SCA Info

 

RECENT NEWSLETTERS

 

Below is the current SCA View and recent back issues from January 2016. For earlier newsletters, see Archives.

Please note that the below newsletter reprints may contain corrections of disclosed errors and omissions.

  • January 5

     

     

      

     

                                                             Monday, October 3, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Management’s Proposed 2017 Budget & Recommendation for an Assessment Increase

     

    Management’s recent 2017 Budget Workshop presentation was illuminating for its detail and thoroughness of the topics covered. Among management’s proposals was a recommendation for a $110 assessment increase in 2017. In recognition of the Association’s aging repair needs, coupled with the need to accelerate such funding for items with a shorter lifespan than was initially projected, management proposed that all of that recommended increase be allocated to the Reserve Fund.

     

    The amount allocated to the Reserve Fund in 2016 is projected to be just under $2 million, which is equivalent to $277 per home and an accumulated Reserve Fund Balance of $10.5 million. In one of two Reserve Funding scenarios prepared by the GM, that per home amount will gradually increase over the next 30 years to $635/home.  An alternative scenario reflects a relatively stable, non-increasing contribution, but which results in an ending Fund Balance that’s 44% lower than the resulting Balance from the staggered scenario as well as inadequate financial strength (below 70% of the fully funded amount in the final years).       

     

    The table below compares the 2016 Budget to the proposed 2017 Budget, showing the dollar and percentage changes.

     

    Some may note that the Reserve Contribution in 2016 is $1.366 million, which reflects the amount that was initially included in the 2016 Budget. The actual amount contributed to reserves in 2016 will reflect the Board’s recent decision to augment that initial amount by $610,000, which will bring the total contribution to $1.976 million.  

     

     

     

     

    The Year-End TGIF Band on the North Lawn

     

    This past Friday, it was a beautiful evening on the North Lawn overlooking the lights on the strip. We had brought some snacks to munch on while we enjoyed listening to the music. Then soon after the band started playing, I thought to myself, “something doesn’t sound right.” I didn’t know the music and wondered whether it was me or my age. After all, this was Sun City Anthem and the average age of homeowner was likely in their seventies. We grew up listening to music in the 1950s and 60s and we were looking forward to listening and dancing to the music and songs we understood.

     

    Instead, SCA’s management staff contracted to provide homeowners with what the band described as a steel band playing generally unfamiliar music from the 80s or later by artists who, for the most part, were unknown to most homeowners.

     

    Unfortunately, when brought to their attention, I understand that management was not especially concerned about their apparent failure to meet the music preferences of most residents who came out Friday evening looking for some fun and familiar music on the North Lawn.            

     

    About Costco’s St. Rose Construction Plans

     

    While Costco has completed the City’s planning and permit requirements some time ago and is authorized to begin construction at their discretion, Costco has yet to announce when they will turn over the first shovel of dirt on their St. Rose property. Whether Costco’s delay represents a short or long-term hiatus is unknown. 

     

    A Las Vegas Review Journal Special Rate Reminder

     

    Since I continue to receive inquiries about the special subscription rate for Sun City residents, I wanted to repeat that information.

     

    Since some homeowners are paying well over $200/yr and upon renewal they can do so for only $85.80/yr, I encourage other SCA bloggers, with or without attribution, to provide this information to their subscribers so that they too may benefit from this substantial savings.  

     

    New and existing subscribers in Sun City Anthem are entitled to a special rate of $85.80 for a 7-day, 52-week subscription.

     

    1.            Who does that special rate apply to? Residents of Sun City Anthem.

    2.            Does that special rate apply to your current subscription? You can receive a credit towards your renewal as illustrated below.

    3.            Does that special rate apply to your next renewal? Yes.  

    4.            Does that special rate apply to your previous renewal? No.

    5.            Will that special rate be applicable in 2017? As far as I know today, the answer is Yes. 

    6.            Will that special rate change? I was told that the special rate should be applicable through 2017. When and how that special rate will change in the future is unknown.  

    7.            Does that special rate entitle you to a cash refund? No.

    8.            Are you entitled to receive a credit on your upcoming renewal? Yes.

    9.            How does that credit work? Subscribers will receive a pro rata extension on their next renewal equivalent to the difference between the amount you paid on your existing subscription and $85.80.

    For example, say your current 12-month subscription is scheduled to expire on 12/1/2016 and you had paid the LVRJ $171.60 in 2015. Your upcoming 12-month renewal rate will be $85.80. Since the amount you had paid in 2015 was equal to 100% of the special subscription amount of $85.80, you are entitled to an extension to your 2016 renewal equal to 100% of 52 weeks, which is 52 weeks. In this example, the subscriber would have their subscription extended for an additional 52 weeks beyond 2017, until the extended subscription expires on 12/1/ 2018.

    10.       How do new or current subscribers get this special rate? In order to receive this special rate, you need to do three things:

    a.         Call the LVRJ at this number ONLY: 702-383-4613

    b.         Talk to or leave a message for Anna Martinez, Head of the Subscription Department. That number is her direct line and if she does not answer, leave a message to call you.

    c.         You must tell here you are a Sun City Anthem resident.

    d.         Do not call any other LVRJ subscription number as Ms. Martinez is the only person who is authorized to provided SCA residents this special rate.

    11.          How did this special rate come about? In response to my recent article about the LVRJ, I was contacted by one of our residents who wishes to remain anonymous who told me of an arrangement that had been made with a LVRJ representative for a special rate for residents of Sun City Anthem. 

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                   Volcano surfing in Nicaragua. (#22).

      Here you can see the relatively tame volcano boarding, but surfing is also an option...

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Tuesday, September 27, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The September Board Meeting (continued)

    and today’s Restaurant Meeting

     

    There is one very important area left to discuss about the September Board meeting. That is the 2016 Updated Reserve Study, which is likely to have profound financial implications on assessments going forward, if not in 2017, in the years to come.

     

    A possible assessment increase in 2017, politics, and Criterium Engineers’ 2016 Updated Reserve Study

     

    The completed, still highly secret, 2016 Updated Reserve Study by Criterium Engineers reportedly disclosed the need for $2.4 million in 2017 recommended repairs. Unanswered today is where will that money come from?

     

    If I had to guess, that $2.4 million obligation is one the Association is not prepared to assume, that is, not without an increase in member assessments.  That dire prospect was offered by Director Jim Mayfield, who said that he would not be surprised if we will need an assessment increase in 2017. Jim then asked this question: What will be the methodology that will drive the amount of the Association’s reserves contribution to fund the needed repairs?

     

    Whether the Board will propose an assessment increase in 2017 is problematic and depends on a number of considerations and questions, including:

    • The Board is not obligated to adopt (implement) Criterium’s 2016 Updated Reserve Study; in fact, the Board decided to only “accept” the reserve study, however indirectly, and not to approve or implement the Study’s recommendations.

    Incredibly, the Board managed to avoid any reference to the existence of this reserve study in making the following announcement of what the Board accomplished at the September Board meeting: “Accepted Management’s report on recommended 2017 Reserve Expenditures and Community Improvement Projects.”

     

    • GM Sandy Seddon announced, without any explanation, that management was not recommending action on Criterium’s list of recommended 2017 Reserve Expenditures. Is she not being paid enough to make such recommendations? What’s really going on?

     

    • Does management or the Board have a problem with Criterium’s judgments on needed repairs?

     

    • Is the Board looking for an exit strategy on how to fund the Association’s needed repairs?

     

    • Or, as some might suspect, is the Board looking for a way to avoid their duty altogether with elections around the corner?

     

    • Past Boards generally prided themselves by funding reserves at around 90% of the level needed to fully fund reserves. That percentage is a measure of the Association’s Reserve Fund strength in meeting future repair and replacement requirements. If that percent fully funded amount drops materially below 90%, it will become increasing difficult for the Association to meet its future reserve obligations.

     

    • Based on the Updated 2016 RS, what is the current level of reserve funding?

     

    • Will the Board be implementing a plan to address what is apparently an existing and substantial reserve shortfall?

     

    Today’s Restaurant Meeting, Monday the 27th

     

    Today’s Restaurant Meeting was conducted by GM Sandy Seddon and the Board of Directors. It was a standing room only event with chairs lining three walls of the Delaware Room, 3-5 rows deep. The sole purpose of the meeting was give residents an opportunity to voice their opinion about the closed restaurant. 

     

    Everyone who wanted to speak had an opportunity to do so within the allotted 2 hours that was set aside, which concluded after only 1-½ hours.

     

    Below are some of the ideas that were suggested.

     

    • An overwhelming number of speakers favored having a restaurant of one type or another. Many said that they considered the restaurant an amenity, bought here because of the restaurant, were concerned that the absence of restaurant depressed property values and its closure adversely affected sales.

     

    • Most commented on issues association with leasing, primarily in response to the five or so lessees who have failed in the past.

     

    • Some recommended that a survey be conducted; other suggested that such a survey be binding on the Board.

     

    • Some suggested the inclusion of gaming, the income from which would make the restaurant a viable enterprise.

     

    • Some proposed that the restaurant be self-managed, i.e., run by the Board through its management company.  Actually, the restaurant was self-managed for several years when the community was under developer control.

     

    • The potential benefits of self-management are obvious: everything would be subject to the control of the membership, including service, type of operation, menu, cost and quality, among others.

     

    • The downside of self-management would be that the customer base would be restricted members only; the level of the Association’s subside would be uncertain; or members might be required to use or lose “x” number of dollars in the restaurant per quarter, say $15. That would raise about $400,000 annually towards operations.

     

    GM Sandy Seddon said that she had a lot of experience in self-managed operations and will be providing information about her experience in the future.

    • Some suggested that the restaurant be repurposed for another use. While this is not a new idea, our governing documents make this suggestion virtually impossible to achieve, based on our past experience, since a majority of our 7,144 unit owners would have to vote their approval for such a change. As a result, that option appears to be off the table. 

     

    • While many speakers commented on financial aspects running a restaurant, few addressed the all-important catering operations and its potential benefit.

     

    • It has long been assumed that a properly run catering operation would generate more than enough income to subsidize restaurant operations. It’s my understanding that some of our past restaurant failures were due to the lessee’s inability to offer and manage a successful catering experience. Those failures greatly damaged the reputation of the operators and adversely affected resident support. 

     

    GM Sandy Seddon and President Rex Weddle thanked those who attended, while promising to keep everyone informed about what’s happening on this issue. At the moment, there are no future Restaurant meetings scheduled. 

    Ron Johnson

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                   Biking on the Cliffs of Moher. (#21).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Monday, September 26, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The General Manager's Report, Sept. 2016

     

     

    UPDATE ON LIBERTY CENTER

    As previously reported, repairs at Liberty Center began on June 15, 2016. The scope of repairs includes, among other items: solar removal, roof repairs, exterior weather proofing, interior and exterior pool decks, re-plastering of pools, drywall framing and repairs, tile replacement, HVAC work, remodeling of locker rooms, duct cleaning and interior painting.

    The construction hours are Monday through Friday, 6:00 AM to 5:00 PM, with periodic work on Saturday and Sunday.  Many residents have asked when this work will be completed.  The construction management company had a target month to reopen Liberty Center in September. Unfortunately, the latest update from them is that we are now looking at October or the beginning of November.

     

    BURGALRIES

    There have been three burglaries in SCA on 8/29, 9/6, and 9/8. All three were during the day and the front door was damaged. I reached out to Captain Dane Mattoon of Henderson police and he indicated that they are also investigating six similar cases in Solera over the past two weeks.

    According to the Captain a preliminary look at the reports and times, they assume the burglaries were by the same person(s). No residents were home in any of the burglaries and because a couple of them are within a short time span, the suspects may have been in that area and observed homeowners leaving their houses and/or knocked on the door and did not receive a response from anybody inside the home.

    Just as a reminder that the crime of Burglary is “the entering of a structure to illegally take items belonging to another.” Robbery is “the taking of items, from another person through fear or force.” All of the crimes listed in this e-mail are clearly “burglaries” since nobody was confronted by the suspect(s).

    Since these thieves were probably driving or walking around SCA and Solera, the Captain highly encourage the residents to always be vigilant and call 3-1-1 to report suspicious vehicles and/or people in their neighborhoods. If solicitors are knocking on the doors, also call 3-1-1 to report them so they can be identified by the police and be confirmed to be operating legitimately. If there is a knock on the door, be sure to ask who it is and through the closed and locked door, advise that you are not interested. This will let a burglar know people are present in the home. If no response is made to the knock, they may assume the house is empty, making the house a possible target.

     

    If they continue to insist on talking to you after you have advised you are not interested, tell them to leave and that you are calling the police; then call 9-1-1. There are also affordable products on the market which consist of a doorbell/camera system which can be connected to your Wi-Fi and you will then be alerted to a doorbell ring from an ‘application’ on your phone. You may then choose to “answer” the doorbell from any location in the world where you have access to internet service. In that way, if you happen to be away from your house, you can still talk to the person with two-way communication, making the person at the door think people are inside the home. This type of system also allows you to do this if you are within your home, eliminating the need for the resident to approach the door to see who is outside.

    Captain Mattoon indicated that working together we can make difference and apprehend these bad guys. They are diligently working the leads they have to identify and charge the suspects in these burglaries, but also need the assistance of residents by reporting suspicious people and circumstances. You citizens are the eyes and ears of the city, and they rely heavily on that to assist in their daily patrols and crime prevention.

     

    BOARD MEET AND GREET

    On Monday, September 26th from 3 – 6pm SCA will have the board member meet and greet. This is your opportunity to meet the board members and chat with them.

     

    COMMUNITY MEETING TO DISCUSS THE RESTARUANT

    A workshop has been scheduled for Tuesday, September 27, 2016 at 9 am in the Delaware room. This workshop is an opportunity for residents to share feedback to Management and the Board regarding the restaurant space. The Board has instructed me that addressing the restaurant issue is a management task. To that end, we hope that this scheduled workshop is productive and meaningful. There is no specific timeline or process that has been outlined yet related to the restaurant. This is just the beginning.

     

    ACCOUNTING

    On Thursday, September 29th at 9 AM there will be a budget workshop in the Delaware Room. The draft budget will be presented by management.

     

    FITNESS

            First, a quick thank you to our fantastic Facilities staff for the expeditious completion of the semi-annual maintenance on the Anthem indoor pool, spa and deck this month. All areas look great and were re-opened right on schedule.

           Moving forward, bids have been attained for the replacement of the Anthem weight room flooring. This project will coincide with the locker room project later this year.

      Research and pricing has begun for the upcoming year’s scheduled replacement of reserve equipment. We hope to install 2017 reserve pieces early in the first quarter.

      New barbells will arrive this week for the Anthem Center Strength Room.

      Lastly, the Group Exercise program is happy to announce the return of “Urban Line Dance with Roberta Mason” to the schedule starting in October.

     

    ACTIVITIES

     September 27 – Tuesday – Bus trip – Joyce Straus Art Gallery Tour 10:15am – 3:00pm

     September 30-TGIF (West Coast Travelers) – Anthem North Lawn -8:00pm -10:00pm

     October 1 – Saturday -Bus Trip – UNLV football game UNLV vs. Fresno State

     October 7 – Friday – First Friday Health and Wellness Delaware Room 9:00am – 11:00am

     October 8 – Saturday –Fall Home Expo 9:00a.m. – 1:00pm

     October 8 – Saturday – Movie (Ricki and the Flash) – Anthem North Lawn 7:00-9:00pm

     October 14 – Friday – Lunch & Learn Delaware Room 11am -1pm Dr. Lee Wittenberg

    Apache Foot & Ankle

     October 14 – Friday – Bella Donna – Freedom Hall 7:00pm

     October 18 – Tuesday – “Got Health” Sunrise Hospital – Delaware Rm 6:00pm – 8:00pm

     October 19 -Wednesday -Bus Trip – Wayne Newton Casa de Shenandoah Tour

     October 21 – Friday – TGIF—Women of Rock – Anthem North Lawn 8:00pm -10:00pm

     October 22-Saturday Fall Arts and Crafts – 9:00am -1:00pm

     October 23 – Sunday – Tammy Graham Show– Freedom Hall 3:00 pm

     

    FACILITIES MAINTENANCE

       The Anthem indoor pool & spa had its semiannual maintenance performed this month.

       The re-plastering of the indoor and outdoor spas at Anthem are scheduled to start after Liberty re-opens.

       The 4 new Pool and Spa chemical controllers for Anthem are being installed. The 4 for Liberty are scheduled for installation next week.

       Half the outdoor patio furniture for Anthem has been returned refinished and re-strapped. The second half has been picked. We plan on having the second half re-strapped the same way as the first half, with the blue accent color.

       The new Envise smoke controllers for Anthem have been installed. Final testing is being scheduled.

       The coating of the concrete area outside the entrance doors at Independence is complete.

       The 16 new arm chairs for the Emerson/Franklin room at Anthem have been delivered and put into use.

       The 4 new pool tables for Anthem have been ordered and should arrive in the next 3 weeks. The repair to the 7 at Independence is being scheduled.

       The replacement of the rubberized flooring in the strength room at fitness is scheduled to be installed after Liberty re-opens and the work on the Locker rooms begin here at Anthem.

       All new Handicap signs have been installed in the parking lot between Anthem and Independence.

       New pool signage is being ordered for both Anthem and Liberty. The existing signage is faded and needs to be updated with current CPO (certified pool operator) names and license numbers.

     The balance of the Bocce Ball courts here at Anthem have been repaired.  The city of Henderson’s Life Safety inspector was out this month and inspected Anthem for any Life Safety violations. None were found.

       Desert Fire performed Stand pipe flow testing at Liberty this month. Everything passed.

       Siemens, our File Life Safety vendor tested all our smoke detectors at Anthem this month and everything passed.

       An extra 2 sets of new drapes are being ordered for SCA TV. These will be fire treated.

       New lights are being installed in the fitness cardo room and the walking track. These lights will be brighter.

       Diamond plate has been installed in the hall behind the Delaware room to help protect the walls form damage.

       New walk mats have been put into place between the indoor pool and locker rooms here at Anthem to help prevent slipping.

       Palm Tree trimming here at Anthem is scheduled for next week.

       New plant material is scheduled to be planted at Liberty before it re-opens. Also, all the trees have been trimmed.

            CMC projects (AMOR)

    •       o Drywall repair and painting at Independence is finishing up.
    •       o Drywall repair and painting at Anthem is scheduled to begin as soon as Independence is done.
    •       o New light bulbs for the Tennis and Bocce ball courts at Liberty are being scheduled for installation.
    •       o The painting of the fences at the 4 Villa Locations is beginning shortly.
    •       o The work in the Delaware room will be done in January.  Carpet replacement, new drapes, touch up of woodwork, new doors, electrical work and repair to the air walls will require us to close this room along with the break out rooms for the entire month.
    •       o The complete remodel of the locker rooms at Anthem are scheduled to begin as soon as Liberty re-opens.
    •       o The separated wood floors in the aerobics rooms at Independence is being scheduled for repair.

          o The improper curbs in the Handicap showers at Independence and the cracked shower pans in the men’s and women’s locker rooms at Independence are all being scheduled.

     

    Other Board News

     

    Status of Chapter 40 construction defect mediation process on Liberty Center

     

    President Rex Weddle announced at their executive session that with very little progress being made on mediation, the Board decided to authorize legal counsel to file a lawsuit against the developer. The Board anticipates that the lawsuit will prompt the parties to get more involved in the process as the matter heads to court.

     

    Alternative Dispute Resolution (ADR) Case

     

    This month’s executive session also addressed a pending ADR mediation case. There is a reasonable presumption that this matter was the case that had been filed by Ron Johnson in an effort to resolve the Association’s long-term refusal to provide member access to tax audit documents the Association had submitted to the IRS in 2012 in an effort to resolve a $1.345 million IRS claim.

     

    According to Nevada law, before any civil action can be taken regarding a dispute relating to governing documents of a homeowners association, the disputing parties must complete the Alternative Dispute Resolution (ADR) process under NRS 38. The parties to the mediation provide the mediator a statement and relevant documents pertaining to the dispute, including a statement concerning an acceptable resolution. The mediator works with the parties to resolve the dispute with a written agreement.

     

    Whether that mediation process will result in a resolution is unknown. However, based on the experience of those SCA members who have filed ADR claims, I am not aware of any case that resulted in a resolution of the dispute. To some, that might suggest the Association has not been disposed to mediate disputes, thereby obliging members to incur the expense of litigation if the homeowner wants to pursue the matter.

     

    Collections

     

    Management reported that there were 24 units in collections involving about $62,000.

     

    Surplus Funds

     

    This surplus funds issue involved two things: 1) the accumulation of funds in excess of monies needed to pay our bills, which in the past has been reported to be about a million dollars; and 2) the disposition of those funds, i.e., whether those funds should be transferred to the Reserve Fund or returned to the unit owners.

     

    According to Director Jim Mayfield, this 8-year issue has festered much too long. Jim believed that an acceptable resolution was finally in sight. As previously reported, that resolution was developed by SCA’s Finance Committee (FC) in a report defining “surplus funds,” how to compute the accumulated surplus, and how to manage the disposition of those funds. That FC report was presented at the August 25th Board meeting, which you can view here,.

     

    At this month’s meeting, Treasurer Tom Nissen presented the Board’s response to the FC’s recommendations on Surplus Funds. That response was generally receptive to adopting the FC’s recommendations, with one key exception. That exception concerned what the FC defined as the “Minimum Acceptable Equity.” According to the FC, such minimum amount was “established to insure a modest margin of safety against potential cash shortage or even bankruptcy of the HOA.” The recommended MAE amount was $250,000.

     

    In practical terms, that amount would reduce the available surplus by $250,000. For example, say the prior year’s computed surplus, as calculated and reported by the Association’s auditors, was $600,000. That amount would be reduced by the amount of the MAE, that is, by $250,000, leaving a net surplus of $350,000 to be transferred to the Reserve Fund or refunded to the homeowners, at the Board’s discretion. In doing so, the Board would have an available cushion equal to $250,000 against a potential cash shortage.

     

    Some might view the existence of this amount as an unbudgeted, off-budget, or a contingency fund that’s equivalent in concept to the amount of “working capital” the Board has been carrying over year after year. So, in some sense while there has been progress in addressing the surplus funds issue, some of the board’s past accounting practices have not changed. 

     

    Tom Nissen’s recommendation to the Board was to increase that MAE amount from $250,000 to $500,000, giving the Association a $500,000 cushion against a potential cash shortage. Most Board members appeared eager to accept Tom’s recommendation, voicing the opinion that the Association would be better protected in the event of a cash shortage.

     

    Interestingly, Former Finance Committee Chair Forrest Quinn rose to address this potential cash shortage issue. He said that based on his historical analysis, the Association has always had more than enough cash on hand to meet their expenses. Since there was no historical basis to conclude that the Association will ever have a need for any MAE amount to protect it from a cash shortage, one might question the need for such protection.

     

    After all, in the event of a cash emergency, the Association has other alternatives, including a special assessment, deferring a portion of planned reserve transfers, or borrowing from the Reserve Fund.

     

    In the end, the seven-member Board approved Mr. Nissen’s proposal to adopt the FC recommendation, as amended to reflect the $500,000 MAE, but with one modification. That modification was to revisit the amount of the MAE after one year, instead of two years as Tom had initially recommended. In addition, the Board approved a FC recommendation to transfer excess funds carried over from 2015 ($610,000) to the Reserve Fund.

     

    Going forward, the Board anticipates that our CFO Jim Orlick and in-house staff will produce more accurate budgets than what the Association was accustomed to receiving from FSR. That tightening effort may substantially reduce the accumulation of surplus funds as the reported income and amounts expensed are in line with the amounts that were budgeted.   

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                   Glacier boarding anywhere. (#20).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

      

     

                                                             Wednesday, September 21, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The September Board Agenda Review Meeting

     

    In attending recent Board Agenda Review meetings, one is struck by certain realities:

    • The Board’s repeated promises of transparency are empty.
    • Agenda Review meetings have ceased to be a useful as a venue for members to learn in advance what actions the Board is planning to take at the upcoming Board meeting. For example, while the topics are known, the Board was either reticent or simply refused to disclose its plans for how the Board would be dealing with certain topics, such as Surplus Funds and the future role of Committees.   
    • Meaningful opportunities for member input into the Board’s decision-making process are practically nonexistent.
    • Since the adoption of self-management and in contrast to past practice, members have been deliberately excluded from participating in key processes, including the preparation of the 2017 budget and the 2016 Updated Reserve Study. The Board’s increased penchant for secrecy is unparalleled. 
    • As one consequence of such secrecy, decisions are being made behind closed doors and not as required in an open meeting. 

     

    Highlights of the Agenda review include.

    • The September Board meeting will take place at night on Thursday the 22nd at 6:30 PM in the Delaware Room.
    • The 2017 budget will not contain any capital improvement projects, such as proposed new amenities, enhancements to existing amenities, or existing PIRFs involving capital improvements.
    • Treasurer Tom Nissen will make a presentation on Surplus Funds at the Thursday Board meeting. Nissen did not disclose the content of his presentation or what he will be recommending. In response to a question by Jim Mayfield, Nissen said that he will be asking the Board to approve his recommendation on Surplus Funds, which is unknown to members at present.

    It’s unclear whether Mr. Nissen’s position on Surplus Funds is the same today or has changed since he announced last year that the Association has no surplus funds.  Mr. Mayfield said that any recommendation on Surplus Funds should also include a recommendation to transfer the Surplus, estimated to be in excess of $600,000, from the main Operating fund to the Reserve Fund prior to the adoption of the 2017 budget in October. Such a transfer was recommended by the Finance Committee.

    • On the Recommendation on the future of SCA Committees.

     

    The 8-page Report, supplemental information and narrative Presentation, 26 pages in all, by Directors Aletta Waterhouse and Bob Burch sets forth their recommendations to the Board on the proposed structure of SCA Committees under self-management. You can read that Report here.

     

    Here are those Committee recommendations:

     

    • Committees to Retain
      • ARC
      • Covenants
      • Finance
      • Audit Committee
      • Election
      • Community Lifestyle
      • Facilities and Landscaping (formerly Property & Grounds)
    • Committees to sun-set
      • Communications
      • Golf Course Liaison
      • Health & Fitness
      • Strategic Planning

     

    Commentary on the role of SCA Committees by Ron Johnson

    • While most might assume that this Board Report on the future of SCA Committees was merely just that, i.e., a Report for the Board’s review and consideration. They would be wrong. Without soliciting community input or the input from any of the affected committees or their club officers, the Board made it clear at this meeting that it intends to vote on “approving” and implementing the above recommendations at the September meeting. 

    That in-your-face decision to bypass input from the community and committee officers’ smacks of the Board’s ill-considered and thoughtless judgment in how best to address this important issue. Then again, considering the Board’s performance of late, perhaps we are expecting too much.

    • In response to this presentation, a number of residents spoke of their dismay at the recommendations to sun-set Communications and the Health & Fitness committees, on the role of the Property & Grounds Committee, and the Board’s failure to include the community in the decision-making process.
    • One glaring observation is the inclusion in the list of Committees to Retain, namely, the renamed Property and Grounds Committee. It was pointed out by Committee Chair Carol Siebel that this committee has never really had any “Landscaping” function, as opposed to the Anthem Council, so what’s behind including “Landscaping” in the Committee’s new name? A new mission that’s never existed?

    As the report noted, the committee’s primary reason for being, i.e., managing the PIRF process and all that entailed, was excised by the Board and given to SCA’s new management team. With that mission gone, it appears that there would be little substance left to warrant the Committee’s continued life.

    • One might be tempted to make a similar argument on usefulness regarding the Finance Committee given the prominent role now assumed by Chief Financial Officer Jim Orlick and his staff, potentially making the role of the FC duplicative and unnecessary. Of greater significance regarding the future role of the FC is the recent or expected loss of a number of CPAs who had the requisite expertise to give advice and make recommendations concerning the accurate production of the Association’s financials.

     

    SCA residents are invited to the following events:

    Board of Directors Meet and Greet
    Monday, September 26 at 3:00 p.m. – 6:00 p.m. in the Delaware room
    This is a great way to meet your Board of Directors.  Light refreshments will be provided. 

    Restaurant Community Workshop
    Tuesday, September 27 at 9:00 a.m. in the Delaware room
    This workshop is an opportunity for residents to share feedback to Management and the Board regarding the restaurant space.

    Budget Workshop
    Thursday, September 29 at 9:00 a.m. in the Delaware room
    CFO, Jim Orlick, will be presenting the Operating budget, Reserve Study update and Neighborhood budgets. 

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                       Walking over a crevice. (#19).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Monday, September 12, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The Property & Grounds Committee Meeting

     

    In leading this month’s P&G meeting, Vice Chair Steve Smolenski appeared challenged in opining on the future role of the Committee. There are good reasons for his apparent uncertainty. For the foreseeable future, the Board is not accepting new community projects, which in the past had been initiated through the committee’s PIRF process. Suspension of that process was necessary for the Board to focus on the more pressing needs of deferred maintenance and Liberty Center’s construction defects.

     

    In commenting on the committee’s role in the community’s reserve study process, Steve said that the committee was looking forward to this year’s Updated study by Criterium Engineers. In responding to a question about the committee’s current role of the committee, GM manager Sandy Seddon said that her staff had assumed sole responsibility for the update to the reserve study and that she will be forwarding those results to the Board for their review and action as the Board had directed. Sandy said that while the P&G committee will eventually receive a copy of the study, the committee is not part of the decision-making process.

     

    The Updated reserve study is expected to report that the community is falling further behind in meeting the community’s projected reserve requirements. That report will compare the community’s actual Reserve Fund Balance to the study’s fully funded level, i.e., when the projected reserve balance is 100 percent funded. To the extent that the Reserve Fund is underfunded, the association is devalued.

     

    Recent actions by the Board in purchasing equipment suggests that reserves are being expensed faster than projected. In other words, monies are being taken out of the reserve fund in advance of the projected useful life of the equipment that is being replaced. That apparent necessity will contribute to the underfunding of the reserve fund. For example, you will frequently see reported in the monthly Agendas that the Board had to “Accelerate the purchase of “x” to be paid from Reserves.” The money that was supposed to fund the replacement of “x” was scheduled to be set aside in the reserve fund at a certain time in the future based on the projected useful life of “x.” The Board has to decide on how it’s going to address this and an array of reserve funding issues.   

     

    Here are some other P&G tidbits.

    • The Board’s subcommittee report on recommendations to restructure existing committees has been completed and is in the hands of the Board for their decision.
    • If the U.S. Postal Service does not agree to repaint the mail box posts, SCA will have that done next year when the fence painting contract is awarded to paint fences in 18 or so Villages that were not included in this year’s fence painting contract.
    • SCA’s wild growth areas will be allowed to grow unimpeded because it is too costly to correct.  

     

    The Community Lifestyle Committee Mtg.

     

    Nicole Duffel, Vice Chair of the International Culture Connections Club was back again to address the Club’s plans to hold a holiday event on 27 November for family and children. Given that the Club had deleted certain outside aspects from their initial event proposal, there was no need for the committee to act on ICCC’s proposal since planned event was no longer considered a Special Event, one that would require the committee’s approval.  

     

    There will be a Club Fair on Saturday, 3 December, from 8 – 1 in the Ballroom. 

     

    Director Jim Mayfield’s Thoughts on a New SCA Restaurant

    By Jim Mayfield

    I am receiving requests for my views concerning food service, including catering services, in SCA property. Let me start by saying that I have not formed an assessment on the issue. The key issues are complex and interrelated. But having observed the results, mostly bad, of food service operations for the last six years, I have formed assessments about the process that should be followed for the Board to a make decision about the future of food service operations at SCA.

    1. The process shouldn't start from the assumption that a restaurant and catering operation is desired, on a realistic basis, by a majority of homeowners ("Members"). Instead, the process should begin with a professional, independently conducted, statistically valid, objective survey to determine what SCA Members will support, will be willing to subsidize and at what level of subsidy. No offense meant, but the process needs to start with a blank sheet of paper not a bunch of white papers.

    2. Maintaining or losing the 1120H tax will affect the financial viability of a food service operation. The assumption that the 1120H qualification issue can be circumnavigated by offering a homeowners only operation creates risks. First, I do not see sufficient market mass to support such an operation. Even a bar & grill operation will need more customers (economic mass) than has been demonstrated will be available. Trying to skirt the edge of the tax law by supporting non-homeowner events with guests and homeowner sponsored catering events could be challenged in a tax investigation. The loss of the 1120H status would cause the revenues to be taxed and dramatically affect the gross profit margin and amount of subsidy needed to operate the operation.

    3. Gaming as the savior is full of legal complications and uncertainties. Using MacDonald Ranch as an example will ultimately disclose that MacDonald ranch had to donate its restaurant and all of its equipment to an outside party to maintain its limited food and bar service and implement gaming. If its operation ultimately fails, the risk to its homeowners will be expensive to correct.

    4. The assumption that a limited bar & grill operation can be operated without substantial Member subsidization is unrealistic. The level of increase in homeowners assessments needs to be explored with an objective, detail, professional analysis of the financial requirements.

    5. Increased payroll costs and management burden of an SCA managed operation will create both tangible and intangible costs that must be realistically determined. The SCA GM should be required to provide a straight forward, independent (free of Board or committees influence) assessment of the increased costs and demands for management of an in-house operation.

    6. If food service is not continued at SCA, the high conversion costs and difficult Member approval process required to discontinue food service operations must be explored. The fight over what to do with a converted restaurant space will be ugly as I suspect consensus will be impossible. 

    I favor starting the exploration process. But, let the restaurant stay dark for as long as is needed to determine if Member demand has increased or if a restaurant, like a SCA owned and operated golf course, isn't really a need that most Members will support on a realistic basis. In any event, the final step in the approval process should be a public review of a detail financial plan for the implementation of the decision and a detail business plan for the long-term costs of the decision.

    Another restaurant failure is not a option. SCA contains 7,144 units and serves over 12,000 residents. The support of the majority of the community for retaining or discontinuing food service operation will be critical. Therefore, a decision made by a small number of active people is too risky.

     

    Commentary on Mayfield’s Restaurant Thoughts by Ron Johnson

     

    • In contrast to Mr. Mayfield, I see no basis in conducting a survey to ascertain whether members will support a restaurant, let alone to determine whether a majority will. Given our Boards’ repeated failures in selecting a viable restaurant operator, there is good reason to doubt that a majority of members will support a new restaurant. Rather than such a survey, GM Sandy Seddon needs to make a reasonable judgment whether there are several hundred residents among the 13,000 living here who would frequent a good restaurant in the Anthem Center.
    • Jim believes that it would be difficult for members to support a bar & grill operation. On its face, Jim is correct, but for unknown reasons he has not factored in the possibility of a combined catering and restaurant operation, one that could be cost effective. Such a combined operation actually succeeded here many year ago. An exclusive and successful catering operation, if offered, would have the added benefit of subsidizing the cost of running the restaurant. Our past ineffective catering operations by one operator after another greatly contributed to the problems residents encountered and the ultimate demise of those leased operations. 
    • MacDonald Ranch’s restaurant and gaming experience does not appear to be relevant to SCA’s situation or needs, and there is no reason to believe that the income from gaming is necessary to support the restaurant’s operations.
    • Jim’s suggestion that a substantial subsidy would be needed to support a Bar & Grill operation is speculative at best and unsupported at worst if SCA is committed to providing a dedicated catering operation that would meet the needs of our Clubs and residents. If SCA is going to operate the restaurant, then it would reasonable to conclude that our Clubs should be required to use Hanneman Hall.    
    • Assuming that SCA will provide members with a great catering experience, there should be no difficulty in developing a viable financial plan for a combined restaurant/catering operation.
    • If performed in combination with an effective catering operation, there is no demonstrated need to get the support of a majority of the community to retain food service at the Anthem Center. Furthermore, at best there should be no need for a member subsidy.
    • On the other hand, Jim’s many concerns may be relevant if SCA does not opt for a mandated catering operation for Clubs whose income should be more than sufficient to subsidize the restaurant’s operations.   

     

    Other News

     

    News for SCA residents and subscribers to the Las Vegas Review Journal

     

    This is an update to my earlier article regarding the subscription rate for the Las Vegas Review Journal.

     

    New and existing subscribers in Sun City Anthem are entitled to a special rate of $85.80 for a 7-day, 52-week subscription.

     

    • Who does that special rate apply to? Residents of Sun City Anthem.
    • Does that special rate apply to your current subscription? You can receive a credit towards your renewal as illustrated below.
    • Does that special rate apply to your next renewal? Yes.  
    • Does that special rate apply to your previous renewal? No.
    • Will that special rate be applicable in 2017? As far as I know today, the answer is Yes.  
    • Will that special rate change? I was told that the special rate should be applicable through 2017. When and how that special rate will change in the future is unknown.   
    • Does that special rate entitle you to a cash refund? No.
    • Are you entitled to receive a credit on your upcoming renewal? Yes.
    • How does that credit work? Subscribers will receive a pro rata extension on their next renewal equivalent to the difference between the amount you paid on your existing subscription and $85.80.

    For example, say your current 12-month subscription is scheduled to expire on 12/1/2016 and you had paid the LVRJ $171.60 in 2015. Your upcoming 12-month renewal rate will be $85.80. Since the amount you had paid in 2015 was equal to 100% of the special subscription amount of $85.80, you are entitled to an extension to your 2016 renewal equal to 100% of 52 weeks, which is 52 weeks. In this example, the subscriber would have their subscription extended for an additional 52 weeks beyond 2017, until the extended subscription expires on 12/1/ 2018.

    • How do new or current subscribers get this special rate? In order to receive this special rate, you need to do three things:
      • Call the LVRJ at this number ONLY: 702-383-4613
      • Talk to or leave a message for Anna Martinez, Head of the Subscription Department. That number is her direct line and if she does not answer, leave a message to call you.
      • You must tell here you are a Sun City Anthem resident.
      • Do not call any other LVRJ subscription number as Ms. Martinez is the only person who is authorized to provided SCA residents this special rate.
    • How did this special rate come about? In response to my recent article about the LVRJ, I was contacted by one of our residents who wishes to remain anonymous who told me of an arrangement that had been made with a LVRJ representative for a special rate for residents of Sun City Anthem. 

     

    Where will be the new Costco be located?

    Costco will be located on the south side of St. Rose Pkwy. just east of Executive Airport Dr.

     

       St. Rose Pkwy.                    Costco                           Seven Hill Dr.                  Eastern Ave

     


     

          Executive Airport Dr.                Airport Runway                                Sun City Anthem Dr.

     

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                    Sitting around at Yosemite. (#18).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Friday, September 2, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The Sept. Community Lifestyle Workshop Meeting

     

    Upon entering the Community Lifestyle Committee Workshop meeting room, I was struck by the standing-room only audience, as additional chairs were being delivered as more and more members were arriving. The room was literally packed to accommodate the understandable interests of the Clubs in promoting their respective activities in common areas in the Anthem and Independence Centers. More on that in a minute.

     

    First, the Committee was set to vote on two seemingly routine “room” requests, which we were told by Chair Pat Carrel was standard operating procedure for the Committee’s monthly Workshops. As the attendees were reminded by Board Director Carl Weinstein, Workshops are not the proper venue to conduct the Committee’s official business—Committee votes should be taken only at regular Committee meetings. The attendees were told by Carrel that the two “Special Event” requests before the Committee were merely “room” requests and, therefore, could be properly acted on by the Committee. But were these requests merely a room request or something more?

     

    “Special Event” requests, while of interest to some SCA residents looking for a free event to attend, also have the potential of raising funds for the Club, attracting outside attendees, and meeting the needs of vendors or others who have their own financial interests in offering their products or services for sale. This was no less the case for the Pet Club’s popular Woofstock event and ICCC’s Bling and Fun Books event, offered at no cost to local hospitals that have ill children by artist John Rothman.

     

    Club Promotions and Ticket Sales

     

    The Committee had invited Clubs and others to voice their concerns over the past use of tables in Anthem and Independence Centers to promote their Club’s activities with current and future event information and ticket sales. Under current management policies, however, those event tables have been declared verboten. That prohibition has brought this issue to the forefront of the Committee’s attention. The Committee’s efforts were directed at learning more about the Club’s concerns and interests in meeting the community’s event planning needs.

     

    Briefly, the information, performing and entertainment Clubs would like to be able to better communicate with interested residents on a personal basis. Past efforts have demonstrated that is best accomplished by offering event information and sales opportunities at tables that are conveniently located where the action is—Anthem and Independence Centers.

     

    SCA’s activities representative and Lifestyle Director Meg Poulson stressed that they can assist the Clubs in promoting their events through various mediums: Flyers, LCD TV screens, Posters, Spirit magazine, SCA TV, Box Office, and eBlasts.

     

    Two suggestions of possible Committee interest included one by David Berman. David suggested that the presence of Club tables give needed flavor to the community and could be permanently (or temporarily) installed for subsequent reservation by potential users.

     

    Another noteworthy suggestion was to include a Playbill type template in the Spirit or Relay that would advertise upcoming performances and special events.

     

    Other News

     

    On the Renewal of the Las Vegas Review Journal

     

    If you subscribe to the Las Vegas Review Journal newspaper, you should take a good look at this year’s RENEWAL notice. There are two potential problem areas. First, is the newspaper’s cost. Having been a long-term subscriber, I was surprised to learn that the LVRJ has markedly different rates for SCA subscribers. For example, I’m currently paying $94 for a 12-month, 7-day subscription. On the other hand, for the same 12-month period and frequency, my neighbor is currently paying 82% more, or $171/yr.

     

    While there may be a reasonable explanation for such a substantial disparity in subscription costs, the LVRJ appears to be open to matching my neighbor’s cost to my subscription rate. I wrote “appears” because my neighbor is waiting for a new renewal notice with the revised amounts for this base year and the new amount for the next 12-month period. As an aside, my renewal rate increased 35% from $94 to $127. 

     

    The second issue is a little more complicated and it apparently impacts all subscribers renewing this year. In the RENEWAL notice’s box labeled RENEW TODAY, it displays the following information: the period, e.g., 52 weeks, the new rate and finally, the new period ending date, 09/01/2017. Elsewhere on the notice, my Expiration Date is reported as 09/02/2016. Since my actual expiration date is 12/21/2016, it’s unclear why the LVRJ had moved my expiration date up almost 4 months.

     

    Was that a clerical error or did the LVRJ intend that renewal should expire on 9/1/2017? My neighbor’s expiration date had been move up too, leading me to concluded that the changes appearing on my RENEWAL notice were not unique to me. 

     

    LVRJ’s attempt to explain what had happened was basically unintelligible. Nevertheless, they readily agreed to correct their record in my and my neighbor’s case. In doing so, however, I had the impression that the LVRJ is doing so ONLY for those persons who contact them. If these changes are occurring in your subscription, you may wish to contact the LVRJ at 702-383-0400 and ask that your subscription date be corrected and a new statement be issued.

     

    Had I gone ahead and paid for the renewal as reflected on LVRJ’s faulty notice, it’s unclear when my 52-week subscription ending in 2017 would have expired, on 09/01/2017 or on 12/21/2017. 

     

    Dryer Problems

     

    Is your dryer taking too long to dry—like taking 2, 3 or 4 times to dry your loads? Failure to address this issue will likely result in increased energy costs and may eventually cause the heating element to fail. If you have this problem, a solution is within reach. I have recently learned that the source of the problem is not so much the dryer, which is typically operating as intended, but is the dryer’s clogged vent that exits the roof.

     

    I contacted John Frey, The Duct Man of Nevada, 702-240-3828, who may be the only person that’s capable of thoroughly cleaning your dryer, removing all vestiges of lint and debris from the dryer, power blowing the vent to expel any remnants of lint and accessing your roof to remove several inches of caked-on lint that’s been trapped by a screen. As a final service, he will remove that offending lint screen on the roof so that the blockage problem will not reoccur. Some homeowners might prefer to call a local handyman or another company to clean the dryer.

     

    However, based on my experience, I would not recommend those other options. In general, a local handyman is neither equipped nor disposed to address the real culprit, which requires a qualified person to climb on the roof and access the vent’s exit.   

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                Cycling on a ledge in Norway. (#17).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Friday, August 26, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The August Board Meeting

     

    Board wusses succeed in putting off consideration of the Finance Committee’s proposal on Surplus Funds.

     

    In his slide presentation on Surplus Funds, reconfigured by Ron Johnson, Finance Committee (FC) Chair Andrew Muha offered a rather coherent and detailed explanation of the Committee’s recommendations on how and when to compute the Association’s annual surplus.

     

    However, when it came time to listen to how those recommendations were received by members of the Board, there was obvious disappointment. It was clearly evident that some Board members had not done their homework on this designated action item. Not only did those naysayers not ask any questions that might have addressed their concerns it was clear that they hadn’t even thought about what questions to ask, despite professing that there were so many unanswered questions.

     

    Eventually, the Board agreed to revisit the FC’s recommendations at the September Board meeting, while also prompting members to submit any questions they might have in writing to the FC.

     

    Ordinarily, Roz Berman, a former Board and FC member who does not get upset easily, was motivated to go to the microphone to chastise certain Board members who were seemingly ill-prepared to address this important matter.

     

    Ron Johnson  

     

    GM Sandy Seddon’s August Report, courtesy of David’s Anthem Journal

     

    UPDATE ON LIBERTY CENTER

    As previously reported, repairs at Liberty Center began on June 15, 2016.The scope of repairs includes, among other items: solar removal; roof repairs; exterior weather proofing; interior and exterior pool decks; re-plastering of pools; drywall framing and repairs; tile replacement; HVAC work; remodeling of locker rooms; duct cleaning, and interior painting.

    The construction hours are Monday through Friday, 6:00 AM to 5:00 PM, with periodic work on Saturday and Sunday. Many residents have asked when this work will be completed. The construction management company had a target month to reopen Liberty Center in September. Unfortunately, the latest update from them is that we are now looking at October.

    To date, the Association has recovered the following insurance proceeds:

    · $51,785.36 in repair costs

    · $5,413.99 in repair costs

    · $72,174.44 in repair costs

    · $50,000 from insurance (limit amount of coverage for mold remediation)

    · $4,983 (coverage for the security company to secure premises) There are still unresolved claims that are pending.

    On June 8, 2016, all residents were mailed a letter from our construction defect attorney, Francis Lynch. This letter was sent to comply with Chapter 40 Notice Pursuant to NRS 40.645. As required, the letter contained a copy of the builder response which basically disputes our claims. Pulte did agree to engage in mediation, which is scheduled for September 2016.

    EXECUTIVE SESSION ANNOUNCEMENT

    The Board of Directors will have an executive session on Friday, September 9th. You will notice that is it listed in the September Spirit Magazine as an Emergency Executive Session. Some residents have inquired with us wondering why we call it an Emergency Executive Session.

    SCA uses the word "emergency" in this instance in order to announce the Board is holding an Executive Session on this date. NRS 116.31083 (12) defines "emergency" as any occurrence or combination of occurrences that: (a) could not be reasonably foreseen; (b) affects the health, welfare and safety of the units' owners or residents of the common-interest community; (c) requires the immediate attention of, and possible action by, the executive board; and (d) makes it impracticable to comply with the provisions of subsection 2 or 5.

    Subsection 2 of this statute relates to, at minimum, the requirement of a 10-day notice of a meeting with the executive board. Since there is no guarantee that the Spirit magazine (which is the official communication for SCA) will be mailed within a minimum 10 days before the noted meeting, SCA, being transparent to the unit owners, is noticing the meeting accordingly as an emergency executive session meeting.

    Subsection 5, as it relates to the term “emergency” references that the executive board may take action on an item which is not listed on the agenda as an item on which action may be taken.

    COMMUNITY MEETING TO DISCUSS THE RESTARUANT

    A workshop has been scheduled for Tuesday, September 27, 2016 at 9 am in the Delaware room. This workshop is an opportunity for residents to share feedback to Management and the Board regarding the restaurant space. The Board has instructed me that addressing the restaurant issue is a management task. To that end, we hope that this scheduled workshop is productive and meaningful. There is no specific timeline or process that has been outlined yet related to the restaurant. This is just the beginning.

    SPIRIT MAGAZINE – ADVERTISING REDHEAD ENTERPRISES

    After a longstanding relationship with Redhead Enterprises, we have officially ended our contract with them. Redhead Enterprises had a contract with SCA to sell advertising for Spirit Magazine. SCA received a portion of the advertising sales on a monthly basis per our contractual agreement.

    Our contract with Redhead ended on April 30, 2016, and we elected, for the time being, to be on a month to month basis with them. The primary reason was that Redhead had fallen behind in payment to us. At Redhead’s request, they came up with a payment plan to make the Association “whole” by July of 2016.

    Unfortunately, this did not happen. Redhead was unable to fulfill the payment plan that they had requested and we elected to end the relationship. Currently Redhead owes SCA $36,943.33. This amounts to approximately 1 1/3 months (on average) of our portion of advertising. While we wish Redhead Enterprises every success moving forward, we will obviously pursue all courses of action to recoup the funds due to SCA.

    Meanwhile, your self-management team has taken steps to secure advertising in the Spirit Magazine. The September issue will be smaller in pages and contain less advertising. Moving forward, our goal is to retain as many advertisers as possible and seek new advertisers for future editions.

    ACCOUNTING

    · Enrollment for the 401k Plan has been completed and the plan is in place.

    · We continue with VMS Training, both from the software provider and from Taylor Management.

    · The Budget Process is in full swing.

    · The Reserve Study Update is also in progress. The initial draft has been reviewed and changes have been discussed with Criterium. We just received draft two back and management is now reviewing it.

    · The transition continues to be a transition, wherein we learn new things about the past each and every day, and continue to work on bringing processing for accounting in house, with less dependence on Taylor Management.

    · Edwin Elias has joined our Team as our Accounts Receivable Specialist. Edwin has a strong experience level in our field and also has previous experience with our VMS software. Welcome aboard.

    FITNESS

    · The new heaters for the outdoor pool and indoor spa have been installed.

    · The process has begun to refurbish the worn out pool furniture both indoor and out at the Anthem Center. New cushions have arrived for the indoor furniture and the first round of outdoor furniture has been sent off for re-strapping and paint. Supplemental furniture has been brought over from Liberty in the meantime.

    · Bids have been obtained for the replacement of the Anthem weight room flooring. This project will coincide with the locker room project later this year.

    · All class slots in the Group Exercise schedule have been filled with the exception of one. We hope to have the Rollax classes back to two times a week this Fall.

    ACTIVITIES

    · August 28th at 3pm we are pleased to present “Let’s Duet” in Freedom Hall.

    · Join us for the First Friday on September 2nd at 9am in the Delaware Room.

    · Monday, September 5th is Labor Day and the Activities Office will be closed.

    · September 9th is the Lunch and Learn at 11am and the Neil Diamond Tribute is 7pm in Freedom Hall.

    · The shredder truck returns Saturday September 17 from 8-noon. That evening, grab your lawn chair for “The Intern,” Cinema on the Lawn.

    · Flu Shots will be September 20th in the Greene Room from 2-6pm.

    · Video Poker 101 Seminar with Henry Tamburin is in the Delaware Room September 22nd from 1:30-3:00pm.

    · There is much to see and do at Sun City Anthem, please check the Spirit for more information..

    FACILITIES MAINTENANCE

    · The new indoor spa and outdoor pool heaters at Anthem have been installed

    · The re-finishing of the two monument signs on Anthem Parkway is complete.

    · The two boilers for the outdoor spa and indoor warm water pool at Liberty have been replaced.

    · The re-plastering of the indoor and outdoor spas at Anthem is being scheduled.

    · Most of our uniforms have arrived and staff is wearing them. There are a few still waiting for shirts.

    · Half the outdoor patio furniture at Anthem Center has been picked up to re-finish. As soon as we receive the first half back we’ll send in the second. Some of the patio furniture from Liberty Center has been brought over to Anthem Center to fill in.

    · New Envise smoke controllers for Anthem Center have been ordered. These controllers are responsible for controlling the fan to remove smoke in case of a fire.

    · The coating of the concrete area outside the entrance doors at Independence is being worked on.

    · The re-landscaping project at the waterfall area is complete.

    · New alarm panic buttons have been installed in both Handicap restrooms and at the walking track.

    · Handicap stickers have been installed at Freedom Hall.

    · 16 new adjustable arm chairs for the Emerson/Franklin room at Anthem have been ordered. These chairs will be in a different but complimentary fabric and expect that they will remain in the Emerson Franklin room.

    · New cushions for the patio furniture at the Independence Center court area have been installed. Also, new cushions have been installed on the patio furniture outside of Anthem Center’s fitness area.

    · The circulation pump on the domestic hot water heater at Anthem Center has been replaced.

    · A new partition door was installed in the women’s front restroom.

    · New volume controls have been installed for the strength room and locker rooms.

    · Bids are being obtained to upgrade our security camera here at Anthem Center and Independence Center.

    · Generator testing at Independence Center and Anthem Center is complete. At Independence Center everything worked as expected. At Anthem Center we had quite a few issues, the worst being a safety issue in the fire pump panel. Rodents have been nesting in the lower section and have eaten the insulation off the wires. This was a serious safety issue that has been repaired by installing new wire.

    o The elevator did not recall to the first floor and open the doors.

    o Three access control areas did not function correctly. Stanley, our contracted vendor, has been contacted.

    o The Fire Panel did not respond correctly. Siemens, our contracted vendor, has been called regarding these issues.

    o Three computer switches did not have emergency power. Two ran on battery power and one went sown completely. These issues are being addressed.

    · CMC projects (AMOR)

    o The center-court awning at Independence Center has been repaired.

    o Drywall repair and painting at Independence Center is being scheduled.

    o The painting & VCT floor replacement in the sewing and arts & crafts rooms at Anthem Center is complete.

    o Drywall repair and painting of the soffits and above at Anthem Center is being scheduled.

    o New light bulbs for the tennis and bocce ball courts at Liberty Center is being scheduled.

    o Work in the Delaware Room includes electrical, woodwork repair, replacement of drapes and curtains, new chairs, carpet and repairs to the fabric on the air walls.

    o The Anthem Center Locker Room work will begin once Liberty Center reopens.

     

     

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

           Standing on the Wdgewalk in Toronto (#16).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Thursday, August 18, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The Finance Committee Meeting

    On Surplus Funds

     

     

    The August FC meeting delivered what the Board had requested: A recommendation on how to compute the Association’s surplus and the disposition of that surplus, if any.

     

    Unlike what is supposed to happen at Board meetings, where directors discuss, decide and vote at a meeting that’s open to all members, all FC deliberations and decisions were behind closed doors. As a result, at this week’s meeting there would be no discussion by the assembled FC members on the surplus funds issue—those decisions were already an accomplished fact long before the FC meeting was Called to Order.

     

    Fortunately for those who were in attendance, the FC had made available certain financial printouts for the Main Operating Fund through 6/30/2016 and copies of their recommendations to the Board on the computation of the surplus going forward as well as the accumulated surplus as of 12/31/2015. Those recommendations, at least in part, followed the guidance provided by our CC&Rs at Section 8.1(e) while also appearing to deviate significantly from NRS 116.3114 on how such surpluses should be disbursed.

     

    After making certain adjustments, the FC noted that the computation of accumulated surplus that had been carried forward from 2015 to 2016 equaled $860,067. According to the FC’s handout, they unanimously recommended that the Board transfer this amount “to the Main Association’s Reserve Fund as soon as possible.” Assuming the Board agrees with that recommendation, would that amount be in addition to the quarterly reserve transfer of about $342,000?

     

    When the FC came to the issue of what should happen to the surplus, It’s my impression the committee essentially punted, i.e., rather than biting the bullet they handed off that responsibility by recommending that “the Board shall determine whether the surplus, if any, is refunded to the Owners, deposited in the reserve account, or otherwise used in accordance with CC&Rs 8.1(e).”  In doing so, the FC opened a can of worms by not properly qualifying the alternative disbursement of the surplus to “otherwise used” to a member ratified revised budget if the Board wanted to apply excess funds to anything other than reserves or to return the excess to the Owners.

     

    Finally, there are two other issues. One is the FC’s recommendation to provide the Board with what is essentially a nominal “Working Capital,” or slush, fund equal to $250,000, euphemistically referred to as “Minimum Acceptance Equity.” The alleged purpose of this amount is to provide “the lowest amount that’s considered prudent to avoid negative equity and maintain sufficient cash at all times to meet SCA’s financial obligations.”

     

    While the FC recommendation is seemingly commendable to ostensibly preclude potential bankruptcy, the FC’s accompanying table of Operating Cash Balances since March 2015, and among similar Cash Balance tables since 2013, demonstrated that the monthly balance amount rarely and only slightly dipped below $2 million. With that in mind, what possible purpose would be served by reducing (as proposed by the FC) any potential surplus by $250,000?

     

    However, in recommending that Minimum Acceptance Equity amount of $250,000, it was unclear whether that amount also represented a cap on working capital or whether such amount can increase beyond $250,000. 

     

    Lastly, the FC announced that the computation of an accumulated surplus for 2016, noted above equal to $860,067, was a one-time event. I took that to mean that the FC does not anticipate that there will be any appreciable growth or accumulation of surplus funds in the future.  

     

    Future surplus will be dealt with annually relying the auditor’s annual report for the Association’s main operating fund and using the accrual method of accounting. Such a surplus will be “computed by starting with the ‘excess of revenues over expenses’ from the most recent audited financial statement and making necessary adjustments to arrive at ‘surplus’.” According to FC, “At the time the external auditing firm presents the audited financial statement to the Board, it will also present a calculation of the amount of any surplus for the preceding fiscal year . . .”

     

    Ron Johnson

     

    Who Will Win the Presidency?

    From the FiveThirtyEight 2016 Election Forecast

     

    Here is an interesting website that provides an array of statistical data graphically and otherwise nationally, by battleground states, and by state. Click on this Link: http://projects.fivethirtyeight.com/2016-election-forecast/

     

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                Climbing Mt. Wellington. (#15).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Wednesday, August 17, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The Fence Painting Contract &

    Homeowner Sign Up Instructions

     

     

    SUN CITY ANTHEM

     

    Dear Residents of Arroyo Vista, Big Sky, Desert Sky and Shadow Canyon,

     

    At the July Board Meeting, the Board of Directors approved common area fence painting in your areas.  The contractor (Charger Construction, LLC) has agreed to honor the same pricing for any resident in this area that would like to have any fencing that is the responsibility of the homeowner.

     

    The Association has agreed to assist with the sign up.  If you are interested in participating, please come to the Administration Office or call the office at (702) 614-5816.  Please be prepared to provide your name, address, phone number and which of the neighborhoods you live in. 

    The deadline to contact us is September 15, 2016.  After this date, all lists will be turned over to the contractor.  They will contact you directly.  They will provide you a quote and payment will be directly between the resident and the contractor.

     

    For more information, please contact Anneliese Gamboa at (702) 614-5815. 

     

    Sun City Anthem Management Team

     

    [Note: ONLY residents living in the Villages listed above are eligible to have their fences repainted in 2016. In 2017, SCA will award a contract to paint the remaining Villages, at which time residents will likely be able to have their fences repainted under similar pricing conditions. Homeowners are cautioned to make sure that the contractor has sufficient access from potentially obstructing bushes and trees to paint the fence. By Ron Johnson]

     

     

    DON’T BE SCAMMED-A PERSONAL STORY

     

     

    This past week an SCA Eblast “Don’t Be Scammed,” see below, warned residents about a recent spate of telephone and computer scammers. According to the Eblast, a computer scammer either badly infected or rendered the homeowner’s computer inoperable.

     

    I became aware of this problem when a friend informed me that their computer had been rendered inoperable with a message to immediately call a certain number that was displayed on the screen in order for the operator to regain access to their computer. The homeowner had received and opened an email from an unknown sender. While the recipient did not ordinarily open messages from unknown senders, the email’s subject line mislead the homeowner into believing that the sender might be communicating about their prior correspondence with SCA’s Spirit magazine staff since the word “spirit” appeared in the subject heading. Routine efforts to delete the message or to turn off the computer were unsuccessful. However, and for unknown reasons, perhaps due the homeowner’s failure to timely call that designated telephone number, the ransom-ware message suddenly disappeared and homeowner access to the computer was restored. But that’s not the end of this story.  

     

    In contacting a computer repair store, I learned that such a ransom-ware program once on your computer will remain there until it is deleted. Not only that, this malware might be pre-programmed to render your computer inoperable again at a future time, e.g., in so many days or weeks.

     

    This malicious program may be viewed as a Potentially Unwanted Modification (or PUM), which targets and modifies the Window’s operating registry. Such programs when inadvertently opened may, among other things, allow hackers to gain access to your computer, backup devices, files and contact email addresses. As a general practice, homeowners do not make changes to the operating system’s registry, unless they are computer experts. Note that a PUM program is distinguished from a Potentially Unwanted Program (PUP) in which the operator downloaded one or more programs in bundled software that was wanted. While most PUPs are harmless, containing adware or intrusive advertising, some PUPs may contain spyware or malicious viruses. 

     

    This owner’s antivirus program, Webroot’s SecureAnywhere, failed to detect, notify or remove this malicious program. When the MalwareBytes’ Anti-Malware program was installed a week later, which has a free version, it detected and removed this malicious program. Click here to see a list of 10 free anti-spyware 2016 programs.      

     

     Ron Johnson       

     

    Eblast sent on 8/16/2016

    SUN CITY ANTHEM

    Don’t Be Scammed…

    - Terri Begas, SCA Computer Club president

    Lately, a number of individuals in our community are being taken in by false warnings about their computers being infected.  Some of these people have had their computers either badly infected or rendered inoperable, in addition to being charged a considerable amount of money. Typically, either you receive a phone call or a popup message appears on your computer screen warning that your computer is infected or is sending out a barrage of infected e-mailings.  Then an attempt is made to gain access to your computer promising to “solve” the supposed problems.  Once into your computer they infect it in various ways and usually require a high fee to possibly fix it.  If this happens to you, immediately hang up on these types of callers, do not click on these types of links, and DO NOT give any of them your credit card number or access to your computer!!!


    How can you protect yourself from being taken?

    If you did not initiate contact with a company or individual, why should you follow their unsolicited advice or directions, give them your private information, or pay them?  Likewise, if someone e-mails you or a window pops up on your computer, tablet or phone, why should you do as they suggest?  If you personally have actually initiated contact with a reputable company or individual, you are much more likely to have a positive experience.  Only give out appropriate personal information, if you have initiated contact and the details are necessary to process your order or request.

    If you have a computer, use a good antivirus program and keep it updated.  Know the name of your antivirus program and be aware of how its messages and warnings look and work.  You might also want to run a good anti-malware program as well.  Some security suites combine both features into a single program.

    Be cautious about clicking on links in e-mail and text messages.  If an e-mail or text message only contains a link, it is quite possibly a scam.  Do not click on the link – just delete the message.  Sometimes these may come from trusted friends, who are unaware that their account has been hacked and that someone is posing as them and sending out infected messages.

    If a window with a threatening or suspicious message suddenly pops up, do not click anywhere on the window.  If possible, close the web browser and reboot the computer.  If the computer has frozen, turn it off and then turn it back on.  Once on again, you might want to run a security scan with your anti-virus program and an anti-malware program as well.

    Even if a website looks legitimate, you still want to be certain that the site is really for that organization.  Also check out any new charity or business before giving them credit card information or sending them a check. 

    Things to be aware of

    No bank, brokerage, or reputable business will send an e-mail or call you, telling you that they are updating their records and need you to provide them with your account number, pin number or other personal account information.  The proper way to update your information is to log into your account online and edit your profile.  The other option is to visit your bank or business and ask them in person how to update your information.  Note: they will have you personally enter any pin number on a secure numeric keypad, so that even their personnel do not learn your pin or password.

    Caller ID’s can be faked.  Just because a particular name or phone number appears, does not mean that the call is really from that entity or number.

    When browsing the web be aware of your surroundings, just as you would if you were out walking or driving around.  Links on webpages can say anything and can point to websites that are totally unexpected.

    E-mail and Facebook accounts can be hacked.

    E-mail can also be spoofed.  Just because an e-mail appears to be from a friend or a particular business, it could be spam from another source.  Frequently fraudulent e-mails will point to website that appear to be that of a legitimate business.  Check the complete URL to see that the web address is valid.

    You may also receive an e-mail or phone call, requesting you to immediately wire or transfer money (usually several thousand dollars) to a supposed loved one who has been robbed or arrested while travelling abroad.

    Another tactic is a caller or e-mail informs you that they are from a government agency such as the IRS, FBI, the police department, or some other legal sounding organization.  The caller threatens that someone is coming to arrest you for unpaid taxes, fines, etc., and they tell you that to prevent this that you need to immediately purchase a number of iTunes (or other gift cards) or money orders and deliver them as directed.  They may also ask you to wire them money immediately.  Do not let them scare you into paying.  No government agency acts in this way.  They do not accept gift cards and they do not warn you that they are on their way!

    Then there is the e-mail where they need you to help someone disburse a large amount of money.  Just think, why would they choose you to either give the money to or to help disburse it?  What they actually need is to have you give them your bank account details and soon your account will be drained or worse.

    Summing up

    So does this mean that you should give up on all electronic communications?  No, but just use them wisely, and remember that when browsing the web be aware of your surroundings.

    If you have questions relating to safe computing via your computer, tablet, or smart phone, consider joining the Computer Club and attending Computer Talk -  a question, answer, and sharing session - each Thursday morning from 9:00 – 10:00 a.m.   The Computer Club also has a House Call program in case you need more in depth help.

    Enjoy using your electronic devices, but don’t become a victim.

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

       Diving 30 meters through a rock in Portugal. (#14).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Thursday, August 11, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The Finance Committee Workshop

     on Surplus Funds, August 10

     

    This week’s FC Workshop on Surplus Funds was both illuminating and distressing for what we learned about the intricacies and complexity of the committee’s Board-assigned task of coming up with a recommendation on Surplus Funds.

     

    The workshop was chaired by FC member Tom Revell and was assisted by former FC Chair Forrest Quinn, who presented some historical perspective and background materials related to this topic. Also contributing was Treasurer Tom Nissen and Association legal counsel John Leach, who provided valuable insights on potential legal issues involving the budget process. Also in attendance as observers were Board members, GM Sandy Seddon and Chief Financial Officer Jim Orlick, among other committee members and residents.

     

    Detracting from the Workshop’s presentation and deliberations was the announcement that Board Director Jim Mayfield had been asked not to attend. Since this workshop was presumably designed to inform members about the issues, the exclusion of Mr. Mayfield considered views on this topic from those in attendance was indeed unfortunate and a sad commentary on the state of governance in our community. 

     

    The issue of Surplus Funds was being discussed due to the ongoing controversy over the Association’s legal duty to comply with Nevada’s law on homeowner associations regarding the disposition of Surplus Funds as mandated by NRS 116.3114.  From Revell’s presentation, it was abundantly clear that the definition of what “surplus funds” is would be at best a judgement call after evaluating a number of accounting variables rather than any particular line item from the Association’s financial documents. The reason for that was because both NRS and the governing agency, the Nevada Real Estate Division, are devoid of a definition of “surplus funds,” while at the same time describing what must be done with those funds. However, without knowing how “surplus funds” should be defined, HOA’s are left to their own devices to decide how best to define how those funds should be calculated.

     

    While NRS addresses the disposition of surplus funds, i.e., to pay or credit the unit owners, NRS also permits HOAs to dispose of such funds in accordance with their own governing documents. In SCA’s case, our CC&Rs at Section 8.1(e) happen to address both of these outstanding issues: 1) the disposition of surplus funds; and 2) a clue if not an actual method on how to calculate the surplus.

     

    Notwithstanding the existence of such guidance on how to calculate the surplus, there remain a number of unresolved accounting issues the committee must deal with, e.g., should certain line items be excluded or adjusted in the calculation. Since the calculation of the surplus is at a point in time, when should the surplus be calculated, e.g., as of the end of the year or as of some other date, such as when the year-end Audit Report is available? Is the starting point for computing the surplus on 1 January or when the Audit Report is received? Since Revenues are calculated on an Accrual basis and Expenditures are calculated on a Cash basis, do those different methodologies affect how the surplus should be calculated? Additionally, how should the FC deal with incurred liabilities in calculating the surplus, e.g., for capital improvement projects, for which funds have yet to be disbursed in the following year? Should transfers to reserves be included or excluded from the calculation of the surplus since such funds represent Association income from assessments?

     

    Although there are a number of variables for the committee to consider in their determination of surplus funds, I had the impression that Tom Revell had a keen understanding of how to go about conducting this particular task and arriving at a recommendation.

     

    Hopefully, we may have the benefit of the committee’s recommendation at their 17 August meeting at 1:00 p.m. in the Anthem Center. 

     

    Ron Johnson

     

    OTHER NEWS

     

    240 Water Street, Henderson, NV, 89015
    Please Contact Keith Paul, Public Information Officer, 702-267-4510

    Road Work Planned for Volunteer Boulevard

     to Create Lane Restrictions

     

    Henderson, Nev. – Lane restrictions on Volunteer Boulevard between Via Firenze and Rancho Destino Road has started, Wednesday, August 10 and will continue for about two weeks to allow for the paving of the roadway.

     

    The westbound lanes of Volunteer Boulevard will be closed with both lanes of traffic being shifted to the eastbound lanes. Motorist will not have access to the free right-hand turn onto Executive Airport Drive and will have to make the turn at the traffic signal.

     

    Once paving has been completed, all traffic will be diverted to the westbound lanes and the eastbound lanes of Volunteer Boulevard will be paved.

     

    The road work, which is part of the Pittman North Detention Basin project, is intended to improve roadway safety and to expedite the repaving process with the least inconvenience to motorists.

     

    The Pittman North Detention Basin project is a nearly $17 million project providing improvements along Volunteer Boulevard from Sun City Anthem Parkway to Las Vegas Boulevard and along Executive Airport Drive from Executive Terminal Drive to Volunteer Boulevard. The project includes $6.9 million in Fuel Revenue Index (FRI) funding.

     

    Motorists should use caution while travelling through the work zone, be mindful of construction signs, and, if possible, take alternate routes. For additional information about the project, visit cityofhenderson.com

     

    Independence Center Access.  Beginning on Monday, August 15, 2016 at 10:00 pm, the Association will be upgrading the concrete surface entrance at the Independence Center. We are installing a new coating to the surface to enhance and protect our entrance. Work will commence after the Center is closed on this date.  One-half of the entrance will remain open during regular business hours until completion. Please bear with us while this enhancement is taking place. The project is estimated to be completed before the following weekend.

     

    The Community Service Group invites SCA residents to the following monthly meetings:

    Diabetes Education and Support GroupMonday, August 15, in the Morris/Nelson Rooms in the Independence Center at 10 AM. Over 25% of the population above the age of 65 has diabetes and many more are pre-diabetic. The purpose of this group is to provide education about diabetes, simple lifestyle changes that may assist in the prevention or controlling diabetes, as well as providing support for diabetics, caregivers, family, friends and any Anthem resident who has an interest in Diabetes. Learn from the experiences of others.

    Living Well with Disabilities Monday, August 15, in the Greene Room of Anthem Center at 10 AM. This group welcomes all who are suffering from chronic diseases or issues which may limit mobility function. Partners, friends, and caregivers are especially welcome.

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

              Extreme kayaking at Victoria Falls. (#13).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Sunday, August 7, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    An Important Announcement Affecting the Governance of Sun City Anthem

     

    The Finance Committee Workshop on Surplus Funds, August 10 at 1 in the Delaware Room

     

     

    Below is a rather innocuous appearing unsigned eblast titled “Dear Resident” about next week’s Finance Committee (FC) Workshop on Surplus Funds. Rather than a routine announcement of a forthcoming meeting, this announcement, presumably authored by President Rex Weddle, is actually a warning from the Board that they will not tolerate what they view as interference in their illegal practice of retaining and spending surplus funds.

     

    The Board is understandably reluctant to embrace the term “slush fund” to describe their 2016 use of roughly one million dollars in unbudgeted monies, but regrettably there is no better term. The Board’s past and current practice runs counter to their legal authority to spend only those funds that were ratified by members in a Board-adopted budget in 2015. That ratified budget does NOT give the Board what amounts to a blank check to expense funds that were carried over from 2015 as it sees fit.

     

    If the Board wants such authority, there is a legally accepted remedy available to the Board, one proposed and advanced by the State. That remedy is for the Board to offer members a revised budget, which would detail the manner in which such surplus funds would be expensed. However, the Board has refused to accept such advice from the Nevada Real Estate Division, preferring instead the extra-legal option of using a slush fund.   

     

    While the Board is ostensibly seeking an independent recommendation from the FC on the proper treatment of Surplus Funds, that’s not how I read their announcement. The choice before the FC, and ultimately the Board, has the appearance of being simple: either come into compliance with Nevada law and, or our CC&Rs on the disposition of surplus funds or ignore what our governing documents require the Board to do with surplus funds. According to NRS 116.3114, such surplus funds can be used for reserves and, or to refund unit owners or credit such owners against future assessments.  

     

    According to the announcement, here is what the Board would like their readers to understand. “Many issues are integrally related to this important [matter] and the members of the committee need resident input as well as that of SCA’s legal and accounting firms, both of which will be in attendance.”

     

    It appears that the Board believes the FC acting alone in their deliberations on an accounting matter is ill qualified to make a recommendation on surplus funds without needed help. In my view, that apparent belief is absurd.

     

    So, what’s really going on? It’s evident to me the Board is attempting to stack the odds in their favor by compromise the integrity of the FC. Is there any evidence to support that conclusion? I believe there is. When the 2015 Board sought and received similar advice on this surplus funds issue, Treasurer Tom Nissen made this incredible announcement at the August Board meeting: The Association had no surplus funds. Tom Nissen made this announcement despite a reported $1.1 million in surplus funds that had been carried over to 2015 from 2014.

     

    Given that questionable and unsupported outcome in 2015, can we trust the Board to tell members the truth about surplus funds? We had been led to believe that “interested parties” had led Tom Nissen to conclude that the Association had no surplus funds in 2015 when there was evidence that that conclusion was demonstrably false. I gather from the below announcement that the Board would like members to believe that the FC and the Board should rely on those same “interested parties” in making a determination of what “surplus funds” means under NRS and our governing documents.   

     

    Lastly, the Board’s announcement appears to go to great lengths to warn, if not threaten, members who are categorized as purveyors of “outside efforts” who may be attempting to influence the FC’s recommendation on surplus funds. Might some of those “outside efforts” be coming from former chairpersons of the Finance Committee, persons who happen to have an expertise in accounting?  

     

    If I were a FC member, I would be more concerned about the Board’s overt efforts to control the outcome of the committee’s recommendation on surplus funds.

     

    Ron Johnson      

     

    Dear Resident,

    The Finance Committee will be conducting a Community Workshop on August 10 at 1 pm in the Delaware Room. The committee has been tasked by the Board to develop and propose policies and related suggestions directed at defining surplus and or surplus funds in order to better comply with NRS 116. Many issues are integrally related to this important [matter] and the members of the committee need resident input as well as that of SCA’s legal and accounting firms, both of which will be in attendance. The Finance Committee is entering into this workshop with no illusions that it will be an easy task, nor does it have preconceived conclusions. We have some ideas as to the documents we must interpret to reach definitive positions, but the matter is of such importance, that input from all interested parties, most especially the residents, is critical to reach the appropriate results to minimize further conflict with residents and NRED on this matter. 

    The committee is of the view that this task has been presented to us and input from all interested parties is needed; however, outside efforts designed to “urge” the committee to adopt certain positions are uncalled for and any such efforts will be called out.

    Please participate in this important workshop.

    The August Finance Committee meeting has been moved to August 17 at 1 pm in the Bristol Room.

    OTHER NEWS

    The Community Service Group invites SCA residents to the following monthly meetings:

    • Cancer Support Group – Monday, August 8 in the Greene Room of Anthem Center at 10:30 AM. The intention of this group is to provide a safe and accepting place to share experiences, gain and impart knowledge, hope, and strength. Partners, friends, and caregivers are especially welcome.
    • Prostate Cancer Support Group – Monday, August 8 in the Greene Room of Anthem Center at 2 PM. Since prostate cancer strikes one of every 6 or 7 men sometime in their life, it is wise to have your blood PSA level checked annually or semi-annually to see if you may be affected.

    All men and their significant others are invited to attend our meeting.  It is most helpful to men recently diagnosed with prostate cancer, or with an increasing PSA level.  Learn from the experience of others.

    If you know men who are affected, please tell them of our meeting.

    See Life Extension Magazine for lots of information on prostate cancer June 2016:

    http://www.lifeextension.com/Magazine/2016/6

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

              Just having a look around (#12).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Saturday, July 30, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The July 28th Board Meeting

     

     

    You can read Sandy Seddon’s detailed July Report to the Board here.

     

    The Planned Restaurant Workshop. One highlight from Sandy’s report is the planned Restaurant Workshop on Tuesday, September 27, 2016 at 9 am in the Delaware room. GM Seddon writes that “this workshop is an opportunity for residents to share feedback to Management and the Board regarding the restaurant space. The Board has instructed me that securing a restaurant is a management task. I think we can all agree that a restaurant is needed; it’s just a matter of what kind and how we go about it. To that end, we hope that this scheduled workshop is productive and meaningful. There is no specific timeline or process that has been outlined yet related to the restaurant. This is just the beginning.

       

    On the 28 July Board of Director’s Meeting

     

    Did President Rex Weddle attack the integrity and motives of Director Jim Mayfield?  Yes! Rex did so when he questioned Mayfield’s Surplus Funds presentation on his decision to omit any reference to the Board’s discretion to disburse surplus funds as supposedly permitted by our CC&Rs.

     

    I believe that Rex’ effort to discredit Mayfield was but one clog in the Board’s attempt to justify their past and current practice of operating outside of the budget restrictions that apply to common interest communities. I expect such efforts will continue at the August 10th Finance Committee’s Workshop as well as on the Committee’s members in making their collective recommendation on this topic to the Board.   

     

    Mr. Mayfield had completed his updated slide presentation and was responding to questions when Rex addressed Jim about his presentation.

     

    Stepping back a bit, Jim’s presentation had provided a historical perspective, analysis and commentary that laid out a rather compelling argument that the association needed to clean up its act if it was going to comply with the law governing SCA and our own regulations on surplus funds. According to Jim, the best guidance on surplus funds is from our own CC&Rs, Sec. 8.1(e), which you can read here. In very general terms, if the association took in more revenue than it disbursed, that difference is surplus funds. While there are different accounting approaches to calculating surplus funds in existence at the end of the budget year, both methods put that figure just over one million dollars at the end of 2015.

     

    Following the guidance provided by Sec. 8.1(e), below is a chart that explains what should happen in the event there is a surplus in the case of the Regular Operating Budget and in the case of a Revised Budget. You will note that the surplus options available to the Board are materially different depending on the particular budgetary circumstance.

     

    A.  Regular Operating Budget (covers entire year and requires member ratification)

         Surplus funds Options

    • Reduce next year’s assessments by the amount of the surplus
    • Refund surplus to the homeowners
    • Deposit surplus into the reserve account

     

    B.  Revised Budget (covers only a partial year and requires member ratification)

         Surplus funds Options

    • Credit surplus to each lot
    • Apply surplus to the operating account
    • Apply surplus to the reserve account
    • Apply surplus to otherwise, in its discretion

     

    Since decisions regarding the disposition of surplus funds occur after the ratification of the regular annual budget, the surplus funds options that are available to the Board are limited by SCA’s CC&Rs. In other words, the ratified budget had by law established the budget authority of the Board to disburse funds only for those purposes identified in the budget. Once the regular budget was ratified, and absent emergency conditions, the Board lacks discretion to disburse surplus funds for any other purpose than those listed in “A” above.

     

    However, the Board does have the authority to revise the regular budget and in doing so may identify “in its discretion” alternative disbursement purposes for available surplus funds., as listed in “B” above. A revised budget must be ratified by the members.

     

    Now, getting back to Wendell’s verbal attack on Mayfield. Rex wanted Jim to explain why he failed to mention the apparent fact under Sec. 8.1(e) that the Board had the authority to allocate surplus funds for any purpose “in its discretion.” The impression being conveyed was that if the Board had such authority, then Mayfield’s presentation was irrelevant and superfluous. As noted by Rex, that “in its discretion” clause was not uttered by Mayfield, which was true. In disclosing Jim’s apparent omission, Rex was attempting to impugn Jim’s integrity and motives by implying that Jim had potentially deceived the Board and the community on this important matter.  

     

    Here is how that last sentence in Sec. 8.1(e) reads: “In the alternative the Board may apply such excess amount to operating or capital reserve accounts or otherwise, in its discretion.” Standing alone, this sentence might be misinterpreted by an uninformed reader as applying to the Board’s overall authority to apply surplus funds “in its discretion.” 

     

    However, Rex’ presumed understanding is contradicted by the clear distinctions that Sec. 8.1(e) makes between the Board’s Operating Budget for the full year and the fact that “The Board may revise the budget and adjust the Base Assessments from time to time during the year, . . .” It’s evident from its placement in the CC&Rs immediately following the revised budget paragraph that the “in its discretion” clause refers only to a revised budget and not to the Board’s Operating Budget.

     

    I believe President Weddle owes Mr. Mayfield an apology.  

     

    Ron Johnson

     

    AND THEN,

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

              Tree camping in Germany (#11).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

     

      

     

                                                             Wednesday, July 27, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The July Agenda Review Meeting

     

     

    The July Agenda Review meeting, in advance of Thursday’s Board Meeting at 1:30 in Freedom Hall, reached another milestone when it was seemingly over just after it began. At least that’s what Dave Leshefsky and others wanted to know why board President Rex Weddle was seemingly rolling over or ignoring agenda items as if they did not exist. For example, there would be no report from the General Manager, despite GM Sandy Seddon’s presence, and no report on the Association’s financials due to Jim Orlick’s absence for personal reasons. As a result, there was no information provided about the status of Liberty Center’s repairs, how those repairs are being financed and other Liberty Center issues. In the absence Orlick, surely someone could have provided the attendees with credible highlights from SCA’s financials. Without relevant discussion on these agenda items, there was no opportunity for feedback or questions, raising again the relevance of the Agenda Review meetings.

     

    Despite the brevity of the meeting, there was some news to share as well as one hot-topic item.

     

    • Fence Painting.  At Thursday’s meeting, the Board expects to award a contract for wrought iron fence painting. With that announcement, GM Seddon said that the successful bidder has agreed to accommodate homeowners who are interested in having their own fences repainted at the same price per lineal foot that the Association is paying. Details on how homeowners can participate will follow, most likely in the Relay or similar all-member communication.
    • Board vs. General Manager Duties. With the passing of another month, there was no sign of any progress in transferring any of the management functions performed by the various committees to the General Manager. Director Carl Weinstein’s effort to elicit recommendations from the GM appeared to fall on deaf ears. We did learn that this has been a topic of discussion in executive session. However, any such discussion should be in an open forum to all interested members and not behind closed doors where it appears the board is prohibited by law from discussing association business that does not qualify under NRS 116.31085.  
    • Surplus Funds. Board Director Jim Mayfield will make a presentation Thursday on Surplus Funds. You can view Mayfield’s presentation here. While Jim appeared hopeful that this long-standing, controversial issue will be finally resolved in compliance with existing law at NRS 116.3114, that outcome was less clear. Why less clear? Successive boards have a long history of not being deterred by the existence of legal impediments to its unfettered use of surplus funds.

     

    Jim explained that compliance with existing law will mean that the Board will no longer be able to accumulate and use surplus funds as working capital from one year to the next. According to Mr. Mayfield, the Board will have only three options: 1) rebate to homeowners the surplus that accumulated through 31 December; 2) credit the accumulated surplus to the homeowners next year’s assessments; or 3) transfer the surplus to the reserve fund up to 100% of the fully-funded amount.

     

    As Jim noted, the Board will no longer have the option of generating a smooth assessment stream from year to year. If the available funds in the current budget year are not used, those unused, i.e., surplus, funds will be lost insofar as being available to meet the operating needs of the association.

     

    Others are of the opinion that the more restrictive provisions of our CC&Rs at Section 8.1(e) on the disposition of surplus funds will apply to SCA.

     

    • Deferred maintenance. The current and future boards over the next 10 or so years are faced with the real prospect of funding roughly $16 million in deferred maintenance. That’s on top of the funds that are currently set aside to meet ongoing reserve requirements.

     

     

    Other News

    • The Community Service Group invites SCA residents to the following monthly meeting:

    Caregivers Support GroupWednesday, August 3 in the Arlington Room of Anthem Center at 10 AM. Caregivers can develop specific coping strategies to stay healthy. One such strategy is talking with other caregivers and providing support to one another. Our goal is to provide caregivers a safe and confidential setting in which to share concerns, challenges, and successes. No one should face the caregiving challenge alone.

    • The Diabetes Education and Support Group is looking for a co-facilitator. This group is a self-help group that focuses on education about Diabetes and simple life style adjustments to help lower blood sugar scores which may reduce the need for medication. If you’re interested in helping to facilitate this group, please contact Carole Rothberg at crothberg@aol.com or 702-837-0630.

     

    • The Finance Committee is seeking new members. We are especially seeking members that hold or have held CPA licenses, as our only CPA will soon be leaving the committee. The committee selects volunteers from qualified applicants, taking into consideration background, relevant experience, skills and enthusiasm. Candidates must meet certain minimum requirements for consideration, including:

    Be willing to serve for a minimum of two years and be able to attend two-thirds of the committee’s regularly scheduled meetings;

    Be an Association member/owner in good standing for at least one year;

    Have sound financial training and/or experience;

    Be computer literate;

    Exhibit good oral and written communications skills; and

    Be a team player.

     

    While the exact responsibilities of the Finance Committee have yet to be determined following the transition to self-management, it is expected that the committee will serve both a management function, working closely with the self-management team, and a policy function working with the Board of Directors. In the management area, the Finance Committee will assist the CFO in the analysis and/or preparation of financial reports, projections and budgets. In the policy area, the committee will provide two members to serve on the Audit Committee (along with two members of the Board) and auditing the financial activities of Clubs. It is expected that the CFO and the Board may, from time-to-time, request the committee to assist in other financial projects as needed.

       

    To apply, please forward a volunteer application, which may be obtained at the Volunteers tab on the SCA website or from the Anthem Center front desk, to volunteer@scacai.com, or place the completed application in the Volunteers Coordinator mailbox in the Anthem Fitness Center.

     

    Commentary

     

    What’s the definition of a Finance Committee CPA “Team Player?” If you are creative, have ideas for improvement and, or wish to preserve your professional integrity, volunteering to be “Team Player” may be a challenge you did not anticipate.   

     

    AND THEN,

     

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

     

              Skywalking on Mount Nimbus in Canada (#10).

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

  •  

     

      

     

                                                             Sunday, July 10, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The Board on the Surplus Funds Issue

     

     

    The Board’s Message on the Surplus Funds Issue

     

    On 5 July, President Rex Weddle sent out a community eblast on the Surplus Funds issue (reproduced below). The Board’s message was an attempt to address recent actions taken and proposed concerning the ongoing controversy over the association’s accumulation and disposition of surplus funds. The Board’s message appeared to raise even more questions, as discussed below. 

     

    While President Weddle’s message had the appearance of addressing the status of the Surplus Funds issue, it 1) was conspicuously vague; 2) avoided addressing the elephants in the room; 3) raised questions about the inherent biases and, or qualifications of those who were tasked to meet with the Nevada Real Estate Division; 4) heightened uncertainty concerning the Division’s guidance that was given to SCA; and 5) alluded to whether the association may classify such surplus funds as exempt function income in filing the association’s tax return. These issues are discussed in greater detail below.

     

    On the role of the Board

     

    If the Board had an interest in demonstrating transparency in its recent meeting with the Nevada Real Estate Division, it would have been reasonable to invite at least one the former Chairs of the Finance Committee who have addressed the surplus funds issue in some detail, Jim Mayfield, also a Board Director, and Forrest Quinn. The Board did not do that.

     

    At a minimum, such inclusion would have guaranteed and contributed to a better understanding of the questions that SCA needed to ask the Division. Moreover, it would have dispelled community concerns that the Board was acting in good faith, especially given Tom Nissen’s questionable declaration that SCA did not have surplus funds.

     

    As it stands, members are clueless as to how and in what detail the surplus funds issue was raised with the Division. It’s well known that the answers given to questions greatly depend on the way questions are asked. Were the right questions asked? We will never know? More importantly, will members ever know for sure how the Division answered those questions?

     

    While Weddle’s message alludes to dissent on the surplus issue in a number of quarters, it was my impression that such dissent was first raised by Treasurer Tom Nissen when contrary to K&A’s auditor’s report, he declared in August 2015 that surplus funds did not exist in SCA. That statement appeared to contradict the auditor’s conclusion that the excess of operating fund assets over liabilities, i.e., the surplus, for the year ending 2014 amounted to over a million dollars. The association’s auditor reported a similar surplus for the year ending 2015.

     

    Rather than seeking answers to a complex issue, President Weddle’s message had the appearance of setting the stage for a predetermined Board-favored approach to addressing the association’s accumulation of surplus funds. 

     

    Avoiding the elephants in the room

     

    For reasons that I believe are only too apparent, the Board decided to exclude from its meeting with the Division the only two prominent CPAs and former Chairs of SCA’s Finance Committee who had formerly analyzed and addressed in detail the surplus funds issue, Jim Mayfield and Forrest Quinn, as mentioned above. Both concurred on the million-dollar magnitude of the surplus that was carried over from 2015 to 2016.

     

    Questions of bias and qualifications

     

    While the selection of Treasurer of Tom Nissen might be viewed as logical and proper given his accounting qualifications and position as the association’s treasurer, Nissen’s bias on the issue of surplus funds is well known based on his August 2015 unsupported declaration that SCA had no surplus funds that were carried over from 2014 to 2015.

     

    The Board’s decision to include General Manager Sandy Seddon in its meeting with the Division is fraught with issues of competence, relevance and potential conflicts of interest since she was hired by the Board. It’s my naïve opinion that her past experience in possibly managing surplus funds issues that arose in HOAs she had managed in the past is no basis on which to rely on her judgement concerning a complex legal and accounting issue that’s facing SCA. It’s my recollection that the GM did not get it right on the application of the ACA’s health provisions to SCA’s employees. There is no basis to conclude that the GM’s prior decisions on surplus funds, if any, were accurate or wrong.

     

    The IRS and surplus funds

     

    To the extend the association carries over “surplus funds” from one year to the next, such funds appear to be subject to the provisions of NRS 116.3114 and, or our own CC&Rs at Section 8.1(e). To the extent such funds are either rebated to the members or applied to their future assessments, the IRS has addressed how those surplus funds are to be treated insofar as the association’s federal tax return, Form 1120H, is concerned.

     

    According to IRS Sec. 1.528-9. Exempt function income, "... excess assessments during a taxable year which are either rebated to the members or applied to their future assessments are not considered gross income and therefore will not be considered exempt function income for such taxable year. However, if such excess assessments are applied to a future year's assessments, they will be considered gross income and exempt function income for that future year.”

     

    Ron Johnson

    President Rex Weddle’s eblast on Surplus Funds, 5 July 2016

     

    A year ago at our August regular meeting, Directors Tom Nissen and Jim Mayfield discussed the problem of how surplus funds were defined. This was because of (1) repeated year-end surpluses created primarily from deferred projects by our management company, (2) the absence of a definition of excess funds in NRS 116, and (3) a lack of guidance from the Nevada Real Estate Division (Division) in how surplus might be managed. Jim’s comments in the meeting’s minutes make the frustration we were experiencing on the latter point clear and worth reading even a year later.  

    Since then this lack of official clarity about surplus funds handling has continued to plague us, creating discussion, discontent and dissent in a number of quarters.

     

    Two weeks ago I asked Board Treasurer Tom Nissen and General Manager Sandy Seddon to determine whether new direction might be available from a face-to-face inquiry with the Division. Their efforts developed some precise guidance from the Division to assist us; albeit, it would not agree to provide this in writing.  Through other sources, Tom has obtained some insight into how all of this would fit into IRS compliance with our tax filings.

     

    The Finance Committee’s mission, in part, is to “…advise the Board on general financial matters and analyze the financial impact …of proposed projects.” Accordingly, Tom will provide the Finance Committee with the details of the Division’s suggested direction and request a recommended policy on the handling of surplus. The Board expects to consider the committee’s recommendations at its August meeting.

     

    Other News

    • The newly appointed Finance Committee Chair Andrew Muha announced a delay in the monthly meeting to Wednesday, July 20. This will give the CFO adequate time after his return from out of town, to prepare and present the financial information.
    • The Community Service Group’s Cancer Support Group invites SCA residents to its monthly meeting on Monday, July 11 in the Greene Room of Anthem Center at 10:30 AM. The intention of this group is to provide a safe and accepting place to share experiences, gain and impart knowledge, hope, and strength. Partners, friends, and caregivers are especially welcome.
    • Prostate cancer is a disease that primarily affects older men. If you have been diagnosed, been treated for, or are concerned about this disease, you and your spouse, or significant other, are invited to attend the Prostate Cancer support group meetings in the Anthem Center Green Room, 2 pm, 2nd Monday of the month. Next meeting: July 11.  Learn from the experiences of others. 
    • Pay Quarterly Assessments Automatically. You should have received an ORANGE “ACH” form insert in the July Spirit magazine.  It reads that if you haven’t already enrolled in “Auto Pay” (ACH), we encourage you to do so.  It will save you time and prevent you from the possibility of missing an assessment payment – and incur late penalties.

    If you have already signed up for ACH payments, you do not need to do anything except watch for the automatic deduction to be withdrawn from your account for the 3rd quarter assessment(s) due tomorrow, July 1.  If you see the deduction taken from your account, this will confirm you have properly completed the documentation.

    Remember to follow the instructions on the orange ACH form and submit it to the Association, along with a voided check from the account you wish to have the automatic deduction taken from each quarter.

    Then, go and enjoy other fun activities now that you do not have to worry about your quarterly payments to the Association.  You are also saving the Association money when you sign up for ACH – and that means “You” are saving money.

    Should you have any questions or concerns, please feel free to contact the Membership office at (702) 614-5816.

    • SCA Blood Drive. In the Anthem Center’s Concord Room, Friday, July 15th from 6:45 am to 2:45 pm. Schedule your appointment to give blood by contacting Jerry at 702-207-9309 or email malone7@cox.net.
    • Back Issues of The SCA View. You may read back issues of The SCA View from Jan 2016 forward by clicking on this Link: http://scaview.info/news/recent_newlletters.html  The most recent issue appears at the top of the page and past issues can be accessed by scrolling down the page.

     

    AND THEN,

     

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

     

                     Extreme picnicking (#9).

     

     

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                              Thursday, June 30, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

    Today’s Anthem View

     

    A Special Report

    Jim Mayfield on Surplus Funds

     

    Jim Mayfield, a CPA and Director of the SCA Board and former Chair of the Finance Committee, recently prepared a slide presentation on Surplus Funds. Jim’s proposed presentation, which had been prepared in response to this month’s Finance Committee report on Surplus Funds, was blocked by a ruling of the Board that the presentation’s subject matter was not germane to the items on the agenda.

     

    The issue of the disposition of SCA’s surplus funds has received increased scrutiny following Treasurer Tom Nissen’s 2015 unsupported claim that SCA did not have any surplus funds.

     

    Immediately below is Jim Mayfield’s slide presentation on Surplus Funds, reformatted below to conform to this venue.

     

    Following the presentation is 1) Mayfield’s response to Forrest Quinn’s paper on Surplus Funds, Sun City Anthem & the Main Operating Fund’s Surplus; 2) information from Jim regarding the proposed agenda for the July Board Meeting; 3) a copy of an email message that was sent by Mayfield to the GM and Directors of the Board; and 4) a draft policy proposal on Surplus Funds.

     

    As an introduction to Mayfield’s presentation, below is a brief excerpt from his 8 June Memo on this topic, discussing The Issue and The Problem.

     

    The Issue

     

    SCA has used a practice for accumulating Surplus Funds for “additional working capital” for undefined, unbudgeted future contingencies. Such a financial practice is acceptable in commercial corporate enterprises. But, I believe the clear intent of NRS 116.3144 is to prohibit the practice in a Common Interest Community (“CIC”) in Nevada.  Accordingly, accumulated Surplus Funds must be calculated without regard to undefined, unbudgeted contingencies and distributed annually in accordance with NRS 116.3114.

     

    The Problem

     

    NRS 116.3114 is clear and specific about the legal requirements for the disposition of Surplus Funds.  However, NRS 116.3114 is silent on the definition of Surplus Funds or how to calculate them.

     


    RECOMMENDED POLICY
    TO DEFINE SURPLUS FUNDS

    Presentation By

    James N. Mayfield, Director

    28 June 2016

     

     

    NRS 116.3114
    Surplus Funds

     

    Unless otherwise provided in the declaration (CC&Rs), any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of reserves must be paid to the unit owners’ in proportion to their liabilities for common expenses or credited to reduce assessments for common expenses.”

     

     

    SCA CC&Rs
    SECTION 8.1(e)

     

    Paragraphs 1 & 4 of Section 8.1(e) restate requirements of NRS 116.3114. Like NRS 116.3114, this section of the SCA CC&Rs doesn’t provide a definition of surplus funds.

     

     

    WHY IS A POLICY NEEDED?

     

    • NRS 116.3114 is clear about the requirement for an association to not accumulate surplus funds and the options for the legal distribution requirements for surplus funds.
    • NRS 116.3114 doesn’t provide a clear definition of the term surplus funds or the methodology for calculating surplus funds.
    • Since neither the statute nor GAAP provides a definition, neither SCA’s CPAs nor legal counsel can provide an authoritative definition.

     

     

    NRED ORAL GUIDEANCE

     

    • Unless reserve funds are more than 100% funded, the concept of surplus funds is only applicable to the operating fund.
    • Common expenses include amounts included in the Members’ ratified budgets plus existing legal obligations for commitments of an association that are not included in the ratified budget.
    • “Contingencies” for potential obligations of the association, not included in the budget, are not authorized.

     

     

    PROPOSED DEFINTION

     

    Surplus funds shall be defined as

     

    • prior year end audited amount of current assets less current liabilities of the operating fund
    • less the amount of any budget deficit in the operating fund in the Member ratified budget for the current year.

     

     

    EXAMPLE

     

    Operating Fund                         2015                 2014

    Current Assets                        2,994,264           2,582,826

    Current Liabilities                   (1,803,562)        (1,696,264)

    Accum. Working Capital          1,190,702             886,052

    Less

    Commitments                               --0--                    --0--

    Budget Deficits                          585,300                 --0--____

    Surplus Funds                           605,402              886,052

     

     

    FREQUENTLY ASKED QUESTIONS

     

    FAQ 1.  How should SCA account for the funds needed to complete capital projects approved in the budget for the preceding fiscal year?

     

    Answer.  Budget authorizations for a fiscal year expire as of the end of the fiscal year.  The approval of expenditures for partially completed capital projects and/or capital projects approved but not started in the previous fiscal year must be included in the budget for the next fiscal year.  If the costs of completing or starting previously approved capital projects will require the use of more funds than will be collected in revenues, net of operational expenditures, in the next fiscal year, a budget deficit should be budgeted to account for previously collected revenues intended for capital projects.

     

     

    FAQ 2.  Shouldn’t SCA accumulate excess working capital to provide for fluctuations in the annual cash flow cycle?

     

    Answer.  No.  SCA begins the year with substantial cash received from prepaid annual assessments from Members who prepaid their annual assessments for the entire next fiscal year. SCA quarterly installments are due and must be paid at the beginning of the first month of each quarter.

     

    These two sources of cash, collected in advance of related expenditures, provide a de facto loan and cash cushion from which to plan to fund variances in the annual cash flow cycle.  The accumulation of Surplus Funds to underwrite poor cash management or inexact budgeting isn’t authorized in NRS 116.3114 nor can it be justified under the business judgment rule.

     

     

    FAQ 3.  What action should SCA take to fund the cash requirements for an expenditure that was not anticipated in the approved annual budget?

     

    Answer.  Small expenditures can and should be funded by reducing non-essential expenditures and the use of cash management strategies.  Large, unanticipated expenditures can be funded by deferral of capital expenditures, loans, increasing the annual assessment, imposition of a special assessments, and use of aggressive cash management strategies. In any event, the accumulation of Surplus Funds isn’t authorized in NRS 116.3114 for undefined, unbudgeted contingencies.

     

     

    FAQ 4.   What are the dangers in using surplus funds for excess working capital?

     

    Answer.  Besides the risks associated with non-compliance with State law, excess working capital at SCA fosters imprecise budgeting, cash slush funds that can be used for unauthorized purposes, impairment of transparency related to budget variances, and excess holding of the money of SCA members.

     

    Because of SCA’s history of investigations regarding surplus funds, SCA’s surplus funds policy should reflect an abundance of caution regarding compliance with NRS 116.3114 and CC&R Section 8.1(e).

     

        [Note: The term “NRED” above refers to the Nevada Real Estate Division, which administers

        the statutes (NRS) that govern common interest communities.]

     

     

    Jim Mayfield’s Response to Forrest Quinn’s Paper on Surplus Funds, email, dated 29 June 2016

     

    I have read the analysis by Forrest Quinn and find it a thoroughly professional analysis of the issue.  I know how long it takes to research the issues and to write an article such as the one written by Mr. Quinn.  Part of the value added to the public discussion by Mr. Quinn's article is that he goes into the accounting subjects at a more detail level than I did in my position paper.  While the discussion may seem a little too detail and confusing to the average person who isn't a CPA, documenting the detail accounting treatment and reporting analysis will be most useful for future SCA CFOs and members of an SCA Member financial advising group.

     

    Now here is the really interesting point.  Without any collaboration or coordination, Mr. Quinn and I reached virtually the same conclusion and the same computation of the amount of surplus funds as of December 31, 2015, based upon the audited financial statements for 2015.  The amount of surplus funds at the end of 2015 was approximately $1.2 million.  The only difference between our final recommendations is on how the surplus funds should be credited to the Members (SCA homeowners), and I suspect that we are not really apart on this issue.

     

    One of the uses authorized under NRS 116.3114 is to use surplus funds to reduce future assessments from the Members.  The 2016 budget, ratified by the SCA homeowners, contains a deficit of approximately $585,00. Using a portion of the 2015 surplus funds to fund the deficit avoided having to increase the annual assessment to homeowners in 2016.

     

    If the amount of the 2016 deficit is subtracted from the $1.2 million of accumulated surplus funds, a residual amount of just over $600,00 of surplus funds must still be distributed to SCA homeowners, in accordance with the options provided in NRS 116.3114.  My view is that the best distribution of the surplus funds will be to immediately make a special transfer of $600,000 to the SCA reserve fund.  As frequently reported, including at the June Board meeting by the new CFO, the repairs at Liberty Center will be largely charged to the reserve fund, in accordance with Nevada law.  (Note, this is a position upon which both Mr. Quinn and I also agree.)  The transfer of $600,000 of surplus funds to the reserve funds will help defray the cost of the repairs and the impairment of the percent of funding of SCA's reserves.

     

    I shall have placed on the July agenda two action items to address surplus funds.  The first action item will be to authorize a special transfer to the reserve fund of $600,000.  This will allow the amount of funds transferred to the reserve fund to be part of the calculation used by the reserve specialist in the 2016 Reserve Study Update. 

     

    I shall also place on the agenda a policy that will define surplus funds so that the issue is not just handled this time but will provide a protocol for defining surplus funds in the future so that the distribution requirements in NRS 116.3114 can be enforced in the future.

     

    I have been asked: "When will the SCA Board finally do something about surplus funds?"  My answer is never, unless the SCA homeowners massively protest and demand action.  Mr. Quinn and I have done our jobs.  Now you must do your jobs.  Let the Board know that you demand action by approving the two action items I will place on the July Board Agenda.  I also hope that all of the blogs will support the work done by Mr. Quinn and me by actively encouraging SCA homeowners to support resolution of the current surplus funds problem and a long-term resolution of this divisive subject.

     

     

    Jim Mayfield’s supplemental response regarding the July Board Meeting’s Agenda, email, dated 29 June 2016.

     

    I have fulfilled my commitment to analyze the surplus funds issue and to force a public policy discussion on the subject.  I have also spurred the efforts of the most professionally qualified members of the FC to perform an independent analysis and to publicly state their professional opinion.  I can do no more.  Whether or not the Board chooses to act on the matter in a legally compliant manner or to continue the deficient and probably illegal past practices is in the hands of the SCA homeowners and those of you who influence public opinion at SCA.

     

    Email message from Jim Mayfield to members of the Board and GM Sandy Seddon, dated 29 June 2016.

     

    Please place two items on the agenda for the July Board meeting.

     

    1.  Consideration and possible action to adopt a policy for the definition and annual distribution of surplus funds.

     

    2.  Consideration and possible action to transfer $600,000 of 2015 surplus funds in the operating fund to the reserve fund.

     

    Please attach to the draft Board Book the attached documents so that the Members may review them prior to the July Agenda Review Meeting.

     

     

    Jim Mayfield’s Draft of a Proposed Policy for Definition and Annual Distribution of Surplus Funds, dated 29 June 2016.

     

    PROPOSED POLICY FOR DEFINITION AND ANNUAL DISTRIBUTION OF SURPLUS FUNDS

     

    9.x.y       Definition and annual distribution of Surplus Funds

     

    Surplus funds shall be defined as the current assets minus the current liabilities of the operating fund, as reflected in the audited financial statements for the previous year, less the amount of any budget deficit budget, ratified by the Members for the current year.  The Board shall identify the disposition of surplus funds, in accordance with the intent of NRS 116.3114 and SCA CC&R Section 8.1(e), within 60 days of the receipt of the audited financial statements for the prior year.

     

     

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

      

     

                                                              Monday, June 27, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    A Special Report

    Forrest Quinn on Surplus Funds

     

    Forrest Quinn, former Chair of SCA’s Finance Committee, in a paper below that was prepared for members of the Sun City Anthem Community Association, concluded that the carryover of surplus funds from 2015 to 2016 was approximately $1.2 million.

     

    Forrest, a CPA with an MBA in Finance, came to this conclusion after reviewing Nevada law and SCA’s governing documents on the disposition of Surplus Funds. SCA’s CC&Rs state that the Board has two options in deciding what to do about the existence of Surplus Funds. The Board may elect to refund the surplus to homeowners in a prescribed manner or it may transfer the surplus to the Reserve Fund.   

     

    If you have any questions for Mr. Quinn, you may contact me by email and I will let him know of your interest.

     

     

    SUN CITY ANTHEM & THE MAIN OPERATING FUND’S SURPLUS

    By Forrest Quinn, June 27, 2016

     

    Does SCA have a Surplus?

     

    Yes.  Per SCA’s CC&Rs, 2015’s year-end surplus was approximately $1.2 million or about $170 per home.

     

    NRS 116.3114 details how to treat a HOA surplus

     

    Surplus funds.  Unless otherwise provided in the declaration, any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of reserves must be paid to the units’ owners in proportion to their liabilities for common expenses or credited to them to reduce their future assessments for common expenses. (My underline).

     

    To date, the “Surplus Funds” debate centered on the absence of adequate guidance from the Nevada Real Estate Division on the meaning of Surplus Funds.  However, their advice is not required as SCA’s CC&Rs provide that necessary guidance.  Note that NRS 116.3114’s lead-in phrase above begins with “Unless …”  This phrase authorizes SCA to rely on its CC&R declarations to address its Surplus Funds.

     

    SCA’s CC&R Sec. 8.1(e) on Surplus Funds

     

    SCA CC&R 8.1(e) The amount to be raised by Base Assessments during a fiscal Year shall be equal to        

    (i) the Operating Budget for such period, plus

    (ii) the Reserve Budget to be set aside for said period, less

    the amount attributable to the Operating Budget collected but not disbursed in the immediately preceding fiscal year or partial fiscal year; provide, however, that in lieu of such subtraction the Board may elect to refund said surplus to the Owners or deposit the funds into the reserve account.  (My underline)

     

    The difference between “collected but not dispersed” means surplus or excess.  Mathematically:

     

          Collections – Disbursements = Surplus (or Deficit)

     

    The terms “collected” and “disbursed” refer to cash transactions.  The CC&Rs do not refer to non-cash transactions like depreciation or accrued liabilities.  Thus, this surplus definition is based on cash flow accounting, not accrual accounting.  After the surplus is determined, like NRS 116.3114, the CC&Rs give the Board only two choices to dispose of the surplus, either refund the surplus to the homeowner’s, or deposit the funds into the Reserve Fund.

     

    Section 8.1(e) also states that the board may revise the annual budget and adjust the assessment from time-to-time during the budget year.  In that context, the Board has the discretion to apply such excess amount to the operating account, the reserve account or otherwise, subject to the right of Members to disapprove the revised budget.

     

    How Large is SCA’s Surplus?

     

    SCA’s accumulated surpluses can be approximately determined by examining SCA’s adjusted (See Endnote) year-end balance sheet.

     

    The balance sheet equation is: Assets = Liabilities + Fund Balance,

    Rearranging this equation:          Assets – Liabilities = Fund Balance = Accumulated Surplus

     

    The equation above reads:  When the fund’s assets exceed the claims on those assets (liabilities), the fund has a surplus.  SCA’s end-of-year surpluses are approximately:

     

    Year

    Ending

    Estimated

    Surplus

     

    Impact per Home

    2013

    $650,000

    About $91 per home

    2014

    $1,150,000

    About $161 per home

    2015

    $1,200,000

    About $170 per home

     

     

     

     

     

     

    The above results are not independent.  A $650,000 2013 refund would reduce subsequent surpluses by $650,000.  I empirically tested these cash reductions, and they did not cause any monthly cash flow shortages in either 2014 or 2015.

     

    Conclusion

     

    Regarding Surplus Funds, NRS 116.3114 defers to a HOA’s CC&R declarations.  SCA’s CC&R’s both define Surplus Funds and they specify how Surplus Funds should be disposed.  As of the end of 2015, SCA’s accumulated Surplus per its CC&R’s was approximately $1.2 million.

     

    Endnote:  Remove Property & Equipment from the Operating Fund’s Balance Sheet

     

    SCA’s main operating fund requires at least one adjustment in order to accurately determine its surplus/deficit.  In 2014, SCA’s then separate “Land, Building & Equipment” fund was merged into SCA’s Main Operating Fund and identified as “Property & Equipment.”  The LB&E should have been merged into the Reserve Fund.  This merger distorted the Main Association’s Fund Balance (Surplus) by $527,000 in 2014.  By the end of 2015, the distortion was about $808,000, making the Surplus appear to be larger than it actually was.

     

    There are four main reasons I believe this merger was improper:

     

    • The purpose of fund accounting is to separate different activities into different funds for better management and control.  The Operating Fund is intended to manage SCA’s day-to-day collections and payments over a one-year cycle.  There is no practical reason to park fixed assets with useful lives ranging from 5-15 years in the Operating Fund. 
    • Many of the Property & Equipment assets were paid for by the Reserve Fund and then transferred into the Operating Fund.  Reserve funds are only for the repair, restoration and replacement of common elements.  There are instances when assets, paid for by Reserve Funds, are sold at the end of their useful life.  These sale proceeds remain in the Operating Fund, and are used for general expenditures. This practice of moving Reserve Fund assets into the Operating Fund violates the CC&R’s restrictions on the use of Reserve Funds.  
    • CC&R Section 8.1(a):  The Operating Budget must include, without limitation, the estimated annual revenue and expenditures of the association and any contributions to be made to the reserve account of the association

    “Expenditures” are cash transactions.  Depreciation is not a cash transaction.  But with Property & Equipment in the Operating Fund, depreciation must be recorded to comply with Generally Accepted Accounting Principles (GAAP).  Including depreciation in the annual budget adds a layer of confusion without any benefit.  Moving Property & Equipment to the Reserve Fund removes this depreciation confusion.

     

    • Currently, the Operating Fund’s income and expense statement includes two separate line items that estimate the decline in SCA’s asset values.  These are the Reserve Transfer and the Depreciation Expense.  The Reserve Transfer is the Reserve Specialist’s estimate of how much cash is required to provide for SCA’s decline in asset values.  The Reserve Transfer is a required component of HOA budgeting.

     

    Depreciation expense is now recorded in the Operating Fund because the LB&E fund was (inappropriately) merged into the Operating Fund.  Depreciation is an accountant’s method of estimating SCA’s decline in asset value.  SCA’s depreciation expense is much smaller than the Reserve Transfer.  This is because it only applies to a much smaller sub-set of assets (Capitalized Assets) compared the Reserve Specialist’s task of evaluating all of SCA’s assets with a remaining useful life of less than 30 years.  Including both of these estimates of asset decline in the budget is double counting.

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

      

     

                                                              Saturday, June 25, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    The June Board Meeting

     

     

    Below are two strikingly different views of the accomplishments of the June Board meeting, one from the Board and the other from me, Ron Johnson.  

     

    Message from the Board 

     

    At the regular monthly board meeting on June 23, 2016 the Board discussed or took action on the following:

    • Reviewed the Unaudited Summary Financial Statements as of April 30, 2016;
    • Approved the appointment of new members to the Community Lifestyle, Covenants and Health and Fitness Committees;
    • Approved the appointment of the new chair to the Finance Committee;
    • Approved expenditure for:  New compressor for the Delaware Room; new boiler and circulating pump for the outdoor pool and indoor spa at the Anthem Center; new irrigation booster pumps and motors at the Anthem Center; contract for the Facilities Maintenance uniforms; and the installation of an illuminated sign; and
    • Approved Internal Accounting Control Policies

    Board Book. The complete Board Book for this meeting along with all related documents will be posted on the SCA website by end-of-day Wednesday. It can be viewed by logging in at www.sca-hoa.org, clicking on Documents / Board of Directors / Board Book / 2016 and then the file. You can click on blue text links in the agenda to go to the material related to that item in the Board Book. You may also review the Book in hard-copy form at the Membership Office.

     

    Dysfunction and Obstructionism, A Recurring Theme

     

    If you had any hope that SCA’s current Board was up to the self-management (SM) challenge, that hope was greatly suppressed at this week’s Board meeting. Call it dysfunction, ineptness or parochial infighting, the message coming from the Board was clear—we find ourselves unable to govern on a policy level, uncertain of what that entails and getting mired in endless disputes over which committee responsibilities properly belong to our management team. Some of these problem areas were driven home on the following issues.

     

    The adoption of a policy manual on internal accounting controls

     

    Clearly the Board doesn’t know how to write a policy on internal accounting controls.  That fact was especially evident to Director Jim Mayfield, who offered to help the Board based on his broad accounting expertise in the field of fraud detection. However, the Board rejected Mayfield’s policy statement in favor of a statement that addressed procedures, admittedly a management and not a policy document. This rebuff amply illustrates the Board’s failure to understand the difference between management and the role that the Board should be performing in setting policy. 

     

    Chastising the Board’s failure to seriously consider if not follow Mayfield’s policy advice were current and former Finance Committee members Tom Revell, Forrest Quinn and Rosalyn Berman.

     

    Addressing the role of SCA’s committees under self-management

     

    Except for an allusion to conduct more research, there was no hint from Vice President Aletta Waterhouse’s report that the Board was any closer to determining the role of committees under SM than they were when GM Sandy Seddon was hired seven months ago.

     

    The Surplus Funds issue

     

    Director Jim Mayfield’s planned presentation on Surplus Funds was thwarted by Secretary Bella Meese, who ruled that Surplus Funds was not on the Agenda, thereby denying Jim the opportunity to speak on that subject. Meese’s ruling was more than strange since Jim, like other directors in the past, was merely seeking to respond responsibly to information from Committee-produced reports that were contained in the June Board Book. In this case, the June Finance Committee Report had cited the Committee’s PowerPoint presentation on Surplus Funds. All Jim wanted to do was to provide an alternative viewpoint on that same topic.

     

    There is a strong presumption that Board directors are not prohibited from responding to the subject matter of current committee reports. If true, did Secretary Bella Meese’s ruling against Mayfield’s request to speak on this issue constitute an illegal act to shut down discussion on an important topic of community interest?   

     

    In the discussion that followed, it was clear that there was an absence of Board consensus on the issue of surplus funds, although Treasurer Tom Nissen might disagree, expressing the opinion that he thought it was a settle issue. After all, it was Tom who declared at the August 2015 Board meeting that there were no surplus funds carried over to 2015 despite the fact that the association’s auditors and Finance Committee had found more than a million dollars in surplus funds.

     

    Although the Board lacked legal authority to expense such funds for purposes that were not included in the Member-approved budget, that has not deterred the Board from doing just that.  The Board has been loath to acknowledge the existence of any surplus funds least that would prompt an investigation by the State. Those directors who are opposed to such scrutiny are also opposed to any open discussion of the surplus funds issue. Tom suggested that this matter would be best considered in secret, i.e., behind closed doors, and that the community be kept in the dark.

     

    Jim Mayfield suggested that the Surplus Funds topic was so important that it was essential that members be involved in the process rather than being excluded from that process.

     

    It was unclear whether SCA’s “slush-fund-encumbered” Board would allow Mr. Mayfield to speak on this topic at the July Board meeting.

     

    The Fence Painting contract  

     

    Periodically and on a schedule determined by the Reserve Study, the association’s iron fences are repainted. In 2016, about 30,000 lineal feet are scheduled to be repainted, while in 2017, the remaining 90,000 lineal feet will be repainted.

     

    In a major contracting decision under SM, the $100,000 + fence painting contract, the association allegedly “forgot” to consider the fence painting needs of those homeowners who would like to have their private fences painted at the same time. Nevertheless, those ostensibly flawed Fence Painting bids were opened by Bella Meese at this meeting.

     

    In prior years, the association solicited fence painting bids that guaranteed homeowners an opportunity to have their fences repainted on the basis of a negotiated fixed cost per lineal foot. In addition, the association provided homeowners with information on how to go about having their fences repainted and who to pay (the contractor).

     

    One would like to assume that the association’s glaring omission could have been corrected in a timely manner back in April when Facilities Directors Shawn Evans and Otto Pillatzke and GM Sandy Seddon were made aware of this desirable homeowner benefit. For unexplained reasons, that did not happen then or now.

     

    I found GM Sandy Seddon’s statement on this issue puzzling and troubling when she announced that she had learned about this homeowner fence matter only “a week ago.” Really?

     

    Despite the omission, the association agreed to accept and open the three bids it had received. Whether the successful bidder, to be decided at the July Board meeting, will agree to offer comparable pricing per lineal foot to homeowners is unknown. Management has advised that they plan to ask.

     

    The wide disparity in the bids has raised another question. When contract bids vary widely, the problem might be in the precision of the language that was used in preparing the Request for Proposal (RFP). In some instances, the use of imprecise language has caused prospective bidders to make critical mistakes by adopting different assumptions about the project’s scope of work. In this instance, it’s unknown whether the bidders at the extreme ends of the cost spectrum relied on different assumptions in preparing their bids.  

     

    Ron Johnson

     

    General Manager's Monthly Report

    June 23, 2016 Board Meeting

     

     

    UPDATE ON LIBERTY CENTER

    I am happy to report that repairs at Liberty Center began on June 15, 2016. The scope of repair includes, among other items: solar removal, roof repairs, exterior weather proofing, interior and exterior pool decks, re-plastering of pools, drywall framing and repairs, tile replacement, HVAC work, remodeling of locker rooms, duct cleaning and interior painting. The construction hours are Monday through Friday, 6:00 AM to 5:00 PM, with periodic work on Saturday and Sunday. Many residents have asked when this work will be completed. At this time, we don’t have an exact date, but do expect that by late summer or this fall that the center will be back up for residents to enjoy. As the project progresses, we will continue to update the residents.

    To date, the Association has recovered the following insurance proceeds:

    ·    $51,785.36 in repair costs

    ·      $5,413.99 in repair costs

    ·    $72,174.44 in repair costs

    ·    $50,000 from insurance (limit amount of coverage for mold remediation)

    ·      $4,983 (coverage for the security company to secure premises)

    There are still unresolved claims that are pending.

    On June 8, 2016, all residents were mailed a letter from our construction defect attorney Francis Lynch. This letter was sent to comply with Chapter 40 Notice Pursuant to NRS 40.645. As required, the letter contained a copy of the builder response which basically disputes our claims. Pulte did agree to engage in mediation which is scheduled for September 2016.

    Finally, some residents have questioned the selection of the mediator Keith Hunter. Our attorney Francis Lynch suggested Keith Hunter as mediator and Pulte agreed. Mr. Lynch indicates that his firm has a long and successful mediation history with Mr. Hunter and he believes it is a great choice. Mr. Hunter is very familiar with Nevada Law as he has been mediating here for years.

     

    SHADES IN THE GALLERY AND AT FITNESS

    Effective immediately management has made a decision to consistently keep the window shades in the Gallery and at Fitness closed at certain times during the day. We believe it makes sense to keep the blinds lowered to help save on energy costs and to protect our beautiful furnishings.

    ·    June – September 9am – 8pm Blinds down

    ·    October – May 2pm – 6pm Blinds down

     

    FITNESS

    ·    The new boiler has been installed for the indoor pool at Anthem. The Pool re- opened Saturday 6/18 and classes resumed the week of Monday 6/20.

    ·    The process has begun to refurbish the worn out pool furniture both indoors and outdoors. This is a reserve project slated for 2017 which we are bringing forward and intend to have completed asap.

    ·    A new awning above the fitness desk at Anthem has been installed. It is getting rave reviews by both staff and residents alike as it has eliminated the issue we were having with the sunlight affecting the computers screens and scanners.

    ·    We have contracted a new vendor to provide snacks, beverages, coffee and water. The reverse osmosis systems seen in the fitness areas were included in the package at an overall cost savings to the association versus the Sparkletts water which was previously available for staff. Residents are welcome to fill up their water bottles at these stations.

    ·    Independence Day is Monday, July 4th. Anthem Center will be open regular hours of operation. The Independence Center will be open from 7:00 a.m. until 2:00 p.m.

     

    ACTIVITIES

    ·    June 25th – Bus Trip to the LV 51’s Baseball game at Cashman Field

    ·    June 26th – Bethany Owen will be performing at Freedom Hall

    ·    July 13th – Bus Trip to Memphis the Musical at Spring Mountain Ranch

    ·    July 15th – Bella Donna will be gracing the Freedom Hall Stage

    ·    Bus Trip to IKEA – Shopaholics Unite July 28th

    ·    Tickets on sale for our Catalina Island Bus Trip slated for August 23-25th

    ·    To sign up for any of these events contact the front desk at the Anthem Center.

     

    FACILITIES MAINTENANCE

    ·    The heater for the indoor pool at the Anthem has been replaced and is working.

    ·    The indoor pool deck has been re-coated.

    ·    Selected ceiling tiles have been cleaned.

    ·    The indoor patio furniture has been cleaned and new cushions are ordered.

    ·    The fogged up window adjacent to the indoor spa has been replaced.

    ·    Bids have been obtained to re-plaster both the indoor and outdoor spas.

    ·    Bids are being obtained to replace the chemical controllers for both indoor and outdoor pools and spas.

    ·    Bids are being obtained to refurbish all the pool furniture at the outdoor pool at Anthem.

    ·    A 9-ton compressor was replaced on one of the Delaware room A/C units.

    ·    All fire extinguishers at Anthem and Independence were serviced last week.

    ·    Par 3, Landscaping has re-landscaped 5 of the 6 areas around Anthem and Independence. The remaining area is surrounding the waterfall. June 23, 2016 Board Meeting General Manager's Monthly Report Sun City Anthem Page 3 of 3 ·    The new anti-slip mats have been installed in the men’s locker room as well as one for the walkway leading to the pool from the locker rooms.

    ·    The Elevator and handicap lifts at Anthem were inspected by the State of Nevada this past month.

    ·    All new Contour cable boxes have been installed through-out Anthem and Independence. This is to see if we can get better radio reception at Fitness and other areas. It doesn’t seem to working as well as we’d like and we are looking into other alternatives.

    ·    New Wi-Fi thermostats are being installed in strategic areas to help control temperature on weekends when staff isn’t here. Eventually, all thermostats will be replaced with Wi-Fi thermostats.

    ·    The inner set of doors at Independence are being undercut to allow room to install a walk mat.

    ·    The concrete area outside the doors at Independence center is being scheduled to be professionally power washed and cleaned.

    ·    The painting of the Billiards room, Arts & Crafts, and Morris Nelson and Penn rooms is complete.

    ·    All entry doors, except the ones closest to fitness, are now being opened at 8AM. This time is stated in Spirit and also on the doors themselves.

     

        CMC PROJECTS

    ·    The skylights in Anthem have been repaired.

    ·    The installation of the new LED waterfall lights is complete.

    ·    The replacing of the VCT flooring and re-painting in Ceramic and Sewing rooms is being scheduled.

    ·    The replacement of the lifting and damaged concrete around Anthem and Independence is being worked on. This is expected to last another 2 to 3 weeks.

    ·    The Delaware Room remodel is still being discussed.

    ·    The Locker rooms at Anthem Fitness Center will be redone once Liberty Center is back open.

     

    AND THEN,

     

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

     

                     Ice climbing a frozen waterfall (#8).

     

     

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                              Monday, June 13, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Announcements and Other News

     

     

    Liberty Center Repairs to Begin This Week

     

    Work on the Liberty Center Building is scheduled to begin on Wednesday morning, June 15.  The construction hours are Monday through Friday, 6:00 AM to 5:00 PM, with periodic work on Saturday and Sunday at the same time as above.

    The scope of repair includes, among other items: solar removal, roof repairs, exterior weather proofing, interior and exterior pool decks, re-plastering of pools, drywall framing and repairs, tile replacement, HVAC work, remodeling of locker rooms, duct cleaning and interior painting.

     

    Assessment Statements Sent Out in Error

     

    According to Community Association Manager Lori Martin, third quarter assessment statements were erroneously sent out to everyone in error by Taylor Management, the association’s interim accounting vendor. If you had arranged for ACH debit, your third quarter and subsequent assessment payments will automatically be deducted from your checking account. You may disregard the association’s notice to send in your check and payment coupon.

     

    If you had not made ACH arrangements for the automatic payment of your assessments, your check and payment coupon is due by 1 July, 2016.

     

    ACH stands for Automatic Clearing House and is an electronic network for the automatic processing of credit and debit transactions, including direct deposits and payments.

     

    Do You Want to Sign Up for Automatic Debit (ACH)?

     

    If you would like to have your quarterly assessments automatically deducted from your checking account, either call the Membership Desk at (702) 614-5816 for further information or check the July 2016 issue of the Spirit, which will include the ACH form; look for the orange insert.

     

    The Homeowner Fence Painting Arrangement

     

    In the past, homeowners appreciated the opportunity to have their fences repainted by the contractor who was hired to repaint the association’s fences. While the homeowner paid the contractor directly, the cost of such repainting had been established in advance by agreement between the association and the contractor so that everyone was paying the same cost per lineal foot of fencing. 

     

    Based on an exchange of emails with Facilities Manager Shawn Evans, I learned today that RFPs had been sent to prospective vendors and that the work is being administered by our CMC, Amor. According to Mr. Evans, the board will be opening fence painting bids at the June 23rd board meeting. There is no reason to believe the bids will address a proposed fixed cost for homeowners’ fencing. 

     

    Unknown at this moment is what such homeowners can expect from the association since Facilities appeared to be unaware until today of this homeowner-association cost arrangement.

     

    What’s Going on at Vons?

     

    I am told that many Vons shoppers have been complaining to the cashiers about the disappearance of their favorite items. The initial explanation that was provided to customers had to do with the company’s change of their supplying warehouse from CA to Arizona. Items that were formerly available in CA are not necessarily available to shoppers in AZ. That explanation, while possible, didn’t ring entirely true.

     

    A more likely explanation recently being offered of why certain products are disappearing from Vons is that the product mix of Safeway/Vons is different from the products that are offered by Albertsons, which purchased Safeway/Vons in 2014. Officially, the new owner of Vons is Cerberus Capital Management.

     

    Ron Johnson

     

    AND THEN,

       

    ANOTHER CHALLENGE FOR YOUR BUCKET LIST

                     Rock climbing in South Africa (#7).



    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                              Sunday, June 12, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Announcements and Other News

     

    More on the Board’s Workshop on the Role of the Committees

     

    Jim Mayfield strongly believes that committees should report to GM Sandy Seddon, with the GM acting on the recommendations of the committees. Here is how Jim views this issue. 

     

    The most important foundational concept underlying self-manage is the strict separation of management and governance.  Any organizational structures or policies that weaken this concept pose risks to SCA effectively implementing and using self-management.

    With this broad concept stated, the practical specifics need to be examined.  The need to let management manage without interference from the Board or volunteers seems to be catching hold.  But, the corollary concept of governors need to govern without interference from management is not getting traction.  In fact, the majority of the Board still clings to belief that the new general manager (GM) will tell us how to govern.  Dangers lurk in these waters because once management controls governance, who exercises oversight of management and containment of a management that would operate SCA for its best interest and not those of the Members?

     

    My assessment is that the Board now contains a majority of members who want to straddle both sides of the fence.  The most glaring example is the unwillingness to admit that most of the SCA committees largely engage in operational functions that are under management direction.  My "you can't have two masters" and single point of accountability arguments are based upon the need to eliminate the ability of persons (volunteers) who are not members of management or staff to continue to intrude in the prerogatives and operational authority of management.  Separating the committees into three groups--obsolete, operational support and governance support--establishes a structure that supports the separation of management and governance concept.

     

    I will have more to say on about the governance side of equation and the adverse effects on governance that enable the President and Treasurer to issue direction to management and interpretation of policy, public oversight or the approval of a majority of the Board obtained in a public meeting.  The adverse effect on inclusive different perspectives on work groups is already evident in the abuse of the President' authority to control who is on work groups and the ability to remove members whose positions with which he does not agree. 

     

    Other views expressed at the meeting included the following.

     

    Treasurer Tom Nissen said that he would prefer to defer to the GM on how to proceed.

     

    Director Bob Burch expressed similar thoughts while looking for something akin to a negotiated agreement between the board and the GM on the future role of the committees.

     

    During the member comment period, blogger David Berman suggested that the board should “let the GM take the ball and run with it.”

     

    Other attendees expressed concerns over the board’s apparent intransigence in wasting months to begin consideration of this critical issue. 

     

    Other Committee News and Tidbits

     

    The Bocce Court fiasco. Bocce players were recently relieved to hear that the courts were resurfaced so that accurate play could resume. When play resumed, however, players soon learned that the balls would not travel in a straight line, as if unknown forces were acting on the trajectory of the balls.

     

    The bocce contractor was summoned with a promise to fix the problem. The contractor appeared and allegedly fixed underlayment that was causing the balls to unexpectedly turn.

     

    Following that fix, as loudly reported at this week’s Property & Grounds and Community Lifestyle Committee meetings, nothing was fixed and the ball problems persist. Facilities responded by saying that they will be following up with the contractor.

     

    A Canasta Club? The charter for the Canasta Club was approved, despite the strenuous objections from the Strategy Games Club, which has had an active canasta following since the club’s inception.

     

    At least historically, the board’s practice had been to not allow two clubs to compete for the same membership. What happened to that practice?

     

    New Member Meetings. New members are given the opportunity to attend an informational meeting about SCA and the many available opportunities to volunteer and, or participate in about 100 clubs and interest groups.

     

    Unfortunately, according to Lifestyle Director Meg Poulson, existing members who believe they might benefit by attending such a meeting are not welcome and there are no plans to facilitate their inclusion in future new member meetings.   

     

    Can Chartered Clubs Accept Credit Cards? No! Due to security issues, clubs are prohibited from accepting credit cards, e.g., for dues or other club events.

     

    What’s the Status of Proposals for New Clubs? According to Community Lifestyle Chair Pat Carrell, there is a moratorium on new chartered clubs until the outcome of Liberty Center availability is known; competing club space needs are better understood; and membership participation vs. roster data is analyzed.

     

    The Spotlight Club. Proponents of a charter for the Spotlight Club wanted the committee’s assistance in preparing an application to become a chartered club. For unknown reasons, that assistance was not readily forthcoming. The two proponents in attendance were told that the committee would not be considering their application until September.

     

    That 3-month delay would ostensibly prevent the group’s members from performing in any of SCA’s forthcoming theatrical productions.

     

    Efforts of this group, formerly known as Kaleidoscope Productions (KP), had worked to affiliate with the Performing Arts Club (PAC) as a Special Interest Group. That effort failed when PAC’s 16-member board voted nine to seven to reject that affiliation. Had that affiliation been approved, KP would have been treated as part of a club rather than as an outside vendor. Outside vendors are required to execute formal contracts and are subject to substantial fees to rehearse, which had been waived in the past.

     

    Ron Johnson

     

    AND THEN,

        ANOTHER CHALLENGE FOR YOU & YOUR FRIENDS BUCKET LIST

     

             Jumping on the Trolltunga rock in Norway (#6).

     



    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

      

     

                                                              Saturday, June 11, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Announcements and Other News

     

    Pool Closure

     

    The Anthem Center indoor pool, spa and deck will be closed Monday, June 13 through Friday, June 17 for maintenance, repairs and painting.

     

    All areas are scheduled to re-open on Saturday, June 18.

     

    Pool heating will be restored during said closure contingent upon timely delivery of the new boiler.

     

    Prostate Cancer Group Meeting

     

    CSG’s Prostate Cancer Support Group invites SCA residents to its monthly meeting on Monday, June 13, in the Greene Room of Anthem Center at 2 p.m.

    Recently diagnosed with prostate cancer? Gain from the experience of others, and discuss your treatment options. Men and their significant others are invited.

     

    Election Investigation Results and Recommendations

     

    Below are Director Jim Mayfield’s email comments, investigation results and recommendations for the Elections Manual.

     

    As requested by members of the Election Committee and SCA residents, I requested and participated in an investigation and review of the 2016 ballot control and ballot counting processes.  The investigation revealed minor flaws that, in my opinion, did not affect the validity of the election, including the accurate counting of the ballots.  However, certain actions by Board members and staff resulted in the ability of the public to perceive the election as flawed.  Since none of the flaws resulted in a "smoking gun" to substantiate an assessment of an invalid election, I do not find evidence to support the call for a new election or a recount.  But, corrective actions must be taken to correct the inadequacies noted in my report.

    Every year, I have provided feedback, as requested by the EC, on the operation of the EC and suggested changes for the Election Manual for next year. This year was a particularly difficult year due to transition as well as the tone in the community regarding the election. Therefore, I am providing a more extensive set of suggestions than normal. These recommendations are based upon my observations as well as a post-election investigation I asked the GM to perform concerning the election process.

     

    Conduct of EC Members and Conduct of the Election

     

    Although numerous complaints were received regarding the EC and some of its individual members, I neither observed nor found evidence that support the allegations raised.  My assessment is that the EC performed its duties in a highly competent, objective manner, consistent with public standards for integrity and professionalism.  The EC has a distinguished reputation for conducting a fair, objective, honest election process and for creating the perception of an honest election.  The 2015-2016 performed its work consistent with this reputation.

     

    Conduct by Board Members

     

    During my investigation of the alleged breakdown in the security of the ballots, facts were revealed to me that cause me to believe that actions by the President, Vice President, and Secretary were taken that caused a loss of the control over and accounting for Ballot Packages that were returned to SCA as undeliverable.

     

    In my assessment, this breakdown was a result of a decision by the GM, encouraged by three Board members, that transferred the responsibility for collecting and accounting for the ballots to SCA's legal counsel instead of the CAM and using the long-standing process.

     

    The process was changed without the knowledge or involvement of the EC or the alternate liaison to the EC.  This omission.  The advice of the EC nor the alternate liaison were utilized to in the making the decision.  As a result, confusion and lack of accountability related to undeliverable ballot packages creates a perception that these ballots could have been subject to the potential for misuse.  Because of the close race this year, this breakdown is troublesome.

     

    I recommend that

    1. Sections 7E and 7F be modified to provide a procedure for the collection, control and accounting for the undelivered ballots the day of the ballot counting, and

     

    2.  the EC should insist that no changes be made to the election process without the knowledge and counsel of the EC.

     

    Perception of Objectivity of Board Liaison

     

    The Board liaisons should be subject to the same confidentiality and limitation of support for a candidate(s) as the members of the EC.  Furthermore, if a compliant is filed by the spouse or relative or a member of the EC or a Board liaison, that person should recuse themselves from the matter.  The assertion by the lead liaison that he was not subject to the same rules as members of the EC may be technically correct, but such lack of understanding conflicts of interest created distrust of the election process within the community.

     

    Allegations of Misuse of Club Rosters and E-Mail Lists

     

    Allegations were made regarding the use of club e-mailing lists by Board members and others to solicit the votes on behalf of candidates.  These allegations could not be verified.  However, common sense certainly supports the conclusion that control of the lists provides the opportunity for the unauthorized use of such lists.  Therefore, I recommend that the EC request that the CLSC investigate controls over such lists and whether former club officers are instructed to return all lists to the club at the end of their tenure.

     

    Please share this report with all members of the Election Committee and the public.

     

    Backup Ballot Counting Machine

     

    The ballot counting machine malfunctioned during the counting.  This caused a backup machine to attempted to be used that had not been tested nor did it work.  As a result, a manual procedure was used to complete the counting of votes.  This was an inexcusable breakdown because the requirement to have a tested backup counting machine was identified as a requirement in previous years.  The Election Manual should contain a requirement for the counting machines, including their software, to be tested using a test deck of ballots the day before the counting of the ballot.  The test should be conducted in the presence of the CAM and two members of the EC.

     

     

    Board Workshop on Committees and Self-Management

     

    A Board Workshop on the Future of Committees Under Self-Management was conducted this past Thursday. Below are my comments on this important meeting.

     

    STOP PUSSYFOTTING AROUND!

     

    If I had to sum up what occurred at this board workshop, it would be that the board amply demonstrated its dysfunction and ineffectiveness in completing the task of transitioning to self-management.  

     

    Except for two of the six directors present, Jim Mayfield and Carl Weinstein, the only other persons in attendance who were making any sense about the direction the board should be taking on this matter were members of the audience, which included several committee chairs who spoke of their approval of the board’s proposed management changes.

     

    Their voices were loud and clear. Stop pussyfooting around and transfer all management-related duties currently being performed by the board-created committees to the General Manager. If that would entail starting over with a clean slate by dissolving virtually all of the existing committees, so be it.

     

    While that necessary task is not rocket science, you couldn’t tell by listening to the befuddled statements by some board members while they stumbled, waffled, and hemmed and hawed over how to proceed in addressing the committees’ future role. Let’s face it, the current committee structure was intended to facilitate the board’s day-to-day management of the community. The board has since decided to transfer those management functions to the GM, while retaining responsibility over the association’s mission, strategic goals, legally designated powers and evaluating the performance of the GM.

     

    The board’s tepid approach to transferring management duties to the GM is simply dilatory, unproductive and significantly hinders the ability of the GM to perform her job. Yet, that is where the board is today!  

     

    Instead of taking responsibility for what’s needed, several board members appear unable or unwilling to implement change in the committee structure. They would like more time to research the matter, receive community input, and conduct rounds of meetings with current committee chairs, as if these procrastinating efforts will tell them what they should do. 

     

    Given Sandy Seddon’s experience in managing other associations, some board members were eager to learn what she would recommend. There followed an interesting colloquy between Sandy and members of the board. Sandy, who agreed that she had definite suggestions to offer on this topic, said that she was hesitant to be specific in this forum. When pressed to take on a greater role in defining what she would like to see on the future of role of SCA’s committees, Sandy deferred by suggesting that she was too busy at the moment to take on that responsibility. I took Sandy’s response to mean that she was actually too busy or that she would prefer that the board should take responsibility for making those committee decisions.

     

    So, here we are going on the completion of a quarter year under self-management without effective direction from the board on an array of self-management/committee issues. It would be reasonable for one to assume that Sandy is frustrated by the board’s failure to act. 

     

    Ron Johnson

     

    AND THEN,

       

    ANOTHER CHALLENGE (WITHIN REACH) FOR YOUR BUCKET LIST

     

             Sitting on the Trolltunga rock in Norway (#5).



    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

      

     

                                                              Sunday, June 5, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Announcements and Other News

     

    Community Patrol Vehicle Theft Alert

     

    Within the past several weeks there have been six thefts from vehicle incidents reported. The majority of these have occurred in Black Mountain and Shadow Canyon Villages.

     

    In one of the cases in Black Mountain, the theft was caught on a security camera. The person on the tape can be described as a fairly slender Caucasian female 19 to 24 years old who is about 5’6” to 5’8” tall. She was wearing gloves and a baseball cap.

     

    The Community Patrol advises all residents to park their vehicles in their garage. If this is not possible you are reminded to make sure that your vehicle is locked and that nightly you remove your garage door remote, registration and insurance cards, handicap placard, and anything of value. Further residents are advised to have garage door lights turned on during the evening hours. If your residence does not have garage door lights installed, it is recommended that you do so.

     

    Good lighting is one way to deter thieves.

     

    If you see any suspicious vehicles or people in your neighborhood, you are advised to call 311 immediately and report a suspicious person or vehicle in your area. Try to give as much detailed information as possible.

     

    Cancer Support Group Meeting

     

    The Community Service Group’s Cancer Support Group invites SCA residents to its monthly meeting on Monday, June 13 in the Greene Room of Anthem Center at 10:30 a.m. The intention of this group is to provide a safe and accepting place to share experiences, gain and impart knowledge, hope, and strength. Partners, friends, and caregivers are especially welcome.

     

    Is Nevada Solar Energy Dead or Alive?

     

    Event: Energy Industry Update

    Who: Paul Caudill, President and CEO of NV Energy

    When: Wednesday, June 8th at 7:00 p.m.

    Where: Delaware Room at the Anthem Center

     

    Paul Caudill, President and CEO of NV Energy will present an “Energy Industry Update” in the Delaware Room on Wednesday, June 8, at 7pm. Here is the opportunity to get all of your questions answered about solar energy.

    Mr. Caudill was named president of NV Energy in December 2013 and Chief Executive Officer in June 2014.

     

    In January 2012 he was named as president of MidAmerican Solar, where he led development, construction and operation of three of the largest solar power plants in the world. Prior to joining MidAmerican, Caudill was CEO and president of Phoenix Solar U.S. He also served as vice president, global systems operations for SunPower Corporation and has held executive positions with leading firms in the renewable and alternative energy industries. Caudill has extensive experience in commercial nuclear power plant operations and received training and career development opportunities with Bechtel Power Corporation.

     

    This important meeting is sponsored by the Sun City Anthem Financial Club.

     

     

    Outcomes from the May 26th Board Meeting

    • Unanimous Written Consent Disclosure involving IT equipment.
    • Approved Unaudited Summary Financial Statements as of March 31, 2016
    • Approved new members to the Community Lifestyle, Election and Properties and Grounds Committees;
    • Approved new Chairs to the Community Lifestyle and Election Committees;
    • Approved the Emergency Preparedness Service Group Bylaws;
    • Approved Board Liaison assignments;
    • Revere Golf Club water meters;
    • Affiliation Agreement with the Foundation Assisting Seniors and provision for a lease agreement;
    • Anti-Bullying Policy Resolution;
    • Approved employee 401k Plan
    • Approved expenditures: Shade awning, additional electronic timers and a pool boiler.

    Board Book. The complete Board Book for this meeting is available for viewing or downloading at www.sca-hoa.org, clicking on Documents / Board of Directors / Board Book / 2016 and then the file. You may also review the Book in hard-copy form at the Membership Office.

     

    Commentary by Ron Johnson

     

    While the board took some action on virtually all items, there were a couple of glaring exceptions, namely, the Reconsideration of the Foundation’s Affiliation and Lease Agreements and the Anti-Bullying Policy Resolution. Why were these items on the board’s agenda?

     

    Although the board had previously approved both the Foundation’s Affiliation and Lease Agreements, there continued to be unanswered questions about the Foundation’s relationship with and financial support for SCA’s Community Service Group, as well as issues surrounding the Foundation’s practice of soliciting contributions from the Chartered Clubs. Since these issues were important and were not part of the board’s decision that led to its approval of the Agreements, Director Carl Weinstein asked that these Agreements be reconsidered.

     

    Following Carl’s motion to reconsider the Agreements, his motion took a very unusual turn. No one on the board agreed to second his motion. As a result, Carl’s motion died for lack of a second and there would be no discussion on the merits of the motion. Most likely, Carl would have moved to withdraw his agenda item had he not been assured in advance there would be a second on his motion. Instead, it appeared that Carl may have been sandbagged when that promised support for his motion suddenly vanished for everyone to witness.

     

    Then, there was that quite unusual Anti-Bullying Resolution on the agenda, one that GM Sandy Seddon had drafted with legal counsel’s assistance. It was evident from Tuesday’s Agenda Review meeting that none of the board members had any interest in considering, let alone in adopting, the resolution, although several attendees at that meeting and at the board meeting thought the resolution was needed. However, Director Bob Birch, who had served on the Covenants Committee, offered the opinion that our existing CC&Rs might be sufficient to deal with such issues.

     

    What was that Resolution all about? While the details remain unclear, apparently one community blogger was sufficiently distressed by the comments of another community blogger (unrelated to my blogging efforts) to initiate an inquiry with the General Manager. You can view the Resolution in the May Board Book.        

     

    More Phase 1 Plumbing Problems

     

    Vanguard (owned by Viega) and A-Bear Plumbing: Leak Problems

     

    A homeowner’s recent plumbing leak alerted me to the likelihood of a wider leak issue involving the use of Vanguard fittings in addressing the KITEC issue. My more recent articles on this subject had focused on Phase 1 homes that were replumbed using the Wirsbo plumbing system. This past week, I learned that a home replumbed using Vanguard yellow brass fittings had encountered a serious leak. This event alerted me to the existence of a settled class action suit against Vanguard for their defective brass fittings.   

     

    In early 2007 when this KITEC plumbing defect issue arose, I wrote about the use of Vanguard pex pipe. In doing so, however, I pointed out that such use was predicated on the contractor’s use of soldered copper pipe transitions and not on the use of Vanguard’s yellow-brass fittings.

     

    One prominent plumbing company that installed Vanguard piping in Sun City Anthem was A-Bear Plumbing, a company that went out of business around the time of that class action suit in 2010.

     

    Unfortunately, A-Bear did two things that actually promoted dezincification, which was the problem that the replumb was designed to correct. First, A-Bear transitioned from Vanguard’s pex to the home’s fixtures using products that contained high concentrations of zinc. Second, A-Bear apparently used Vanguard’s own yellow-brass fittings throughout the home in its replumb. Those fittings were recently tested and disclosed a zinc content of up to 39%. On the other hand, red brass fittings that are intended to resist dezincification should contain no more than 15% zinc.

     

    In 2010, Vanguard’s yellow brass fittings were the subject of a class action case in California. That case was settled in 2014 and included the court’s appointment of five Clark County law firms as Clark County Subclass Counsel. Those firms are listed on Pg. 7 of the Court approved Settlement Agreement.  

     

    The class action settlement case alleges consumers had suffered injuries and damages arising out of alleged defects in certain potable water plumbing system fittings or other components made from copper alloys with a relatively high zinc content manufactured and/or distributed by Vanguard Piping Systems and related companies.

     

    Settlement class members may be entitled to recover some costs related to the damage caused by defective Vanguard fittings. The settlement agreement provides for a 19-year limited warranty period from the date of installation.

    Are you a Settlement Class Member? The Court had certified a Settlement Class INCLUDING: All Persons that own or have owned homes in the United States that contain or have ever contained Viega Brass Fittings. This includes: Settlement Class Members who own or have owned homes located in Clark County, Nevada that contain or have ever contained Viega Brass Fittings are also members of the "Clark County Subclass." 

     

    Here are links for further information on the settlement agreement.

     

    Basic class action information: https://eclaim.kccllc.net/caclaimforms/vpv/home.aspx

     

    Frequently Asked Questions:  https://eclaim.kccllc.net/CAClaimForms/VPV/faqs.aspx

     

    Court approval of 2014 Settlement Agreement: https://eclaim.kccllc.net/caclaimforms/vpv/docs/Judgment%20Final%20Order.pdf

     

    Viega Brass Fittings covered by the settlement: https://eclaim.kccllc.net/caclaimforms/vpv/fittings.aspx

     

    Ron Johnson

     

    AND THEN,

        ANOTHER CHALLENGE FOR YOUR BUCKET LIST

        CONSIDER CLIMBING  UP A TALL REDWOOD TREE (# 4)

      Description: cid:72BA02441E5C411882DBD7B52DD9F456@OwnerPC

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

      

     

                                                              Thursday, May 26, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Announcements and Other News

     

    A Couple Highlights of the May 26th Board Meeting

     

    Today’s board meeting produced two interesting developments. Treasurer Tom Nissen appeared to have misspoken on a significant financial matter while President Rex Weddle refused to convey to members the known outcome of the association’s initial action regarding the damage at Liberty Center. That action was to provide Pulte Homes with what is commonly referred to as a Chapter 40 notice of an alleged construction defect.

     

    Pulte, who completed construction of Liberty Center in 2010, had 90 days, i.e., until 25 May, to respond to the association’s notice of a construction defect on whether the developer will perform a repair. While it is reasonable to assume the association had received some type of response from Pulte during that period, the nature of that response was not disclosed at this meeting.

     

    Depending on the nature of that response, the association could be faced with an unknown delay in order to resolve potential issues of fact or law before there is an answer on the question of whether Pulte will agree that they are required to respond to the association’s Chapter 40 notice of a defect. That potential, if applicable, might hamper a timely resolution of what the association might be able to expect going forward.

     

    At least based on the absence of relevant information concerning Pulte’s response, I had the impression that Pulte did not agree to make a repair of the defects that were alleged. Had Pulte offered to repair the damage, I assume the law firm would not have objected to sharing that information.

    When members will be told more about this matter is unclear.

     

    Rex explained that the board was advised by their construction defect law firm, Lynch, Hopper, Salzano & Smith, to refrain at this time from making any comment or disclosures about the status of their construction defect case. To me, the board’s reluctance to share what happened with Pulte’s response suggests that we are in for a period of uncertainty on what’s going to happen on the association claim.

     

    Given this uncertainty, it’s possible that the Lynch law firm has reevaluated the prospects of a successful outcome should litigation be initiated, or that the association needs additional time to determine their options.

     

    Hopefully, the board will be able to share additional information about this in the near future, if only to eliminate unsupported speculation and conjecture.

        

     

    Then, there was that interesting declaration by Treasurer Tom Nissen on certain investment funds he claimed were insured. Tom was commenting on the significance of the figures that were displayed in the presentation. When he came to the Investment Report, Tom make the following statement about the $8 million figure reported for the Reserve Funds in U.S. treasury bills and notes: “All of this is FDIC insured.”  While a portion might be insured by FDIC, a significant amount in excess of the FDIC’s dollar limit is not insured by FDIC, unless the law has been changed.

     

    Tom may have misspoken since FDIC insurance is limited to $250,000 for all association accounts in any one bank. All amounts combined in such banks that total in excess of $250,000 are not insured by FDIC. I believe the association has such investment amounts in bank(s) that are in excess of that FDIC threshold amount.

     

    The unanswered question is whether the total of those invested funds in a bank that are in excess of $250,000 are currently insured and if so, by who? Why is that important?

     

    With respect to the issue of insurance on those funds, the Board Policy Manual (BPM) states that all invested funds must be “fully insured.” It’s my understanding that since April 1, 2016, such amounts in excess of $250,000 are not insured.

     

    Here is how the BPM reads: “All Association funds will be invested in depository accounts or investment instruments that are either backed by the full faith and credit of the U.S. Treasury or are fully insured as to the loss of principal and interest.”

     

    Ron Johnson

     

    General Manager’s Monthly Report, 26 May 2016

     

        REVIEW OF ELECTION PROCESS

    I was asked to give a recap of the election process for the May Board meeting.

    • Ballots were mailed out under the supervision of FSR Management on March 31, 2016.
    • The decision was made to utilize our Association Attorney’s office to collect, log and store the ballots until the day of the election.  As the new General Manager transitioning from FSR to Self-Management, I made this decision.  A representative of John Leach’s office was scheduled to collect ballots on Tuesdays and Thursdays. 
    • Ballots and the log were then delivered to the Association on Friday, April 29, 2016, the final day for voting.  The Chair and Vice Chair of the Election Committee assisted the Administrative Coordinator with logging the remaining ballots that were collected on that day.
    • Ballots were placed in the secure ballot boxes, locked and stored in the CAM’s office until Monday, May 2, 2016.
    • It was noted at some point during the election process that a stack of approximately 10 non-deliverable ballot packages (ballots that never reached the addressee due to address issues) were not provided to the election committee and once noticed, this was rectified.
    • On the day of the election ballot count, outer envelopes were removed and inner envelopes were then returned to the volunteers for verification purposes.
    • Inner envelopes were then removed.
    • Ballots were then reviewed by volunteers prior to being counted by the electronic software.  If a ballot was questionable or did not look like it would/could be scanned, it was given to a member of the election committee and then delivered to the Election Committee Chair.
    • With approximately 500 ballots remaining to be counted, the scanner failed.  By failure, I mean that it stopped wanting to feed the ballots through.  It did not compromise the software in any way.  Staff did attempt to set up another scanner; however, the second scanner wouldn’t communicate with the laptop.  Therefore, the remaining ballots were hand counted by the election committee and added to the results of the scanned ballots.  The election committee worked in teams of two to count the ballots. 
    • Upon completion of the tallying of the votes, the Election Committee Chair called each candidate to notify them of the results.  The results were then announced to those that were in attendance at the meeting.
    • On election day Lori Martin, CAM and I observed the entire election process and at no time did we feel that there were any issues that changed the outcome.

    Recommendations for the 2017 Board of Directors Election: 

    ·         Ballots collected, logged and securely stored by SCA Self-Managed Team.

    ·         Purchase a second scanner and appropriate software license, if necessary.

    ·          Volunteers inspecting ballots use a colored pen other than black or blue.

    ·         The procedures for notification of election results to candidates should be reevaluated.

     

    UPDATE ON LIBERTY CENTER

    • There’s a rumor going around that the Board is going to demolish or not reopen Liberty Center.  It’s not true.
    • We had an inspection of the project on Friday, May 6th.  The inspection served two (2) purposes:

    1)           To produce a Scope of Repair.

    2)            To allow an opportunity for the Builder/General Contractor or any other subcontractors, who desired to visit the site, to do so and perform any testing necessary pursuant to Chapter 40. 

    Pulte's counsel attended the inspection along with their expert. It is our understanding that Pulte extended an invite to the general contractor but they declined to attend the inspection.

     

    Pursuant to NRS 40.6472(1)(a), the Contractor must respond to Claimant's Chapter 40 Notice within 90 days from the date of service.  This deadline was May 25, 2016.

    In the event, the contractor, subcontractor, supplier or design professional elect not to repair the constructional defects, the matter will go to mediation. Should mediation prove unsuccessful, the Association may choose to litigate.  In the event this action is necessary, there are additional steps the Association will follow as noted in NRS 116 through advice of legal counsel.

     

    The Board will begin repairs on June 15th. After repairs begin, the construction defect evidence may no longer exist.  Therefore, it is crucial to photo and/or video document the defects and repairs. With this in mind, our attorney Francis Lynch will arrange for a videographer to be on site during the repair process. Given this will be the last opportunity for the Builder/General Contractor or any other subcontractors to observe the constructional defects alleged in the Chapter 40 Notice, they will be invited to attend, observe   and document.

     

    To date the Association has recovered the following insurance proceeds:

    ·         $51,785.36 in repair costs

    ·         $5,413.99 (coverage for the security company to secure premises)

    ·         $50,000 to insurance (limit amount of coverage for mold remediation)

    There are still unresolved claims that are pending.

    FITNESS

    ·         Memorial Day is Monday, May 30th. Anthem Center will be open regular hours of operation. The Independence Center will be open from 7:00 a.m. until 2:00 p.m. The group exercise class schedule has been modified and is posted at the Independence Center.

    ·         Anthem Center indoor pool remains open to swimmers. A new heater has been ordered and we are looking at 4-6 weeks for the project to be completed. The group exercise aqua classes have been canceled during this time.

    ·        Overhead sun coverage was approved for the desk at Anthem and will be installed this summer versus a PIRF in 2017.

    ·        Water Volleyball is not permitted in the outdoor pool. No exception will be made while the heater for the indoor pool is down. There have been too many complaints regarding interruption of the peaceful environment and safety concerns.

    ·        CPR training took place this month on 5/10.

    ·        May is NATIONAL BIKE MONTH. We are promoting the cycling classes and have made bike trail maps available at the desks.

    ACTIVITIES

    ·         Our spring parking lot sale and movie on the lawn were rescheduled due to rain. Both events were held Saturday, May 14th and were a big success.

    ·         The first TGIF Concert on the north lawn was Friday, May 20th with the “Voo Doo Cowboys”. They sang, we danced and watched the sun set.

    ·         The shredder truck came Saturday May 21st to assist residents with cleaning up their closets and garages.  Traffic was an issue on this event.  We will work to rectify that at the next event as well as work on educating the members on what they should actually be shredding.  Many showed up with items that really didn’t meet the qualifications for a shredded document.

    ·         Sundays 3pm “Merci” Show Girl Follies was a hit and all seats were sold out 

    ·         The Lake Mead Cruise bus trip sold out so fast we changed to a larger bus which also sold out.

    ·         Join us Friday, June 3rd at 9am for our First Friday Health and Wellness program. This months’ topic is “Medical Diary”.

    ·         Bus Trips to the LV 51’s will be June 6th and June 25th.

    ·         Our lunch and learn is June 10th in the Delaware Room at 11:00am. Learn about the “Aging Eye”.

    ·         The next TGIF Concert on the north lawn is June 10th. Dance to the “Sixties Sensation”.

    ·         Michael Grimm is performing Friday, June 17th 7pm in Freedom Hall.

    ·         Got Health? Learn about Bone and Joint Health on Tuesday, June 21st at 6pm.

    ·         Last but not least, Sunday, June 26th at 3pm is Bethany Owen – singer, impersonator, and entertainer.

    ·         To sign up for any of these events contact the front desk at the Anthem Center.

    FACILITIES MAINTENANCE 

    ·        The new underlayment at the Anthem Bocce Ball Courts has been installed.

    ·        The ceiling tile in the Anthem indoor pool was cleaned.

    ·        The Anthem indoor pool deck is being re-painted.

    ·        Bids are also being obtained to re-plaster the indoor and outdoor spas.

    ·        Bids are being obtained to replace the outdoor pool heater and indoor spa heater.

    ·        All new handrail covers for the outdoor pool have been installed.

    ·        Bids are being obtained to replace the fogged up window at the Anthem indoor spa area.

    ·        Bids are being obtained to re-lamp and re-finish the letters on the Sun City Anthem Signs on Anthem Parkway.

    ·        Par 3, Landscaping is working on re-landscaping a few areas around Anthem Center.

    ·        Both Anthem / Independence irrigation booster pumps have failed and bids are being obtained to replace them.

    ·        The replacing of all the burned out lights in the Delaware room is complete.

    ·        We temporarily repaired the drapes in the Delaware Room.

    ·        New anti-slip mats have been installed at the Anthem men’s locker room.

    ·        The side gate at Independence Center has been repaired.

    ·        The drain line on the Fire Pump at the Community Patrol Building has been re-piped to prevent water form running on the floor.

    ·        Window blinds in both Aerobic rooms at the Independence center have been identified to be non-repairable. Bids are being obtained to replace them. 

    ·        All Backflows devices have been tested.  A backflow prevention device is used to protect potable water supplies from contamination or pollution due to backflow. In water supply systems, water is normally maintained at a significant pressure to enable water to flow from the tap, shower, or other fixture. Water pressure may fail or be reduced when a water main bursts, pipes freeze, or there is unexpectedly high demand on the water system (for example, when several fire hydrants are opened). Reduced pressure in the pipe may allow contaminated water from the soil, from storage, or from other sources to be drawn up into the system. Testing these devices is a requirement by the city of Henderson. It is done on a yearly basis. We have D.R. Backflow Services testing all 73 of our backflows devices. They fill out the appropriate paperwork and submit it to the city. If a device fails it is reported to us. We authorize the repair and the device is re-tested. 

    ·        Facilities Staff work schedule has been adjusted to allow carryover so regular safety meeting can be conducted.

    ·        On-line courses are being scheduled for all Facilities Employees. These consist of proper use of chemical, equipment and PPE (personal protective equipment).

    CMC projects

    • The new LED lights are being installed in the waterfall.
    • The sun shade/awning in the center court of Independence is being scheduled for repairs.
    • Painting and carpet replacement in the Green room is complete.
    • The skylights in Anthem have been inspected and repairs are being scheduled.
    • The Delaware Room remodel is still being discussed.
    • The Tennis, Pickle and Paddle ball courts at Liberty are all open for play.

    RESERVE STUDY

     A kick off meeting with Management and the Reserve Study Specialist was held last week.  Criterium and their team of people will be back out in approximately 2 weeks to conduct field work and work with management on the update.

     BOARD MEETING LOCATION

    Next month we will be moving our Board meeting to Hanneman Hall.  This is on a trial basis.  We are attempting to have a bit of a different layout for seating with the Board and Staff. 

     FATHER’S DAY IS JUNE 19th.  Happy Father’s Day to all of the wonderful men of Sun City Anthem.

    Sandy Seddon, General Manager

     

    Question of the day.

     

    Was David Berman mocking Norman McCullough when he seemingly went out of his way at today’s meeting to twice tap Lori Martin (a supervisory CAM) on the left shoulder?

     

    AND THEN,

       

    CONSIDER A WALK IN THE ALPS (# 3) ON YOUR BUCKET LIST

    Skywalking in the Alps.


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    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

      


     

     

      

     

                                                              Wednesday, May 18, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Announcements and Other News

     

    Actions Taken at the April Board Meeting

     

    At the regular monthly board meeting on April 28, 2016 our Board discussed the following:

    • Approved new members to the Finance Committee and the Pinnacle Advisory Group;
    • Accepted the December 31, 2015 Audited Financial Statements and Management Letter;
    • Accepted the February 29, 2016 Unaudited Financial Statements;
    • Approved the write-off of bad debt in the amount of $2,550.26;
    • Approved the amendments to the Board Policy Manual;
    • Ratified the General Manager’s selection of employee benefits packages;
    • Approved the Affiliation Agreement with the Foundation Assisting Seniors;
    • Approved provisions for a lease agreement with the Foundation Assisting Seniors; and
    • Approved the expenditures for the Villa Construction Defect Fund for the disbursement of funds to Villa owners regarding interior repairs and a contract for an independent audit of the final balance sheet as of March 31, 2016 prepared by FSR to be conducted by Kondler and Associates at a cost not to exceed $10,000.

    Board Book. The complete Board Book for this meeting along with all related documents will be posted on the SCA website by end-of-day Wednesday. It can be viewed by logging in at www.sca-hoa.org, clicking on Documents / Board of Directors / Board Book / 2016 and then the file. You can click on blue text links in the agenda to go to the material related to that item in the Board Book. You may also review the Book in hard-copy form at the Membership Office.

    You may also find the Audit Report by clicking Documents/Financial/Audited Financial Statement.

     

    General Manager Sandy Seddon’s April 2016 Report

    General Manager Seddon made her first report since the formal beginning of the association as an employer on 1 April 2016. The areas covered in her 4-page report include: Fitness; Activities; and Facilities Maintenance, which includes an update on Construction Management projects. You can read her report at the end of this newsletter.

     

    Election Fraud or Much To Do About Nothing?

     

    So, when President Rex Weddle was asked by blogger David Berman whether he had committed serious election violations by using Club mail lists, Rex denied the allegation. You can read David’s article on his website here.

     

    Why am I not surprised by Rex’ denial? I’m not aware of anyone in their right mind who upon being accused of engaging in some form of election fraud readily admits to having committed an illegal act. To do that would have been thoughtless. Did David really think that Rex would say anything different?  Admittedly, Rex’ denial does not necessarily mean that Rex was guilty of anything. He might be innocent. On the other hand, I believe that Rex’ denial has opened the door wider on this issue.

     

    I also believe that David may have an evidentiary problem in his halfhearted attempt to ferret out the truth of this matter, assuming that was David’s actual intent in talking with Rex. While it may have been easy to get Rex on record to say that he did nothing wrong, it’s unclear from what David wrote that Rex’ version of events paints an accurate picture of what had actually occurred. 

     

    According to David, Rex did acknowledge that “he sent individual, personalized messages to about 15 contacts in his own address book, messages in which he indicated which candidates he was supporting in the election.” But what does David actually know about the accuracy of what Rex had claimed he did? Based on what David has reported, it’s apparent that David does not really know anything substantive that would contribute to resolving this issue. 

     

    Here are some unanswered questions:

     

    • Has Rex been a member or officer of any Chartered Club? If so, which?
    • If Rex was a member or officer of any such Clubs, did Rex have access to Club directories?
    • Did Rex provide David with his “Sent Items” log to verify the number of contacts that he had emailed his candidate recommendations to?
    • Were any of those acknowledged emailed contacts that Rex had told David about former and, or current members of Club(s) that Rex had been a member of? And how would David or someone else know?
    • If Rex has email contact information on his computer for former and, or current members of the Clubs he was a member of, how many such contacts are on his computer?
    • If Rex has such contact information mentioned above on his computer, how did he acquire that information?   

    Unfortunately, it may be too late to obtain accurate information that would answers some of these questions since computer data is frequently transitory. However, this brief exercise appears to point up the many flaws in David’s apparent effort to exonerate Rex.       

     

    Compounding this misuse issue has been subsequent disclosures that Rex may not be the only director who allegedly had used restricted Club email lists to influence the outcome of our elections. More unsubstantiated allegations. 

     

    Failure of the board to candidly and satisfactorily address this issue may invite further scrutiny by the Nevada Real Estate Commission, which is known to have an interest in matters involving potential election irregularities.

     

    Ron Johnson

    AND THEN,

    Another bucket list item for your consideration:

     

    Cliff camping.

    Description: cid:A0755C9A9B75482DA9A32AA290D840BF@OwnerPC
     

     

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

     

     

     

     

      

     

                                                              Monday, May 16, 2016

     

    THE SCA VIEW-JOURNAL, Inc.

    Making Good Things Even Better

     

    Serving Sun City Anthem through valuable content and informative commentary

     

     

     

    Today’s Anthem View

     

    Announcements and Other News


    A Well Deserved Tribute to Rana Goodman

    Republished with permission from AnthemToday.com

     

     

    NEVADA SENIOR CITIZEN OF THE YEAR 2016

      By MARCIA S. KOSTERKA

     

    Sometimes it takes time for a person's unselfish and hard work to be noticed by others. But when you are as dedicated as our own Rana Goodman, people realize that hard work and resolve does produce results.

    Rana Goodman has been named Nevada's Senior Citizen of the Year 2016 by the National Silver Haired Congress, as published in the May issue of SENIOR CONNECTIONS Magazine. It is solely because of her determination, dedication and tireless efforts to expose the rampant problem of corruption within the private for-profit Guardianship Industry. These practices have torn families apart, caused financial ruin of seniors and sometimes led to premature death because of lack of quality medical care.

    Nevada is not the only state to exemplify this abuse, as at least 42 other states also have demonstrated this problem. Rana's hard efforts have borne some fruit, but there is still a long way to go before this abuse can be stamped out. Quite a number of professional Guardians have been unmasked, but none have really been convicted and sent to prison. Those that serve in the court system, those that take campaign money from these Guardians and a host of others whom have caused this national shame, must bear the consequences as well.

    Those of us who know Rana well, recognize that she will not stop until laws are put in place to fully protect seniors and punish those guilty of creating this travesty.

    Congratulations to Rana.

     

    Message from the Facilities Department

    Anthem Center indoor pool is undergoing a complete replacement of the boiler. A decision was made to replace the boiler versus repair as the original boiler is failing in many ways and beyond its useful life.

    The pool is OPEN, however it is not heated.

    The repair is expected to take 4-6 weeks.

    All water classes are cancelled until further notice.

    The outdoor pool remains open.

     

    Message from the Community Service Group


    Please note the following regularly scheduled CSG support-group meetings have been moved to the Greene Room in the Anthem Center until further notice:

    • Cancer Support
    • Prostate Cancer Support
    • Living Well with Disabilities
    • Friends of Bill W. – Both Monday and Saturday meetings

     

    Message from the Activities Department

    Due to popular demand, we have secured a larger bus and the

    Lake Mead Cruise Bus Trip is reopened for ticket purchase!!

    Thursday, May 19, Departs 10:30 a.m. Returns 3:00 p.m.

    $43 per person

    Purchase tickets at:

    Anthem Center front desk, call (702) 614-5864 or online at www.sca-hoa.org

     

     

    Did President Rex Weddle Engage in a Corrupt Practice in Violation of Our Governing Documents?

     

    Rana Goodman recently opined in her AnthemToday article on the improper use of Club mail lists by our current association President, Rex Weddle. According to Rana Goodman, in violation of the Election Manual, Rex had used two different chartered club’s lists to promote the election of certain candidates for the board. She wrote that most of the other board members were aware of this unethical behavior and did nothing about it. 

     

    While Rana wrote that Rex’ behavior was morally wrong, she thought that his actions did not rise to the level of being an illegal action. While Rana may be right in her thinking, I believe there is a chance that she may be wrong on the question of whether his actions were illegal. In the event Rex’ actions constituted a violation of our governing documents, that prospect could throw this matter into the hands of the Real Estate Division. If the Division concurs with that charge, sanctions and, or penalties might be warranted.      

     

    At issue here is whether Rex’ actions, in using Club mail lists for campaign purposes, fall outside the scope of the authority granted him as a board director and whether he failed to comply with our governing documents. Did Rex’ actions corrupt the outcome of the election? After all, Rex was not merely expressing his free speech rights when he attempted to influence potential voters. In effect, Rex was doing so as an officer of the association, knowing full well that his opinion would carry considerable weight with prospective voters.

     

    Before we can decide whether Rex may have done anything wrong, we need to have a better understanding of what constitutes our “governing documents.” We’ve been led to believe that only certain listed documents are recognized as “governing documents,” like our CC&Rs, bylaws, rules and Nevada statutes that govern common interest communities. That list is misleading since there are likely other association documents that govern the conduct of members and how the community operates. These other documents might also be “governing documents.”

     

    Here are two documents that might be germane in this email use matter: The association’s Election Manual and the Charter Club Guidelines and Rules. Both address the issue of the proper use of email lists. It’s clear that these two documents were created in order to govern the conduct of members in two important areas: Board Elections and Charter Clubs. Both documents were prepared by board standing committees; were submitted to the board for action; and were subsequently approved by the board. These two documents have the appearance of potentially qualifying as “governing documents,” although only one, the Election Manual, applies to all members of the association.

     

    An important question here is whether these documents are recognized in law as possible “governing documents.” The answer to that question may reside in Nevada statutes and NRS 116. Included in the definition of “governing documents” are the following additional documents: “Any other documents that govern the operation of the common-interest community or the association.” See NRS 116.049(4). Unanswered is the question of whether these “other documents” must apply to all members in order for them to be regarded as “governing documents,” or whether such documents  

     

    So what, you might ask? That could mean that actions taken in violation of these documents were also potential actions in violation of our “governing documents.” As noted above, potential violations of our “governing documents” could become the subject matter of a member complaint to, and an investigation by, the Real Estate Division.

     

    Did you receive an email recommendation for board candidates from Rex Weddle?

     

    Ron Johnson

     

    A Meeting with Our New Employer

    Our readers following this Affordable Care Act (ACA) issue learned that since March through the end of April, the association had taken the position that the ACA was not applicable to its full-time employees in 2016. In a previous article on this topic, I presented information that suggested the association may have been mistaken in its determination of whether it was an Applicable Large Employer (ALE) in 2016 under the ACA. Based on IRS regulations, a new employer is defined as an ALE for the current calendar year if it reasonably expects to employ, and actually does employ, an average of at least 50 full-time employees (including full-time equivalent employees) on business days during the current calendar year. 

     

    This past week, I attended a meeting on the ACA that had been scheduled by Chief Financial Officer Jim Orlick between myself, Jim, and General Manager Sandy Seddon, who regrettably was unavailable to attend. I assume the meeting had been scheduled in response to my recently published article on the ACA.

     

    In my career as an investigator with the U.S. Department of Labor, I’ve had the pleasure of working with well over a thousand cooperative and trustworthy employers whose primary objective in our negotiations was to comply with the many laws that our office administered and enforced.

     

    With respect to the eventual outcome of my meeting with Mr. Orlick, I believe it was fair for me to conclude that we agreed to disagree.

     

    Ron Johnson

     

    AND THEN,

     

    A start to your bucket list:

     

    Extreme skiing in Wyoming.

     

    Description: cid:EAD9CD870D6F4C6F89F1F879125DECAB@OwnerPC

     

     

     

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners

    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.

    E-mail: rljohnson32@lvcoxmail.com 

    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

     

     

      

     

                                                              Wednesday, May 4, 2016

     THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements and Other News

     

    Results of the 2016 Board of Directors Election

    Here are the results of the 2016 SCA Board of Directors election. The first three candidates listed below have been elected. Candidates are listed in descending order of finish, with the vote totals each candidate received listed beside the name.

     

    Tom Nissen – 1672
    Bob Burch – 1643
    Aletta Waterhouse – 1578
    Stephen Anderson – 1560
    Barry Goldstein – 1445
    Forrest Featherolf – 1261

     

    Parking Lot Restrictions

    On Friday, May 6th Revere Golf Course will be hosting a major charity event. We have authorized the use of the Anthem Center Parking Lot for over-flow parking of no more than 100 spaces. All parking for this event is expected to be in the section towards the tennis courts. A shuttle bus provided by Revere and the Event sponsor will transport the participants. We expect that the parking lot at Anthem will be utilized for the majority of the day.

     

    Anthem Center Pool Closure

     

    Anthem Center indoor pool is closed for emergency repairs to the heating system. All water classes are cancelled. A re-opening date will be announced as soon as it is available.

     

    The outdoor pool remains open.

     

    On the Affordable Care Act:

     

    Incompetence or Something Else

     

    As our readers are aware, the association had taken the position that it is not covered by the Affordable Care Act in 2016, or more precisely, that it is not an Applicable Large Employer (ALE) as that term is defined by the IRS under the Patient Protection and Affordable Care Act (ACA), enacted in 2010. Final regulations, which have the force of law, were released by the IRS in 2014.

     

    According to the IRS, the application of the ACA to an Applicable Large Employer (ALE) “generally” depends on the average size of an employer’s workforce during the prior year. However, in the case of a New Employer, the rule for determining whether that new employer is an ALE relies on a different test, reflecting its status as a new business. Under the regulations, a New Employer is an ALE for the current calendar year if it reasonably expects to employ, and actually does employ, an average of at least 50 full-time employees (including full-time equivalent employees) on business days during the current calendar year.

     

    Based on what we have been told by General Manager Sandy Seddon, our association will meet the New Employer test of being an applicable large employer in 2016. By the way, only applicable large employers (ALEs) are subject to the act’s shared responsibility provisions, sometimes referred to as “the employer mandate,” and certain IRS reporting requirements.

     

    In addition to the regulations on the shared responsibility provisions of the ACA, the IRS has published a number of fact sheets highlighting specific provisions, including one on Determining if an Employer is an Applicable Large Employer. That fact sheet and fact sheets on Employer Shared Responsibility Provisions and Question and Answers on Employer Shared Responsibility Provisions provide existing and prospective employers with specific or additional information about the application of the ACA to a New Employer.

     

    The association is certainly entitled to their opinion on whether the provisions of the ACA are applicable to the association. In doing so, however, the Board of Directors has a fiduciary duty to members and their newly hired employees to provide them with accurate information that supports their “not covered” determination.

     

    In fact, the association has offered a number of explanations in support of their “not covered” determination. Those “not covered” explanations included: because SCACAI will meet the minimum required benefits that are required by the ACA; because SCA did not have employees in 2015; and because we relied on the advice of “expert” consultants (insurance brokers). However, such explanations ignore and contradict easily available information from the IRS on the application of the ACA to a New Employer.

     

    In making their “not covered” determination, it’s unclear whether the Board chose to deliberately ignore the New Employer provisions of the ACA when that initial determination was made, which at first seems unlikely, or whether the Board simply failed to exercise due diligence in the performance of their fiduciary duty of care.

     

    After all, reliable information from official sources on the application of the ACA to a New Employer is accessible to anyone who has access to a computer, including insurance brokers who one assumes have a duty of care to know how the ACA applies to a New Employer. We do not know how those SCA-broker conversations went down or whether the consulted brokers were simply incompetent as it would appear since their advice was wrong.     

     

    The Board might claim that in relying on such “expert” advice, it was not derelict in the performance of their fiduciary duty of care. As the facts below will demonstrate, that argument is pretty lame.       

     

    At this point, I believe it is fair to conclude that the Board is keenly aware of the New Employer provisions of the ACA. What’s not clear is whether the Board is prepared to do anything about their apparently erroneous determination on ACA coverage. I offer that possibility for three reasons:

    • First, there is no evidence to suggest that the Board has taken or will be taking action to implement the ACA in 2016;

    • Second, as of the end of April, GM Seddon and board members were continuing to make unsubstantiated claims that the ACA does not apply in 2016; and

    • Third, since March the association has been on notice that its “not covered” advice that had been ostensibly provided to the association by their “expert” insurance brokers was unreliable, wrong and contrary to IRS rules that apply to a New Employer.    

    So, what’s really going on? I’ll get to that in a minute.

     

    Hypothetically, let’s assume that in setting up a new business, a new employer has an array of laws to comply with, including the ACA. In the process of setting up the business, when the employer has been provided with credible information on the ACA that specifically contradicts a coverage decision that had been made, the employer has two doors to choose from:

    • Investigate the source of that information and implement any policy changes that would apply under IRS regulations to a New Employer; or

    • Do not investigate further and deliberately ignore what’s apparently credible information on the proper application of the ACA to a New Employer.

    For inexplicable reasons, the association opted for Door # 2. In opting for Door # 2, the Board appears to have acted willfully and with indifference to the law, at least through the month of April since responsible persons had been relying on information that they had good reason to believe was false.  

     

    In an email send on 22 March to association Treasurer Tom Nissen and General Manager Sandy Seddon, among others, they were made aware of the existence of the IRS rule that was applicable to a New Employer under the ACA, while also providing them with the complete language from a  Q & A #5 fact sheet on how the ACA should be applied to a New Employer

     

    Yet and despite the existence of what seemingly was incontrovertible information from the IRS on how the ACA applied to a New Employer, the association continued to assert that the association was not covered by the ACA in 2016. The association’s response to this troubling development has been very puzzling. In the face of clear evidence that points to ACA coverage for SCA in 2016, we are left to wonder why the association been reluctant to correctly and accurately address this important legal issue.

     

    I am left with the uncomfortable possibility that the association has been less than transparent in disclosing the reason for their apparent intransigence.

     

    Ron Johnson

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

                                                              Wednesday, April 27, 2016

     THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

    Newsworthy Events

     

    Message from the Election Committee

     

    With just a few days remaining in the election period, we have received over 2,893 ballots.
    Votes must be received in one of the lobby ballot boxes or via mail by Friday, April 29 at 4:00 pm.
    If you have lost or destroyed your ballot, you may pick up a replacement at the Admin office in Anthem Center.

     

    Kneaders of Henderson.

    Dine at Nevada’s only Kneaders. Open from 7:00 am to 10:00 pm. Order on line or peruse their inviting menu here. Just down the block on the left at 11271 Eastern Ave.

     

    The Agenda Review Meeting

     

    Below is my report on four of the topics that arose at the April Board Agenda Review meeting.

     

    1. On the application of the Affordable Care Act (ACA) to SCA’s employees.

     

    Based on what one board member said concerning the application of the ACA to the association’s employees in 2016, it’s apparent there was wrong information being conveyed and more in likely confusion among some board members on this important financial issue.

     

    I would have expected that this matter would have been thoroughly vetted by the board long before this so that every board member was on the same page in attempting to explain the board’s rationale for denying ACA coverage to their employees in 2016.

     

    2. Are SCA’s employees far worse off compared to FSR?  

     

    One attendee commented that SCA’s employees are far worse off in fringe benefits when compared to their benefits with FSR. Is that true? Apparently that’s true according to GM Sandy Seddon, especially when comparing vacation benefits. Then again, it depends on who you ask.

    Some might have assumed that since the association was taking over the work that had been performed for a number of years by their management company, the association would have treated their employees the same as a successor contractor would have by offering not less than the same level of wages and fringe benefit.

     

    However, the association made it clear that they had no intention of doing that, especially in the case of vacation benefits where an employee’s length of service determined their benefit. SCA’s employees will be provided with one week of vacation

     

    Had the employees been working for a contractor under a Federal service contract (not applicable here), their old wages and benefits would have been guaranteed by any new employer performing similar work on a future Federal service contract.

     

    As an aside, employees working on any such contract subject to the provisions of the Federal Service Contract Act in Clark would have received the wages and fringe benefits listed in a Wage Determination (WD) issued by the Department of Labor. Those wages and fringe benefits are typically based on area-wide surveys conducted by the Bureau of Labor Statistics.

     

    You can view the 2015 WD for Clark County by clicking here, which lists the minimum required wages and fringe benefits for 340 occupations. For employees working in occupations that are not listed in the WD, the employer is required to conform the rate to those that are listed in order to provide a reasonable relationship between the two occupations.

     

    Below are the minimum fringe benefits that must be paid employees working on Federal service contracts in Clark County. See Page 7 of the WD.

     

    HEALTH AND WELFARE:   $4.27 per hour or $170.80 per week or $740.13 per month.

     

    VACATION: 2 weeks paid vacation after 1 year of service with a contractor or successor; 3 weeks after 5 years and 4 weeks after 15 years.

     

    HOLIDAYS: A minimum of ten [named] paid holidays per year: . . ..  A contractor may substitute for any of the named holidays another day off in accordance with a plan communicated to the employees involved.

    You should note that the level of wages and fringe benefits paid to employees working for SCA and those working on a Federal service contract in Clark County may be different.

     

    Highlighting that difference, for example, SCA’s full-time employees will not be entitled to a full one week’s vacation (which accrues) until after they have served one year.  I’m not aware that SCA’s employees will receive any amount towards Health & Welfare.

     

    3. May a Board Standing Committee hold an Executive Session?

     

    In general, Board Standing Committees are subject to the same legal limitations as the Board in holding an executive meeting that is closed to members, as specified at NRS 116.31085

     

    This matter is further discussed by Tim Stebbins in an article on executive session committee meetings originally published in AnthemOpinions and subsequent email correspondence occurring on 18 April from Director Jim Mayfield and an email colloquy between Jim and Tim. (Permission to publish here was provided by Mayfield and Stebbins.)

     

    Executive Session Meetings

     

    Recently there has been some controversy and apparent confusion about improper executive session meetings held by at least one of the SCA committees. 

     

    I have been asked to provide information about this topic learned from the Nevada Ombudsman training courses and discussions.  I hope this information will aid both the governance and the management of our wonderful community.

     

    Executive session meetings are held by the board and are closed to members.  This is a serious matter because it restricts transparency of SCA operations.  Thus Nevada law strictly limits permissible topics for such meetings to sensitive issues such as discussion of personal information about individual homeowners.

     

    Committees (as opposed to Clubs) are an extension of the board and are held to the same standards.  Nevada law states: “the committee and its members - - are subject to all - - requirements of the executive board and its members.”

     

    I reviewed the agenda for such a recent committee meeting.  It appears very few, if any agenda items for the closed meeting meet the test for permissible topics imposed by the State. 

     

    Thus the committee was not in compliance with Nevada law by holding the so called closed executive session meeting.

     

    Often committee members are not as familiar with laws concerning proper conduct of meetings as board members and all management personnel who hold a certificate as a community manager (CAM) issued by the Nevada Real Estate Division.  Thus the committee chairman and other members are reliant on board member liaisons and management CAMs to inform them of the applicable laws and help them be in compliance.  In fact, Nevada law requires CAMs to advise board members (and committee members) how to be in compliance with laws.

     

    It certainly appears there was a breakdown in communications in this case.  We can hope as we progress in self-management this will not happen again.

     

    Tim Stebbins

     

    Response to Tim Stebbins by Jim Mayfield

     

    [AnthemOpinions,] I read Tim's article this morning on your blog and I believe it too broadly applies language in NRS 116.31031(8).

     

    Before I begin my reason for my interpretation, I want to state FOR THE RECORD my positions on committee executive sessions. I have never liked the concept of committees being able to hold secret meetings under the guise of an executive sessions. Most of the time, the subject matters discussed in these secret meetings wouldn't qualify if they were Board meetings. The reason for these meetings is to avoid public scrutiny of matters that a minority of people are trying to accomplish that they know lack popular support or a minority of people are trying to direct the management process.

     

    I do not agree with Tim that NRS 116 prohibits such meetings for all committees that a Board appoints. A Board appoints two types of committees. One type ("Type 1") is appointed to "conduct hearings on alleged violations and to impose fines". (See NRS 116.31031(8).) SCA examples of this type of committee are the ARC and Covenants Committees.

     

    A second type of committee is what is referred to as an ("Type 2") advisory committee. Advisory committees do not have delegated authority from the Board to act on alleged violations or to impose fines on behalf of the Board. All actions of an advisory committee are strictly recommendations and must come before the Board for approval before the action is binding. Therefore, advisory committees--Type 2--are not subject to compliance with meeting standards prescribed for Boards and Type 1 committees in NRS 116. SCA has sought advice from both legal counsel and NRED on this subject, both of which have orally supported this position in the past.
    NOTE: I believe that Section 4.11 in the BPM comes dangerously close to empowering Type 2 committees with decision making authority that would make them subject to NRS 116.31031(8). For this reason, I have proposed when the revised BPM comes to the Board for approval that Section 4.11 be revoked.

     

    Tim, I hope you will consider issuing a clarification of your opinion to reflect the different rules for the two types of committees.

     

    Response to Jim Mayfield by Tim Stebbins

     

    Jim, I have never heard of "type 1" and "type 2" committees. So that concept is new to me.
    NRS 116 only mentions 3 types of committees - ARC, Covenants and Nominating. We do not have a nominating committee. But it does have open language about other types of committees that may be created by the association.

     

    NRS 82 provides for the association to create committees as desired.

     

    I think the bottom line here is that a committee cannot have a notice and agenda that covers normal activities of the committee and then call it an "executive session" and deny attendance by members.
    I believe that when a committee uses the term "executive session" they are bound by the law that addresses such type of meeting.

     

    Response to Tim Stebbins by Jim Mayfield

     

    [Tim,] Type 1 and Type 2 are terms I use to describe the difference between committees with enforcement jurisdiction that are described in NRS 116. As with most issues related to NRS 116, the law is so poorly crafted that interpretations are needed to infer the intent of the law. NRS 116.31031(8) is a perfect example of ambiguity. I believe that this section of NRS 116 leaves no doubt as to the status and requirements for a committee that is authorized to "conduct hearings on alleged violations and to impose fines". But, the absence of language about the status of committees that are not authorized to "conduct hearings on alleged violations and to impose fines" leaves the matter open for interpretation and thus the responsibility of the Board, not law, to set the requirements for what I refer to as Type 2 committees. Frankly, NRED and the Ombudsman have been zero help, as usual, in providing guidance on this subject. Even if NRED or the Ombudsman did provide guidance on the subject, their opinions have no legal standing.

     

    In this environment, the best course of action is for the SCA Board to define in the BPM that all committees will follow the requirements of NRS 116 regarding notice, agenda, and meeting rules. The current BPM does not do this, and I will push after the new Board is seated to accomplish this objective.

     

    I still think your interpretation is a stretch given the specific language in NRS 116.31031(8) and the absence of interpretation from NRED. BTW: I enjoy working with you because it is fun and productive to have civil discussions with someone who is well informed.

     

    Response by Tim Stebbins to Jim Mayfield

     

    Jim, I have never heard of "type 1" and "type 2" committees. So that concept is new to me.
    NRS 116 only mentions 3 types of committees - ARC, Covenants and Nominating. We do not have a nominating committee. But it does have open language about other types of committees that may be created by the association.

     

    NRS 82 provides for the association to create committees as desired.

     

    I think the bottom line here is that a committee cannot have a notice and agenda that covers normal activities of the committee and then call it an "executive session" and deny attendance by members.
    I believe that when a committee uses the term "executive session" they are bound by the law that addresses such type of meeting.

     

    4. Should the Foundation Assisting Seniors be obligated to pay a fee for the space it occupies in the Community Service Building?

     

    No, there is no good reason to charge the Foundation rent or to have the Foundation reimburse the association for the cost of providing utilities.

     

    Current board members may be unaware that the Community Service Building annexed to Independence Center came into existence as much as Pulte’s gift to the Foundation as it was to serve other community needs, including the needs of the Community Service Group that greatly benefits from the Foundation’s assistance and the storage of durable equipment for loan to our residents.

     

    The Foundation’s value to the community is immeasurable and it would make no sense to charge the Foundation any amount. The imputed value of the Foundation’s services in assisting the needs of the community should be treated as a contribution to the community, not as a source of potential revenue.

     

    Ron Johnson

       

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

                                                              Saturday, April 16, 2016

     THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    April Committee Tidbits and Some Questions

     

    An uncomfortable observation. After listening to what transpired at the three committee meetings mentioned below, it was difficult for me to see how the existing committee structure of reporting to the board and their respective functions will survive intact under self-management.

     

    Director Carl Weinstein appeared to give credence to that observation when he said that General Manager Sandy Seddon will eventually decide how the committees will run.

     

    Responding to Carl’s comment, Sandy said that she has no interest at this time in moving forward on committee issues. At least for the time being, Sandy will be attending committee meetings to learn more about their role in the association.

     

    Community Lifestyle  (April 7th)

     

    Pickleball moves to the Anthem Center. With the sport courts at Liberty Center temporarily shut down for maintenance until May 2nd, the Pickleball Club had no place to play. The Pickleball Club wanted a dedicated tennis court at Anthem Center to play but Tennis Club President Murray Ginsberg was unwilling to cooperate since his players were facing the same problem.

     

    As a compromise, Murray initially had proposed to allow the Pickleball Club to play on Court 2 after 10 am, keeping the preferred playing time from 6 to 10 for his members. That compromise was deemed unacceptable, especially when it was reported  that Court 2 was not one of the courts that was allocated for Club play but instead was an association court for the use by all association members. Murray ultimately relented and agreed that Pickleball could have unfettered use of Court 2 while the Tennis Club players will use courts 1, 3-8. 

     

    Bocce Court Problems. There appeared to be universal agreement that the recent (2016) contract to resurface the bocce courts had resulted in a disastrous outcome. It was the worst possible outcome for the players since the balls no longer go straight. There was no discussion on this occasion on how such adverse outcomes could be avoided in the future or whether the association had any remedial or contractual options to address what some believe may have been defective workmanship. 

     

    Club Financial Audits. In 2015, the combined income and expenses for all clubs was $785,437 and $743,158 respectively.

     

    Property & Grounds   (April 12th)

     

    Committee Char Carol Siebel introduced new member Jerry Kohn.

     

    GM Sandy Seddon announced that Chief Financial Officer Jim Orlick will be reporting for work tomorrow on the 13th. Jim has over 30 years of accounting and management experience, including HOA management experience.

     

    Sandy introduced Assistant Facilities Manager Otto Pillatske. Otto was a former construction project superintendent and managed a maintenance contract with the U.S. Postal Service. It was also noted that Otto’s wife, Lori, is employed as a staff accountant.

     

    The 2016 Updated Reserve Study. A committee member spoke of the committee’s interest in the upcoming update to the 2014 Reserve Study by Criterium Engineers. In a subsequent exchange, no one on the committee appeared to be aware of a Finance Committee report on numerous inconsistencies in that 2014 study.

     

    Sandy Seddon said that she will be meeting with Criterium on Thursday to discuss the Updated study and that she welcomed any new information that would improve the study’s findings. 

     

    Finance   (April 13th)

     

    Board Liaison Tom Nissen announced that he expected to report on the auditor’s 2015 Audit Report at the April board meeting on the 28th.

     

    The three-member committee headed by Vice-Chair Tom Revell voted to recommend Arthur Schuetz to be a new member. Mr. Schuetz’ employment experience was in the field of process engineering.

     

    Some Questions

    • Who is insuring association bank accounts that are over the $250,000 limit that FDIC insures? Prior to 1 April, FSR provided that insurance.

    • Beginning in 2003, successive boards took some solace in the fact that their auditor had looked the other way while preparing association tax returns that relied on blatantly false tax-compliance resolutions adopted by the boards. That practice resulted in an IRS audit in 2010, a finding of underpayment and a settlement agreement reached in 2012.

    Who’s Looking the Other Way Now?  Today we are headed down a similar path with issues surrounding compliance with a different IRS regulation, one dealing with the Affordable Care Act (ACA). Are we to understand that members of our Board of Directors are looking the other way while relying on the advice of persons who are engaged in the business of selling insurance in the face of direct and specific contradictory ACA regulations that have the force of law?

     

    Ron Johnson

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

                                                              Thursday, April 14, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    SCA Staff Contact List

     

    Dear SCA members,

    Attached is the SCA staff contact list. You may also view it by logging in to www.sca-hoa.org, clicking on Documents / GM Communications / SCA Self-Management Team/SCA Staff Contact List.
    SCA Staff Contact List

     

    Squatters in Sun City Anthem

     

    Recent reports disclosed that some Sun City homes are occupied by squatters.   Fortunately, the City of Henderson Police Department now has authority to address this issue.

     

    If you are aware of squatters in a nearby home, you should contact the Henderson Police Department at 702-267-5000 and SCA’s Community Standards Manager, Chris Wikoff, at 702-614-5859.

     

    Below are two recent newspaper articles addressing this problem.
    http://www.reviewjournal.com/news/henderson-police-teaming-realtors-battle-squatters-valley

    http://lasvegassun.com/news/2016/apr/14/safeguarding-squatters-harms-homeowners-neighborho/

     

    Does the Affordable Care Act Apply to Sun City?

     

    The more accurate question is this: Is SCA and their newly hired employees covered by the Employer Shared Responsibility provisions of the Affordable Care Act (ACA) in 2016?
     
    Incredibly, the answer to that question depends on who you ask. The answer has profound implications insofar as the statutory obligations on SCA as an employer and the patient protection provisions for SCA’s employees.

     

    I understand the association has taken the position that the ACA does NOT apply to its employee in 2016, but that it will apply beginning in 2017. I was told that the association’s ACA coverage determination was based on the advice of one or more insurance brokers they had consulted.

     

    While such advice may be correct, the association has yet to provide any evidence to members or their employees that such advice is legally supported under existing regulations. Unfortunately, our association has had a long history of submitting tax returns with false statements about compliance with certain IRS rulings on the assumption that their unlawful past practices in addressing the accumulation of excess income would not be challenged by the IRS. With adverse consequences for the association, that assumption was proven wrong in 2011. No one wants to repeat that experience.

     

    From what we do know about the law in this ACA matter, such advice being relied upon has the appearance of being contrary to law as reflected in IRS advice to employers as well as in their published regulations. Such IRS advice and regulations on the application of the ACA to large employers, defined as an employer having at least 50 full-time equivalent employees, actually addresses the issue of an employer, like SCA, that was not in existence in the prior calendar year.

     

    Below is how the IRS addresses this employer compliance issue in a question and answer format.

     

    Question: How does an employer that was not in existence throughout the preceding calendar year determine if it employs enough employees to be subject to the Employer Shared Responsibility provisions?

    Answer: An employer that was not in existence on any business day in the prior calendar year is considered an applicable large employer in the current year if the employer is reasonably expected to employ an average of at least 50 full-time employees (including full-time equivalents) on business days during the current calendar year and it actually employs an average of at least 50 full-time employees (including full-time equivalents) on business days during the calendar year. 

     

    Sources:  1) https://www.irs.gov/Affordable-Care-Act/Employers/Questions-and-Answers-on-Employer-Shared-Responsibility-Provisions-Under-the-Affordable-Care-Act  and

    2) the IRS regulations, 26 CFR 54.4980H-2, on Applicable Large Employers, can be viewed here.

     

    It’s my understanding the association meets the 50 employee test as described above and therefore the association would be considered an applicable large employer in the current year, 2016. If true, the association would then be obligated to comply with the Employer Shared Responsibility provisions of the ACA starting in 2016 and not starting in 2017.

     

    Of course, if the association has legally compelling evidence that the ACA does not apply to their employees in 2016, one assumes that the association will be forthcoming with such evidence in a timely manner to members and employees alike.

     

    Ron Johnson

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

      

     

                                                              Tuesday, April 5, 2016

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    On David Berman and Barry Goldstein

     

    David Berman’s recent articles on why his readers should not vote for Barry Goldstein was nothing more than a desperate and unworthy hatchet job on a very decent, temperate and highly qualified candidate who if elected would be attempting to improve the quality of Sun City Anthem’s governance. So why was David apparently very eager to disparage Barry?  

     

    Although alluded to in his harsh and unpleasant remarks about Barry, David’s unstated objectives were all too apparent to me and others. David understands well that SCA’s boards and some individual board members have been under attack from various community segments for over a decade. As a result of such attacks, David’s annual campaign efforts have been focused on one primary objective. That objective has been the preservation of the status quo.

     

    As David appreciates, the Association’s status quo can be achieved only by promoting the election of those persons who are perceived as supporting the key and sometimes controversial decisions of past boards and who will be resistant to changing the board’s future outlook on those decisions.

     

    From David’s perspective, as I see it, the greatest threat to the status quo is the election of persons who may display independent qualities, like Barry Goldstein, and who are more likely than not to be receptive to considering such change as a positive outcome for the benefit of the community.

     

    If you believe the new board would benefit from hearing an independent perspective on occasion on matters of importance, I encourage you to cast your vote for Barry Goldstein.    

     

    When casting your ballot, vote for:

     

    Steve Anderson, Ballot position 3.
    Barry Goldstein, Ballot position 1.
    Aletta Waterhouse, Ballot position 6.

     

    Ron Johnson

     

    Message from General Manager

     

    Dear Sun City Anthem Member,

     

    Today begins a new chapter in the life of your Association. I am pleased to lead your Self-Managed Team. Included in this email announcement is the company organizational chart which will also be on the website.

     

    Next week we will provide an updated employee contact list.

     

    We look forward to serving you.

     

    SCA Self-Management Organizational Chart

     

    The SCA Self-Management Organizational Chart is available on the SCA website at http://www.sca-hoa.org/. You may view it by logging in, clicking on Documents / GM Communications /and then the SCA Self-Management Org Chart file.

     

    Sandy Seddon, General Manager/COO

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

      

     

                                                              Thursday, March 31, 2016

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    Board Candidate Recommendations

     

    Blogger David Berman recently announced his four recommendations for the three open seats on the board: Steve Anderson, Bob Burch, Tom Nissen and Aletta Waterhouse.  And Rana Goodman, the owner of AnthemToday recommended Steve Anderson, Barry Goldstein and Aletta Waterhouse.

     

    Significantly, both blog operators are in agreement in recommending Steve Anderson, Chief, Community Patrol, and Aletta Waterhouse, Chair, Community Lifestyle Committee, for two of the three open board seats. I concur with those recommendations based on those two candidate’s demonstrated and valued volunteer service to the community. 

     

    That leaves us with a decision on the third open seat. Understandably, incumbent and Association Treasurer Tom Nissen would ordinarily gain your consideration if not your vote. However, I do not recommend Tom Nissen for a second term on the board.

     

    Tom’s 2015 announcement on the association’s decision to retain over one million dollars in excess income without any budget authority or accountability runs counter to the advice rendered in the State’s legal opinion on the treatment of surplus funds, Advisory Opinion 16-1. One might sympathize with Tom’s desire to have access to what amounts to an unaccounted for slush fund to expense monies for a variety of purposes that are not authorized in the Association’s budget. However, the adoption of this unapproved and unratified budgetary approach to financing association operations appears to put the association in potential legal jeopardy.

     

    If you are possibly concerned that Tom’s departure might leave the board without a professional accountant to provide counsel and advice, there is no need to be concerned since Director Jim Mayfield is a Certified Public Accountant.

     

    We need to thank Tom for his past service and elect someone else to fill his vacant seat.
     
    For the third board seat and for similar reasons, I recommend Barry Goldstein, a recent member of the Finance Committee. For additional information about Barry, please click on this Link: http://barrygoldstein.blogspot.com/.

     

    I recommend you cast your vote for:

     

    Steve Anderson, Ballot position 3.
    Barry Goldstein, Ballot position 1.
    Aletta Waterhouse, Ballot position 6.

     

    Ron Johnson

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

                                                              Friday, March 25, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    The March Board Meeting

     

    With a short agenda and no controversial items to discuss, the meeting was unusually brief.  Despite that, the meeting was interesting for what we learned and did not learn, as highlighted below.

      • On Standing Committees. The board agreed with a recommendation of the Communications Committee to suspended future meetings. While that action was expected, board liaison Jim Mayfield added that the fate of the committee would be in the hands of General Manager Sandy Seddon.

      Since virtually all standing committees are charged with addressing and implementing some management duties, it’s conceivable the board might welcome the transitioning of those duties to the GM.

       

      The anticipated demise of the Communications Committee raises the uncomfortable prospect that unit owners will no longer have a meaningful and convenient opportunity to learn firsthand about what’s going on, ask questions, offer suggestions, or complain about a problem on a wide variety of communication venues. Is that what’s in store for the remaining standing committees?

      • The Confidential Civil Action Settlement Agreement. Member Rivka Wolf asked a question about the reported settlement of a civil action against SCA. Director Rex Weddle read a statement about the settlement, which I assume was the same statement that appears in the Board Book. Here is that statement: "As required by NRS 116.31088: 'If any civil action in which the association is a party is settled, the executive board shall disclose the terms and conditions of the settlement at the next regularly scheduled meeting of the executive board after the settlement has been reached.' Attorneys representing Sun City Anthem for Federal Insurance Company, a wholly owned subsidiary of Chubb, have advised the executive board that it has settled a personal injury civil lawsuit against the association for $400,000. This civil action arises from an occurrence on association premises during the 2012-2013 policy year. The settlement and defense costs involved were within our coverage limits; therefore, the insurer bore all of the expenses associated with the settlement. The terms of the settlement release SCA from all liability for the occurrence and contain a confidentiality agreement which prevents additional detail."

      When this settlement action was discussed at Agenda Review on Tuesday, someone asked for the court’s docket number for the civil proceeding. That docket number would allow members to learn more about the initial complaint that was filed against the association. On this occasion, the board refused to disclose that docket number. While the terms of the settlement may be confidential, it’s my understanding that virtually all of the civil action documents filed with court are open for viewing by the public. It would be highly unusual for the entire court record to be sealed and rendered unavailable.

      • Pending Civil Actions. Rivka Wolf also asked the board to disclose the existence of any pending civil actions. For unexplained reasons, the board simply ignored her request. It’s unclear whether the board’s silence meant that there aren’t any pending civil actions (which is unlikely) or whether the board does not believe the members are entitled to know about the existence of pending civil actions.

         

      • Regarding Liberty Center. Director Jim Mayfield reported the following:

        • Under the construction defect statute, the developer has 90 days, that is, until 15 June, to assess the damages and make a determination on whether it will make a repair.

        • Jim Mayfield reaffirmed his expectation that Liberty Center will reopen by August. Since no work is currently being performed on the building and will not resume until the developer makes their repair decision, it is unclear when such work will resume. Until we hear from the developer, the association will not know whether the developer will make a repair and, if not, whether the association will then initiate legal action. If such legal action is initiated, what does that do to the timetable for the center’s reopening?

        • Mr. Mayfield was eager to dispel resident concern over the cost to repair the center and other association buildings that are in need of repair. He said the board is acutely aware of an array of serious construction problems involving Anthem and Independence centers and is developing plans to deal with them. He said that it will take at least 2 years to complete the work. Jim reiterated that there are no plans to fund such work through special assessments, adding that, in his view, this cost can be handled within our existing reserves. [At the end of 2014, the Reserve Fund had a cash balance of over $10 million.]

           

      • Regarding 2nd Quarter Assessments.  GM Sandy Seddon wanted to make sure that members who paid their assessments quarterly by automatic bank withdrawal must complete and submit a new ACH Authorization Form. If you need that form, click on this association Link.

       

       

      • Where’s the Hot Water? After years of waiting for the hot water to arrive in Sun City’s bathrooms, Rivka Wolf wanted an explanation of why residents had to endure the inconvenience of no hot water. Rivka did not receive an official response, except from Carl Weinstein who suggested that warm water might arrive if one waits long enough.

      Residents who move here from cities where hot water is readily available anywhere at the touch of a finger can’t understand why that’s a problem here.

       

      One assumes that the lesson here is if you want hot water when you are finished, the only way you are going to get just lukewarm water when you’re ready to leave is to turn the hot water on all the way when you enter the bathroom and hope it has warmed up enough to notice when you leave.

      The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
      and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
      E-mail: rljohnson32@lvcoxmail.com 
      Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

      

     

                                                              Thursday, March 24, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    Today’s March Board Meeting

     

    The regular Board meeting will be held today, Thursday, March 24, 2016 at 1:30 p.m. in Freedom Hall. Members will have the opportunity to comment.

     

    Among the issues to be addressed at Thursday’s Board meeting are:

    • Approval of a new member of the Properties and Grounds Committee;

    • Acceptance of the report regarding the settlement for a civil action against the Association;

    • Update on Liberty Center; and

    • Ratification of replacement of Park Services Outdoor Drinking Fountain.

    The draft Board Book for the March meeting is available on the SCA website at www.sca-hoa.org. You may view it by logging in, clicking on Documents / Draft Documents / and then the Board Book file. Click on the blue text links in the agenda to see supporting material related to agenda items. Hard copy of the draft Board Book is also available at the Membership Office.

     

    Thursday, Tonight at 6:30 a Guardianship Seminar

     

    On Thursday, March 24th at 6.30 pm, in the Delaware Room, Rana Goodman and Dan Roberts will present an update on guardianship. A feature at this meeting will be information on the state’s Living Will Lockbox System. See the following poster.

     

    A Message from Concerned Citizens of Sun City Anthem

     

    Ten days ago an anonymous group sent a letter by email to a thousand plus SCA homeowners recommending the election of three candidates to the board. In 7 days beginning on Thursday, March 31, election ballots will be mailed.  

     

    While that particular campaign effort has raised certain questions, I believe it is important to share the contents of that letter with our readers in order that you might benefit from learning about the issues that were addressed, the candidates who were recommended and why those particular candidates deserve your attention. In the body of the letter, you will also find important Links to additional information about each candidate and the issues and, or positions they consider relevant as we transition to self-management.

     

    Below is a copy of the email that was sent to selected SCA residents.

     

    From: suncityelection2016@hushmail.com
    Subject: Sun City Anthem Board of Directors 2016 Election
    Date: March 14, 2016 at 7:33:08 AM CDT
    To: undisclosed-recipients

     

    Dear Resident of Sun City Anthem,

     

    We are writing this to you to make you aware of the many problems that currently exist in our community that must be solved in order to avoid substantial dues increases in the not too distant future.

     

    The length of this email is long, but has tried to be inclusive as to the points we wish to make in detailing the proof of our concerns.

     

    As of April 1, 2016 our community will officially transition from being managed by an outside firm, to self-management.  We will be doing everything ourselves rather than having a professional management firm do this on our behalf.

     

    Along with that transition will be a change in philosophy where a Board of Directors will merely guide the individual who will manage our community, enforcing policies set forth by them.

    That individual, the General Manager, will then hire and train a staff in order to accomplish Board objectives.

     

    This sounds all well and good, but one must look carefully at who is chosen to set the policies the

    General Manager must follow.

     

    Therein lies our strongest concerns.

     

    Who will guide?

     

    2015 was perhaps one of the most financially devastating years in the seventeen years of Sun City Anthem history.

     

    Another restaurant shuttered its doors making it the fourth consecutive business to come and go and eventually cost residents thousands of dollars.

     

    Another problem that ensued was the Liberty Center building which was closed in late November due to a mold problem that may have been the result of a construction defect or improper maintenance.

     

    A lawsuit was recently filed on a contingency basis as a result, though any action or financial settlement will in all likelihood take years to recover any losses.

     

    The Liberty Center Building is not scheduled to reopen until August, 2016, although that timetable appears to be optimistic.

     

    The costs associated with those problems alone are more than concerning.  In fact, they are frightening and no insurance determination has yet to be made.

     

    Any insurance payments would also adversely affect the costs of future insurance coverage as well to our community.

     

    These two issues alone, could have been avoided had those elected to the Sun City Anthem Board been qualified to guide.

     

    Cafe V began with a monthly rent of $4,000.  Over the approximate two years of operation, that rent also subsequently reduced to $2,000 per month, and then to $1,000 per month. 

     

    Because the property was being leased, Sun City Anthem was also responsible for payment of Property Tax costs as well, approximately $2,000 per month.

     

    That resulted in a Board of Directors purposely losing $1,000 per month of member funds to continue an operation that was still continuing to lose money despite the authorized Board subsidies.

     

    In addition, two existing Board members, Bella Meese, the president, and Jean Capillupo, the secretary, without notifying other board members, authorized a $14,000 credit toward restaurant utilities when the restaurant owner, made the unsubstantiated claim that the meters were not working properly. They committed in writing to the owner that Sun City Anthem would allow the credits.

     

    The remaining board members subsequently nullified this unauthorized action; however, the actions of the two officers lead to threats of legal recourse against our community when the agreement was nullified.

     

    The ultimate result was that Sun City Anthem was left under a cloud of legal threats, allowing the restaurant owner to habitually ask for more and more money to continue his failing restaurant.

    Over and over again, concessions were granted to Cafe V management, and each time subsidies were granted, those Board decisions created additional loss to our association.

     

    In addition, the current Board of Directors voted to provide Cafe V two separate loans for a total of $40,000 to the restaurant owner at an interest rate below the prime rate of interest (the rate a bank provides its best customers).

     

    These loans were made without the restaurant owner providing any proof of the ability to repay them.  They were not vetted, and like the rental payments, and utilities, they were subsequently not paid, resulting in default.

     

    Of particular concern in this scenario were the actions of current Board Treasurer, Thomas Nissen, who is currently seeking re-election to the Sun City Anthem Board, despite this unimpressive record of senselessly spending association member funds.

     

    Mr. Nissen, in 100% of the time, voted to grant additional funds to a restaurant owner who was, and continued to be, delinquent in his obligations; actions that in many eyes violated his fiduciary responsibility as a Board Director to protect association funds.

     

    Finally, the restaurant departed on December 31, 2015 under an arrangement whereby Sun City Anthem would assume the liability of the outstanding loans and utility payments. Other considerations were included; however, the terms resulted in further loss to Sun City Anthem.

     

    The Liberty Center's problems culminated in what was improper planning from the date our association took possession of that building.

     

    Amazingly, it was learned that the then Board did not require any inspection prior to its acceptance. 

     

    Had that been the case, the approximate $500,000 of suspected damage in all likelihood would not have occurred.

     

    It was also subsequently learned that prior Boards were fully aware of the many problems associated with the Liberty Center building, yet avoided solving any of them.

     

    Why are these subjects being brought to your attention in this letter?

     

    It is obvious that many of those elected to Board of Director positions in the past were elected without the proper credentials in order to manage a property that generates an annual revenue of dues assessments totaling $8 million plus miscellaneous revenue of an additional $1 million.

     

    As a result, we strongly believe that change is not only desired, but must be achieved in order to continue to enjoy the lifestyle we have now become accustomed to living.

     

    That can only be accomplished through your casting a ballot in the upcoming Board of Directors election for those with experience necessary in solving the many financial difficulties we will face.

     

    We have researched the list of candidates and would ask you to consider voting for the following individuals.

     

    1. Forrest Fetherolf.

     

    This man, a former Los Angeles police officer severely injured in the line of duty, subsequently become employed by a large building supply firm in charge of investigating employee theft, after which he owned and managed his own firm, Fetherolf Construction Co., a builder of quality homes in southern California. His son, Scott, now operates this business and has continued his success.  This is the web site that demonstrates his acute knowledge of construction and repair matters, sorely needed as we proceed in the Liberty Center matter and subsequent maintenance of Anthem Center and Independence Center.

     

    http://www.houzz.com/pro/kellykied/fetherolf-development

     

    He is known in the community as "Mr. Fix-It" assisting countless numbers of residents in home maintenance and repair.  In addition, he also owns and manages 8 other Sun City Anthem properties and others in the Las Vegas valley as well.

     

    Learn more about Mr. Fetherolf by clicking on his election web site.

    http://forrestfetherolf.blogspot.com/

     

    Only this individual possesses the experience in construction and repair matters, an attribute that would be invaluable in providing self-management oversight.

     

    2. Barry Goldstein

     

    This man was also self-employed in the financial industry, owning a highly successful independent insurance brokerage agency in the New York area.  His son has continued that business.

     

    He was a member of the community Finance Committee for two years and through his expert knowledge, uncovered a number of insurance improprieties that could have resulted in substantial liability to Sun City Anthem. 

     

    It was Mr. Goldstein who uncovered the fact that Cafe V was without insurance protection, the result of which could have potentially created a catastrophic financial loss to Sun City Anthem had legal action ever been initiated.

     

    His knowledge of money management brought him high regard from those in the community who recognized him as a "financial watch dog" of community funds.

     

    Learn more of Mr. Goldstein by clicking on his web site.

    http://barrygoldstein.blogspot.com/

     

    3. Stephen Anderson

     

    Mr. Anderson's background in the educational field goes well beyond the  classroom, holding a PhD in Social Work as a faculty member at various colleges including the University of Oklahoma and New Mexico State University's Director of School of Social Work. Dedication to his profession also included traveling abroad to spend time at the University of Botswana.    

     

    He is still a Licensed Clinical Social Worker and has been called as an expert witness for the US Attorney in the District of New Mexico. 

     

    Mr. Anderson's experience also includes having been a past president of a condo homeowners association, as well as, serving on a number of management roles in non-profit national professional organizations.

     

    Mr. Anderson was elected Chief of the Sun City Anthem Community Patrol in 2015 and was re-elected to that post in 2016, running unopposed.

     

    You can read more about this Board candidate by clicking on this site he has established.

    http://steve4sca.tumblr.com/

     

    What this man would bring to the Board would be an understanding of "people" and the proper relationships that should exist between residents and Board members.

     

    He is a kind and compassionate individual, yet knows how to make a decisive decision.  His combined experience in both the public and private sector of homeowners association management, makes him an ideal choice.

     

    Summary

     

    We strongly believe these three individuals appear to be a "winning" combination for the members of Sun City Anthem in the unsure times that are in our future.

     

    Combining the maintenance and repair experience of Forrest Fetherolf, with the financial expertise of Barry Goldstein, alongside the social skills and past and current association endeavors of Stephen Anderson, in our opinion, would provide us the leadership we are entitled to, as all of us enter the unknown realm of Sun City Anthem's self-management.

     

    If you find this information of benefit in your election choices, we also ask you to consider forwarding this email to your Sun City Anthem neighbors to provide them some additional insight in casting a ballot.

     

    Like yours, their future is at stake as well.

     

    Thank you for your time.

     

    Concerned Citizens of Sun City Anthem
    Henderson, Nevada

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

      

     

                                                              Sunday, March 20, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    A Message to Our Readers Regarding Mr. Fix-It Articles

     

    In response to my publication of Anthem Today’s candidate recommendations Editorial, I received a demand to remove the Mr. Fix-It articles from my website. Anyone visiting the Mr. Fix-It web page will see the following message:

     

    “We are sorry to inform you that the articles and Links to the 65 Mr. Fix-It Home Improvements articles are no longer available on our website. My permission to publish the Mr. Fix-It articles was withdrawn by the owners of Mr. Fix-It, Forrest Fetherolf, Dick Arendt and Allen Weintraub of Anthem Opinions in response to my publication on 17 March 2016 of Anthem Today's Editorial on board candidate recommendations.”

     

    On Unethical Election Campaigning

     

    In a story appearing in David’s Anthem Journal on 19 March, David reports on his ongoing investigation into what he describes as a possible “unethical approach to election campaigning.” David is referring to the unsolicited emails that were sent to an undetermined number of Sun City homeowners by an anonymous group called Concerned Citizens of Sun City Anthem.

     

    It’s unclear to me whether the group’s concern is for SCA or whether the group is really concerned about hiding the identity of the person or persons who are behind this alleged unethical election campaign activity. Why might they want to do remain anonymous? One possible reason would be to hide the identity of the candidate whose promotion is behind the email solicitation effort. Based on David Berman’s reporting, the three named candidates mentioned in the solicitation are Barry Goldstein, Steve Anderson and Forrest Fetherolf.   

     

    Perhaps David’s ongoing investigation will be able to shed more light on this troubling matter.

     

    With the permission from David’s Anthem Journal, below is David’s article.

     

    David’s Anthem Journal, 19 March 2016

     

    More On The Anonymous Letter

     
    Readers: When I recently wrote about the anonymous, unsolicited letter being circulated in support of three Board candidates, a subject about which I have now received more than 30 complaint messages, I invited the three named candidates –Barry Goldstein, Steve Anderson and Forrest Fetherolf- to register their feelings about this unethical approach to election campaigning.

     

    A problem with their not doing so is that it exposes these three candidates to unwarranted assumptions that somehow they had a part in the unethical activity.

     

    So far I have heard from two of the three candidates:

     

    At the March 17 Current Events Club meeting, Barry Goldstein stated that he does not condone this type of practice and would not have participated in it if he had been aware of it.

     

    Steve Anderson went a little further and has provided me with a detailed message that addresses the issue, which I am pleased to publish below without editing: 

     

    David:

     

    I apologize to you and your readers for having taken so long to respond to your article regarding the unsolicited and anonymous email message sent by “Concerned Citizens of Sun City Anthem.” Your article came out the day I left for a weeklong family vacation in Hawaii. Now that I am back and have had time to read a copy of the email, I would like to make the following comments on the issues that you have raised.

     

    While I appreciated the support of my candidacy and the raising of a number of valid concerns in the message, I do state my strong objection to the sending of an unsigned message. I simply do not condone anonymous messages as the practice stands in direct opposition to my core beliefs. I have no confirmed personal knowledge of who the members of “Concerned Citizens of Sun City Anthem” are or how they obtained the email addresses for those that received the message. I would encourage them to at the very least name a spokesperson that would be willing to become the public face and representative of the group.

     

    Throughout my professional career and in my personal life I have always stood for taking ownership of what one has to say. There is no question that standing by one’s message can at times lead to making one a target of both perceived and actual threats. However, it is by both finding and taking ownership of one’s voice that a person becomes a force for real change.

     

    During this campaign I have stressed the importance of communication, transparency, and the integrity of my statements regarding what I see as important issues for Sun City Anthem. I have further stressed that if elected will serve as an independent minded member of the board. I have pledged specifically to listen and dialog with all members of the Association as to their concerns.
    However, I cannot dialog with or listen to people who are not willing to come out of the shadows to be heard. To date I have attended individual meet and greet sessions that have included a variety of combinations of the candidates. I have respect for my fellow candidates and ask that you listen to and talk with each of us in order to then make your best-informed decision as to who to vote for.

     

    Stephen Anderson

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

      

     

                                                              Friday, March 18, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    A Reader’s Response

     

    My recent decision to re-post Anthem Today’s Editorial on board candidate recommendations has caused undue concern among some homeowners. It is my belief that the views expressed by one of the administrators of Anthem Today, however intemperate and offensive, are significant community news stories. Our readers should understand that my re-posting of their Editorial in no way reflects my agreement with Anthem Today’s positions on the candidates who are running for a seat on the board. I welcome other website operators to share their candidate recommendations. 

     

    In response to my decision to re-post that Editorial, I received the below letter complaining of my “unacceptable behavior” in reprinting what the reader characterized as “the most vile, mean and insidious piece of journalism I have read in decades.”  While the author is known to be, that person prefers to remain anonymous and has agreed to be referred to as “A Concerned Homeowner.”

    While the letter writer refers to the comments made by Ms. Kosterka, our readers should understand that she was not expressing her personal opinion as a blogger but instead she was representing the Editorial views of Anthem Today, which is jointly administered by Rana Goodman and Marcia Kosterka.

     

    Mr. Johnson,

     

    I was shocked to see, just yesterday, the latest blog letter from you.  Normally I have always respected your literate articles and informed opinions, even when I may disagree. Today’s articles changed that. I felt compelled to write you directly, which is something I rarely do.

     

    Mr. Johnson, your choice to post, from Anthem Today’s blog, the most vile, mean and insidious piece of journalism I have read in decades, is unacceptable behavior.  Ms. Kosterka’s comments about Forrest Fetherolf, the man who is constantly helping people for free as Mr. Fix-It, were completely uncalled for; and certainly taken out of context. The only reasonable explanation for her writing is to allow Ms. Kosterka’s vicious nature to overtake any intelligent conversation during this election. The hatred this woman holds in her mind belongs to the extremist regimes of the world, not in an election in Sun City Anthem. 

     

    There are no arguable points in her tirade, merely character assassination and trash journalism at its worst:  an attack on the character, motive, and principles of Mr. Fetherolf, rather than attacking arguable issues related to Sun City directly. I know Forrest and he is one of the finest people in our community. To describe him I employ words such as; honest, discerning and trustworthy.

     

    Were it not bad enough that this was posted (the original received dozens of complaints) but you had the incredibly bad taste to re-post it. You include every last mean word of the writer and by doing so claim she has some authority, although her fallacious arguments make it clear she has none.  The thousands of people in Anthem who know Forrest would agree he is none of the horrendous things this Kosterka wrote.

     

    And to top it all off, the next section of the post promotes the free Home Improvement articles by this self same Forrest Fetherolf, who in this and other endeavors does hold good authority.

     

    A Concerned Homeowner

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

     

                                                              Saturday, March 12, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements & News

     

    Regarding 2nd Quarter Assessments. As transition to self-management on 1 April is around the corner, there is one pressing issue that requires your attention. That issue involves the payment of your second quarter assessments to the association. Payment instructions were recently mailed to all homeowners by General Manager (GM) Sandy Seddon. Seddon’s letter states that your 2nd quarter assessment payment should be sent to a P.O. Box.

     

    Drop off voided check and form at Admin Office. In correspondence between us, Sandy wrote that she had made arrangements with FSR so that homeowners may now drop off their 2nd quarter payments and bank Authorization Form at the Anthem Center’s Admin Office. She wrote that this drop off option will be included in a forthcoming eblast next week providing answers to a number of questions.   

     

    If you are completing the ACH Authorization Form, enter your bank’s checking account number under the heading “Property Address,” after “Acct #.” The bank’s name should be entered after the colon in the following:

     

    DEPOSITORY NAME:      [name of bank]

     

    Policy Manual Workshop.  Beginning at 9:00 am, Monday the 14th in the Delaware Room, the board will be conducting a meeting to address Policy Manual changes needed to conform to self-management operations and the assumption by the General Manager of all management duties that do not detract from the board’s fiduciary responsibilities. According to Jim Mayfield, the board will postpone making changes to Section 7-8 of the Manual dealing with the Committees and Service Organizations until they hear more from the GM, affected parties and the community.

     

    Mayfield on the Policy Manual. In advance of Monday’s meeting and in an effort to give direction to his fellow board members, Jim has offered his considered thoughts on what their meeting should ultimately accomplish. In part, Jim writes that “next Monday, the Board will begin the more significant work of making decisions that will affect cultural roles of SCA volunteers and how volunteers, including the Board, will be organized and used to govern versus manage under self-management.” While Jim writes that he does not favor eliminating standing committees, he goes on to say that he “believe[s] each of the standing committees needs to be evaluated to determine if they are supporting governance or management objectives.” Click here to read Jim’s extensive thoughts on this important issue. 
     
    Chapter 40 Notice of a Construction Defect.  The association has filed a construction defect Notice against the developer for work performed on Liberty Center under NRS 40.645. A similar construction defect Notice was filed against Pulte in 2006 for problems related to the yellow brass fittings in the Kitec plumbing systems that were install in the community’s first phase of roughly 3,000 homes in Sun City Anthem. Upon receipt of that Notice, Pulte chose to send a certified letter to all affected homeowners notifying them of the alleged defect. Whether Pulte will do so in the present instance is unknown.

     

    The purpose of such a Notice is to provide the developer or contractor with an opportunity to evaluate the claim and to provide a response not later than 90 days after receipt of a Notice stating whether they have elected to repair the alleged defect or provide monetary compensation. If the claimant is an HOA, the association is required to send a copy of the response to each member of the association.

     

    Only in instances where the developer/contractor has not elected to repair the alleged defect may the claimant (Sun city Anthem) bring a cause of action against the developer/contractor in court. No such action has taken place at this time.

     

    Rumors. Some believe that without rumors and gossip, the lifeblood of the community would be drained. On the other hand, there is usually a morsel of truth in those circulating stories. 

    • Mold in Anthem Center. With the discovery of the conditions that led to the growth of mold behind the showers in Liberty Center, the board is faced with the likely prospect that those very same conditions are also present in the Anthem Center’s showers. Is the board addressing or ignoring that prospect?

    • A new restaurant operator? Last evening I was attending a dinner-group function at Buckman’s when I was asked about a rumor that suggested that the board would favorably consider Buckman’s as a potential operator. Based on our disappointing dining experience last night, such an offer might prove problematic.

    What Happened to the Chair Survey? FSR reported that residents who were sampling the chairs for use in Independence Center were unhappy with the selection. Starting over?

     

    News from Committee Meetings

     

    Finance Committee (FC)

     

    With only one of three committee member in attendance, Andy Muha was the focus of everyone’s attention and questions. Andy said the Committee has three applicants, but no vote was taken in the absence of a quorum. Some of the potential issues and, or questions arising from the meeting included.

    • The association had a Cash Balance at year-end that was carried over to 2016 of almost 3 million. That raised questions about whether the association’s alleged specious claim about the nonexistence of surplus funds was true. 

    • In denying the existence of surplus funds, the board is refusing to include such amounts in the association’s budget. Rather than returning such funds to the homeowners or allocating such funds for specific purposes through the budgetary process, the board instead prefers to retain a surplus for discretionary unbudgeted purposes.

    • There is no separate accounting or tracking the use of such funds that are carried over from one year to the next year. 

    • When is a Club asset not an asset of the Association? According to the Policy Manual, Club assets are considered assets of the association. However, when it comes to the almost $800,000 in Club revenue for 2015, those assets are excluded from total revenue of the association for tax purposes. According to the FC, our Clubs even managed to incur a year-end surplus over expenditures in 2015 amounting to $40,000; that surplus was carried over to 2016. Assuming that the fees, etc., collected by the Clubs are not taxable, it’s not clear why such amounts are excluded from the association’s revenue.

    Communications Committee

     

    If you are looking for a clue about what might happen to our standing committees, look no further. When FSR took over from Communications total responsibility for new-member meetings and the board called an indefinite halt to the further development and implementation of the association’s website, the committee members could see the writing on the wall. Their services were no longer needed. As a result, at this week’s meeting the committee voted to suspend further meetings.

     

    Board liaison Jim Mayfield suggested that our new GM Sandy Seddon will have considerable influence on the direction and usefulness of our standing committees to the extent that their activities are contributing the management of the association. I take Jim’s views to mean that many if not most of the existing functions performed by the committees are managerial in nature and properly belong under the purview of the GM in a self-management environment. 

     

    Assuming Mayfield is correct and my take on Jim’s view prevails, what does that mean for the future of homeowner involvement in the processes currently undertaken by committees and for future homeowner access to information about what’s happening in our community?

    Will a future SCA become one in which the only communications venues are those which are officially sanctioned and reported by the Board and the General Manager?

     

    Community Lifestyle Committee

     

    The committee voted to approve the installation of a cabinet in the billiards room. The cabinet will be built in the association’s wood shop, will be mounted to the wall by Facilities, and will hold a poster board for announcements and game results.

     

    Will there be a Canasta Club? 

     

    Speaking during the Member Comment period, Strategy Games Club (SGC) founder Elizabeth Breir addressed an upcoming matter that is likely to become a hotly contested Lifestyle Committee issue. Breir was responding to the proposed creation of a Canasta Club. Since Canasta is one of the games played by members of the Strategy Games Club when they meet on Thursdays, and Canasta is identified as a named game in their Club documents, and since the Lifestyle Committee prevented the SGC from offering games played by another club, there is no provision under existing CLC practices that would permit the formation of a club that plays games that are offered by the SGC. How come? Any Club offering to the play the same game(s) played by the for the SGC would be subject to the same restrictive conditions that apply to the SGC.

     

    A Possible Resolution!  Here is one possible scenario that would avoid the problems created by the application CLC existing policies.

    • Assuming that the proposed Canasta Club meets the Chartered Club Guidelines and Rules, authorize the Canasta Club to play on any day other than the day of the week when the Strategy Games Club is scheduled to meet, which is currently on Thursdays.

    • Reciprocally, authorize the Strategy Games Club to play any card, board or tile game on any day of the week other than on the day of the week when that other card, board or tile club is scheduled to meet. 

    • If this scenario, no two clubs will be playing the same game on the same day of the week.

     

    Property and Grounds Committee

     

    There continues to be a disconnect in communications on the status of construction PIRFs that are processed by the Facilities and those contracted under Amour Engineering purview. As a consequence, the Committee is unable to follow up on the status of some PIRFs.

     

    The previously approved Shuffleboard PIRF had a low priority and was not included in the 2016 budget.

     

    Ron Johnson

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

      

     

                                                              Saturday, February 27, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements

     

    Message from the Election Committee

     

    The candidate forum will be held tomorrow, Sunday, February 28 at 3 p.m. at the Freedom Hall in the Independence Center.

    The February Board Meeting, 25 February 2016

     

    Unlike regular nighttime board meetings, where one might find a dozen or so members, this event attracted around 200 residents. As we learned, virtually all of those members were present to hear an update from the Henderson Police Department (HPD) concerning a recent home invasion. That presentation, made in advance of the start of the evening’s agenda, was made by Detective Michael Johnston. The hall quickly emptied following their presentation.

     

    Johnston informed us that the investigation to apprehend the perpetrators was ongoing, that this was one of three similar home invasions in the greater Henderson area (the other two being outside of our community), that entry to the home was gained by kicking in a door, and that the PD does not believe that this was an “inside job” or was conducted by persons working in the area. He said a more common means of entry is through an unlocked sliding glass door.

     

    Johnston said the suspects may have been recently arrested by the Las Vegas Metropolitan Police Department in a similar home invasion case and that they will be following up with Metro detectives to determine whether those suspects were responsible for our invasion. 

     

    This was followed by a presentation by a representative from their Community Relations Bureau on efforts residents can make to make their homes safer. You can view a video presentation on Home Security from HPD’s website to see if your house is an easy target for burglars by clicking on this link: http://www.cityofhenderson.com/docs/default-source/police-docs/home-security-presentation.ppt?sfvrsn=2.

     

    You can also see what security areas of your home need improvement by taken this Home Security Survey: http://www.cityofhenderson.com/docs/default-source/police-docs/home-security-survey.pdf?sfvrsn=2.

     

    The HPD will also conduct a survey of individual homes and recommend improvements that will reduce the likelihood of crime. For more information, call 702-267-5100.

     

    Here are a few highlights of the meeting.

     

    SCA General Manager Sandy Seddon Report

     

    Sandy updated her progress in the community’s transition to Self-Management. Among other items that were covered, Sandy reported that she has made offers to 75% of the positions; had hired a Chief Financial Officer (unnamed); advised that there will be no roll over of tenure or benefits from FSR to the association; and that she is continuing to work on employee benefit package, including a 401K program.

     

    Regarding the status of the existing standing Committees, Sandy said that she does not know what they will eventually look like and that there was no rush to make a decision at this time.   

     

    President’s Comments on Responding to Member Comments

     

    Bella Meese reiterated that the board is divided on the issue of whether directors should respond to member comments. She said that in the future she will respond but only if the answer to the inquiry can be answered with a “Yes” or “No” response. Bella said that the board did not want to turn their meeting into a Town Hall type of meeting. From her comments, it appeared that other directors were free to respond if they wished to do so.

     

    It’s my recollection that it’s been quite a while since the board made itself available as a body at a Town Hall meeting to respond to questions from members.

     

    Restaurant Space Update

     

    Jean Capillupo reported that kitchen equipment operations will not be authorized for future catering events. However, she proposed that an area of the kitchen with tables might be cordoned off for vendors to use for staging purposes at catering events.

     

    While it’s premature to ponder the restaurant’s future, history should have taught us that despite good intentions the board’s involvement in the selection process has yielded disastrous outcomes over and over again. I expect that many autopsies will be offered up for consideration.

     

    Liberty Center Update

     

    On February 19th the board voted to confer with Lynch, Hopper, Salzano & Smith to assess the prospect of initiating a construction defect law suit under NRS Chapter 40. That firm has years of litigation experience in addressing construction defect claims.

     

    Based on the advice of that firm, the association filed suit on 24 February, which happened to be the last day before the expiration of the six-year statute of limitations. At the board meeting on the 25th, the board voted to ratify their engagement of Lynch, Hopper, Salzano & Smith.

     

    Jim acknowledged that the association’s filing of the suit was incomplete and will have to be amended in incorporate a complete assessment of the repairs that will be required under the Chapter 40 filing. That assessment, involving interior, roof and structural issues, will be undertaken by professional engineers, who I assume will be under contract to the law firm.

     

    As a result of this litigation, all work on Liberty Center has been halted. That in turn will mean that Liberty Center will be closed at least through August 2016.

     

    One can assume that work to repair Liberty Center will not commence until the construction defect suit has been settled. That might suggest that a quick resolution to a potentially contested legal matter may be unlikely and take much longer than was suggested by Mayfield.

     

    The association has also filed an insurance claim. 

     

    Ron Johnson

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

      

     

                                                              Wednesday, February 24, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

    Announcements

     

    February Board Meeting

     

    The Board’s February meeting will be held on Thursday, February 25 at 6:30 p.m. in Freedom Hall. Members will have the opportunity to comment.

     

    The February Agenda Review Meeting

     

    As meetings go, Agenda Review meetings are designed to provide the community with helpful information about key topics on the board’s agenda. To facilitate that process, the board sends out an e-blast informing members of items on the agenda and inviting members to attend. For example, this month’s e-blast highlighted the following agenda items, among others:

    • Approval of Landscaping and Nuisance Abatement Procedure;

    • Update on Anthem Center restaurant space;

    • Update on Liberty Center

    • Ratification of the engagement of Lynch, Hopper, Salzano & Smith, Attys, regarding Liberty Center; and

    • Approval of two expenditures: seated stage risers for the Independence Center, Freedom Hall and stretching machines for the Anthem Fitness Center.

    Before getting into the excitement that the above agenda items created, I would like to share the following two events. First, regarding the recent home invasion, President Bella Meese announced that a Henderson Police Department captain will be present at Thursday’s board meeting to update the community about that home invasion.  

     

    Second, regarding the board’s policy of not responding to member comments and questions at board meetings, Bella announced that the board had not reached a consensus on this matter. She said that she will be making a statement about this at Thursday evening’s board meeting. The board’s self-imposed gag order prompted a quite testy verbal exchange between Carl Weinstein, who favors more board openness in communicating with member comments, and Rex Weddle, who challenged Carl in the apparent belief that Carl’s outspoken comments on this topic reflected an attack on him.

     

    Approval of Landscaping and Nuisance Abatement Procedure 

     

    For almost a decade, successive boards have turned a blind eye to the plight created by wanton abandonment of homes in our community, watching feebly as the landscaping dies, trash accumulates, and property values decline. Not only were boards aware of the problem but more recently the board went to some lengths to actually document the extent of the landscaping compliance problem by conducting inspections. From such a list, one assumes the board was able to identify which homes had the more egregious compliance issues.

     

    So, what’s the landscaping and nuisance abatement procedure all about? At least in theory, the board appears prepared to assume responsibility for the “cleanup of yard.” As I see it, that’s about it! Following due process, notification letters and the opportunity to attend a hearing, the matter will be in the hands of the board to take whatever action they deem appropriate. All costs incurred by the association in addressing exterior maintenance issues shall be borne by the property’s owner in accordance with the provisions set forth in the procedures, including where appropriate placing a lien on the property and, or other recovery actions.

     

    While the proposed procedures appear to address the deterioration of the lot’s landscaping, it’s unclear what steps the association is prepared to take to mitigate the presence of dying or dead landscaping, other than the removal of the blight. 

     

    While the association declares that it is “a Covenant Protected Community,” you may conclude differently when you learn about “when” the association will take action to protect our community. There is every reason to believe that the association is privy to information on the number and location of homes that have been effectively abandoned. But just in case that’s not entirely accurate, the board is capable of tasking the General Manager to identify homes that pose an abatement resolution. However, the real question is, will the association be taking action to initiate proceedings on their own? As conveyed at the meeting, the answer to the question of whether the association will take action on its own initiative to protect the community was an emphatic “NO.” From comments expressed at the meeting, I gather that the board was too timid to take on that responsibility. Rather, the board’s position was that they will take action ONLY in response to a homeowner’s formal complaint, presumably from a nearby neighbor.

     

    Update on Anthem Center restaurant space

     

    With a slight touch of laryngitis, Jean Capillupo said that she had nothing to report at this time, but would do so at the board meeting. 

     

    Update on Liberty Center

     

    Ratification of the engagement of Lynch, Hopper, Salzano & Smith, Attys, regarding Liberty Center
    Jim Mayfield handled these two items as one, sort of. He informed the attendees who were anxiously awaiting to receive an update that he had nothing to report at this time but would be in a better position to do so at the board meeting.

     

    In reality, it’s been a month since Mayfield had provided his last status report on Liberty Center’s construction issues and when that center might be open. Are we to assume that there was literally nothing to report since January? Even a no change in status would have been helpful. 

     

    Then again, going on to the second item Jim covered, there was the likely prospect that the association might be considering filing a construction defect lawsuit over some of the recently disclosed issues at Liberty Center. That would appear to be the case given the association’s contact with above mentioned law firm that specialized in construction defect matters. With a 6-year statute of limitations and the date of the grand opening of Liberty Center being on the 26th of February 2010, there might be an issue of the statute running out about this time and the date that Liberty Center was legally transferred from Pulte Homes to SCACAI. I assume Jim will have that information on Thursday.

     

    The board’s apparent failure to keep the community informed on Tuesday about what was planned for Thursday’s board meeting caused considerable concern among several who were in attendance. Several voiced their concern about what they viewed as a breach of duty to do what members expected and what the board had promised to do at such meetings, namely, to keep members fully informed well in advance of the board meeting so that they would be able to offer considered comments.

     

    Approval of two operating fund expenditures: seated stage risers for the Independence Center, Freedom Hall and stretching machines for the Anthem Fitness Center.

     

    One would ordinarily assume there would be no major issues surrounding what appeared to be routine purchases, albeit, costly items. Although identified in the Board’s Agenda as operating fund expenditures, there continued to be uncertainty about whether the items were actually replacing existing equipment, as appeared to be the case, and therefore should be funded from the reserve fund. Despite the board’s comments, that issue was not satisfactorily resolved.

     

    Again, several attendees voice their concern about the absence of any written documentation in the Board Book justifying the expenditures. While there was documentation from prior meetings, the general feeling was that the Board Book should stand on its own with sufficient information to justify the decisions being made at the meeting when the expenditures are being approved.  

     

    One person questioned whether the proposed risers could be used by the Choraliers, an issue that was not answered. 

     

    Other Agenda matters

     

    On the Finance Committee Reports. While the board will vote to accept the year ending financial statements and analysis prepared by the Finance Committee, conspicuously missing from the Board Book was the FC’s page of their presentation that reported the amount of net cash that was carried forward from 2015 to 2016. That reported amount, designated as “Working Capital” was $1.188 million.

     

    In his monthly report to the board, Vice-Chairman Tom Revell included his statement read at the February Finance Committee meeting about the resignation of Chairman Forrest Quinn from the Finance Committee. That statement follows:


    Forrest Quinn has resigned from the Finance Committee and I would like to express my gratitude for his unquestioned dedication to making SCA a better place for all residents because of his insight and superb analytical skills. Throughout his three years on the FC, as Vice Chairman working with Lennard Grodzinsky, and as Chairman, the committee has made significant improvements to making the financial presentations, the budget process and the reserve studies a lot more meaningful, both to residents and the Board. He was always trying to make improvements to the status quo. I personally will miss him greatly and I am sure the entire community will, if they don’t share my view now, come to miss him, too. And I’ll be honest with you, I am not even in the same league as Forrest as to either insightfulness or analytical abilities nor am I willing to consistently work 30-40 hours a week trying to figure out how to further improve the financial wellbeing of SCA. Like Forrest, I will strive to continue to point things out that come to my attention or make recommendations to the Board regardless of the feathers I ruffle or egos that may be hurt. Further, I truly hope that Sandy Seddon will call on Forrest for his input and advice as well as that of many of our residents regardless of whether those individuals are on Board-approved committees or not. We have many extremely highly intelligent residents in our community.

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

      

     

                                                              Saturday, February 20, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements

     

    2016 Board Election

     

    In alphabetical order, here are the names of the six candidates vying for the three open Board seats in this year’s election:

     

    Stephen Anderson

    Bob Burch

    Forrest Fetherolf

    Barry Goldstein

    Tom Nissen

    Aletta Waterhouse

     

    Presidential Candidate Ben Carson
    to speak at Freedom Hall on Monday, February 22nd

     

    Doors open at 5 pm and everyone must be seated by 6:30. Due to limited seating, reservations are required.

     

    Contact Virginia Finnegan to make your reservation: 702-270-0425 or by email to: virginiafaye@cox.net. Sponsored by the Republican Club.

     

    Information About a Recent Home Invasion

     

    Please see the below press release from the City of Henderson Police Department concerning the home invasion that took place early this morning on the 17th of February. The Community Patrol wants to reinforce the advice given to residents in the press release.  It is imperative for all residents to immediately call 311 concerning any suspicious activity in their neighborhoods.  Let the Henderson Police Department check things out.  When people come to your door trying to sell things, please call 311 and make a suspicious person report of people posing as solicitors.  Ask that the HPD come and check them out. Please notify the Community Patrol of this activity, but only after having made your 311 call. It is very important that the resident themselves call 311 immediately as they can provide the best information to the police. Further if you feel any sense of threat it is important to never hesitate to call 911 immediately.

     

    Steve Anderson, Chief
    Sun City Anthem Community Patrol

     

    CITY OF HENDERSON

    NEWS RELEASE

    FROM THE OFFICE OF THE CHIEF OF POLICE    February 17, 2016

    223 Lead St., Henderson, NV, 89015

    FOR IMMEDIATE NEWS RELEASE                                                                                    

    Please contact Michelle French, Senior Public Information Officer, 702-267-4509

     

    Early Morning Home-Invasion Robbery
                                               
    Henderson, Nev. – Henderson Police are investigating a home invasion robbery that occurred Wednesday morning where the homeowner was tied up and the home ransacked.

     

    Two male suspects entered the home on Garden City Avenue in Sun City Anthem, near Sun City Anthem Drive and Olivia Heights Avenue about 2:15 am. The suspects brandished a firearm, demanding valuables.

     

    The suspects tied up the 72-year-old female homeowner and made off with cash and jewelry from the home. The victim had minor injuries.

     

    Detectives are continuing to follow up on leads. The suspects were only described as male.

     

    IMPORTANT: Henderson Police reminds residents to lock your doors, keep your home well-lit, secure sliding glass doors and always lock the door to an attached garage. Watch out for your neighbors. Take an active role in preventing crime in your neighborhood.

     

    Anyone with information in this case is urged to call the Henderson Police Department at 702-267-4911, 3-1-1, or, to remain anonymous, call Crime Stoppers at 702-385-5555 or visit Crime Stoppers website or text: “CRIMENV” + tip info to 274637 (CRIMES). Message & data rates may apply. Tips directly leading to a felony arrest or an indictment processed through Crime Stoppers may result in a cash reward.

     

    On the Finance Committee Meeting and Related Events

     

    When Nelson Orth asked acting Chair Tom Revell about the amount of surplus funds reported in the year-ending financial statement, Nelson complained that he thought he was getting the runaround when Tom responded that the number was $136,000. Nelson had understood that this number should be about a million dollars but that “surplus funds” figure failed to show up anywhere in the year-end financial reports. So, what’s going on? Actually, both Nelson and Tom were correct. While Tom was referring to balance statement amounts reported for income and expenses, Nelson was looking for the year-end figures for excess membership income over membership expenses.

     

    The excess or “surplus” income amount that Nelson was looking for would be the amount of cash that was on the books as of 12-31-2015 and was carried over to 2016. That figure reflects the excess of revenue over expenses or cash flow from the association’s operating activities. Based on unaudited results, that year-ending amount was $2.726 million. However, that amount is misleading since it does not reflect the NET increase in cash that’s ostensibly available for other uses in 2016.  The NET increase in cash was arrived at by making about a dozen or more accounting adjustments, e.g., for prepaid assessments. When those adjustments were taken into account, the NET year-end increase in cash was $1.188 million. That $1.188 million is the amount of “Excess of Revenue over Expenses” that Nelson was looking for but could not see because it was reported as such by the Committee’s year-end financial statements.

     

    How do we know that is the proper metric for reporting the value of Excess of Revenue over Expenses? We know that for two reasons. The first reason is that this amount is the amount that is annually reported by the association’s current auditor, Kondler & Associates, typically around May 1st of the year.  The second reason is historical since the amount of Excess assessments over and above the amounts used for the operation of the association has been tracked and reported here for over 10 years. Those amounts were reported on Schedule M-3 of the association’s Form 1120 tax return as “Other Income” as being carried forward from the prior year to the current tax year along with the amount that would be carried forward to the next tax year. Successive boards regularly reported such carryforward amounts at their tax planning workshops. For the 2011 tax year, the association decided to adopt the more simplified tax return that was specifically designed by the IRS for use by certain qualified HOAs.

     

    When the association migrated from using the Form 1120 to Form 1120-H to file their tax return for 2011, the carry forward amount from the prior year to the current year ceased to be reported as a separate amount on the form.  To the extent the association actually incurs an excess of income over expenses at the end of the tax year, that carry forward amount would most likely be totaled along with other income totals to report a combined total for what the IRS refers to as “Total exempt function income.” Even though that carryforward amount is not separately reported on the tax return, the association’s auditor does report the amount of any such Excess income in their annual audit report.

     

    However, there remains some uncertainty about whether the $1.2 million that was carried forward from 2015 to 2016 constitutes “exempt function income” as defined at CFR § 1.528-9 and whether there are any constraints on the association’s use of such Excess income, such as for working capital purposes. I am hopeful the IRS will have answers to those two questions when they respond to my inquiry. That particular regulation sets forth the definition of what constitutes “Exempt function income” as that term is used in the filing of the association’s tax return. 

     

    I have a sense the community has been dealing with the issue of surplus or Excess income for well over a decade. Unless I’m mistaken, it’s my understanding that there is no difference between the meaning of Excess income at the end of 2015 and the meaning of Excess income at the end of 2007, or any other year in which the association had accumulated surplus income. 

     

    When the issue of surplus funds was addressed by Association Treasurer Tom Nissen last year, he appeared to turn the concept of what the term “surplus funds” means on its head, first by essentially ignoring the community’s long history of accounting for the accumulation of Excess income and second, by declaring that the association (in 2015) was not accumulating surplus funds. In stark contrast to the past, Mr. Nissen would have members believe that the value of such Excess income the association had been accumulating was actually “zero,” as he declared at a board meeting. So, whatever the net carry forward amount was from 2014 to 2015, that amount, at least according to Tom, was zero. In actuality, the 2015 auditor’s report reported that the net increase in cash, i.e., the amount that was carried forward to 2015, was $1.097 million. So, what did Tom mean by declaring that that amount was actually zero?

     

    In doing so, I gathered that Tom wanted to dispel the widespread belief, which appeared to be supported by the auditor’s report, that the association was retaining surplus funds that had been carried over from 2014. Why would Tom want to do that? It seems that Tom may have had at least a couple of reasons. First, the board was in the midst of planning for the association’s transition to self-management, which potentially entailed uncertain financial outlays going forward. And second, and likely more critical to the board’s decision-making process, was the fact that the association faced the legal prospect that the association had no right under Nevada law to retain surplus funds.

     

    Virtually copying a similar provision from the IRS, Nevada law at NRS 116.3114 mandated that “surplus funds” must be paid to the unit owners or credited to reduce their future assessments. As a result of that instruction on the use of surplus funds, the board opted to effectively ignore the Nevada statute by declaring that it had no idea what the term “surplus funds” meant, a view that’s ostensibly supported by Director Jim Mayfield’s failed efforts to obtain a meaningful written clarification on the meaning of “surplus funds” from the Nevada Real Estate Division that interprets and enforces NRS 116.  

     

    The association is currently proceeding on the assumption that they are not barred from using surplus funds (Excess income) for any purpose they deem appropriate and in compliance with the Nevada Real Estate Division Advisory Opinion 16-01 on the use of surplus funds for capital improvements.

     

    Given the Finance Committee’s apparent decision to categorize net Excess income as working capital, one must assume that they are in agreement with the views Tom Nissen and the Board on the proper treatment of Excess income as Working Capital.

     

    Ron Johnson
       
    Golf Cart for Sale
    Yamaha 48-Volt, 2-Passenger Golf Car, $2,000

    For more information, contact Ron Johnson at (702) 617-8172 or email to rljohnson32@lvcoxmail.com.

    For included features and more information, visit this website:
    http://scaview.info/golf_cart.html

    In March a Classified ad will appear in the Relay. 

     

    Corrections
    In my 9 February newsletter, I mistakenly named Bernie Horton as a new member of the Community Lifestyle Committee when I should have identified Chuck Naill as the Committee’s newest member. I understand that Bernie was speaking as an advocate for the shuffleboard amenity.  

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

     

     

     

      

     

                                                              Tuesday, February 9, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

     

    Announcements

     

    2016 Presidents’ Day Holiday Weekend

    On Monday, February 15, the Administrative and Membership offices will be closed so that staff may observe the Presidents’ Day holiday. Anthem and Independence Centers will be open regular hours.
    The Communications Committee meeting scheduled for this Friday, February 12 at 10:30 a.m. has been cancelled.

     

    Message from the Election Committee

     

    The Election Committee is seeking volunteers to help count ballots for the Board of Directors election on May 2, 2016. If you are interested, please contact Judy Salvage, committee chair, at 702-558-0995 or Election.Committee@scacai.com.

     

    Message from the Property & Grounds Committee

     

    The P&G Committee is seeking volunteers for three vacancies. If you are interested, please send an inquiry to:  PG-Committee@scacai.com.

     

    Some Committee Tidbits

     

    Community Lifestyle Committee Meeting (8 February)

     

    Chuck Naill was welcomed as a new member.

     

    Kaleidoscope Productions(KP). In a colloquy between Director Carl Weinstein and Committee member Kathie Strombom, we learned that Pat Carrell has been working with KP and the Performing Arts Club(PAC) to see if there is an opportunity for KP to become special interest group within the PAC. Should that arrangement come about, the Association most likely would consider KP as part of a club rather than as an outside vendor, where such vendors are subject to executing a formal contract with applicable fees.

     

    More chairs. FSR is in the process of conducting a “chair survey” to determine which chair to purchase for the rooms at Independence Center(IC), currently on exhibit at IC. Apparently the only ones who knew about this new purchase were members of the affected clubs.     

     

    Shuffleboard. An avid shuffleboard player expressed his concern at the poor condition of the shuffleboard table at the Anthem Center and wondered out loud why the table has not been repaired or replaced? Interestingly, Committee members were keenly aware of the long-standing problems with the table but expressed little interest in doing anything about it. To demonstrate their apparent lack of interest, the Committee appeared eager to saddle the concerned player with the task of determining the extent of the amenity’s usage, apparently in an effort to establish a “usage” test that might justify either continuing or discontinuing amenities in general. If the Committee was interested in gathering usage data, I assume that task properly belongs with FSR or the new GM, who could be expected to establish an acceptable method for keeping track of member interest in shuffleboard.    

     

    Property & Grounds Committee Meeting (9 February)

     

    Carol Siebel was unanimously voted to be the new chair of the Committee, replacing the always erudite Roy Montambeau, whose four-year term expired with this meeting.

     

    PIRFs. A Project Item Request Form for proposed projects, otherwise known as a PIRF, should be submitted to the Facilities Department through the Admin Office located in the Anthem Center. Your project will be assigned a number for tracking purposes and forwarded to the affected Committee(s) for their review and consideration. You can download a copy of this form by clicking on the second row heading on the Association’s website: Maintenance & Facilities.

     

    The CMC (Amor Architectural). The Association’s Construction Management Company, Amor, oversees construction projects, including PIRFs, which involve two or more building trades. AMOR does not perform the work themselves but oversees the work performed by contractors.

     

    Committee members expressed concern that the status of PIRFs that are administered by Amor get lost in the system. As a result, the status or progress on such PIRFs is not reported back to the Committee and the Committee is unable to relay any information to affected Club or members.
    It was suggested that AMOR may be providing such reports to the Board, but the Committee is apparently being kept in the dark on the status of those PIRFs.    

     

    Special Board Discussion Session, at 9:00 am
    Wednesday, 17 February, Delaware Room

    The meeting will discuss efforts to implement Self-Management(SM) at Sun City Anthem, focusing on two areas: 1) changes to the Policy Manual; and 2) changes to the role of the Board. Future meetings will focus on how SM will impact the Committees, Clubs and other groups.

     

    More on Liberty Center
    An accusation and a response from David Berman

     

    In the Link below, you can read an article by David Berman from David’s Anthem Journal, dated 8 February 2016. In that article, David provides two messages from Director Jim Mayfield, the latest and more substantive dated the 8th, and a review of the history of Liberty Center that David claims addresses falsehoods being circulated (actually appearing on Dick Arendt’s Anthem Opinions), about the alleged Liberty Center role that was played by then Director Roz Berman.

     

    To read more, click on this Link.

     

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     

      

     

                                                              Wednesday, February 3, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

    January’s “Missing” Reports

     

    The board’s monthly Board Book provides an official record of the contents and supporting materials for the items on the agenda. That material is supposed to be available in advance of the meeting not only for the benefit of the directors but also for the benefit of the members so that they may be able to provide relevant comments at Agenda Review meetings held on the Tuesday before the Thursday board meeting.

     

    However, Occasionally, the board will leave a blank page or no page at all where the report or documentation should be. When the board publishes their “complete” Board Book the week following the meeting, those “missing” reports or documents are present. The board’s typical explanation for withholding information from members prior to the meeting goes something like this: “We needed the additional two days to prepare . . . .“ While that may be true, the reality concerning those decisions can be found elsewhere. I and other observers believe that the board does not want to show its hand on potentially hot button topics, least members will be given timely warning to ask relevant questions about the board’s decisions.

     

    Understandably, the board is reluctant to share in advance what they may view as sensitive, controversial or questionable decisions that might encourage public criticism. This board, unlike past practice, reinforces that impression by refusing to answer member comments at board meetings. That policy virtually guarantees very sparse attendance at regular board meetings when confronted by an unresponsive board.

     

    Below is one example of a potentially hot-topic issue the board (Jim Mayfield) decided to keep under wraps until after the board meeting. That slide presentation (months in development as it has been carried over from previous board meetings) was in response to the Real Estate Division’s Advisory Opinion on whether a homeowner vote was required to approve a capital improvement expense.

     

    Very generally, member notification would be required for a capital improvement involving a change in the usage of an amenity or facility. According to the position taken by the board, they may proceed with the proposed change in usage if less than 10% of total membership disapproves of the expense. That 10% threshold would be reached if 714 homeowners out of 7,144 homeowners voted their written disapproval of the proposed expense for the capital improvement.

     

    Whether the board’s position conforms to the position taken by the Real Estate Division is not clear and may be the subject of a formal dispute.  

     

    You can read Mayfield’s presentation by clicking on this Link.       
    Homeowner Approval of Capital Improvement Projects

     

    Below are two additional January reports of general interest to homeowners.

     

    General Manager Sandy Seddon’s Report to the Board, 28 Jan 2016

     

    Jean Capillupo’s Restaurant Status Report, Final

     

    Other News

     

    Channel 99 Roundtable

     

    View Larry Carroll’s Roundtable interview of Treasurer Tom Nissen and our new General Manager Sandy Seddon. Beginning this week, this video is showing on Channel 99 and 1960 at 5 and 10 pm and on SCA-TV by clicking on this Link:  http://www.sca-tv.com/BoardRoundtable/index.html

     

    Upcoming Activity Department Events

     

    More details on these and other February (and March) activities and events for SCA residents are on pages 18-21 of the February Spirit magazine.

    First Friday Health and Wellness is this Friday, February 5, from 9:00 a.m. to 11:00 a.m. in the Delaware Room, Anthem Center. The topic under discussion will be medication abuse and drug interactions, which could be a problem for many seniors who take a variety of medications daily. Learn how to stay safe while staying medicated. Reservations are requested; please sign up at the Anthem Center front desk, or call 702-614-5864 to reserve a seat.

    Bee Gees Gold
    Valentine’s Dance and Dessert Buffet
    Friday, February 12
    7:30 p.m. to 9:30 p.m.
    Grand Ballroom, Anthem Center

     

    We have a spectacular evening planned for residents. Start the Valentine’s Day weekend with a night of oldies but goodies to dance by, courtesy of John Acosta’s Bee Gees Gold Tribute. Enjoy a lavish dessert spread. Tickets are only $24 per person, available at the Anthem Center front desk or online at www.sca-hoa.org. A few full tables for eight are still available, so call your friends and invite them out for this fun-filled night. Or buy some tickets and make new friends at your table. Don’t wait to get your seats, this event will be a sellout as it has been in years past. A cash bar will be available.

     

    January 28, 2016 Board Meeting Summary

     

    * Reviewed the annual report of the Community Patrol and complimented the patrol members for their service to Sun City Anthem

     

    * Treasurer’s report announced
    -- completion of the review of the unaudited summary financial statements for the month and year-to-date ending November 30, 2015
    -- $72,945 in year-to-date collections from delinquent accounts
    -- No write-offs of bad debt for accounts reviewed at the January 28, 2016 Executive Session of the Board
    -- 2016 Reserve Study update will be handled by Management Staff in place as of April 1, 2016

     

    * Approved revision to the Rules and Regulations regarding the biennial age survey which will subject non-compliant members to possible fines

     

    * Accepted a report on the repair work at Liberty Center with an estimated date to reopen May 1, 2016 or later

     

    * Received a report on the member notification process for capital expenditures

     

    * Approved bids for:
    -- printing of the 2016 Association Board of Directors election ballot mailer
    -- Replacement air compressor the Woodchips Club
    -- Television monitors and mounting brackets for Emergency Preparedness headquarters

     

    * Committed to review member comment guidelines for Board of Directors meeting

     

    * Received a report on the status of the restaurant;
    -- Tenants ARP and SCA have agreeably terminated the lease agreement
    -- Restaurant is closed
    -- Board will develop a plan to include resident input in choosing a future tenant. This project will take an undetermined amount of time to develop but progress reports will be given as the project moves forward

     

    * Approved appointments to Covenants, Health and Fitness, and Properties & Grounds Committees.

     

    Board Book. The complete Board Book for this meeting along with all related documents will be posted on the SCA website by business end on Wednesday, February 3. It can be viewed by logging in at www.sca-hoa.org, clicking on Documents / Board of Directors / Board Book / 2016 and then the file. You can click on blue text links in the agenda to go to the material related to that item in the Board Book. You may also review the Book in hard-copy form at the Membership Office.

    The SCA View-Journal, Inc.is an educational and news service designed to support the information interests of Sun City Anthem homeowners
    and is not affiliated with the Sun City Anthem Community Association, Inc., Del Webb Corp., or Pulte Homes, Inc.
    E-mail: rljohnson32@lvcoxmail.com 
    Publisher/webmaster, Ron Johnson      Telephone:  702-617-8172

     

     


      

     

                                                              Saturday, January 30, 2016

     

    THE SCA VIEW-JOURNAL, Inc.
    Making Good Things Even Better

    Serving Sun City Anthem through valuable content and informative commentary

     

    Today’s Anthem View

    Highlights of the January Board Meeting

    Biennial Age Survey.

     

    To qualify as a senior community, associations must be able to demonstrate that at least 80% of the occupied units must be occupied by at least one person 55 years of age or older. In order to comply with that requirement, the association must comply with age verification procedures. In order for the association to certify compliance with the law, it conducts a biennial survey of unit owners.
    Sun City Anthem’s 2015 survey resulted in a return rate of only 65%, far short of the number required to demonstrate compliance with the law. If the association is unable to demonstrate compliance with the 80% requirement, they could lose their status as a senior community. The consequence of losing status as a senior community is that homes could be sold to anyone, including families with children.

     

    If you received a survey form and did not submit it, it is very important that you do so. The January board amended the Rules and Regulations to permit the association to fine homeowners if they fail to comply with the requirement to return the age verification survey form. Those rules now state the following:

     

    “If the Association does not receive the completed survey form within 30 days from the date of the first notice letter then a notice of hearing letter may be sent to the homeowner advising of a scheduled hearing before the Covenants Committee.  Fines, and/or sanctions may be imposed by the Covenants Committee.  The maximum fine the Covenants Committee may impose for this violation is a $100 initial fine and a continuing violation fine of $100 per week until compliance is achieved.  The committee may also suspend all activity cards associated with the property address until compliance is achieved.”

     

    You may pick up the survey form at the Admin office or download the form and instruction page by clicking here.

     

    Restaurant Status Report.

     

    Jean Capillupo reported that the settlement with Anthem Restaurant Partners resulted in an estimated loss to the association of $22,000. Her report will be available in the forthcoming completed Board Book by mid-week.

     

    Jim Mayfield said that the restaurant issue may have to wait until fall before the board will have time to focus their attention on how to proceed. In addition to hearing from homeowners, Jim said that the board will be calling on GM Sandy Seddon’s knowledge and experience in operating a successful restaurant.

     

    Liberty Center Repairs.

     

    Jim Mayfield reported that the best estimate for reopening Liberty Center will be May 1st, depending on the work proceeds.  He said that the cost of repairs is far in excess of what had been projected, now estimated to be roughly $500,000.
    Reserve Study Update.

     

    Criterion Engineers is scheduled to conduct an update to their 2014 Reserve Study. Given the association’s transition to SM, Tom Nissen said that the schedule for the update study (no onsite visit) will have to be delayed. According to Tom, the 2014 study was a marked improvement over prior studies, but that several issues remained in establishing an accurate inventory of the association’s assets. Towards that end, Finance Committee chair Forrest Quinn recently reported that his initial analysis of the 2014 RS disclosed no less than 60 apparent major inconsistencies in the data that Criterion had reported. In response to Quinn’s report, Jim Mayfield uncharacteristically proceeded to rebuke the committee’s efforts and suggested in so many words that they should mind their own business.

     

    Assuming that Jim reflects the views of the board that might suggest the board is not at all interested in correcting an array of problems with the reserves database.

     

    SCACAI Staffing.

     

    In a lengthy report to be made available in the forthcoming Board Book, GM Sandy Seddon said that she is currently accepting applications for employment by the association. Sandy said that the application process will include a background check on all applicants. Her temporary office is located in the upper gallery of the Anthem Center in the converted Greene Room.

     

    Board Elections.

     

    If you are interested in running for the board, the deadline to submit your application to the Admin office is Friday, February 12th at 4:00 p.m.

     

    The following homeowners have submitted their applications: Tom Revell, Robert Burch, Barry Goldstein, and Stephen Anderson.

     

    At the board meeting, Carl Weinstein lamented the fact that some prospective applicants invariably will wait until the very last minute to submit their applications. There are three seats open on the board as the terms for Jean Capillupo, Tom Nissen, and Don Schramski will end in 2016. Whether one or more current board members will reapply is not known.   

     

    Foundation Assisting Seniors.

     

    Efforts to approve an Affiliation Agreement and a Lease Agreement between the Foundation and the Association encountered a snag, causing the matter to be tabled until issues can be addressed. Some of those issues include language that appears to restrict the operations of the Community Service Group (CSG), the fact that the CSG had no knowledge of the Agreement’s existence, and whether the execution of the Agreements will have broader implications for similar organizations that might seek comparable benefits from the association. Admittedly, the Agreements are designed to formalize the long-standing practices of both parties.

     

    Member Notification Process for Capital Improvement.  

     

    Jim Mayfield made a very credible presentation on the board’s duty to notify homeowners of capital projects, citing pertinent provisions of the community’s CC&Rs. For example, according to Section 7.9, the board may terminate provided services or to change the use of portions of the Common Area by providing appropriately worded notice of the change to all owners if within 30 days of the notice less than 10% of the members submit written objection. So, if 714 or more members object to the proposed change, the board will not have the power to proceed with the proposed capital improvement.

     

    Although used in NRED’s Advisory Opinion 16-01 on the issue of homeowner vote to approve capital improvement expenses and the use of surplus funds to pay for such improvements, the term “capital improvement” is defined nowhere. That fact and the yet undefined term “surplus funds” present the association with an apparent but unackno