined as being FULLY self-contained or originally designed for camping purposes by the manufacturer. See Board policy #6 for further guidelines.
- The following sentence was added to the Lower Lodge/Picnic Shelter/Pool Pavilion Policy.
During the off season (October 1 – April 30) lower lodge reservations need to be made two weeks in advance.
Sankovich then explained to the membership the progress of the Strategic Planning Committee’s Seasonal Sites Committee. One of the items the Strategic Planning Committee is studying is the feasibility of implementing “seasonal sites” at the Resort for members to pay an additional fee in exchange for the ability to stay on one site for an entire season. The committee is comprised of Dale Myren, Chair, Roger Schneider, Cam Zabel (both of the Strategic Planning Committee) along with Jim Richards, Coleen Ehrsmann (Seasonal Sites Committee) and Argyl Ullestad – Consultant to the Committee. These individuals were given an extensive list of items to consider when it comes to studying the possibility of seasonal sites. They were all asked to respond in writing. All responses were received – six different conclusions from six different individuals!! Sankovich further explained that the Board is interested in finding out what the sincere interest is, from the membership. There are many more questions than answers at this point in the discussion. The fee would be somewhere between $1500 – $2500 seasonally, plus the applicable daily utility fee. Consideration is being given to starting with a very few existing sites and drawing names for those sites via a lottery system. Construction of a new area for seasonal sites is also being considered, however, the cost for construction may run around $10,000 per campsite. Therefore, the Board is most concerned with the sincere interest before anything to that magnitude would be given serious consideration. Sankovich indicated that the Board wants to receive input from the membership. He indicated that there would be more information about it in the newsletter, on the website, and from Resort staff. Put your thoughts in writing….let us know!
Sankovich then asked Heitsch to update the membership on the approved 2006 Fall Capital Projects. They are as follows:
Replacement TV for the Lower Lodge $ 3,500
Repeater for Radio Transmissions $ 7,500
Expanded sites (fronts only) $ 40,000
Five new Cheyenne Cabins $165,000
Setup of new Cheyennes $ 6,000
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TOTAL 2006 FALL CAPITAL PROJECTS $222,000
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Sankovich updated the membership on the new Comfort Station #6/Housekeeping Department that was approved by the membership at the Annual Membership Meeting in June of 2006. The original lowest bid received in February of 2006 through the competitive bidding process was $290,000. After the membership’s approval (90% to 10%) at the annual meeting, the project bid was returned at $309,568 not including the main water line to be run from the Maintenance area. The 7% increase was due mainly to the astronomical increase in electrical and plumbing supplies – a 400% increase in copper alone. At the previous day’s working session of the Board, unanimous approval was given to move forward with the project. Construction is to begin in mid-October, with completion scheduled for March 1, 2007.
The next quarterly membership meeting is scheduled for November 4, 2006 at 10 am in the Lower Lodge. The 2007 Annual Meeting is scheduled for June 16, 2007.
Sankovich opened the meeting to comments from the floor.
Larson moved and Mallow seconded a motion to adjourn the meeting at 11:18 pm. Motion carried unanimously.
The Board and membership enjoyed refreshments and snacks following the meeting.
Respectfully Submitted,
Dale Myren, Secretary
