[Rotary] Thanks Ray for your comments ... Voting Continues on Loan Forgiveness

[Harold Hauck]

Bruce.

You did not respond to the issues in Ray Alarcon's email. I agree with his
request to the board and the rationale he used in making the request. The
decision to approve or deny Ray's request must be a board decision not an
individual board members decision. Since you did not include a copy of his
email in your reply, I will copy his request here. Ray said and I
emphatically agree with him,

 

"I believe voting by email is not appropriate.

We are not able to ask questions  nor have a discussion.

 

With all of the recent discussion about our future fundraising events and
lower expected income we need to have more information regarding the
finances of our club in order to make an educated decision. 

 

I respectfully implore the Board to withdraw the vote by email of this issue
and schedule a time at a regular meeting for discussion and a vote."

 

Bruce, as you may recall, I stated at last week's Rotary meeting that I
believed a vote on this issue by the club members was premature. I continue
to hold that view and I want you, the board, and all of the club members to
understand my thinking on this issue. After giving the matter a great deal
of thought, this is what I know:

 

1.    The terms and conditions under which Rotary Park would be given to the
County were to be disclosed and discussed with the club members at the
September 4th meeting. This did not happen, we were informed that the MOU
was not yet ready. 

 

2.    We were advised in the September 4th meeting that the Foundation has
sufficient funds to close escrow and that the deadline for closing escrow is
December, and further that the Foundation could hold title to the property
pending its final resolution. There is no need to rush any decision.

 

3.    Depending on the Foundation Board's decision there may be negotiation
started with MCCSD re. the ownership of Rotary Park. At this time we do not
know what the terms and conditions or outcome of those negotiations will be.

 

4.    At the September 4th meeting it was suggested that the club forgive
the $26,000 Foundation debt. By doing so, the Rotary Club would enable the
Foundation to meet ancillary fees and costs associated with Rotary Parks
purchase, and there would be no need for additional fund raising activities
to repay the club this money. There is no time urgency involved in this debt
forgiveness decision, the Foundation has the money it needs to proceed with
the purchase and initial holding of Rotary Park, and the Rotary Club does
not, at this time, need the $26,000.

 

5.    At the September 4th meeting a question was asked if the Foundation
could retain ownership of Rotary Park with committed support from the Rotary
Club. Dean Watson advised us that this might be possible but it would
require a Rotary Club bylaw change. Due to insufficient time, this
possibility was not explored.

 

6. At the September 4th meeting there was not a board motion to forgive the
Foundation debt either made or voted upon. I agree there was discussion
about this proposal, but the board  did not call itself into session, no
motion was made to forgive the debt, there was no second to any motion by a
board member, there was no  debate or discussion of any motion. Nor was a
proper vote taken and recorded on this issue. What is the actual wording of
the motion that was approved by the board that we the club members are now
being asked to ratify? 

 

I believe process is important, particularly when making significant
financial decisions. Nowhere in the Rotary bylaws is there a procedure that
permits a club to make a $26,000 decision by secret email ballot of its
members. Not only is this request for  $26,000 debt forgiveness premature,
the email vote is not a valid process to follow in making this decision.

 

What does the future look like for Rotary Park? Will it be owned by the
County, MCCSD, or the Mendocino Rotary Club Foundation? What will be the
terms and conditions associated with that eventual ownership? When we have
answers to these questions, then and only then, will we be able to make an
informed decision about the debt forgiveness issue. We do not have the facts
yet and email is not the process to make the decision.

 

I respectfully request the Mendocino Rotary Club Board cancel this premature
and inappropriate email voting process.

 

Harold Hauck

 

 

 

From: rotary-bounces at lists.mcn.org [mailto:rotary-bounces at lists.mcn.org] On
Behalf Of Bruce Lewis
Sent: Tuesday, September 16, 2014 1:38 PM
To: Rotary Club of Mendocino
Subject: [Rotary] Thanks Ray for your comments ... Voting Continues on Loan
Forgiveness

 

Hi All,

 

We can thank Ray Alarcon for his continuing contribution (and comments) to
our Club. He is a passionate Rotarian.

 

As Ray has suggested, there will be an opportunity to discuss the future of
Rotary Park at an upcoming meeting.

 

For those interested, our Club Foundation will maintain ownership of the
property, which is entering escrow in the next few days.

 

However, the Vote continues as approved by the Board of DIrectors who
discussed and debated the issue.  The Board was encouraged by the positive
input from our Sept. 4 Club Discussion about the park.

 

I would like to remind you that one of our biggest fundraisers and most
passionate Rotarians, John Porter (raised and donated $12,000) favors
forgiving the loan.

 

So far, all the votes coming in have been in favor.

 

Get your vote in and come to this week's meeting for results.

 

Thanks,

 

Bruce

 

 

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