SANDY PINES WILDERNESS TRAILS, INC BOARD OF DIRECTORS MEETING July 15, 2016 7:00 p.m. – Recreation Station

CALL TO ORDER: Chairman DeVries called the meeting to order.

INVOCATION given by Young.

ROLL CALL: Marti DeVries, Rog Grinwis, Kerry Bunce, Tim Hoffman, Rod Klein, Dan Kendall, Carolyn Nielsen, Gerda Pitcher and Mike Young Staff Present: Gene Van Koevering and Kimberly Williams.

APPROVAL OF MINUTES: Motion by DeVries, supported by Grinwis, to approve the minutes of the June 17, 2016 meeting of the Board of Directors. All Ayes. Motion carried

NEW MEMBERS: Motion by Pitcher with support from Nielson to approve new Park Member applications. All Ayes. Motion carried

COMMENTS FROM THE CHAIRMAN: DeVries reported that there was a proposal for a consolidation of two current committees: Member Outreach and Special Events. At the past Board Planning meeting the Board gave approval for the dissolution of these individual committees. The committees will be consolidated to allow for greater strength in member volunteers. The two committees will continue through the 2016 summer season and will eliminate the monthly meetings, yet meet on an as needed basis. Meetings held will revolve around event planning, with the coordination of planning being done by Mary Applehof, Recreation Manager and Marti DeVries, Board Chairperson. The consolidated committees will continue to prepare new member packets, host new member social events, volunteer appreciation events and any other events where community member volunteers are necessary. DeVries discussed the Board consensus on revisions to the petition for proposal documents. At the May Board meeting a member proposal was discussed, and it was noted that the Board determined a need during this summer season to look at the various forms used by the Sandy Pines over a number of years. The petition for proposal was reviewed for space provided on the petition to allow for proposal language to appear on each individual page. The sponsor name is to appear in the space allowed on the face of the petition for proposal. Verbiage of “legal” name signature and “legal” printed name was added to the form. This will help enforce the elimination of past non-members, non-legal, dual membership names, trust membership signature names or non-legal names. The number of allowed sponsors has now been limited to 20 names rather than 25 to allow space for specific proposal language. The second page will again provide the specific sponsorship information; name, address, etc. A statement has also been included “Note: Please ensure all bylaw requirements are met prior to submitting your petitions for proposal. There was a consensus at the Monday planning meeting by the Board to approve all petition for proposal document changes. DeVries presented the resolution to amend the Sandy Pines rules book/permit book whereas the Bylaws of Sandy Pines Wilderness Trails, Inc. gives the Board of Directors the power to adopt, amend, rescind, and repeal rules and regulations relating to the use of Sandy Pines property and the conduct of its members and their guests. Whereas, the Rules Committee of Sandy Pines Wilderness Trail, Inc. has reviewed and recommended changes in the rules/permit book. Be it resolved that the Board of Directors of Sandy Pines Wilderness Trail, Inc. does hereby approve change recommended by the Board of Terms, page 5. It is under the definition of terms in the handbook we are adding letter number M the term “election” and its definition as the electing of or the act of choosing or selecting people places and/or things. Motion by DeVries with support from Pitcher to approve Resolution 071516A to amend the rulebook/permit book. Seven Ayes. Two Nays. Motion carried.

STANDING COMMITTEE REPORTS: *Finance: Kendall reported that the Finance Committee met on July 14, 2016, to discuss and review the SPWT and LMGC financials and check registers for June 30, 2016. In addition, the September 30, 2015 internal fiscal year end financials were reviewed and approved as they were overlooked for approval in prior meeting. It was noted however that there was a meeting to review the auditor’s financial reports of fiscal year end, September 30, 2015. Motion by Kendall, supported by Grinwis, to approve the Financial Statements for SPWT and LMGC for September 2015 and June 2016. All Ayes.

*Member Outreach and Communications: DeVries stated that her committee met on June 18, 2016. There was a June 25 new member welcoming event and will be hosting an Ice Cream Social to welcome new members on August 27 from 6:30-8:30 pm at the Outdoor Pavilion by the Ice Cream Shop. Gene Van Koevering, Steve Deyarmond, and Mary Applehof were present to talk to the new members and discuss any questions of operations within the park. A thank you was extended to the volunteers and employees that were present. The next Member Outreach Committee meeting is scheduled to take place on July 30 2016.

*Rules/Bylaws: Bunce reported for the Rules Committee. The committee met on 7/6/16 and part of the meeting discussed the definition of authorized golf carts in Sandy Pines. Motion by Bunce with support from Pitcher to approve Resolution 071516B to define golf cart, utility cart and disqualified vehicles. All Ayes. Motion carried. Bunce confirmed that a member of a committee who also serves as a liaison to the committee is still allowed to vote. Therefore, as of today, Bunce is to be updated as a voting member to the Rules Committee as well as a liaison to the Board (with voting rights).

*Special Events and Activities: Young presented his report to the membership. Saturday, July 16 is Family Fun Day. The Poker Run is scheduled on July 23rd from 2pm to 4pm. Halloween “Trick-or- treating” will also take place on July 23rd from 3pm to 4pm. August 5 Karaoke will be held at the Clubhouse. Buffet begins at 5:30 with Music at 7 pm.

*Long Range Planning: Grinwis presented his report to the membership and shared the discussion that took place at the July 13 meeting concerning options available to Sandy Pines in regards to Foundation and Endowments for the benefit of the park. An experienced visitor in foundations and endowments, along with the CFO, attended the meeting and shared that Sandy Pines does not quality for tax-deductible contributions as a 501(c)7. The Long Range Planning committee will be looking at other considerations for raising funds. The results of the past Adult Rec. survey will be made available to the public on the Sandy Pines website. The most recent engineering report was received on July 5, and after review and discussion of the findings by Long Range Planning, Building and Grounds, Management, including Maintenance, it was determined in the best interest of the park to close the building. Steps are taking place to begin the planning and reopening of a new pool, financing means and establishing an ad hoc committee to help through the process. There is potential of an additional survey being offered to management. There will be a Member Informational meeting discussing the closing of the Indoor Pool and Adult Recreation building and the next course of action. Last, the committee has discussed the interest of the park to increase the golf cart fleet as a response to demand. The various options of buying versus leasing were also discussed.

*Building and Grounds: Young shared that the Building and Grounds committee met Saturday July 9 at the Adult Recreation Building, and after review of the most recent engineer report and survey of the building, it was determined to be the best interest of the members and community to close the building. The original review of engineer report was completed on May 6, 2015, and it was thought that Sandy Pines would have an additional five years use of the building. After concern by maintenance, the need for an additional review was determined and completed on June 7, 2016. The report was received by park management on July 5, 2016. It was confirmed that the additional shifting created significant deterioration faster than expected. The Maintenance Supervisor does not even allow his maintenance staff to go on the roof due to the exposure of severe risk. The June 16, 2016, Engineer Report proposed three options, yet stated the options will only address the exterior window walls around the pool area leaving the other issues noted in previous reports to be addressed and some could still pose potentially severe liabilities. Motion by Young with support from Grinwis to approve closure of the Adult Recreation and Indoor Pool indefinitely. All Ayes. An open meeting available to all members will take place on July 30, 2016, to discuss the next steps. An ad hoc committee will be developed of members at large for planning of the new facilities. Discussion was also included in regards to repair of the shuffleboard with new coating to bring the court up to better condition. All Shuffleboard courts (Phase 2, 4 and 1) are expected to be repaired over time.

*Sandy Pines Development/Condo Association: No Report.

*Golf Course: No Report. Nielsen noted that the next meeting is scheduled to take plan Saturday July 14, 2016.

*Technology: Rod Klein reported for the Technology Committee. There has been some feedback concern related to Charter. On August 13, 2016, Charter is scheduled to attend the Flea Market with their own booth to answer any member concerns. Discussion took place regarding the most recent Charter Internal fiber optic upgrade at the Adult Recreation building. The cell tower is still on target for Spring of 2017. Currently, Verizon is the only provider assigned to the tower. Bandwidth of the internal network of Sandy Pines (WAN, LAN) is only available to park administration. There are plans for security camera upgrades throughout the park. The technology committee is working to develop a 5-10 year plan including a “needs” and “wants” analysis. The items included will possibly be voted upon through a member and employee survey

*Policy Committee: Nielsen reported for the Policy Committee. They have diligently been working to create policy guidelines. The policy committee is currently working with Bob Powers to establish a defined policy for the Technology Committee. No meeting has taken place yet for July 2016.

*Safety and Security Committee: Hoffman reported that the committee is working very hard with meetings on June 17, June 24, July 1 and July 15 to make our Park as safe as possible. Steve Deyarmond, along with the Safety and Security Committee, discussed how to manage gate access for ease of flow, especially on the larger holiday weekends, which is when the systems tend to go on overload. Safety concerns regarding playground equipment was discussed and plans are set to meet with Ben Fifelski, Maintenance Supervisor, and outside consultants to ensure safety. The Safety and Security Committee is working to come up with a long term threat assessment proposal to report with the Long Range Planning Committee and from there, provide recommendations to the Board. Hoffman communicated to the Board the importance of taking quick action on approving a policy that relates to the use of weapons and to stress training with employees rather than delaying. Motion by Hoffman with support from Klein to approve Resolution 071516C to approve an Employee Firearms Policy for all Trained and Approved Employees of Sandy Pines Wilderness Trails. Eight Ayes. One Nay. Motion carried. The next meetings for Safety and Security are scheduled for July 29 and August 19, 2016

PARK PRESIDENT REPORT: Van Koevering gave his report to the membership. He expressed gratitude to his staff for their accommodations to the sudden decision to close the Indoor Pool and Adult Recreation building. The decision was made at 3:15 pm on Friday, July 8, and shortly after closure of the building Mary Applehof was contacted and quickly made alternate plans to accommodate the all-nighter with her staff at the Recreation Building and at the Waterpark. On Sunday, July 9th staff worked to revise additional schedules for swimming lessons and other recreation events, which were posted online that same day by the CFO. All other programs were rescheduled thereafter through the week, Monday through Wednesday. Van Koevering met with Sub City owner to discuss alternative planning for the rest of the 2016 season and beyond. Sub City will be closed for the remainder of the 2016 summer season. SPWT will help in marketing Perfect Pizza, managed by the same owner, across the street to bring additional business his way. Additional plans and timeline were also worked through with the Building and Grounds committee. An informational meeting is currently scheduled for July 30, 2016, at 7pm, in the Pavilion to discuss any questions with regard to the Adult Recreation/Indoor Pool, as well as provide an opportunity for additional questions on the Capital Reserve Fund. The new Sandy Pines webpage has included a specific section for updates to members on the closure, included as a “Quicklink” on the member’s page, with the next steps and timeline to the closing and rebuilding of the Adult Rec/Indoor Pool building. Information will also be included in the Footprints and is scheduled to be displayed on the cable channel. The Capital Reserve Fund is the next big focus; where information is made readily available on the website with FAQs answers, information is also available by stopping in at the Administration office. The next Face to Phase meeting on July 23rd will allow for questions on the Capital Reserve Fund to be answered. Van Koevering took an opportunity to ask for a new look at things within the park and to focus in a more positive light on what we do have, and encouraged members not to focus on the negativity, since Sandy Pines has more going for it than against it and the Capital Reserve Fund is a necessary tool to prepare for the future. There is so much available here within the park and a fund to maintain our resources is important for the continued sustainability of the park and its future. Many of Sandy Pines most important resources are in the best condition ever. The Human Resources and departmental management has been encouraged to be more active in the management of their respective departments and encouraged to be more efficient, productive and courteous. Support staff has been added to many departments over the last 3 years with added skill sets capable of caring for the park facilities and safety of our members and guests. Management and administrative staff positions are being transitioned to be capable professionals for the next generation. The improved member service from within all departments is evident in all areas of the park. The park’s financial resources; operational cash reserves are the highest in the history of Sandy Pines. 2012 vs 2016 cash on hand less payables is almost $2M greater, with $1.5M added in the most recent three years. We are efficient, productive and working to do the best in regards to running the operations of the park. Operational dues have not increased (over CPI) since the late 1970s. Diligent management of the financial aspects of the park are managed daily by those in operations, verified by the Finance Committee, Board and Beene Garter, our CPA firm. Monthly and annually they confirm proper financial management of the park. Capital resources are strong. The Golf Course has never been in a better condition. In June there was a 9% increase to revenue and play time, with a net 5% increase in profit. Our membership sites are continually increasing in value as shown through the monthly reports of resale sites. The condo project has become a general resource to the park that has been slow and steady in developing. There have, however, been 7 sales in 2016, and that supports that the Condo Association is alive and well managed. Many of the park’s facilities have been maintained and kept in great condition to allow them to be used for a maximum number of years. There are comments asking why CCs are being replaced when they look to be in great shape and that is a tribute to how well they have been kept up, aside from the underlying structural aging that is making them necessary for replacement. The accounting, technical, data management and website have all been upgraded over the past 12 months to a point that Sandy Pines is ready to move forward with the necessary tools to operate in the future. Sandy Pines has many more physical amenities in the park than any other member-owned park in the State of Michigan. If our cost of membership was attributed to a ratio relative to the cost per amenities, no park in the United States could compete with the price of Sandy Pines. Sandy Pines is, and will continue to be, the greatest and best investment for families in the future as it has been in the past.

OLD BUSINESS: None to report.

NEW BUSINESS: Chairperson DeVries gave the following report. The next Face to Phase meeting is scheduled for July 23rd where members are encouraged to come and discuss the Capital Reserve Fund assessment. The Sandy Pines Annual Election will be held on Saturday, August 20th, 2016, from 10am to 2pm. The Sandy Pines Annual meeting will be held on Saturday, August 20th, 2016, at 10am inside the Chapel. Absentee ballots will be available at the Administration office next week, Wednesday, July 20th, 2016. Proxy votes are also available.

MEMBER QUESTIONS and COMMENTS were entertained.

Meeting Adjourned at 8:12pm. Next Board Meeting is August 19, 2016, at 7:00 pm in the Pavilion.