President’s Report – Board of Directors Meeting 2/24/22

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President’s Report – Board of Directors Meeting 2/24/22

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    Stephen Anderson


    As requested I am happy to share my President’s Report with your readers.

    It is with great pleasure that I can tell you that a BAI was approved by Sandy Seddon to hire a firm to develop a plan and cost estimates for the conversion of the bocce ball courts to pickle ball courts at Liberty Center. In addition, this firm will write the RFP for the project and oversee project management. Hopefully we will have the plan and cost estimates done within the next two months. There will be a number of steps to be taken in the future, but the process has now begun, and we are committed to providing additional pickle ball courts at Liberty Center as one of our top 5 priorities for 2022 major projects. The other priorities for major projects include turf removal, the solar project (finding out if it is economically feasible), opening the restaurant and upgrading the lighting and sound systems in Freedom Hall. We will be updating you later in the meeting today on the restaurant and anticipate having this item on our March agenda.

    The Board and Management have also identified some major capital projects that would be scheduled for 2023. It is important to identify these projects now so that they can get into the budgeting process that will take place this year for the 2023 budget. What we have agreed to focus on are the pressing space needs of our clubs and office space for staff. In particular, we have identified the needs of Wood Chips for more space, performing arts clubs for being able to go backstage from stage right, better room for costume changes and storage; fused glass is another growing group within Arts and Crafts and is in need of space; our Communications and IT Departments are in the back part of Independence Center that also houses SCA-TV and basically utilize space that was built as a warehouse of which the biggest problem is the lack of easy bathroom access and if you have been in the main office area it is bursting at its seams. These are just some of the space needs that we have identified right now. Much of this will be a multi-year project spanning a number of years. What is important is that we begin the planning and budgeting process now. Since much of this relates to building new space, we will need to rely on the Asset Enhancement Fund for construction.

    The above projects are all part of the Board’s planning for our future and how Sun City Anthem can continue to build value for the community that will continue to make us a destination 55+ community for years to come. We hope and certainly invite all residents to attend town hall meetings and to communicate with the board your vision for the future, what do we need that we do not have now, and what are the amenities that will build value for the community to continue to attract people. Please know that the Board wants to hear from you.

    Last, I am pleased to announce that the first Mark O’Toole Variety Show on March 2 has only 1 seat left and that only 125 tickets remain for the March 16th show. Get your tickets now and watch your eBlasts for knowing who the guests for each show will be.

    In ending today, I want to reflect on several relevant quotes related to the importance of planning:

    “By failing to prepare, you are preparing to fail.”  Benjamin Franklin

    “If you don’t know where you are going, you’ll end up someplace else.” Yogi Berra

    “Always plan ahead. It wasn’t raining when Noah built the ark.”  Cardinal Richard Cushing

    Stephen Anderson, President
    Sun City Anthem Board of Directors
    February 24, 2022

    Rana Goodman

    Mr. Anderson:

    What happened to the restaurant survey that you promised during your election campaign? I suspect that the results would show that, yes, the vast majority of homeowners would like to have a restaurant, but that vast majority would not want for us homeowners to pay for it. But spending our money has never been a concern of yours, considering that you have committed $15 to $20M over ten years to the Anthem Community Council for increased landscaping and maintenance. How and where is the plan for the expenditures of this money?

    Stephen Anderson

    When I ran previously I stated that I would support a restaurant if I could be convinced that it would not become a losing proposition that would continue to grow each year.  While the current agreement shows a diminishing net loss over the first four years, it then becomes revenue neutral in year 5.  Further the agreement serves to incentivize the operator to earn extra money by turning a net profit.  When that happens the Association will also benefit by sharing half of that profit.

    In my judgement, another survey that would have cost a minimum of $5000 to produce and mail out would not have told us anything other than what you have stated above.  I felt that limiting the net loss and becoming revenue neutral would serve the best interests of the community.  I recognize not everyone agrees with that stance, but also many other residents agree.

    Spending money wisely is of great concern to me.  I would correct your accusation that I committed $15 to $20 million over ten years to Anthem Community Council.  Neither I nor the rest of the SCA Board voted for that expenditure.  The Anthem Community Council voted to do that and as a contributing HOA, Sun City Anthem is required to pay that assessment.  I am not very happy with the planning of ACC in their planning and have voiced my concerns at their quarterly meetings.  This is something that I have suggested that more of our residents participate in and stay to voice their concerns.

    A major problem of ACC was that they did not have a plan for the future from their beginning.  They were slow to build an adequate reserve fund and did not project their needs to set dues to cover an adequate level of funding.  ACC is now having to face financial pressure to do their regular maintenance, fund mandated City of Henderson directives to improve line of sight issues, and to fund reserves to cover mandated turf removal, replace dying plantings, and to install new watering systems.  I am committed to not seeing that situation happen to SCA. I am committed to making sure that our reserve funding remains strong and that we look at spending money wisely on those items and amenities that will serve to grow value for our community.  We need to be looking at our future to ensure that we remain a top 55+ destination community despite being over 20 years old.  There are many newer 55+ communities in our area and people have many choices today.  We consistently rank in the top because of our well maintained buildings and the wealth of amenities and opportunities that we provide to our residents.  This is what makes SCA a highly desirable community to live in.  Last, we need to be aware that for what we receive our dues are some of the lowest in the valley.  The key in all of this is to spend money wisely.  I also fully realize that we will have differences as to what is wise.

    Rana Goodman

    Mr. Anderson:

    I am shocked and amazed at your response to my comments. You may not have realized it, but you have admitted that you are the leader of an oligarchy with no interest or consideration on the financial status of the SCA homeowners. You state that you do not want to spend $5,000 because, you believe, there are many residents who believe in your position of moving forward with a restaurant. Do you not know that January’s inflation rate was 7.5% which is the highest in the past four decades. And unless this countries energy polices change, that inflation rate will not fluctuate much. Yet you are willing to commit $200,000 to $300,000 to a restaurant project that, by your own admission, will be a losing proposition for at least the next four years. Assuming that is correct, and I believe it is, what additional funds must be committed to keep this restaurant afloat? $5,000 for a survey is a drop in the bucket considering our $9M budget. But as the leader of this oligarchy, you answer to no one, nor do you have to consider the financial status of the SCA homeowners. This project is doomed to failure, and I believe a survey will confirm my belief.

    Now to the Anthem Community Council. You state that SCA is “required” to pay our assessments to ACC. I challenge you to show me one law or one regulation, or one sentence that “requires” SCA to pay one dime to ACC, an organization that is not even recognized by the City of Henderson. And your statement that SCA has committed $15 to $20M because ACC voted on that proposal, and we were obligated to agree is absolutely insane. This is a classic example of the tail wagging the dog, and a distinction without a difference. The management company of ACC is FirstService Residential (FSR). Do you remember who our management company was before we went to our current management system. It was FSR. And why did we terminate their services? Because we found that FSR was using SCA funds to support other FSR contracted HOAs. Does this information, in any way, concern you? You have no clue where our $633,000/year that we send to ACC is spent. And where is the plan for how and where the $15M to $20M is going to be spent? We all know there is not one. But, as the head of our oligarchy, there is no concern on your part where our money goes or how it is spent.

    And finally, your statement “mandated City of Henderson directives” which ACC, according to them, must be followed. I suspect that I have read portions of the Henderson Municipal Codes (HMC), and the Henderson Master Plan more than most. These are the two documents (both of which are very lengthy) which we, as citizens of the COH, must follow. I cannot remember any mention of the term “Anthem Community Council”, and hence, I do not believe for one minute that the COH has any authority to direct any person or organization in the Anthem Community. But I have a name who supposedly provided these directives. It may take me awhile, but I will either confirm my belief or admit my error. And I promise to let you readers know.


    Tien H Cheng

    Dear Mr. Anderson:  On this controversial restaurant subject, I am afraid that I have to side with Norton.  The key issues are 1. whether the majority of the SCA residents are in favor of paying extra dues to support such a restaurant.  2. What guarantee does SCA have, in case the projected estimates are not met?  Will the restaurant management cough up the shortfall?  Will the Board of Directors cough up the shortfall ? Or most likely the SCA residents keep paying and paying…

    May I humbly request the Board to attach a restaurant ballot to opposite side of the Board Election Ballot and envelope, to solve the issue at the least possible expense (my estimate:  less than $200, using the existing ballot, paperwork and postage.

    Restaurant Ballot:

    A lot of the residents feel that it will be a nice amenity to add a restaurant in the Anthem Center.  After due diligence, the Board found that external funding from increasing your HOA dues is necessary to turn this amenity into reality.  To be as democratic as possible, the Board would like your choices:

    1. I am not willing to pay more HOA dues to subsidize a restaurant in SCA.

    2. I am willing to pay less than say, $10 per year to subsidize a canteen style service, serving sandwiches and beverage.

    3.  I am willing to pay $xx  per year additional HOA dues (please use the projected figures by the outside management, divided by the number of roofs at SCA), serving family style meals with exclusive catering.  Although the outside management estimates that the restaurant will break even in less than 5 years, there is no guarantee that such estimate can be attained, especially no one knows what inflation will be in the future.


    Tien H Cheng, M.D.

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