Charter Club Policy

ARIZONA TRADITIONS

Charter & Social Club Policy

Updated April 2020

1. INTRODUCTION

a. Basics The Arizona Traditions HOA, Inc., (hereinafter referred to as AZT), was formed under the laws of the State of Arizona as a not-for-profit corporation for the purpose of owning, operating, and maintaining facilities which enhance the recreational, social, and leisure interests of its membership.

b. Charter Club Requirements and Privileges

 Any club that collects revenue in excess of $1000.00 annually must be chartered

 Any Charter Club that collects revenue in excess of $1000.00 annually must submit an

annual year-end financial statement.

 Charter Clubs are granted priority storage rights in common area facilities.

 Charter Clubs must comply with Federal and State Laws which define HOAs and how they are governed.

 Charter Clubs must have as a purpose recreational, social or leisure activities. Any profit must be incidental and shall not be part of the Club’s objective.

 Charter Club members may not use the facilities for any personal financial gain.

c. Social Clubs

 Clubs that wish to organize other than as defined above may do so as a social club. Such clubs and groups are organized for a wide variety of informal activities such as card and table games, book and Bible study, quilting/sewing, arts and crafts, or other social activities. These clubs and groups do not require residents to “join” to participate and are exempt from Charter Club requirements. These groups will be considered “Social” and must have an appointed representative to work with the HOA Office to schedule use of AZT facilities.

 Any social club that collects revenue of less than $1000.00 annually must submit an annual year-end financial statement.

d. Authority The AZT Board authority is granted in the CC&Rs Article

2, Property Rights, and Paragraphs 2.1.3, 2.1.6, and 2.1.7. Authority is also granted in the AZT Bylaws, Article III, Board of Directors.

e. Definitions

 Resident: Owners, lessees or renters of residences in Arizona Traditions and including a tenant, spouse, parent, child, significant other or any other person who resides in the Community but is not on the deed.

 Non-Resident Guest/Visitor: Any person who does not reside at Arizona Traditions, but is temporarily staying with or visiting a Resident.

 a. Invitees are Non-residents invited to participate in club activities at club discretion.  i. Softball will conduct a league of twelve teams three times per week and hold three tournaments per year.

 ii. Pickleball will hold one invitational tournament per year and will have round robin play three times a week during the fall season and invitational play daily during the summer months.

 b. Residents shall have priority over non-residents in club activities

 Common Area: All real property (and any improvements or amenities on it) which may be owned or leased by the Association or otherwise held by the Association for the common Revised 4‐22‐2020 use and enjoyment of the Owners and Occupants.

 2. AZT COMMON AREA USAGE

a. Common areas are for the use and equal enjoyment of all residents in good standing.

b. Chartered and Social Clubs are exempt from rental rates for use of the Ballroom for club events.

c. All equipment and materials in common areas are community property for use by all residents. Due to Woodshop Club-specific and Caterers Club-specific written health and safety rules, membership in these clubs is required to access and use the equipment and materials.

d. All closets, lockers, cabinets, shelves and bins in common areas are for open use. Closets, lockers, cabinets, shelves or bins may not be locked by any resident, with the exception of common areas that store equipment requiring specialized training and/or safety monitoring. The only persons permitted to lock or restrict access to any closets, lockers, cabinets, shelves or bins are the Association’s management, maintenance staff and Club Officers.

e. Use of HOA storage areas must be approved by the HOA. The HOA reserves the right to assign, change or limit storage space. Any user who leaves their personal property in a common area does so at their own risk. The Association is not responsible for any personal property left in common area facilities.

3. MEMBERSHIP AND OPERATIONS

a. Charter & Social Club Membership Membership is open to AZT Residents only. Clubs may have one type of membership only. Each Club member has equal rights, responsibilities and obligations. This includes equal membership dues. Membership dues are defined as regular fees or charges paid to a club in order to participate in the Club’s activities. A Club may charge a Participation Fee to Non-Residents to offset Club Expenses as set forth in the Club Charter and Operating Rules.

b. Membership Validation The Club Leadership Committee initiates a quarterly review of Club membership to ensure that all its members are valid Residents. The Club will annually provide a current, accurate membership list to the General Manager.

c. Member Conduct Members who are abusive, blatantly create turmoil, disruption, or dissension among Club members, Clubs or the Association in general, may have their Club membership temporarily suspended (up to two weeks) by the Club. Severe cases of adverse behavior, as described above shall be referred to the General Manager for possible Board action. If this should occur a concern form shall be submitted by the observing party detailing description of incident.

d. Club Guests Clubs exist for the benefit of their members. Members may introduce their Club’s activities to an occasional guest, at Club discretion (see 1.e.a.). A list of Non-Resident Invitees will be Revised 4‐22‐2020 provided by the Charter Clubs to the General Manager to advise the guardhouse at the time of their Invitational or Season play start.

e. Club Bylaws By-Laws and Operating Rules must be made available to Club members and Non-Residents.

4. CLUB MEETINGS

a. General Meeting

There shall be a general meeting conducted of the membership at least once a year, with date and time provided to the General Manager annually. Clubs can determine if additional general meetings should be held. b. Club Officer Meetings The Club’s Leadership Committee will meet as needed to ensure Club’s business is kept current.

5. SAFETY PRECAUTIONS

a. Responsibilities

Clubs must establish and adopt club-specific written safety rules and appoint a safety committee to oversee the program. Clubs are responsible for providing the Association with any updates and changes made to safety rules. At a minimum, the written rules will delineate the safe operating policies and procedures for all equipment and identify safety awareness signs and accessory equipment required for the work area, i.e., safety eye goggles.

b. Suspension of Privileges

If an individual cannot, or will not comply with stated operating procedures or cannot safely operate power equipment, the Club Leadership Committee (may suspend all or part of his or her privileges relating to the use of said equipment. Before making such a decision, however, clubs should make every effort to provide additional training instruction to attempt re-qualifying an individual. In most cases, a suspension of operating privileges will not be considered disciplinary in nature and will only be activated to protect the best interests of the individual, the club, and the Association. Any suspension of privileges based on safety concerns may be appealed to the General Manager who will submit the appeal to the AZT Board of Directors. In such matters, the decision of the Board of Directors will be final. An appeal may be submitted in writing within seven (7) business days of the suspension notification. The Board of Directors will render a decision in writing within thirty (30) business days of receiving the appeal.

6. ESTABLISHING A SOCIAL CLUB

a. Club Leaders or Officers

Social clubs are required to have a club leader on record with the HOA office at all times. All previous sections of this policy apply to Social Clubs and Charter Clubs. If club leadership or officers change you must notify the office within 14 business days.

b. Club Acquisitions Any acquisitions of items that will be stored or kept on association property require Board of Directors approval prior to any purchase. Failure to adhere to this will result in club revocation and cancellation of and any space reserved for the club. Clubs may purchase items that are Revised 4‐22‐2020 necessary for day to day operations of their club at their own discretion.

7. ESTABLISHING A CHARTER CLUB

a. Responsibilities

The Association has the exclusive right to approve a Charter. The AZT General Manager is responsible for coordinating and implementing the Charter Club Policy. The AZT HOA Office is responsible for assisting Charter Clubs with facility scheduling, special programs, and other business. Coordination for all Club matters and concerns is to be done through the HOA office.

b. Officers

Charter Club Officers are elected in accordance with Club bylaws. The Club Officers are responsible for the Clubs’ internal operations. It is the responsibility of the outgoing officers to ensure that the succeeding officers are thoroughly briefed on all aspects of the Charter Club Policy. Within 14 business days of taking office newly elected and/or appointed officers shall notify the General Manager of the names and officers of the Club.

c. Charter Authorization

A Club Charter is the formal document granting official charter status to an AZT. Clubs having such designation are given priority for facility use for regular meetings and activities. Charter Clubs with fixed equipment are extended insurance coverage if ownership of the equipment is formally transferred to AZT. (This includes any equipment over $2,000 which would be covered in HOA reserves. Any acquisitions of items that are to be stored or kept on association property requires Board of Directors approval prior to any purchase. Failure to adhere to this will result in revocation of a Club Charter and cancellation of reservation space. Clubs may purchase items that are necessary for day to operations of their club at their own discretion.

d. Purpose

The granting of a Charter is based on membership need for a program, membership interest as determined by a minimum number of active participants, and the availability of adequate space in an HOA facility.

 A Charter will not be granted to a Club which requires membership in affiliated national, state, or regional organizations as a condition of membership. Further, Charter Clubs may not merge with a non-AZT entity, nor require its members’ mandatory involvement with and/or membership in a corporation separate and distinct from AZT or its Charter Clubs.

e. Membership

Membership in Charter Clubs must be open to all bona fide members of the AZT HOA without discrimination as to race, religion, color, ethnic culture, or national heritage. A Charter will not be granted to any group which sets restrictive precondition for membership. Note: The formation of desirable segregated activities for male and female members of AZT may be permitted as long as both genders are provided equitable opportunity to pursue common interests; e.g., women’s or men’s Clubs.

f. Revocation

A Charter maybe revoked by action of the Board of Directors. Reasons for revoking a Club Charter include, but not limited to, noncompliance with AZT rules and policies; irreconcilable conflict among Club members, creating activities that projects the Club and/or AZT in an undesirable position, or violation of Federal, State, or Local government statutes and Revised 4‐22‐2020 ordinances.

g. Application for Club Charter – Procedure Step 1 – Review a copy of the Charter Club Policy. A copy of this document may be obtained from the HOA Office, or on the AZT web site. Step 2 – Complete the Charter application. Step 3 – Develop a proposed set of Club Bylaws using the format provided. Note: Some Bylaw provisions are mandatory clauses, including some verbatim clauses, while others are optional and depend entirely on the extent of operating detail required by the Club. Step 4 – Submit the Club Application package to the General Manager verify that the application package is complete. When all requirements have been met the application package will be forwarded to the Board of Directors for action. h. Club Records & Files Official Charter Club documents and records will be maintained at the AZT Office. i. Club Dissolution If a club disbands, all club assets, including supplies, money, and equipment. shall be transferred to the Association. If a Club Charter is revoked, and the group remains intact as a non-chartered club, all assets purchased for, or in behalf of that club will be transferred to the Association. In all situations, club-approved debts must be satisfied by the club prior to final dissolution. The General Manager will assist clubs in all efforts relating to dissolution. 8. FINANCIAL REQUIREMENTS FOR CHARTER CLUBS a. IRS Requirements A Charter Club is required to obtain a Tax Identification Number (TIN) to open a bank account. The clubs are to file for a 501(c) status in order to obtain a non-profit status. If the clubs are not part of the Associations’ operations, (meaning that the Club’s revenue and expenses are not reported on the financial statements of the community) then the clubs must report their revenue and expenses to the IRS on an annual basis. The clubs fulfill their filing requirements by filing Form 990-N, which must be completed and filed electronically. There is no paper form. A copy of the filing and year end financials must be given to the General Manager no later than January 31 for the previous calendar year. b. Taxes and Tax Status The Association operates as a Not for Profit Corporation and requires its Charter Clubs to operate as a Not for Profit Corporation. Whenever sales activities are authorized, all funds collected by the Clubs are required to be used to benefit Club members. Failure to collect and report taxes properly, or circumvention of sale activity allowances, may result in the loss of Charter Club status and subsequent review of the Club Charter by the AZT office. Clubs are to submit to the General Manager a Report of Taxable Sales and remit the applicable tax for each event within the month it occurs. c. Insurance Liability insurance including security bonding for Club officers, is extended to Charter Clubs through the AZT insurance coverage. Any additional insurance acquired by Charter Clubs will be at the expense of the Club. Revised 4‐22‐2020 d. Accountability and Records All bank accounts shall be placed in the name of the Club. Two signatories are required on each check, which will remain through succeeding administrations. All financial transactions involving Club funds will be recorded in the Club Treasurer’s records. All Clubs shall maintain records as follows:  Meeting minutes for a period of three (3) years,  Financial records for a period of seven (7) years prior to the current year.  Charter for the life of the Club.  Inventory of club property prepared annually and submitted to the General Manager When deemed necessary, the Board of Directors or designee is authorized to examine the financial records and inventory lists. This Club data is to be provided in a timely manner in order to avoid jeopardizing or suspending Club activities or resulting in Club dissolution.