THE VILLAGE AT IZATYS ASSOCIATION

BOARD OF DIRECTORS MEETING

April 23, 2003, 6:00 PM at Midwest Resorts

(Approved w/changes 7/26/03)

Present: Board Members - Dick Beyer, Tom Kraus, Betsy Neff, Erv Lentz, Ron Zappa and Kristie Lacey-Hause. Ad Hoc Committee Members – Mike Peplinski, Diane Peplinski, John Eggers, Debra Lind and DeAnn Grimmius. Resort Manager - Tom Baltz.

TOPIC / DISCUSSION / ACTION
Called to Order / Dick Beyer called the meeting to order at 6:01p.m.
Minutes of January 15, 2003 Board of Directors Meeting / Dick Beyer reviewed the minutes from the previous meeting. / M/S/P - Minutes approved
Finance Committee
Tom Krause – Chairperson
Finance Committee - Continued / Tom Kraus presented the 2002 year-end financial statements. Discussion concerning December 2002 income adjustment occurred and Tom explained the process for verifying this account though the use of newly developed “Usage Report” which details both owner and developer maintenance fees collected on a weekly basis. The Usage Report will be provided to the finance committee on a monthly basis with the monthly financial statements. Everyone felt that the Usage Report would be a valuable tool for future accuracy.
Tom presented the 1st quarter financial statements and noted actual vs. budget variances. The DSL expense needed to be reclassified and natural gas was over budget do to increase in rates and the abnormally severe winter weather. There was concern expressed over continuing rate increases in insurance coverages. Ron Zappa explained that the association is due a rebate from 2002 with the insurance conversion, but that he has been told to expect a 10 to 20% increase at renewal time.
Golf cart usage was discussed and Ron Zappa explained to the Board that the purchase of two golf carts was approved in the 2003 budget with an estimated total purchase price of $9000.00. Ron suggested that with the decrease in 2002 revenues, the Board should limit the purchase of golf carts to only one for 2003 and review the needs for further purchases in the 2004 budgeting process. Ron moved that the golf cart purchase for 2003 be limited to one unit. / M/S/P - Tom Kraus seconded and motion passed unanimously.
M/S/P – Treasurer’s Report
House and Grounds Committee
Mike Peplinski - Chairperson / Mike Peplinski reported on his resort review conducted on 3/29/03. Written report was provided to all Board members detailing his findings. Mike expressed his high regard for the work and dedication of Suzy and JD to maintaining the resort’s 5-star status. Mike commented on the problem with settling in the F units. Tom Baltz explained that the contractor had reviewed the units and determined that the cause was the expansion of the wood and not in the settling of the buildings. Any needed repairs will be completed at no cost to the Association.
Discussion occurred on what constituted Interval International’s “5-Star” rating. Ron Zappa explained that the rating is based on a number of factors. Unit size, unit quality, unit amenities, resort amenities, area activities, etc. An Interval International representative visits our resort once a year to rate our resort and ultimately determine the resorts status.
Ron Zappa presented our “Spring Spruce Up” program to the Board and explained how our maintenance and housekeeping staff are prioritizing and monitoring our spring cleanup initiatives.
Communication Committee
Betsy Neff - Chairperson / Betsy Neff has been working with Dena Kohlgraf on the Spring 2003 Newsletter. Betsy asked that everyone get their articles into Dena as soon as possible. Betsy was extremely pleased with the updating of the Web Site.
Betsy asked developer to send e-mail to all owners explaining bonus time and 5-Star status. Kristie indicated that this would be included in the Developer Newsletter which is already in process. Betsy explained to Kris that the magazine “Timesharing Today” would pay for postage if they were allowed to insert a small article. Kris will research feasibility.
Ron Zappa made a motion to incorporate the resort newsletter with the developer newsletter with the developer paying all costs. Motion was seconded, but after discussion, was not approved. It was determined that it was in the best interests of the Association to maintain a separate newsletter.
Policy Committee
Erv Lentz / Erv Lentz discussed the approved changes to the Policy and Procedure Manual concerning scheduling of board meeting dates. Pages with updates were distributed to Board Members.
Ron Zappa presented proposed changes to Section 2.5 concerning delinquent maintenance fees and the suggestion to restrict rental of units in delinquency.
Kristie Lacey-Hause presented recommendation to allow Midwest Resorts to contract with the Village at Izatys Association as the approved collection agency. / M/S/P – Owners with maintenance fees in arrears are restricted from listing units for rent until maintenance fee payments are current.
M/S/P – To give Policy Committee authority to approve Collection Agency based on decision of Causeway on Gull Policy Committee decision. Tom Kraus to act as representative with Causeway Association.
Nominating Committee
Dick Beyer / Dick Beyer made a motion to fill the developer board seat vacated by Mike Waddick with Stan Taube, owner of Midwest Resorts. / M/S/P – Stan Taube was appointed to the Board of Directors to fill vacated seat. Term to run through next election.
Resort Managers Report
Tom Baltz / Tom Baltz gave the managers report indicating that they have completed deep cleanings and they are moving forward with their Spring Spruce-up activities. Tom informed the board that Housekeeping & Maintenance have been moved to the Izatys Resort maintenance area. The developer is leasing two buildings to handle these activities. The area vacated by maintenance is in the process of being converted to an activities room and will also contained an area with a computer for owners to use for internet access. This service will be provided to owners at no charge.
Tom presented the new in-house survey card and covered the results YDT. The results were excellent in Administration, Housekeeping and Maintenance. Work still needs to be accomplished in the activities area, but better facilities are needed.
Developer Report
Kristie Lacey-Hause / Kris reported that sales at the Village continued to be very strong. Discussed completion of C-17 and C-18 and future plans of expansion.
The developer is continuing to work with the new owners of Izatys Resort. Dave Kramber is adding many upgrades to the pool area, including a 30 person hot tub, as well as, expansion of the pool decking area to allow for additional seating. Dave has also added nightly entertainment throughout the summer.
Old Business / Ron Zappa informed the Board that the plan to purchase and convert the sales office to a recreation building with the Izatys Townhouse Association was not approved by the whole ownership group. Ron suggested that the board work with the developer in formulating a plan to build a recreation center adjacent to the sales building utilizing owner memberships to fund the project. / M/S/P - Management company will present plan to Board of Directors at the July 26, 2003 meeting. Presentation may occur prior to this via a special meeting.
New Business / Tom Kraus asked that the renovation schedule be updated with emphasis on carpet replacement schedule. / Management company will update schedule and presented to board at next meeting.
Adjournment / Meeting was adjourned at 8:55 p.m. / M/S/P

The next Board meeting is scheduled for 10 a.m. Saturday, July 26, 2003. Location – Izatys Resort

Respectfully submitted by Ron Zappa

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