02/17/10
For Immediate Release:
Recent Board actions explained
On January 28, 2010 at the monthly Board meeting, a petition request was submitted to recall six members of the RCSC Board of Directors. To remove six members of the Board of Directors (with only nine total) could render RCSC inoperable, as it requires a Board quorum of six (6) or more Directors to conduct business. The Board has many responsibilities; i.e. to fulfill its fiduciary duty to act in the best interest and for the benefit of the corporation, to exercise sound business judgment, and to establish and revise policy. Possibly the following will help Members to understand the decisions made by the RCSC Board of Directors in recent months.
Membership Quorum
The previous membership quorum of 100 was less than one-half of a percent (.3%) of the total membership and left the corporation at risk of being controlled by small special interest groups. Following the advice of our legal counsel , we reverted the membership quorum to ARS 10-3722, “one-tenth of the votes entitled to be cast” until such time as we could form an Ad Hoc Committee of Board and Membership at large to come up with a more reasonable number. This committee has been formed and has begun their process.
Preservation & Improvement Fee (“PIF”)
On August 27, 2009 the RCSC Board of Directors unanimously voted to increase the PIF from $2,500 to $3,000 effective October 1, 2009. RCSC owns and operates approximately $80 million in recreational facilities for the benefit of Sun City residents. This community is celebrating its 50th anniversary this year, and despite the fact that we are without any debt, the financial requirements to maintain and update our aging facilities puts enormous financial demands on the RCSC, who through a Facilities Agreement assesses each deeded real estate owner of Sun City. Recognizing that we have numerous residents who have outlived their retirement, the RCSC Board of Directors has chosen to increase the PIF, which is paid by those coming into Sun City, instead of the annual property assessments, which is primarily paid by those who already live in Sun City.
Petitions
In regards RCSC Board Policy No. 5 titled “Initiative, Referendum & Recall Petitions,” it was amended by RCSC Board Resolution on December 17, 2009 which was unanimously approved by the RCSC Board. In Article I, Section E. of this policy it now states: “The completed petition must be returned within three months.” Previously the time allowed to complete the petition was six months. RCSC legal counsel advised the RCSC Board that having a petition in process for six months was highly unusual and not beneficial to the residents of Sun City, as having something of contention remain for a six-month period does not lend itself to keeping a community united in a common purpose. It is important to recognize that RCSC is a non-profit, private corporation that is governed by the Arizona Revised Statutes, Title 10.
Currently there is a petition being circulated to remove the power of the Board to establish and revise policy. Board policies affect how the corporation functions both operationally and financially. To think that Members without sufficient knowledge of the day-to-day operation and problems of the corporation have the insight to make such decisions is impractical. The decision-making process is the sole reason you elect a Board of Directors. Remember the success of this corporation affects every Sun City property owner.
Members Input & Opposition
RCSC Board members listen to RCSC Members and provide numerous opportunities for Members to express their concerns and provide their input at two Board/Member Exchanges each month and one monthly Board meeting, excluding the month of July. At these meetings, Members are encouraged to express their views which frequently differ from the direction the Board is taking. It must be remembered that many of the positions the Board takes are the result of hours of committee and ad hoc committee meetings involving many members of the community. The Board listens to the views of all and does change its position on things based upon the comments of those with opposing views. In the end, the Board’s goal is to do what is financially responsible and meets the needs of the majority of the members.
Members Become Board of Directors
With 100 signatures on a petition, any RCSC Member in good standing who qualifies (must be 55 years of age or older, must have resided in Sun City for two years or more) can run for the Board of Directors. Anyone can be a Monday morning quarterback, it is easy to criticize and complain. It is much more difficult to offer solutions and become responsible for their outcome. If you are unsatisfied with the Board’s performance, I urge you to run for the Board at the next election.
-Gene Westemeier, RCSC Board President