RCSC Board Policy Resolution No. 29

Hearing Procedures & Cardholder Suspensions

WHEREAS Article IV, Section 7 of the Corporate Bylaws empowers the Board of Directors (“Board” or “Directors”) of the Recreation Centers of Sun City, Inc. (“RCSC” or “Corporation”) to adopt Policies (“BP” or “Policies”) not in conflict with the Restated Articles of Incorporation (“Articles”) or the Corporate Bylaws (“Bylaws”).

WHEREAS to minimize inconsistencies, misunderstandings and misinterpretations inherent in verbal instructions, rules and regulations, the Board of Directors has established Board Policies in written form. Such Policies shall be titled, numbered and indexed for easy reference and use.

WHEREAS the Restated Articles of Incorporation and the Corporate Bylaws shall take precedence over Board Policies and that the following Board Policy on Code of Conduct and RCSC Rules and Regulations shall provide instruction, direction and guidelines regarding such and shall remain in effect until such time it is amended or removed by the Board.

NOW, THEREFORE BE IT RESOLVED the Corporation shall adhere to the following policies regarding hearing procedures and Cardholder suspensions:

RCSC Cardholders may be subject to temporary or permanent suspension of all Cardholder privileges, including denial of use of any or all RCSC facilities, as determined by Sr. Management staff in the case of imminent danger to any person(s) or property or a Board Hearing Commission, made up of no less than three (3) Board of Directors, as appointed by the President. Prior to each Board Hearing, a Board Hearing Commission shall be appointed.

RCSC’s Sr. Management staff, i.e. General Manager, Assistant General Manager, Director of Support & Services, Director of Golf, Director of Member Services, Director of Bowling Operations, Director of Human Resources and Controller, have the authority to immediately and temporarily suspend for ten days all Cardholder privileges of a Cardholder or their guest that is deemed to be of any danger or is threatening to be of any danger to any person(s) or property. Such temporary suspension shall be reported to the Board of Directors who will set a Board Hearing within ten days.

RCSC Cardholders may be called for a Board Hearing for the following violations:

1. Owners who misrepresent someone as occupying (Refer to BP 8) their Sun City property (dwelling unit) shall be subject to temporary or permanent suspension of all Cardholder privileges of the Owner(s) and any occupants, to include denial of use of any or all RCSC facilities, and may no longer be considered a RCSC Cardholder in good standing.

2. Owners who misrepresent themselves as occupying (Refer to BP 21) a Sun City property (dwelling unit) shall be subject to temporary or permanent suspension of all Member Cardholder privileges of all Owner(s) of said property and any occupants, to include denial of use of any or all RCSC facilities, and may no longer be considered a RCSC Cardholder in good standing.

3. RCSC Cardholders who have had assault charges filed against them as a result of an alleged act committed on RCSC property shall be called to a hearing within ten days of the notice of such alleged assault. The Cardholder shall be immediately suspended from use of all RCSC facilities.

4. RCSC Cardholders who misrepresent someone as a qualified guest (Refer to BP 9) and/or who misrepresent their guest’s age (Refer to BP 10) shall be subject to temporary or permanent suspension of all Cardholder privileges, including denial of use of any or all RCSC facilities, and may no longer be considered a RCSC Cardholder in good standing.

5. RCSC Cardholders who repeatedly fail to comply or whose guests repeatedly fail to comply with the Code of Conduct and/or RCSC Rules & Regulations (Refer to BP 10) shall be subject to temporary or permanent suspension of all Cardholder privileges, including denial of use of any or all RCSC facilities, and may no longer be considered a RCSC Cardholder in good standing.

6. RCSC Cardholders who fail to comply with the Restated Articles of Incorporation, Corporate Bylaws, Board Policies and/or their Facilities Agreement shall be subject to temporary or permanent suspension of all Cardholder privileges, including denial of use of any or all RCSC facilities, and may no longer be considered a RCSC Cardholder in good standing.

7. RCSC Cardholders who falsify documents in order to obtain a Member or Privilege Card for themselves or others shall be subject to temporary or permanent suspension of all Cardholder privileges, including denial of use of any or all RCSC facilities, and may no longer be considered a RCSC Cardholder in good standing.

RCSC Cardholders who have failed to cease and desist or whose guests have failed to cease and desist after receiving notification of such, shall be notified to appear at a Board Hearing unless such offense is of a nature that puts others at harm. In such a case, the Board Hearing Commission shall notify said RCSC Cardholder in writing of immediate temporary or permanent suspension of all Cardholder privileges without a Board Hearing, including denial of use of any or all RCSC facilities, and the Cardholder shall no longer be considered a RCSC Cardholder in good standing. The RCSC Cardholder has the right to appeal the decision.

RCSC Cardholders who have misrepresented or falsified information may be notified to appear at a Board Hearing, unless evidence of such is verified by written documents. In such a case, the Board Hearing Commission shall notify said RCSC Cardholder in writing of immediate temporary or permanent suspension of all Cardholder privileges without a Board Hearing, including denial of use of any or all RCSC facilities, and the Cardholder shall no longer be considered a RCSC Cardholder in good standing. The RCSC Cardholder has the right to appeal the decision.

Notice of Board Hearing:

1. Notice of a scheduled Board Hearing shall be provided in writing at least fourteen (14) business days prior to the hearing. The notice will inform the RCSC Cardholder why and where the hearing will being instituted. Such notice shall include the following:

a. Charge being brought against the RCSC Cardholder;

b. Board Hearing procedure (a copy of this Board Policy);

c. Date, time and place of hearing; and

d. Notice that all witnesses have the right to attend the hearing, and if unable to attend may provide written comments that will be read at the hearing and submitted to the Board Hearing Commission.

2. The RCSC Cardholder may submit a written request to the President or Vice-President to waive the hearing at least 24 hours prior to the commencement of the hearing.

3. The failure by a RCSC Cardholder to appear at the time and place of the hearing shall result in the waiver of the RCSC Cardholder’s right to a hearing on the charges. A refusal to attend the hearing will require the Board Hearing Commission to use the information available to arrive at a decision.

Board Hearing Procedures:

1. The Board Hearing Commission shall preside and conduct the hearing. An opening statement from the Board Hearing Commission detailing the charge against the RCSC Cardholder, outlining the Board Hearing procedure to be followed, and providing information as to when the RCSC Cardholder, who has a charge against him/her, can expect a decision.

2. The RCSC Cardholder, who has a charge against him/her, will not speak or provide comment until such time they are recognized by the Board Hearing Commission. The RCSC Cardholder will be given ample opportunity to respond to witnesses and testimony and present his/her case and make comments which specifically relate to the charge under review.

3. The responsibility to secure witnesses rests with the RCSC Cardholder. The Board Hearing Commission does not subpoena witnesses or compel testimony from witnesses.

4. Witnesses may be presented by both the Board Hearing Commission and the RCSC Cardholder. Witnesses will remain outside the hearing room and will be called in one at a time to give testimony.

5. Information provided by all witnesses, whether in person or in writing, shall be reviewed and heard by the Board Hearing Commission. If a witness is reluctant to make their comments in the presence of the RCSC Cardholder who has a charge against him/her, they will be allowed to do so in front of the Board Hearing Commission only. If the incident involves RCSC personnel, the Director of Human Resources or their appointee shall attend the hearing.

6. The RCSC Cardholder may address the Board Hearing Commission and may call and question their witnesses. The Board Hearing Commission may ask questions and/or address the RCSC Cardholder and all witnesses.

7. Neither the Board Hearing Commission nor the RCSC Cardholder is bound by technical rules of evidence and/or court procedure in conducting the hearing.

8. All discussions and testimony between the Board Hearing Commission and the RCSC Cardholder shall be conducted in a polite and respectful manner without harassment or intimidation.

Board Hearing Decision:

If, after the hearing, the Board Hearing Commission determines that the conduct charges against the RCSC Cardholder have been substantiated, then the Board Hearing Commission shall notify the RCSC Cardholder, in writing by certified mail, of any action affecting the RCSC Cardholder.

Although the Board Hearing Commission has full authority to suspend RCSC Cardholders for any length of time, including permanently and on any basis, the following are minimum suspensions for the following offenses:

a. Owners who misrepresent other’s occupancy of a Sun City residence – 6 months minimum

b. Owners who misrepresent their occupancy of a Sun City residence – 6 months minimum

c. RCSC Cardholders who falsify documents – 12 months minimum

d. RCSC Cardholders who misrepresent the age or qualifications of a guest – 6 months minimum

e. RCSC Cardholders or their guests who repeatedly fail to comply with Code of Conduct – 3 months minimum

f. RCSC Cardholders or their guests who repeatedly fail to comply with RCSC Rules & Regulations–3 months minimum

g. RCSC Cardholders or their guests who fail to comply with the Restated Articles of Incorporation – 3 months minimum

h. RCSC Cardholders or their guests who fail to comply with the Corporate Bylaws – 3 months minimum

i. RCSC Cardholders or their guests who fail to comply with the Board Policies – 3 months minimum

Board Hearing Appeal:

A RCSC Cardholder may appeal the action taken by the Board Hearing Commission. The appeal will be in writing and submitted within ten (10) business days to the entire Board of Directors for a review of the findings. The Board of Directors will then notify the RCSC Cardholder, in writing by certified mail, of its evaluation of the appeal. The decision on the appeal will be final.

BE IT FURTHER RESOLVED that a copy of this resolution shall be posted on the RCSC website for members and shall be made available to members upon request at no cost.

Adopted and signed this 19th day of December, 2013 at a duly called Board meeting by a majority (5) of the Recreation Centers of Sun City, Inc. Board of Directors.