Below the following information
is a proposal emailed to the RRCA Board on 11/30/02.
The Events That Initiated the Proposal: A change to the RRCA dues billing policy
was adopted at the October RRCA Board Meeting, although that was not the
purpose of calling that meeting.
Considerable concern was expressed about the change to the billing
policy and interested parties asked the Board to meet in mid November via
teleconference to rescind the policy.
Prior to that meeting a law firm was consulted to provide a legal
opinion concerning the legality of the Board's interpretation of the bylaws. That resulted in a letter
from the law firm to the RRCA Executive Director on behalf of 14 member
clubs with an answer requested within 14 days.
Also prior to the mid November Board meeting the RRCA Legal Committee rendered an opinion
to the RRCA President. Both those
letters are posted on this webpage.
While no minutes have been published of the November meeting, we were
informed that the policy was not rescinded.
In fact, we were told that no formal motion was even made at that
meeting to rescind the billing policy change.
On 11/26/02, the deadline for a reply to the letter representing the 14
clubs, the Executive Director replied that invoicing clubs would continue per
the billing policy approved by the Board.
By this time many clubs and others had expressed to me their strong
dissatisfaction with the process and their resulting strained financial
situation. Those are the events that
led to the following proposal.
The
Response to the Proposal: The day after
sending the following proposal, RRCA President, Freddi Carlip, informed me that
the meeting would not occur. Her reply
stated that she had received no feedback from the Board concerning the proposal
and asked if I had heard from any Board members. She further stated that she would email the Board that her
schedule precluded having a Board teleconference meeting. That answer implied to me that she had not
contacted the Board or even discussed having the meeting. The schedule conflict was that she would be
attending the USATF annual meeting later in the week. In a very stern reply I noted that two options were available to
her to call the meeting. It was also
pointed out that conducting the business of the RRCA that was of critical
importance to the clubs should have a higher priority than attending a USATF
meeting. A following reply from Carlip
stated, "it isn't going to happen" and a reason given was that it
could be discussed at their scheduled January Board meeting. Obviously she does not share my and many
others concern of how urgent and important this issue is to the clubs. (Carlip was invited to have her replies
posted along with the proposal, but declined the offer.)
RRCA
Board,
Last
Sunday night, November 24, I had a 2 hour phone conversation with David
Dobrzynski. We had a cordial conversation and covered many topics,
with both of us presenting our views. However, in the end I was left with the
feeling that nothing was going to change in the current RRCA administration. My
suspicions were confirmed Tuesday in Dobrzynski’s response to the letter
prepared by the law firm of Webster, Chamberlain and Bean on behalf of 14 RRCA
member clubs. Dobrzynski's response places the responsibility for the actions
being taken by the RRCA administration directly on the RRCA Board. He stated that
the current practices will continue until otherwise instructed by the Board.
PRIORITY: During my phone
conversation with Dobrzynski I emphasized that at this point, his and your
number one priority must be to keep clubs from dropping out of the RRCA. As
bad as the RRCA’s financial problems are, they are second to getting clubs to
pay dues and stay in the RRCA. Clubs are going to leave if things stay as they
are - surely you must be aware of that fact. This is especially true for the
large clubs. If you can't keep the large clubs you are not going to have the
numbers to get sponsors, advertising or insurance at a reasonable rate when the
contract expires. (The rate will increase in 2004 anyway, but must be limited
within reason). If you lose the major clubs, especially those in the large
cities, sponsors are not going to be interested in talking to RRCA - regardless
of numbers. RRCA will have lost respectability.
RESPONSIBILITY: For RRCA to serve the many small clubs and grassroots
runners across this country, you must keep the major clubs that have less
dependence on RRCA. They are the clubs not planning to renew their membership.
You will also see small clubs leaving as they reunite their association with
the YMCA and other non-profit organizations. Don't kid yourself about that -
running has already been through that phase once. Non-profits will suck them
up, because running clubs that put on races become a fund raising arm of that
organization. Little will be put back into the sport and running will suffer.
Many smaller clubs won't even know that they don't have insurance coverage
equivalent to RRCA's and in some cases probably won't know they don't have
participant liability until they are sued.
URGENCY: This is urgent. Clubs are planning for 2003 now, not two
weeks from now. For some it is already too late. Once they have a source for
insurance and non-profit status they are gone. They will not be coming back. Be
aware that it is the actions of the RRCA that is forcing this change.
THE QUESTION: The question you must answer is how to minimize the
mistrust and get the clubs to renew membership in the RRCA. I don't have all
the answers, but I have some suggestions from the perspective of my direct
involvement in one club, recent communications with many clubs, and from my
experience of once serving on the Board as you now do.
HOW TO PRESENT: I could present those ideas in this email, but some of you
and/or your executive director have not paid attention to the views, opinions,
information or advice from those outside this administration on the past
issues. This lack of attention has resulted in the many problems the RRCA now
faces and the resulting damage to RRCA's image and reputation. The last
information I provided resulted in the following response: "It will go
into my Dues&Ins. file, which grows larger by the day." No action was
promised and no action taken. Action surely should have been taken because it
detailed four violations of the bylaws other than this Board's interpretation
of "members". They were either created by, or not considered and
covered in the dues billing policy motion you approved at your October Board
Meeting and stated in the invoice to clubs.
Please
remember, six attorneys have reviewed this question. One (Gerry Hyland) did so
on the spot with no time for reflection and no research. Five others (the four
attorneys on the RRCA Legal Committee and an attorney who specializes in
non-profit organizations) had the luxury of time and the ability to do
research. Those five came up with a
different conclusion. And this is the
conclusion that will keep the RRCA from exploding.
APPROACH: Thus I am making this in the form of a proposal to the
Board, for a Board member to bring to the floor the motions herein, to be
seconded, discussed and voted on in a special Board Teleconference Meeting
requested in this proposal.
ARRANGEMENTS: I am requesting that RRCA President, Freddi Carlip, call a
teleconference meeting to be held no later than Wednesday, December 4, 2002. I
am requesting that each member of the Board waive the "notice"
requirement in Bylaws Article VIII - B. Should a Board member/s reject the
request for waiver of "notice", I am requesting that President Carlip
notify me within 24 hours of such action and identify by name the person or
persons and their reason. I am also requesting notification of the date of the
meeting.
MOTIONS: There are four motions to follow:
1. The Board shall vote to
rescind the billing policy approved at the October, 2002, Board Meeting and
again use the last billing policy approved by the clubs at the 2001 RRCA
Convention.
That
policy called for billing household members, which did not include billing for
dependent members unless clubs desire to do so to increase voting rights at the
convention business meeting. In the past, there has not been an inconsistent
interpretation of the term "member" as Dobrzynski has stated. That
interpretation has a 27+ year precedence. There has been no misunderstanding of
that term until this administration. That aspect of the billing policy existed
19 years ago when I became president and was never a problem.
The
purpose of this motion is to remove the hardship and untimely requirement
imposed on clubs by the action taken at your October, 2002, meeting and to
decrease the number of clubs that are not planning to renew their membership in
RRCA.
2. The Board shall vote to
rescind the 75%/25% payment plan approved at your October, 2002, Board meeting
and approve to invoice 25% quarterly with payment due January 1, April 1, July
1 and October 1, 2003.
Note
that in the past clubs have had the option to request payment by installments
and have been allowed to do so. Four sets of invoices can be printed and mailed
with the initial payment date and reminders sent via email and posted on the
RRCA website to minimize the work load.
The
purpose is to ensure funds are available throughout 2003 to pay installments to
the insurance carrier and to have operating funds throughout the year. The
result will be that clubs will have more confidence that the dues/insurance
fees they pay will result in continued insurance coverage and a functional
national office to handle RRCA business. This will significantly increase the
probability that more clubs will renew membership in RRCA. This will also force
RRCA to focus financial responsibility on a shorter time period, making it
easier to budget more wisely and operate with a more stable income on a
quarterly basis to eliminate a large carryover end of year debt. Clubs are
concerned that much of their 2003 dues have already been spent in 2002 due to
mismanagement and loss of sponsorship and advertising.
It
should be noted that the 2002 invoice, and others of recent years, gave January
1 as the due date for payment, but also included February 1 as the late fee
date and the late fee specified as 10%. The 2003 invoice only specifies payment
by December 31. No late fee date and no notice of what the late fee will be.
This has the potential of creating a major problem. If no change is stated,
clubs will expect the same date and late fee as used in previous years.
3. The Board shall vote to seek
input from the membership on how best to solve the implied financial crisis.
This will be initiated by informing the clubs of the financial state of RRCA
and then adjust RRCA operation based on the feedback from the clubs. How this
is to be implemented follows.
It
should be noted that RRCA Bylaws Article IX, Section J, Paragraphs 10, 11 and
13 require financial disclosure to the membership. This motion brings that
obligation more directly to the membership and provides for a greater
understanding and involvement in the process.
This
will require the Secretary/Treasurer and national office to work together to
provide the clubs a justifiable projected income/expense statement. Line items
must be actual income and expense items with no hidden or combined components.
There must be no intent to deceive or confuse an intelligent layman not skilled
in accounting practices. Clarity and understandability must be the objective
and result. There must be a straight forward listing of income and expenses.
The
statement must be made available to the clubs on or before February 1, 2003,
and a response from clubs required by February 15, 2003. A consolidated
response must be sent to those providing inputs by March 1, 2003, and a request
made for priority feedback no later than March 15, 2003. A financial recovery
plan must be presented to the membership for discussion and approval at the
April, 2003, convention business meeting.
It
is not a requirement of this motion, but highly suggested, that a panel of five
members from outside the administration be assembled to operate as advisors to
help with the decision processes involved in these tasks - especially the
listing of income and expenses so that it will be understandable to the
majority.
Due
to the time restrictions, the business operations defined by this motion should
be conducted via email. Thus, the invoice for the January 1 payment should
include a notice as to the initiation of the financial recovery plan and that
correspondence stated above will be conducted via email. The notice should
state that clubs must update and keep updated their email address with the
national office, and clubs not currently having an email address must provide
an email address through which they can be contacted on a reasonable time
basis. The day has come when clubs must have a valid email address the same as
a postal address to do business. This notice should also be posted on the RRCA
website as soon as it is made final.
4. The Board shall vote to
establish a trust fund to receive and distribute all insurance payments
received from local clubs that are required to be paid to the insurance
carrier.
It
is imperative that the clubs know that the payments they make for insurance
will be used for that purpose and be guaranteed that they will have insurance
coverage for the entire year.
PROPOSAL REPORTING: This proposal requires that the action on the above motions
be reported to the requester via email within 24 hours of the special meeting,
and that report shall include how each Board member voted on each motion.
Wording and approval of the report will be a function of the conclusion of the
meeting and the Secretary/Treasurer shall have this responsibility.
This
is a requirement of this proposal and not an option. The Board of a non-profit
organization is required to report its actions including how each elected
official voted. The specifics of this requirement are a result of how time
critical acting on these motions are to minimize the number of clubs that will
not be renewing their membership in the RRCA.
Clubs
must be notified of the changes in the billing for 2003 dues and insurance
resulting from this meeting as soon as possible via email and any other means
as necessary.
PROPOSAL FEEDBACK: Questions, clarification and comments concerning the above
should be directed to the sender of this proposal. It is specifically requested
of any Board member who does not plan to support these motions that your
reasons be provided prior to the meeting in time for a response.
ADDITIONAL ACTION: During the discussion process these motions will generate,
hopefully Board members will envision other ways in which the RRCA can instill
confidence in clubs to renew their membership.
It
is highly recommended that the Board solicit from outside the Board suggested
ways to reinvigorate RRCA over the next year or two in the areas of marketing,
sponsorship, publications, communications, public relations and how to best put
the organization back together. There has been major damage to RRCA's image and
respectability this past year that this Board must take steps to reverse and
repair.
BOARD RESPONSIBILITY: It should be noted that no action is action to continue on
a path of destruction for this organization. Clubs will be so informed though
all means at my disposal.
SUMMARY OF PURPOSE: The purpose of this proposal, and its included motions, is
to help restore confidence in the clubs that RRCA will continue as a viable
service organization. That restored confidence should
minimize the number of clubs which will not renew membership in the RRCA. That
would be to the benefit of all clubs.
Respectfully,
Harold
Tinsley, RRCA Past President
256-881-9077