Frequently Asked Questions
All About RCSC
- What is RCSC?
- What is RCSC’s mission?
- What does RCSC do?
- What doesn’t RCSC do?
- What is the RCSC Board’s fiduciary duty?
- What is Management’s role?
- Who regulates private residences?
- What are Sun City’s age restrictions (Federal Age Overlay)?
- What is a Facilities Agreement?
- What is an RCSC Member?
- What if the owner of the Sun City property is not an individual?
- What is an RCSC Cardholder?
- What is a Privilege Card?
- What's the history with the membership quorum?
- How can Members make recommendations to the Board or let the Board know their concerns?
The Recreation Centers of Sun City, Inc. (“RCSC”) is a private, non-profit corporation which owns and operates approximately $80 million of recreational facilities in Sun City. RCSC manages a $20 million annual budget and employs over 350 employees, both full- and part-time. Over 60% of RCSC employees are Sun City residents.
While all Sun City residents are not RCSC Cardholders and therefore may not be able to use the recreational facilities offered by the Recreation Centers of Sun City, it is the mission of RCSC to provide for all Sun City residents (should they choose to participate) the broadest range of recreational and social facilities possible to enhance their active lifestyle and well-being.
RCSC operates seven recreation centers (Mountain View, Fairway, Oakmont, Lakeview, Sundial, Bell and Marinette), eight golf courses with five snack shops (South, Quail Run, North, Lakes East / West, Riverview, Willowbrook / Willowcreek), two bowling centers (Lakeview and Bell), two full-service restaurants which are leased (Mojoes at Lakeview bowling center & La Petite at Bell bowling center), and one amphitheater (Sun Bowl).
RCSC does not regulate or monitor private residences, streets or medians in Sun City. Streets and medians are maintained by Maricopa County, although our local volunteer group, the P.R.I.D.E.S., certainly assist in the maintenance of the medians and the appearance of our community. RCSC is commonly mistaken as a governmental entity possibly because Sun City is not a city but an unincorporated part of Maricopa County.
The RCSC Board of Directors is bound by law to uphold its fiduciary duty. The law imposes fiduciary duty to ensure that power is exercised conscientiously. The RCSC Board of Directors' fiduciary duty requires it to act in the best interests and for the benefit of the corporation, thus the community as a whole. This fiduciary duty has two components: 1) to act within the Board’s authority and 2) to apply the business judgment rule. The business judgment rule asserts if a board has exercised reasonable business judgment in making a decision, the board is not considered negligent in its fiduciary duty. A board is not liable if they have practiced the business judgment rule even if the decision turns out to have been a poor one. The business judgment rule also requires the Board of Directors to exercise the duty of care and the duty of undivided loyalty.
Management is responsible for the day-to-day operations of the corporation and enforcing the Restated Articles of Incorporation, Corporate Bylaws, Board Policies and any and all rules and regulations of the corporation, commonly referred to as the corporate documents. Management has the authority and responsibility to implement policies, procedures, rules and regulations covering day-to-day operations and personnel provided that such are compatible with the corporate documents.
The Covenants, Conditions & Restrictions (“CC&Rs” or “deed restrictions”) for Sun City were revised and restated in 1998. Though not a part of RCSC, the Sun City Homeowner Association (“SCHOA”) is responsible for enforcing these deed restrictions in Sun City. Because membership is voluntary and not mandatory in this homeowners association, SCHOA is not governed by Arizona Revised Statutes Title 33. Although membership is not mandatory, compliance to the CC&Rs by every Sun City property owner is required.
Sun City is an active retirement community. The age limitation is built into the deed restrictions under the Fair Housing Amendments Act of 1988 and the Arizona Fair Housing Act, collectively known as the “Fair Housing Acts.” At least one occupant of each residential unit must be 55 years of age or older and no person under 19 years of age shall occupy or reside in a residential unit for more than 90 days in any 12-month period. SCHOA is responsible for enforcing the age restrictions.
The Facilities Agreement, executed by each Deeded Real Estate Owner in Sun City, obligates Owners to pay annual property assessments to RCSC whether or not Owners occupy the Sun City property or use RCSC facilities.
RCSC Members are Deeded Real Estate Owners of property located in Sun City. Members must be a Sun City property owner 55 years of age or older (unless qualified under spousal exemption) and occupy the Sun City property as his/her primary Arizona residence unless his/her other Arizona residence is farther than seventy-five (75) miles from Sun City. If there are more than two Deeded Real Estate Owners per property who meet the qualifications for a Member Card, such Owners must decide which two of the Deeded Real Estate Owners shall be classified as Members. Up to two Member Cards may be provided for each property, provided there are two persons who meet the qualifications. Each individual qualified as a Member shall be issued no more than one Member Card, regardless of whether more than one Sun City property is owned and assessments and fees are paid. A multiple property Owner is not considered to occupy more than one property at a time. Each individual qualified as a Member is entitled to only one vote on each matter voted on by the Members.
If the Deeded Real Estate Owner is a Trust, two of the income beneficiaries may be deemed the Members, provided that they meet the individual Member qualifications. If the Deeded Real Estate Owner is a Corporation, LLC, Partnership, LLP, or any other entity (“Company”) that may represent non-individual ownership other than Trusts, the Company may select two of its shareholders or partners to be Members, provided that they meet the individual Member qualifications; and further provided that said individuals have an ownership interest in said Company.
RCSC Cardholders include two categories: Members and Privilege Cardholders. RCSC Members are defined herein. Non-Owners, renters, tenants, lessees, and/or occupants of property located in Sun City may be entitled to a Privilege Card.
A Non-Owner may be issued an annual Privilege Card for a fee, as determined by the Board, provided: (a) at least one Owner or Non-Owner who occupies the property is 55 years of age or older; (b) the Non-Owner occupies the Sun City property as his/her primary Arizona residence unless his/her other Arizona residence is farther than seventy-five (75) miles from Sun City; (c) the Non-Owner is not under 19 years of age, and; (d) the property assessments and fees, where such Non-Owner resides, are current.
The previous membership quorum of 100 was less than one-half of a percent (.3%) of the total membership and left RCSC and its Members at risk of being controlled by a small minority. Someone with 100 proxies could have made changes with numerous unintended consequences that could have done a great deal of harm to RCSC and Sun City homeowners. Following the advice of RCSC’s legal counsel, the Board eliminated this provision thereby causing the RCSC to be subject to the default provisions of ARS §10-3722 which sets a nonprofit corporation’s quorum at, “one-tenth of the votes entitled to be cast” until such time as RCSC could form an Ad-Hoc Committee with the membership at large to come up with a more reasonable number. This Ad-Hoc Committee met on several occasions and in the end made a recommendation to the Board who adopted a reasonable and attainable 1,250 membership quorum, which includes proxies. This number was shown to be attainable when it was easily reached by Members present (with no proxies) at the meetings regarding utility rate cases and the charter school.
The RCSC Board of Directors takes their role and duties very seriously. The Board wants input from the Members and wants to keep Members informed. As a Member of RCSC you have a responsibility to participate in the governance of RCSC. The Board invites Members to attend the Board/Member Exchange meetings generally held on the first and third Monday of each month at the Lakeview Recreation Center in Social Hall #3 at 9am. This is a time when the Board and Members can exchange ideas, suggestions, information and concerns. Members can have a dialogue with the Board as it is informal and interactive. Members should bring to this meeting anything they want the Board to consider or change. No decisions are made at this meeting, it is simply an exchange. The Board also encourages Members to send comments, concerns or input via email to boardoffice@sunaz.com or via letter to 10626 W Thunderbird Blvd, Sun City AZ 85351. The Board also asks Members to sign up on the RCSC email list at www.sunaz.com so that Members can be kept informed regularly.