The Village at Izatys Association
Board of Director Meeting Minutes
July 22, 2006
Resort Offices
Onamia, MN 56359
Call to Order
A regular meeting of the Board of Directors, of the Village at Izatys Association was held on Saturday, July 22, 2006 at the Village at Izatys. The meeting was called to order at 10:00 a.m. by President Dr. John Eggers, and the following Board Members were present: Betsy Neff, DeAnn Grimmius, Tom Kraus, Erv Lentz, and Ron Zappa. Ad hoc Committee member present was Bill Everett. Representing Zappa management Group were Tom Baltz, Vice President and General Manager; Rob Wilsey, Chief Operations Officer, and Joan Lewis, Controller. Joan Lewis was appointed Recording Secretary.
Approve Minutes of April 19, 2006 Board of Directors Meeting
Tom Kraus made a motion to suspend the reading of the minutes of the April 19, 2006 meeting and to approve, as everyone had received a copy and had an opportunity to review. The motion was seconded by Erv Lentz and passed unanimously.
Izatys Resort Report
There was no representative from the Izatys Resort.
Presidents Report
Association Status Report
Erv Lenz raised a point of order –The Secretary of the Board needs to inform the Board of any communication received regarding Board business. None had been received and the meeting continued.
John Eggers presented an issue regarding the Board Member status of Kristie Lacey-Hause. She was an elected member of the Board of Directors representing Solara Resorts, the current development company. All undeveloped land at Izatys owned by Solara Resort and dedicated to the future development of The Village at Izatys Association was repossessed by Peoples Bank of Mora, thus ending her role as developer. In addition, she has now missed four consecutive meetings, which, according to the Association Policy & Procedures Manual is a reason for dismissal from the Board.
The Board discussed options regarding available actions. An elected Board Member may be dismissed for the following reasons:
1. Majority vote of general membership.
2. If the person is no longer the developer.
3. If the person misses three consecutive meetings.
Tom Kraus made a motion to remove Kristie Lacey-Hause from the Village at Izatys Association Board of Directors due to non-attendance at the last three meetings per section 1.10 of the Policy and Procedures Manual, and to appoint Bill Everett to fill her term until the next election date. Erv Lenz seconded the motion. Motion passed unanimously.
Nomination of Ad Hoc Committee Member
There has been some interest shown but there is no prime candidate available.
Action Item: The management company is to develop a list of candidates and present to the Board. A solicitation to be placed in the upcoming newsletter asking for interested candidates
Appointment of Nominating Committee
There are three Board Members whose term will be expiring this year; DeAnn Grimmius, John Eggers, and Ron Zappa. DeAnn and John said that they would be running again. Ron indicated that because he was also owner of the Management Company, he was concerned about a possible conflict of interest. Discussion followed. It was offered that Ron has been a long-term member of the Board and had served as President of the Board for a number of years. The consensus of the Board was that Ron seeks reelection and that the Board feels that his institutional wisdom, background and dedication to the Village Association offsets any possible conflict of interest.
Erv Lenz and Betsy Neff were appointed to the Nominating Committee.
Committee Reports
Finance Committee
Tom Kraus presented the 2nd quarter financial results. The maintenance fee income was under budget due to the fact that 5 weeks were budgeted for June and the actual was for 4 weeks. The budget variances year-to-date are due to increases in utility costs and interest costs.
Action Item: The management company is to provide a list of all charges with descriptions from Zappa Management Group on a quarterly basis.
Golf Cart Trail Fees
Ron Zappa stated that after checking with our insurance company and discussion with the Izatys Resort insurance agent an agreement was reached regarding the required insurance certificate and the amount of trail fees to be paid by the Village at Izatys. The unbudgeted amount of $3,325 was paid in June and shows as an expense on the June financials.
Delinquency Report
All delinquent accounts over two years old have been sent to Springer Collections. A discussion was held regarding filing liens on all delinquent accounts. Item 2.5 of the Policy Manual addresses perfecting of liens on past due accounts. No action was taken.
2006 Budget Preparation Schedule
The scheduled budget review is 9/20/06 at the Corporate Offices of Zappa Management Group. The budget review committee is Tom Kraus, DeAnn Grimmius, and John Eggers.
Proposal to Initiate Line of Credit for 4th Quarter
Ron Zappa informed the Board that based on projections of cash requirements the Village at Izatys Association will not have enough operating funds available to cover 4th quarter expenses. A line of credit was discussed.
Ron Zappa made a motion to grant authorization to the Treasurer to initiate a line of credit for the 4th quarter up to $200,000. Tom Kraus seconded the motion. The motion passed unanimously.
House and Grounds Committee
Resort Inspection Report
DeAnn Grimmius, House and Grounds Committee Chairperson reported on her tour of the Resort the previous weekend. She said that overall the Resort looked to be in excellent condition, although she noted what appeared to be warped siding above the garage in next to C-16. The shingles on the C Units and the Administration building are beginning to look worn. The roof on C-1 and C-2 are currently leaking. Rob Wilsey said that the shingles continue to warp and cup from wind damage. It was recommended by the Management Company to replace the shingles on C-1 and C-2 this season and to budget for the replacement of the shingles on C-3 through C-6 in 2007. The Administration Building is not leaking at this time, but it is also recommended that roof replacement occur in 2007.
Action Item: Have the insurance adjuster look at the roofs to determine if there is any possibility of an insurance claim for replacements.
DeAnn asked for an update on the stump removal. She also noted that the grounds and landscaping around the B-Units needs to be completed. Rob Wilsey explained that there was a plan to rent a grinder this fall and finish the clean up. Another item that was addressed was the dumpster on lot 3 and what could be done to make it more visually pleasing.
It was noted that the dumpster should be moved to limit the exposure to unauthorized use.
Insurance Coverage Analysis Report
DeAnn Grimmius has reviewed the current insurance policies in detail and had several items that she questioned the need for in our policies. The suggestion was made that DeAnn and Ron meet with our agents and review our policy requirements and then report back to the board. Our policies are currently in the bidding process as they are up for renewal in November.
Action Item: Management Company will put out our policies to a minimum of two other agencies and confer with DeAnn Grimmius prior to final approval.
Renovation/Replacement Program – ARS Reserve Analysis Program Presentation
Ron Zappa contacted the reserve study company that had done the previous study and was able to obtain a copy of the study done in 2001. The Auditors recommended an updated reserve study be done. Ron stated that a reserve program has been developed to do the reserve study in house. His recommendation was to purchase the software and to do the reserve study.
Action Item: The Finance committee is to review the software and make a recommendation regarding the software purchase.
Communications Committee
Newsletter
The newsletter development is almost complete and will be mailed in the next 14 days. Preliminary copies were distributed to the Board. There is one remaining article which should be completed within a week.
Web Site Update
The web site has been in development. Mike LeBlanc will be setting it up and updating it on a timely basis. The Management Company is in the process of purchasing Microsoft FrontPage and when installed the office staff will have the ability to make changes and additions on-site.
Policy Committee
Erv Lentz presented a resolution to require prepayment of owner maintenance fee prior to banking. This resolution would pertain to all owners including the developer.
Erv Lenz moved to incorporate the above resolution into the policy manual. Bill Everett seconded the motion. Ron Zappa, DeAnn Grimmius, Betsy Neff, Erv Lenz and Bill Everett voted yes. Tom Kraus voted in the negative. Motion passed.
Action Item: Management Company will inform Interval International of the change in policy and will inform all owners in the upcoming newsletter.
Resort Manager/Property Management Report
Staffing Update
Tom Baltz reported that the resort is currently operating with a full staff although there continues to be turnover in the housekeeping staff. Rachael Lagerstrom has been rehired has Activities Director in addition to perform administrative duties. The activities program has been expanded and is being well received by the owners.
Maintenance Update
Rob Wilsey reported the following:
a. A and B Units drainage update. The drainage ditches are working well.
b. Roofing Requirements - The roofing issues were already addressed in the House and Grounds Committee report.
c. Steam Cleaning Program – The program has worked well and will be reinstitued again in the fall.
d. Golf Cart Maintenance Status – All golf carts are currently running. Rob made a recommendation that an OSHA storage unit be purchased to store the gas cans for the golf carts, which are currently being stored in the maintenance garage.
e. Rob also recommended that a purchase be made of backup heaters for the waterlines. The cost would be approximately $1,000 for 2 and would allow quick response if the heaters went out during the cold weather.
f. The Board had an opportunity to tour the new Maintenance Garage prior to the meeting.
Interval International Guest Survey Results
Tom Baltz reported that he had worked with Interval International to combine the two current designations into one designation. This will give a better overall score with a combine rating. Our current overall rating is 91%. The resorts overall rating has gone up in almost every section. We can be very proud of our staff and the service they are giving.
Old Business
Lot 3 Purchase
The final paperwork on our purchase of lot 3 has been processed and filed with the county. The transaction will appear in the July Financial Reports.
New Business
Tom Kraus informed the Board that the Causeway Board is proceeding with the foreclosure process against Solara.
Adjournment
A motion to adjourn was entered. The motion was seconded and passed unanimously. The meeting was adjourned at 1:15 p.m.
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