Thursday, June 23, 2022

Lack of Information? Communication ?


Here is just a small portion of a recent post in Talk of Sun City that 3 Advocates took part in ..... and one other. To read the entire post, check out the Thread entitled, "Shortsighted, a way of life."



..........That is indeed a "sad story" and one told and retold. There is virtually no effort or energy into welcoming new comers, or helping them understand. This idea the once a year event in Jan or Feb covers the bases is wholly inadequate. Mike Wendell has repeatedly told them about their failure in communication. Alas, it falls on deaf ears. This community could be so much much more. Basic education on our history, what we have here and where it all is should be boiler plate simple. Of course, if you don't care, stay the course.  The RCSC doesn't see or feel a need for any of that. Thinking the Focus video is good enough is what? 


There are a variety of avenues through which information is available.  Perhaps we might be better served if we directed people to where such information is located. An alternative approach for the woman looking for Aqua Fitness TIBYBI could have been to direct her to the Clubs Office while she was at Lakeview Center, rather than sending her off to Bell (a location which has never had Aqua Fitness classes). This would have enabled her the opportunity to learn where this information can be found - in SunViews or on the RCSC website at www.suncityaz.org, where there's also a link directly to the club's own website which has this information along with contact information - https://aquafitnesssuncity.com/



Information is also available and provided to residents in person at Cardholder Servicers, Chartered Clubs and directly from the Sun City Visitors Center who invites all new members to their offices at Bell to learn about what RCSC and Sun City has to offer (a process that has been ongoing for many years). Facilities Attendants, too, provide much information and assistance. Let's help people locate where the information can be found and stop saying it is not available.


......Do you know, for as long as i have lived here, the answer from the RCSC has always been, we do enough. Of course back in those earlier days there were far more meetings, the paper edition of the Sun Views was readily available, the Visitor Center was a wholly different free standing entity that at one point bought a bus and gave tours. The Sun Views also every month included articles by and from the clubs. Even back then, i argued we could do better.



Every time the argument was made, the solution was to make the resident come to us (the RCSC). Let's do a recap; 27,500 rooftops in Sun City. An average number of home sold over the past 15 years, somewhere between 1700 and 2000. Just for discussion purposes, let's use 1700 Let's multiply that 15 years by 17,000 and we come up with a tasty little total of more than 25,000 homes.



Then let's pretend the RCSC took a real interest in communicating and educating every new buyer. A couple of new buyer monthly coffee's, introductions to clubs and what they offered, still doing bus tours so new members knew what stuff was at each facility. With each orientation, we taught those new buyers the history of the community and why we were unique, special and along with it the importance of self-governance and the role they could each play. How about if everyone that attended supplied their email addresses to enhance our base of emails. How about if we video recorded the coffee session's for playback for those who couldn't attend in person. Best of all, how about if we polled everyone of them about what they wanted and why they chose Sun City. Now the rumor is they want to spend a boatload on a survey from ASU.



Imagine what a different world Sun City would be today. What a novel approach, engaging people from the very beginning, make them feel welcomed and appreciated for buying into the first active age restricted community in the nation. But the expense you say; here's the numbers at the point of sale: $4000 PIF, $300 transfer fee and $496 dollars lot assessment. Nearly $5000 each and every sale. Not maybe, pay it or you don't get in. Nope, not arguing that it would be cheap to do it right, but it would change the entire dynamic in the community. Those moving here would come armed with knowledge and an appreciation of just how good it is. More importantly, why they needed to be involved.



Would everyone take advantage? Of course not, it would be foolish to argue they would. However, it would be infinitely different. The angst wouldn't be there. New owners would understand the importance of volunteering and where they could do it. From the outset we would know what their interests were and data accumulation would be on a wholly different tract. Welcoming new owners would become a priority, not a second thought once a year where they are buried with information.



We can't fix where we have been. We can address where we are going forward. These are simply the lessons we learned from Sun City's beginning. John Meeker got it, building a sense of community took hard work and a commitment. It wasn't left to chance. It was a priority and one i would argue, the current RCSC doesn't give two shits about. So i am clear, i have been saying these things for years and what i saw from the past 15 was the RCSC running from our history, not towards it.



The one thing i know for certain about Sun City is way too few members know far too little about how Sun City works. It doesn't have to be that way.


.......I asked you above to imagine what Sun City would look like today if 10 or 15 years ago we had centered on an inclusive ever engaging role with new home owners. If we had made membership education an investment in our future, would we be in a different place? Would it be better? We'll never know. If they hadn't been afraid of the answers they would have gotten, they (the RCSC) would have just asked them. Clearly, they weren't interested. Are they now?

9 comments:

Anonymous said...

Here’s the link to the whole thread on Talj of Sun City. You do not have to be a member to read.
https://talkofsuncity.com/threads/short-sighted-a-way-of-life.4409/

Jean Totten said...

Thank you Anonymous. I had linked it in the first sentence, but perhaps it wasn't highlighted enough.

For anyone reading this comment, also check out comments made on Blogs. Interesting reading.

And Talk of Sun City, which has a link right on our homepage, always has interesting material.

Just doing our Communicating/Educating thing!!

Christine da Pizan said...

Bill, this is the only platform I can reach you.

As I told you after the last Board meeting, you are wasting time and energy on the 990’s. You have only half the story if that. I advised you that you really review the Fiscal Year End 12/31/20 CPA prepared by the accountants to see the real figures.

The number you are looking for regarding golf expenses for FYE 12/31/20 is $8,942,997. It is broken down like this:
Salaries and wages $4,025,694
Utilities:$818,517
Depreciation $2,281,764
Repairs and maintenance $601,295
Operating and administrative $1,020,466
Cost of merchandise sold $195,261

You can thank me anytime. BTW. Last time we met I had this info with me but none of your people asked me.
Also the accountants will not start on the FYE 12/31/21 until August and statement will not be available until late October.
Stop fixating on the 990’s and stick with the financial statements, that’s where you find the real story.

Have a nice summer.

Bill Pearson said...

Thanks for the information Dave. I will take your word for it and in fact used your numbers on talkofsuncity. If anyone would have asked, i would have "guessed" the expense side on the 990's for 2020 would come in at about 9 million dollars. That is very close to what Sun City West's increased from 2019 to 2020.

The bigger issue is this; We know there was a proposal from Director Collins to increase outside full play passes at the June Member/Board exchange. We know it was defeated, in part because both the general manager and the director of golf told the board, all of us present and all of those watching, that "golf was profitable in 2021."

So, as a numbers guy, what do you expect the odds are the RCSC turned a 2 million dollar loss in 2020 in to a profit in 2021? BTW, the total revenue collected, from the Dec 2021 financials, shows around 7.3 million dollars. It would truly be amazing, given inflation was running what? 8% or 9%?

Christine de Pizan said...

Bill, the problem with these statements is that I find them totally appalling. At times the numbers just don’t add up. An example is depreciation. Note 4 of the FYE 2020 F/S lists accumulated depreciation at $83,491,170, covering land improvements (but not work in progress a/k/a WIP), buildings and improvements, furniture and equipment, solar equipment and vehicles. Unimproved land is excluded as it does not depreciate. Yet on the supplemental spreadsheet of the various business units the total depreciation is $5,170,073. Where is the difference between this figure and the$83M figure in note 4? I may be missing some accounting razzle dazzle where I would defer to my bylaw committee member Patrick Gannon for clarification as he is a CPA and I am not.

Are you aware that RCSC wrote off accounts receivable (overdue 2years or more totaling just over $724,000 in 2020? The figure in 2019 was almost $646,000. The odd thing here is a Board Designed account receivable but no explanation what is the receivable. Again I would defer to Patrick on this.

There is another figure I am curious about but will not discuss here at this time. I want to talk to Patrick when I have chance.

Hope you find this interesting.

Bill Pearson said...

I not only find it interesting, have always been astounded by it. For example, we have at the museum a study done in the 80's by a resident who need a cost analysis of all the RECSC amenities. If memory serves me, the value was around 80 million dollars. He did it on a replacement value, building by building, location by location.

40 years later, the RCSC claims an asset value of what, 120 or 130 million dollars. And that's after 100 million dollar in updates. Hell, the appreciation alone would far exceed that. I suspect the numbers are minimized for a reason, though given our tax status, it makes no sense.

Finally i had no idea the RCSC wrote off that kind of money? The question is why? They have the right to lean properties that are delinquent. I know they don't want to foreclose on property (that's a good thing in most part), but the lien can be collected on at the point of sale. The rub is on those properties with outstanding debts higher than the property values, but with home prices of late, i can't imagine that being the case.

The real question becomes why? More importantly who made those decisions to write off almost 1.4 million dollars in debt. They (the board) have a fiduciary obligation to try and collect those delinquent payments.

One final question, is the information you are posting on line?

Christine de Pisano said...

Bill, I will start with your last question first, as far as I know the qualified audit for FYE is not on line. It’s not that they are state secrets but when I went to the corporate office back in 2009 and requested a copy the receptionist seemed stunned by my request. I had to fill out a form but I did receive same and all pages were there. Flash forward the present when I was talking to a couple of Board members about the statements, one they seemed surprise it existed and two they asked how I acquired same. I told them I just asked and I also have a copy of the investments. I also advised them I was surprised they were not supplied this document automatically as they were Board members. I just find this strange, very strange.

As for the write offs I posted, there are attempts to collect overdue fees by a contracted third party and I will say they are some what successful. Their efforts are in the monthly management report.

As for the rec fees that are over two years old, I believe that is when a lien is filed and every subsequent year the fees are not paid. Collection is not done solely on foreclosure, although that is one instance. Another is when the homeowner passes away and the heirs (usually children or grandchildren of the deceased) do not want the property and put it up for sale. At closing, if there are not what are called superior claims (HELOC, reverse mortgages, etc.) RCSC collects the back fees and the files a release of lien thereby providing a clean title. As you were probably aware this is handled by the wholly owned subsidiary Sun City Property Holdings,Inc. Contrary to public belief it was never intended to throw “little old ladies” out on the street. Last time I ran for the Board, I was at the Weavers down in Oakmont Center and they asked if I could explain this. I told I could but it would be three parts. At the end they were thrilled to understand this and asked if I could come back and explain this to their friends. I was asked how I knew all this and said my company spent over $400,000 to train me and I felt I had an obligation to educate people on areas I handled during my career.

Final thought, reality and accounting. For the purpose of accounting fixed assets (buildings, vehicles, etc. are depreciated accounting to a schedule, which is listed in the CPA notes. Their value for that year is listed but when they are fully depreciated, they are no longer listed. The assets exists in reality not in accounting. I am a little on thin ice here and I would like to invoke Patrick, but Mountainview (as strictly as an example) is more than twenty five years old (assuming no improvements were made) for accounting purposes does not exists but in reality it does. Although not listed on the financial statement I believe it would be called an unrealized assets, meaning its true value is not realized (known) until it is sold. It’s like that 1986 Porsche 911 Targa black with the whale fin sitting in your garage Bill.

I know this has been a bit wordy but it can be difficult to explain the above without you sitting with me showing you a statement. Happy to do that and you can bring others if you desire.

Thank Fidelity and Deposit Company of Maryland for taking a chance on me and grooming me for management. As I said I feel an obligation to share what I know, my parents and my younger brother felt the same way with their areas of deep knowledge. RIP.

Stay cool my man.

Bill Pearson said...

Thanks again Dave. All of that helps, except the piece about writing off the 1.4 million dollars. The RCSC always has carried forward outstanding balances for unpaid lot assessment and PIF. I normally look at those figures and they are pretty much a constant. What i do know about a lien is it does have to be renewed, but i also know there is a pretty high interest they can attach to the debt. Hopefully they are doing doing that. With home prices where they are these days, i cannot imagine anything the RCSC wouldn't be able to recover at the point of sale. That's why you number threw me.

Christine de Piza said...

Bill, a couple of points you mentioned, liens and recovering at point of sale.

I will start with liens and renewing. As a caveat, I have not read Arizona lien law recently so numbers I state might not be exactly correct but it is the process that is important. You are correct that liens must be renewed I believe every five years if it is not perfected on. I think in Arizona you perfect (prove in court) within two years or the renewal thing kicks in. I am not sure a prove up is necessary for this but I put it in anyway.

As for collecting at the point of sale, as I mentioned earlier the RCSC lien would be inferior to other claims such as unpaid mortgage balance, unpaid balance on a HELOC, reverse mortgages (you do not know how much I hate them), property taxes.These would be filed by the lending institutions upon approval. These financial instruments are secured by the property as the RCSC is not, in spite of what that dolt Ann Stewart believed. In substance, RCSC would receive the “crumbs” if any after the other creditors are paid. In reality, there would have to be no other claims for RCSC to collect. Also creditors are ranked by importance by statute I believe which means RCSC would be down the food chain.

This is a bit of a complicated situation to cover in a post! More conducive to a face to face meeting. I also promised to bone up on AZ lien law.