SADDLEBROOKE TENNIS CLUB MEMBERSHIP MEETING MINUTES
WEDNESDAY, JANUARY 10, 2007
CALL TO ORDER: 2007 STC Board President, Connie Kacer, called the meeting to order at 3:35 PM. Thirty-two members were in attendance.
Introductions: President Kacer introduced the 2007 Board members. New member Tex Whitney from Gig Harbor, Washington introduced himself.
Committee Chairperson Appointments: (See attached list.) Vacancies exist for the Chairs of the Charity and Computer Committees. President Kacer requested anyone interested in serving on these committees to leave their contact information for her at the Tennis Center mail slot.
Procedures for New Business: President Kacer announced that new motions not currently on the agenda would be carried over to the next membership meeting as unfinished business to be discussed, considered and voted upon.
Comment/Suggestion Box: Has been placed at the Tennis Center.
Communications to BOD: Communications from the membership to the Board may be placed in a binder at the TC for members to peruse.
STT Finals: Sunday Feb 25th, 12:00-4:00 at SB Courts.
Copper Bowl: Thanks to Sylvia Wilson for keeping things orderly at the Copper Bowl.
Special BOD Meeting with Rules Committee: on Friday January 26th at 2:00 PM to discuss and approve the STC rule revisions.
Computer System Update: Don Stull will act as Board liaison to the computer contractors to get answers to the Boards questions regarding the Memorandum of Understanding.
STC emails: For those who are not receiving STC e-mails and/or may have changed their e-mail address recently, a form was available at the meeting describing how to subscribe to the STC e-mail system. (This form is also available at the Tennis Center.) In order to minimize the transmission of emails, a Well Wishes List will be posted at the Tennis Center for posting illnesses, surgeries, and special celebrations. Judy Schlak, our Sunshine Lady, will still send cards on behalf of the general membership.
MINUTES OF NOV 8/NOV 29 MEMBERSHIP MEETINGS: Don Stull, STC Secretary, informed the members that minutes from the last meeting(s) (the November 8th meeting was adjourned to the November 29th meeting to hear the report from the Capital Expenditures committee, consider options and vote) were posted to the STC website and at the Tennis Center. There were no requests for correction. Since there was no quorum to approve the minutes, a vote was taken to approve the minutes based upon general consensus. On this basis, the minutes were approved.
TREASURER’S REPORT: Fiscal Projection: Riley Jackson, STC Treasurer, informed us that we currently have 428 active members. Last year at this time we had 463, but we changed when dues are payable by a month, so that could account for the difference. Riley expects more dues to trickle in over the next month, so he’ll update us at the next meeting. The STC has $53,087 in the bank. Dues have increased 33%. Riley is assuming the capital expenditure items approved by the membership will be implemented this year. Bottom line: Riley is projecting $54,000 in income and $59,000 in expenses, for a net of -$5,000. Since we had $22,000 carryover from the previous year, we should have a balance of $17,000 at the end of 2007. Steve Penner suggested that if the active membership number ends up going down 10% or so, that the Board conduct a survey to try to discover why.
Tennis Committee HOA #1---Tom Larkin (member): Tom reported the STC has received a safety inspection report from HOA-1 for the Tennis Center and surrounding area. This was prompted by the fall of an individual near the TC, resulting in some injuries. The report lists 16 items that need to be addressed. To date, most have been taken care of. HOA-1 is paying for the repairs/corrections. One item identified is the traffic pattern in front of the TC. We will probably be seeing new signage there in the near future.
Tennis Committee HOA #2---Joel Wyner (chair): Joel requested members contact him if they see a facility/court problem in HOA-2. That said, he already knows about court problems on 9, 11, 13, & 17. Joel is working on the problem of balls disappearing behind the backboard at the Preserve. Bill Hooks requested we get another opinion on use of water cleaning on MV courts (which has been curtailed based upon opinion of contractor who recently repaired cracks). Bill is not sure we need to restrict water washing.
Capital Expenditures—Steve Watry (chair): Steve has a draft contract for the part-time professional (including duties and responsibilities). John Price, GM of HOA-1, will be the agency handling the contract. HOA-1 is having their attorney review the draft contract. Once approved, a Request for Proposal (RFP) will be advertised locally, probably in the AZ Daily Star. The ad will require interested pros to submit a proposal for services (with costs) to HOA-1. The three pros currently practicing at SB will be given a copy of the RFP. The $5000 figure used in the Capital Expenditure Committee report cannot be exceeded (without a vote of the members), but a lesser figure could be negotiated by the Board.
HOA-2 Facilities Maintenance Manager, Tim Fudge, has a copy of the member approved projects and will be reviewing them. In addition, the HOA-2 Facilities Committee Chair, the Architectural Committee, Finance Committee and the HOA-2 Board will also be involved. Steve hopes to have approvals by the end of February 2007.
Tom Larkin provided conceptual pictures for the placement of the proposed bulletin boards at DV and Preserve. At issue is how materials will get posted to the boards without seriously increasing time demands on the tennis coordinators. One possible solution being explored is for the coordinators to e-mail materials to a staff person at the DV or Preserve, which could then be printed and posted.
Steve indicated that recent information suggests the proposed patio extension wouldn’t meet handicap laws. In addition, the show court concept at Court #1 may have a drainage problem. We need to make sure all codes, rules, regulations, and laws are met by our designs. We need to have a professional architect determine this.
A Fund Raising subcommittee is being formed to looks at ways to raise money for future projects. Two other sub committees will be looking at utilization/efficiency of the Tennis Center and the patio.
The softball field is having a permanent structure built for sun protection. It should be done soon and we can then check it out to see if the design might be adapted for our purposes.
Tax Exemption Info: 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. 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. (A written report Bill Hooks submitted to the STC Board is attached to these minutes.)
Orientation: Bob Rutstein informed us of a presentation at the TC on February 18th at 3:00 PM titled “The Inner Workings of SaddleBrooke Tennis” for new or returning tennis players. There will be a sign up sheet at the TC.
Tournament Committee: Carol Eisenbraun provided information on the 2007 STC Club Championships, which will be held as follows: Men’s and Women’s Doubles – Mar 19-24; Mixed Doubles – March 26-31st; and Men’s and Women’s Singles – April 9-14th. Levels will be A, B+, B, C+, C, and D. These levels will be determined by ratings in effect on January 1, 2007. Only regular (not associate) STC members may participate. Details will be posted on the TC bulletin board soon.
Robson Cup: Carol said we are a little shy on participants signing up for the 2007 Robson Cup tournament at Sun Lakes to be held the 24th of February. Currently, we need one more team for both Women’s Doubles 4.0 and 3.0. Carol says it will be fun, a good chance to meet new people, and encourages people to sign up for an event. Further information is on the TC bulletin board.
NEW BUSINESS: Diane Ray proposed the following motion to be considered at the next membership meeting: "I propose that the STC renew membership in the USTA and that a liaison be appointed by the club.”
ADJOURNMENT: The meeting was adjourned at 4:42 PM.
Don Stull, STC Secretary
STC 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
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 Associations 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