SADDLEBROOKE TENNIS CLUB BOARD MEETING MINUTES
WEDNESDAY, JANURARY 3, 2007
CALL TO ORDER: 2007 STC Board President, Connie Kacer, called the meeting to order at 2:02 PM. Board Directors present were President Connie Kacer, Vice President Bob Rutstein, Secretary, Don Stull, Treasurer, Riley Jackson, and Director at Large, Karen Gray.
Announcements: President Kacer announced that Karen Gray has agreed to organize any special socials that don’t fall under the Social or Tournament Committees.
Memorandum of Understanding—computer upgrade: The Board has questions about the MOU and Don Stull will act as liaison with the contractors in order to achieve an agreement. Board members should submit questions to Don by Friday, the 5th.
Reading and Approval of Minutes: Don Stull said the minutes for the last Board meeting on December 4, 2006 had been posted on the STC website, at the Tennis Center, and sent to the Board members for review. There had been no requests for changes. The minutes were approved by the board.
Treasurer’s report: Riley Jackson said about 390 annual dues had been received and he expects about 450 by month’s end. He deposited $25,000 the day before and will be making more, smaller deposits. With the $21-22,000 left from the previous year he expects the STC to be in good fiscal shape for the year. President Kacer requested that for the next Board meeting, Riley bring the STC checkbook and a projection of revenues and expenditures for 2007. Riley agreed to do so.
Special Report: Bill Hooks provided a report addressing concerns regarding tax exemption and STC capital improvements, such as the proposed canopy at DesertView. (Bill was a tax accountant in the corporate world.) Bill pointed out that the HOAs are non-profit entities, but not tax-exempt. The charitable arm of the STC DOES allow contributions to be tax deductible. The STC itself could get tax exempt status, allowing contributions to the STC to be tax deductible, but that would be in jeopardy if the STC made physical improvements to property belonging to the HOAs. One solution might be for the HOAs to transfer the relevant properties to the STC. However, maintenance of the property would be an issue. The STC could request the HOAs maintain the property, but they may not be willing. Don Stull asked how the STC would get tax exempt status without showing a charitable purpose. Bill said promoting tennis would qualify as a charitable purpose. Bill recommends not worrying about tax exemption and just conduct fund raising, like selling bricks. (Donations would not be tax deductible.) The STC would still need to get permission from the HOAs to add improvements to HOA property. Karen Gray asked about maintenance of structures. Bill said that needed to be discussed, as the HOAs might refuse to maintain donated structures. (A written report from Bill Hooks is attached to the end of these minutes.)
Capital Expenditures—action on items under $1,000: Issues include the positioning and additional time (and therefore cost) to post items on bulletin boards at DV and Preserve. The Capital Expenditure Committee is going to be working with the HOAs on getting approval for the placement. A discussion followed regarding whether the Board should approve the expenditures now or wait until the CEC has completed its work, necessary approvals are secured from the HOAs, and money is ready to be spent. A motion was made by Bob Rutstein to approve the expenditures (total of $1260) dependent upon necessary approvals by HOA-2 and that there be someone available to post the schedules on the bulletin boards. The motion was passed.
Appoint committee chairpersons, and announce other important positions: President Kacer read the list of committee chairs. Two vacancies still exist – Computer and Charity. (See list attached to these minutes.) Board members had no objections to the proposed chairs. President Kacer would like all committee chairs to submit a list of members and goals. Also, if a committee chair would like to address a general membership meeting or have the Board address an issue, they need to notify the president at least 5 days in advance of the meeting, so that items can be added to the agenda.
Expenditures by committee chairs: Committee chairs should notify the Treasurer in advance of large ticket items. Nancy Frazer has a copy card which could be used for small copy jobs.
Set a date for a Special BOD Meeting to discuss the STC Rules revisions: The Board will meet Friday the 26th at 2:00 PM at the Tennis Center with the Rules Committee.
Part time Tennis Pro: Steve Watry is finalizing a job description and a “Professional Services Agreement.” He recommends the pro be a contract employee. Bob Rutstein agrees since an independent contractor is less expensive than a regular employee. The Board will review Steve’s documents and decide if there is a need for a meeting.
Communication to the BOD—handling receipt, and possible posting: President Kacer would like to add a suggestion box at the Tennis Center. Discussion included that suggestions should be signed. Motion to add a suggestion box was approved. A second motion was made and approved that selected communications to the Board (at the discretion of the president) could be posted in a binder at the Tennis Center for member review. Karen Gray offered to sort through the communications and sort them by topic.
Capital Expenditure Committee’s recommendation to add sub committees: A discussion around the topic of approving sub-committees for the Capital Expenditure Committee was dropped when Steve Leane offered the opinion that under the bylaws, the committee chair already has that authority. Therefore, it was decided to let the chairman of the Expenditure Committee decide what was needed and inform the board, which has final approval on recommendations.
Outgoing Chair of the Charity Committee’s recommendations to postpone event until spring 2008 and to add subcommittees: It was decided to find the new chair for this committee, and then determine what actions to take.
Reimbursement for supplies for BOD - establish a cap: A discussion was held regarding how Board of Director’s STC-related expenses should be handled. After much discussion, it was decided that Board members should submit requests for reimbursement when they have expenses related to STC duties the same way committee chairs would. Receipts should be submitted whenever possible, but some things like reimbursement for printer ink or paper must by necessity be estimated and a receipt may not be practical.
Orientation Committee social: The Orientation Committee has proposed holding an open house and social for new and past tennis players at the Tennis Center on February 18th at 3 PM. The Board approved expenditures for refreshments not to exceed $200. No tennis playing involved in this event.
SaddleBrooke/Sun City social: Connie Kacer has been in contact with a Sun City representative from Sun City Vistoso who has suggested a social with SaddleBrooke and says it is our turn to host. After a brief discussion, Frank Farrell pointed out that Sun City cancelled out at the last minute from a social SaddleBrooke was organizing in March of 2005 – so really it is their turn to host. President Kacer said she would talk to her Sun City contact again with this new information, but also saying we are open to a social.
New Business: Tom Larkin suggested backup printer cartridges are needed at the Tennis Center. Riley suggested they be purchased online and mailed to the Lead Coordinator’s house. This was agreeable to all, if Nancy Frazer has no objection.
A motion was made and approved at 3:40 PM to go into Executive session to discuss a personnel matter. The Board was adjourned at 4:00 PM.
Don Stull, STC Secretary
WRITTEN REPORT FROM BILL HOOKS:
January 4, 2007
President, SaddleBrooke Tennis Club
HISTORY OF HOMEOWNERS ASSOCIATIONS:
Both Homeowners Associations Number 1 and 2 are incorporated under the laws of Arizona as a corporation Not For Profit, thus are required to file an annual return with the state of Arizona. There are no penalties for not filing with the State of Arizona! The Internal Revenue Service takes a different view; as the Homeowners Associations are required to file every calendar year using a form HOA 1120. I will not attempt to explain the filings rules required for a Homeowners Association with the Internal Revenue Service. At the present time neither SaddleBrooke Homeowners Associations have a Tax Exemption under 501 C 3 of the Internal Revenue Code, which allows a charitable deduction for contributions to the entity.
Within the last several years I have personally filed for Tax Exemptions for the Friends of the Library and DesertView Theater Guild under Section 501 c 3 of the I.RC... In my discussions with the Internal Revenue Service they would not look favorable for the Charitable Organization to make improvements on the property owned by the Homeowners Associations. In the case of DesertView Theater Guild they would not allow the approval of the Tax Exemption if there were improvements made to property owned by the Homeowners Associations. In order to circumvent this situation it would be my recommendation that each Homeowners Association transfer the land and physical assets to the SaddleBrooke Tennis Club. In doing the transfer of land and physical assets there comes the responsibility of the Tennis Club maintaining the assets of the tennis courts and other physical assets. I doubt if the Boards of Homeowners Associations would agree to this transfer, but they may agree to this transfer as a way to reduce future expenses. If this transfer were to take place, the dues of STC would be greatly increased and all expenditures or improvements to the Tennis Facilities would not be questionable by the Internal Revenue Service; since the Facilities would be owned by the SaddleBrooke Tennis Club. There is no question that the SaddleBrooke Tennis Club could apply for exemption under the Internal Revenue Service and be granted an exemption under 501c 3. The tax exemption would serve no purpose, as the contributions would be deductible for Federal Income Tax, but the organization would be prohibited from making improvements to Homeowners Association Property.
The same problem would exist for the arm or Charitable Organization of SaddleBrooke Tennis Club as they too would be prohibited from making any physical improvements.
Since the membership agreed or voted to make improvements to the properties of HOA 1 and 2, there appears to be no problem in the plan to carry out these various improvements. SaddleBrooke Tennis Club only needs to gain the approval of the Homeowners Association.
One way to solicit funds or ask for donations would be to sell bricks at $250.00 per brick, and the contribution would not generate a tax deduction
COMMITTEE CHAIRPERSONS FOR 2007
Social — Kathy Majer & Bonnie Johnson (as co-chairs).
Tournament — Carol Eisenbraun.
Orientation — Linda DePew
By Laws (ad hoc) — Steve Leane
Rules — Craig MacPherson
Charity --- Vacancy.
Computer --- Vacancy. Bill Lundquist is willing to serve on the committee.
Communications — Dick Hamilton.
Capital Expenditure — Steve Watry. He will also chair the Implementation
Committee that the Cap. Exp. Comm. has recommended.
The following are really not committees, but they are necessary to our club:
Audit — Jerry Sandvig.
Maintenance (HOA #1 Team) Al Kacer
Sunshine Lady—Judy Schlak
Robson Cup — Steve Leane & Carol Eisenbraun.
BOD email transmitter — Don Stull
Member Directory — Leon McKinzie
Membership Meeting Attendance (record keeper) — Sue Ayers
BOD Liaison to the Coordinators—Connie Kacer