Developer Control Overreach ……???

• Resident Candidates for SCTX board of Directors must be pre-selected and endorsed by the Developer.
  
  This is the implication of the arbitrary action taken by the Developer. The provision that SCTX Resident Board of Director Candidates may be nominated from the floor was eliminated from the SCTX Bylaws. The Developer has the sole and complete authority to take an independent action to modify the Bylaws. However….as has been previously noted.
  
  “The right to do something does not mean that doing it is right."~
  
  In this instance, the action taken to modify election procedures was pathetically wrong. The process was wrong and the action was wrong! There was NO open discussion; NO general notification; NO Board review and NO timely record of action.
  
  Most importantly, the action tampers with our fundamental rights as citizens and residents to be represented by individuals we choose in a free and open election.
  
  Background and… the rest of the story
  
  December and January Sun Rays contained an announcement notifying individuals wishing to become a Board Member candidates, that they MUST submit an application and MUST be available for an interview on February 27th.
  
  Since this information was contrary to the nomination processes outlined in the Bylaws posted on http://texas.delwebblive.com/ [up until mid-December] and [to most every other organization] a clarification was sought from the CA. The response was as follows:
  
  “The initial bylaws for Sun City Texas included a provision that allowed nominations from the floor. However, the Amended Bylaws included language that specifically prohibited nominations from the floor. This amendment was made by the Declarant (Developer) at the Declarant's sole and absolute discretion. These Bylaws were filed with the county and a copy is available at the CA Admin office, in your name. Since the amendment was made by the Declarant (Developer) and not by the CA Board, the action is not documented in Board minutes.”
  
  Following this revelation, new Amended Bylaws have now been posted to http://texas.delwebblive.com/ and Neighborhood Representatives were advised of the Amendment along with further explanation on why the Developer elected to make the change. “It was done in attempt to simplify the nominations and election process of the CA. In addition, the Developer felt the current nominations process was serving the community well in providing qualified candidates for the Board. That said: the Developer and the Board will be reevaluating the option of allowing nominations from the floor in preparation for the 2006 Board elections. Resident input on this subject is welcomed and appreciated.”
  
  One could speculate further as to the reasons for the change in the nominating process, but the change was not in the best interest of the residents, in our judgment. And it is an instance of Control Overreach by the Developer. But, what was done is done! It is water over the Berry Creek dam!
  
  
  Going Forward…
  
  We are encouraged that the Board of Directors and Developer are now seeking resident input on opening up the election process. Clearly, because of the past actions to over-control the election outcome, the current process is sufficiently tainted that candidates elected under the process in place will lack credibility to represent resident interest. A caveat that also needs to be addressed is that the Board now has the authority to disqualify any resident recommended by the Nominating Committee running for the Board, another Control Overreach by the Developer.
  To screen candidates based upon their views and especially, those views regarding the Developer seems unwarranted. Resident voters are quite capable of making informed decisions about candidates’ views and choosing those best able to represent residents.
  
  Recommendations….
  
  We suggest scrapping the current nomination process for Board of Director Candidates. Residents in “good standing” and able to muster a minimal number of signatures from fellow residents should qualify to stand for election. Even those requirements would be more stringent than those required for Council member for the City of Georgetown. The Nominating and/or Election Committee could certify the candidates that meet the requirements for election.
  
  Other good faith actions by the Developer could now be undertaken to restore a measure of confidence in the Governance processes of SCTX. Since transition to resident control will effectively be put off until 2010 or later, more effective sharing of resident participation in the Governance process is warranted.
  
  Adding a third resident member to the SCTX Board of Directors bringing the total to seven members, including the Chairman would be a positive step. Tie votes could still be decided in favor of the Developer by the vote of the Chairman.
  
  SCTX Resident Board members should be delegated sole Board Authority for appointment of Nominating Committee Members. SCTX Resident Board Members would review all applicants interviewed and act on the recommendations of the Nominating Committee for members of Governance Committees, task forces and other ad hoc governance groups.
  
  Future Amendments to Bylaws and/or CC&R’s should be discussed in open forum and distributed generally to residents via various media, including electronic. Full and complete Transparency should be a principal goal of SCTX.
  
  Resident input Requested—your views are important!!
  
  As noted above, the Developer and the Board are in the process of reevaluating the election process. Resident input has been requested. We appreciate those residents that have contacted the Board Members and Executive Director expressing their concern regarding the Developer’s decision to change the nominating process. Your views are especially important at this time because of the upcoming opening for the Resident seat on the Board of Directors. Most likely, these issues will be decided at the January 12th Board Meeting.
  
  You can Email/call/write:Gary Newman, Gary.Newman@delwebb.com
  Rob McDaniel, rob.mcdaniel@delwebb.com,
  Mark Thomas, mark.thomas@pulte.com
  Ira Dolich, idolich@aol.com
  Frank Miller, terfra2@cox-internet.com,
  
  ========================
  Proposed Actions
  
  In order to forestall further significant increases in annual assessments, advances in fees and the complete avoidance of special assessments, the following comprehensive actions are proposed: [Each of these proposals will require approval of the Developer controlled Board of Directors]
  
  · Change the nominating/election process now in place to an open election for Board and Governance Committee member’s similar to other Home Owner Associations and Municipalities. [Discussed in current Newsletter]
  
  · Contract with a known and established Golf Management Firm to manage and operate our courses. Many of the well known municipal and country golf club courses in central Texas are already doing this and have been pleased with the results. [Good Progress because of Resident efforts]
  
  · Lease one or both Restaurants to an entrepreneur[s] that have successful track record in operating profitable, well run food and beverage establishments. [Good Progress because of Resident efforts]
  
  · Change the trigger point from 95% to 75% for resident control. This would give residents time to review the expense side of the budget and make necessary adjustments. [Discussed in previous Newsletter, Developer has stated he is not interested in making this change.] Email us your thoughts?
  
  · Contract a Community Association management firm with experience and reputation to manage our day to day business.
  
  Our goal is to foster transparent discussions and actions regarding the issues confronting our Community Association. We welcome an open dialogue regarding the actions proposed and why they are proposed. And, we would very much appreciate additional input from the many residents that have offered ideas, concepts and details about how to address issues confronting the CA. We welcome comment on the problems outlined as well as the solutions—both positive and negative [hopefully constructive].
  
  Our mission is to make Sun City Texas a community with a solid financial base with an active adult environment. If you support our mission please forward this email to your neighbors and friends. If your neighbors or friends do not have access to the internet, make them a hard copy. Only with your continued support will we be successful with the proposed actions. If you wish to have your name added or deleted from the email data base, email jackstro@verizon.net
  
  Future newsletters will focus on the financial aspects of Operations, future Plans and how different approaches may be utilized to address poor financial results. For additional information and past [Archived] newsletters see:
  
  http://scinform.blogspot.com/ Sun City Residents Make Sun City Great