Rancho Santa Teresa

Swim and Racquet Club

​286 Sorrento Way, San Jose 95119

office 408-227-5758

fax 408-225-6325


You should all have received the voting package and instructions by now. If not, please contact the office at office@ranchosantateresa.org. Please read and follow the voting instructions in the package carefully.

Today I ask for your help and support the proposed by-law change by the Board of Directors. The Board believes that this is in the best interest of the club and its members to keep current activities, opening hours and existing families at our club.

If the membership vote to approve the new by-laws passes on April 12, the new bylaws will be enacted immediately. The board will then vote to approve all 2018 Sponsored Guest Families (90) to become Associate members, if they chose to do so. Most likely, the Board will not approve more than that this year even though the maximum limit is 100. Associate Members will need to fill out an application and pay the associate membership fees of $500 for the remaining of the year. This process is pretty-straight forward.

If for some reason the vote does not pass, there will be no opportunity for any non-member family to be a part of an Associate Membership or Seasonal Guest Pass program and use the club as in the years before. I know that many of you have sponsored a family and enjoyed time with them together while they had the opportunity to use the pool at their own leisure. This will not be possible anymore.

In addition to the exclusion of the 90 families, which are part of the Rancho community and friends of members, home owners will face some hardship over the next two years and possibly longer, due to the loss of income.

  • 40% increase in assessments
  • The pool will only be open from Memorial Day to Labor Day
  • Daily operational hours will be reduced, family nights and late night Luaus will be eliminated.
  • Social events like Memorial Day, Independence Day, Labor Day, Octoberfest, etc. will either be canceled or significantly reduced.
  • Risk that the club stays in non-compliance with current laws and faces consequences

It will take two years to restore operations to what they were in 2018 and years prior. None of the board members want this to happen. As the proposed by-laws were completely rewritten by the law firm of Adams Stirling to reflect clear language and be up to date with California Civil codes, here is the summary of changes.

New added items:

  • Added Associate Membership but limited it to a maximum of 100. (Replaces the Sponsored Seasonal Guest Pass Program, which is not in compliance with IRS rules for a 501 (c) 7 corporation.)
  • New defined officer roles of a Vice President, Assistant Treasurer and Assistant Secretary to be implemented. This will improve operational efficiency.
  • The term of all board members will be two years. This will provide consistency.
  • New Ethics Policy
  • Secret election of Board of Directors will be eliminated if there are not more candidates than openings. This will save the club time and money.

Elements of the proposed bylaws which are required to be followed to maintain compliance with various laws, include the following:

  • Board meetings opened to the membership and agendas must be posted four (4) days in advance
  • Meeting minutes published and posted within 30 days of each board meeting
  • All Board business must be conducted in a board meeting
  • Annual review of club financials by a CA State Board Licensed Accountant
  • One annual membership meeting required in a fiscal year
  • Board can spend up to 10% of the budget on capital improvements without member approval and if deemed necessary. (Currently the limit is $20,000)
  • Elimination of discount on membership dues for the Board of Directors. Currently Board Members get a 50% discount on their membership dues
  • The Board has a fiduciary responsibility to maintain and operate the club and levy regular assessments sufficient to provide funds for the clubs operation with assessment increases limited to no more than 20% of the previous year without the need for member vote.

We would like to remind everyone that this is how all the other neighboring cabana clubs operate, we are not trying
to do anything special, rather bring us into compliance with current Civil and IRS Codes. As the Board’s duty is to maintain and operate the club and levy regular assessments sufficient to provide funds for the club’s operation a steep increase of up 40% over the next two years will most likely be unavoidable. Even though our current by-laws limit the annual assessment to $400, California Civil code defines this differently.

The new proposed Associate Membership will replace the Seasonal Guest Pass Program. Members do not need
to sponsor an outside family anymore and take personal responsibility, as Associate Members will be covered under
the clubs liability insurance. Candidates who would like to apply for an Associate membership need to live in a geographical boundary between Bernal Road, Lean Avenue and Hwy 85 and the mountains. All families outside this boundary would not qualify for an Associate membership. However, since some the 2018 Seasonal Guest Pass Families live outside this boundary the board found it extremely difficult to exclude those families who have already been a part of our community for years. For this reason, we will make a one-time exception and allow Seasonal Guest Pass Families to convert to an Associate Membership if the proposed by-laws are passed. The Board will not approve any new families for Associate Memberships this year. Associate Membership will be limited to a maximum of 100 families. Last year we had 90 Seasonal Guest pass families. Associate Members will have no voting rights or the privilege to sit on the Board of Directors. The membership will need to be approved and can be terminated by the Board of Directors. In order for the Board to approve an Associate Membership it will require a letter of recommenda- tion of a member. This will ensure that the Associate Member provides a social benefit to its members

I hope we answered all your questions in regards to this very important vote and you support the Board of Directors and the change to our existing bylaws. If you have any questions or concerns, please feel to contact us at directors@ranchosantateresa.org

A failure of the vote will expose the club to a higher risk, it will harm our functioning community cabana and significantly increase our dues. It will take us at least two years to recover.As none of the board members want to see this happen, we would like to ask for your vote. Please also talk to your neighbors about turning in their vote. Only a small portion of the membership has currently voted. Also, please make sure that you seal and sign the envelope and follow the instructions in the voting pack- age. We have received a couple of envelopes which had no signature or were not sealed. These votes will not be valid.

We will be sending a couple of emails in the upcoming weeks to remind everyone to vote.

The Board of Directors

April 2019 President's Message