Petition for Special Meeting

Introduction

Last year the CYC Board of Directors and Flag Officers presented a plan for remodeling the clubhouse. Triggered by a desire to expand the current kitchen to make it easier to cater non-member events (e.g., weddings, etc.), the proposed plan would expand the kitchen into the current main deck bathrooms and showers, which would be doubled in sized and relocated to Pneumonia Alley, replacing member gear lockers, spar storage, work benches and related boating needs. The traditional lockers in Pneumonia Alley would be replaced with administrative and employee offices (two conference rooms, four manager offices, an accounting department, a day care center, changing rooms and lockers for 12 employees, and two internal staircases).

The architect’s preliminary cost estimate is $1.5 million. With no contingencies for unknown structural or code issues, government agency requirements (BCDC, FEMA, etc.) rock revetment extension, construction designed to deal with future flooding, or cost overruns, it is thought by people knowledgeable and experienced in the development/construction industry that the real number will be closer to $3 million.

This extensive re-configuration of the club, along with the extraordinary commitment of current and future club funds, caused some members to ask for a more detailed explanation of the demands upon the kitchen and the economics of serving both ballroom catered events and downstairs member dining. The Commodore rejected all requests as simply coming from “…a small contingent making … irrelevant comparisons to the way things worked a decade or more ago….”

The numbers finally released were piecemeal, given with great reluctance, and often contradictory.

The financial information that slowly came to light revealed some startling facts: In a 36-month period, from 2011 to 2013, member dining losses were nearly one million dollars. The current year’s anticipated losses are about $400,000, which is nearly $8,000 per week. Repeated requests for the release of additional financial figures have been denied.

Corinthian Catering and Dining, a wholly owned subsidiary of CYC (itself a 501 (c) 3, a member-owned non-profit), is considered by the board to somehow not be owned by CYC members and its finances are held secret.

The Commodore steadfastly refuses to answer questions. Withholding of financial information from club members is unacceptable, and accordingly this petition is asking for a special meeting to address this issue, as provided for by Article XII Section 3 of the CYC Bylaws.

We feel it is critically important for members to not only know what is going on with their club, but to also have a say in major decisions that will impact the club physically and financially, for years to come. Therefore the purpose of this meeting is to pass the resolutions set forth in the following Petition, which we are sending to a mailing list we have compiled of member we know and believe share our views. If you know of others similarly inclined, please inform any one of us. The bylaws provider for Special Meetings to be called by petition signed by not less than 10 percent of the Regular Members in good standing – or a total of 40.

Please sign the petition by hitting the “Agree” button and your response will be returned to the Staff Commodores below:

John Colver

Ron Kell

Peter Hogg

Jeff McQueen

PETITION

As provided for in Article XII Section 3 of the CYC Bylaws, those Regular Members in Good Standing who have signed this Petition in counterpart, hereby petition the Board of Directors to call a Special Meeting (“Meeting”) of the Membership at ______p.m. on ___________ by legally notifying all members entitled to vote at least two weeks prior to the aforesaid date, for the purposes of passing the following Resolutions and in accordance with the following procedure:

PROCEDURE

The Board of Directors shall be responsible for determining if a quorum is present. If by the appointed time for the commencement of the meeting a quorum is not present, then the meeting shall be postponed for 15 minutes at which time it shall be re-determined if a quorum is then present. If a quorum is then present, the meeting shall be called to order by the Board of Directors (or if none shall be present) by the “Moderator” as defined below) and the proceedings thereafter moderated by a Moderator which shall be any one of the following Staff Commodores: John Colver, Ron Kell, Peter Hogg, Jeff McQueen

The Moderator shall present each of the Resolutions and call for discussion and/or questions then shall call the question. In the event of any disputed inconsistency between the procedures set forth herein and Robert’s Rules of Order, then the latter shall govern.

RESOLUTIONS

No. 1: Financial Statement Disclosure

The CYC membership hereby directs the CYC Board of Directors and the CYC Finance Committee to provide the CYC membership with full disclosure of the financial status of CYC and its subsidiary CCD (Corinthian Catering and Dining) by mailing to all CYC members before ___________ 2014 at least the following financial reports and supporting documentation for the year ending December 31, 2013 and for the six months ending June 30, 2014:

1)Balance Sheet

2)Statement of Income and Expenses

3)Source and Application of Funds Statement, i.e. a Cash Flow Statement

4) Trial Balance

If the Board takes the position that CCD is a private corporation separate from CYC and therefore CYC may not disclose any CCD financial information it may possess, then CYC is hereby directed to share with the membership a copy of the contract between CYC and CCD.

Resolution No. 2

Proposed Club House Remodeling

The CYC membership hereby direct the CYC Board of Directors and all CYC committees to suspend all activities related to remodeling of the CYC clubhouse and/or any phases of it until the following has occurred:

1)The CYC membership has voted to approve the proposed remodeling, and

2)The CYC Finance Committee has submitted for approval by the CYC membership a detailed plan of how the proposed remodeling would be paid for, and

3)The CYC membership has approved the financing plan of the CYC Finance committee.