SGCC Board Candidate Conflict of Interest

As was conceded on the video tape record of the Somersett Owners Association (SOA) Candidate Night meeting on October 23, 2012, candidates that are equity members of the Somersett Golf Country Club (SGCC) have a conflict of interest as they benefit financially from contracts and/or leases that call for payments from the SOA to SGCC as equity members are part owners of the SGCC.

This does not mean that they cannot run for the Board.  Rather, under Nevada law, it means that: 1) this conflict should have been disclosed on the candidate statement that the SGCC equity member candidates submitted to the SOA – None did so; and 2) if elected, they must recuse themselves from voting on any contracts and/or leases that call for payments from the SOA to SGCC – It is not at all clear that they will all do so.

SU maintains that all SGCC equity member candidates should immediately revise their candidate statements to include the proper disclosure,  Also, in the additional spaces provided on that form to explain how they will comply with Nevada law in the face of such a conflict of interest, they should indicate affirmatively their commitment to recuse themselves from voting on any contracts and/or leases that call for payments from the SOA to SGCC.

Attached are copies of 1) NRS 116.3103 defining “fiduciary duty” as it applies to directors & officers of non-profit boards, 2) NRS 116.31084, which addresses Board member disclosures and voting abstentions, and 3) NAC (Nevada Administrative Code) 116.405 paragraph 2, which indicates that acting for reasons of self-interest or gain is not in compliance with a fiduciary’s duty under NRS 116.3103.  Please read them via the following link and decide for yourself.

Nevada Statutes Pertaining to Board Member Conflicts of Interest

2 thoughts on “SGCC Board Candidate Conflict of Interest

  1. Are you for real? “As conceded on the video tape record”? Really?

    I think one could argue that the agreement between the SOA and the SGCC “negatively” affects the equity members of the SGCC since they bought into a private Country Club whose access has now been granted to non members of the country club for an extremely nominal fee of $15/resident (much less than others pay for access to country clubs through social memberships – as much as $50-$100/month in many cases).

    Also, how do the Equity members benefit financially? The SGCC has spent over $200k developing amenities for the Somersett residents and will continue to pay for maintenance and upkeep for those amenities. The SGCC has hired additional personnel to help manage the expanded use of the driving range and restaurant. Also, I’m not aware of any financial incentive to equity members associated with the agreement. My dues haven’t gone down. I don’t get a check from the SGCC. Where do I benefit financially? You really miss the point of the whole agreement…


    Last but not least, one could argue that the SU people who are running for the board have an agenda that is contrary to the agreement between the SOA and the SGCC, such that they have a conflict of interest to the point that they are running just so they can reverse the agreement. Is that in the best interest of the community as a whole or jsut a few who don’t like the agreement?

    As I’ve stated before, SGCC members care BOTH about the Somersett community AND the SGCC interests and if anything care more about their homes and the community than the Country Club…

  2. Hi Barry

    Several comments

    1) The CC&R’s specifically keep the Country Club as a “separate” entity. This means that the residents as a whole do not have a say in how the CC is run, conversely the equity private Country Club members should not have a say in how the SOA is run on matters pertaining to Golf as that is a conflict!

    2) ALL Somersett residents are golf club members already, as the SOA own the C9, we pay $15 a month for this amenity, which we can ALL pay to use at anytime for a nominal cost. We do have a say in how that is run, the financial costs are posted on the SOA web site. Conversely, we have limited opportunities to use the Championship Golf Course, we have no idea of how the Country Club is doing and have no say in how it is run, the financial costs are not available to the residents – as we are all members, surely they should be!

    3) I am not running against the “lease”. I do not want to see the Championship Golf Course close as it is an integral part of our beautiful community. I want to work to maintain its viability and become a cornerstone of the amenities provided to ALL the residents.

    4) I am running to ensure that ALL residents get value for their assessment $; to ensure that the community not only maintains its well crafted beauty, but is finally completely developed, all the houses are built (over 1000 to go), the landscaping is finished, the infra-structure needed is constructed so Somersett can be the “best” place to live in N. NV.

    5) The “lease” is under legal review by the State’s Ombudsman office. However, changes are now being made by the outgoing developer controlled board, I believe that we should wait for NV to rule, before any changes are made, and that a resident vote is had.

    6) To me the “lease” is an extraordinarily bad deal for ALL the residents. There was no community discussion as to the additional amenities to be provided for $330K. What do we get for the rest of the $1,000,000 through the end of 2014? Use of the resident only SunSett Grill. The opportunities for non-equity resident member golf have not been improved by this “lease”, the cost of playing has not been materially reduced beyond that which is offered on Groupon. All I am asking is that the Equity Country Clubs Members, reach out to include ALL the residents by offering greater value.

    7) Somersett United is and has always been for keeping Somersett green and beautiful. If elected, I will act with financial fairness for the entire community to provide value for our assessment $.

    Geoffrey Brooks

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