Some questions have come up about the Petition to Remove / Recall SIX of the Terravita Country Club Board of Directors.
A recall Petition is not a lawsuit. No court is involved. The Petition is the first step in a process in which will require the Board to send out ballots and call a Special Meeting for members to vote on the recall. Absentee ballots, as well as those collected in the Special Meeting are counted. The decision is by simple majority as long as a quorum is reached.
An attorney was consulted on how to conduct the Petition because Terravita Country Club’s bylaws are not in alignment with State Law ARS 33-1813. For example, the quorum, which is the minimum number of total votes to validate the process, is 20% by Statute, not the 1/3 in Bylaws Article III, Section 5. The quorum for TCC is 276. If, for example, 600 votes are cast (so, more than 276), 301 votes would decide. Again, your signature on the Petition doesn’t recall the board members, it starts the process.
A recall is not unusual. Just last month, Legend Trail recalled a board member using this same process of collecting petition signatures, having a special meeting and a community vote. A removal of officers allows a community, like ours, to pause and rethink the best way to go forward.
We have heard, some Terravita Country Club members agree with the recall, but do not want to get involved or fear reprisal and therefore will not sign the petition. Our opinion is you need to get involved now before it is too late to rethink this project. If you signed the social media petition, your name is already known to the Board members and we assume, the management staff. Golfers, tennis players and former Board members are supporting this petition.
In the September 25th the Board of Directors, again, presented the Clubhouse redesign estimated costs (the same as presented in August). The total $5,200,000 cost is to be funded by $750,000 from the Capital Reserve account, $750,000 from the Capital Improvement account, and $3,7000,000 from the 20 year Chase Bank loan. In the meeting, when asked by two members what the Interest cost would be, the Director of Finance said it couldn’t be calculated because he didn’t know how much the loan would be or how long it would take to pay it off. (Note …. You can get a copy of the video of the September 25th meeting on CD from the TCC office.)
For the record, the interest on $3,700,000 is $2,067,000 (If we have cost overruns and have to borrow the total $5,000,000, total interest cost will be $2,787,000).
Capital Reserve $750,000
Capital Improvement $750,000
20 year loan $3,700,000
Interest on loan $2,067,000
Total cost of remodel $7,267,000
Please consider, at an estimated cost of $7,267,000 this Clubhouse redesign is the LARGEST, MOST EXPENSIVE PROJECT OUR CLUB HAS EVER UNDERTAKEN. Please remember that Terravita Country Club’s record for managing projects has been poor. The budget for the Desert Pavilion was $920,000, the final cost was $1,321,000. The Buffalo Chip took 11 months to rebuild from the ground up after a fire. Desert Pavilion took 18 months.
Please sign the Petition to Remove / Recall. Let’s start the process toward a better managed, fiscally responsible Country Club.