SCA President’s Report 2/22/24

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SCA President’s Report 2/22/24

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    Rana Goodman

    SCA President’s Report February 22  2024

    By Steve Anderson


    With a tremendous amount of pride on Tuesday, February 20, I accepted from Mayor Romero on behalf of SCA the City of Henderson 2023 Water Conservation Award. Joining with me in the Council Chambers were Directors David Meredith and Pam Williams and Management Team members Larry Fossan, Sandy Seddon, and Doug Bradford. In addition to the efforts of the current Board of Directors, I want to recognize previous SCA Boards, members of the Facilities and Landscape Committee, and our Facilities and Landscape Department for taking the steps for Sun City Anthem to become a leader in water conservation for HOAs in the valley.

    Specifically, SCA was cited for having “converted 109,000 square feet of decorative grass to water smart landscape and installed 40 smart controllers to help save water. Thanks to their significant efforts and commitment to conservation in 2023, Sun City Anthem will now save over 6.5 million gallons of water each year!”

    Since 2018, our Board policy has been to replace non-functional grass areas on SCA-maintained properties with drought-tolerant landscaping native to the Mojave Desert. Notable grass removal and re-landscape projects completed in 2023 were the East Lawn (53,000 sq. ft.), Hampton Road (more than 1 mile of streetscape), and the entrance to Pinnacle Village (16,000 sq. ft.). The Mojave Desert’s native plants are well-adapted to the region’s arid climate, requiring significantly less water and maintenance than non-native alternatives.

    It should be noted that all of these projects were completed under the total amount that the Board approved. Together these three projects cost $1,117,138 with $1,032,666 being paid for from the main reserve account and $84,472 being paid for from Pinnacle’s reserve account.  After rebates were paid, the cost to the main association was $809,156 and the cost to Pinnacle was $74,053.

    By embracing these water-efficient landscaping options, using water-smart controllers, and replacing more than 800 valves with next-generation ones, SCA is at the forefront of water conservation in the valley. Countless other organizations, like the Southern Nevada Water Authority, the City of Henderson, and HOAs, large and small, have toured SCA to see how efficient our water conservation systems are. Over the past five years, SCA has saved nearly 200 million gallons of water. SCA’s 2024 goal is a 60% water usage savings (overall since this program started in 2018).

    On another subject, I want to report to you that the Board is exploring the modification of the contract with Western Hospitality Group to allow them to provide catering to non-resident groups and individuals. WHG has brought to our attention that there are some tremendous opportunities for adding to the restaurant revenues being lost by prohibiting catering to outside groups. This revenue could be considerable in reducing the cost of the restaurant to our residents.

    In examining our calendar for our major event rooms, we have found that particularly in later spring and during the summer we have significant availability where these rooms are not being reserved. It would seem to be prudent and sound business judgement to take advantage of these open dates and to allow catering to outside groups and individuals. At the same time, the Board and Management recognize that members of the community may have feelings about this policy change. Therefore, we would like to hear from you on this subject and to also invite all of you to attend a community forum to be scheduled in March to discuss this subject. The date, time and place will be announced via the Monday Eblast. We assure you that we will hold to our established principle of first accommodating the meetings and events or our clubs and our own residents.

    Other business being worked on include updates to the Board Policy Manual that should be ready for approval at our March meeting, the opening of bids for the landscape maintenance of the Villa communities, and the sending out of an RFP to replace A/C units at Anthem Center and Independence Center. As these projects progress you will be receiving more information.

    This month I decided to close with some quotes about being senior citizens. I found a few that I thought that you might enjoy, but my overall impression was that many of them were written by people who had not experienced old age or wrote ingratiating platitudes. I also discovered that when I searched for senior citizen quotes that I became enmeshed in auto quotes for senior citizens, full mouth dental quotes for seniors, and an ongoing list of quotes for everything else we may need or have replaced. But I did find three I thought you would enjoy.

    Serious and thoughtful quote:

    “There is a fountain of youth: it is your mind, your talents, the creativity you bring to your life and the lives of the people you love. When you learn to tap this source, you will truly have defeated age.” ~ Sophia Loren

    Be great neighbors and enjoy each moment of living!

    Stephen C. Anderson, President

    Sun City Anthem Homeowner’s Association

    Board of Directors

    Nelson Orth

    Mr. Anderson:

    If you have one iota for the best interests for the homeowners of SCA, you will cancel the WHG contract. By your own admission, there may never be any profit from the Yorktown Grill. Yet you continue to adhere to whatever the WHG asks for.

    For those SCA homeowners who read this, we must not reelect Steve Anderson to the board.

    Tien H Cheng

    Dear Mr. Anderson:  Is it possible for the Board to negotiate with WHG that in exchange for allowing them to cater to outside groups, the HOA will be relieved from all financial subsidies, so that they will be standing on their own feet.

    Tien H Cheng, 2401 Ozark Plateau Drive.



    Stephen Anderson

    You have asked a great question.  I doubt that WHG would agree to such a modification in their contract as the restaurant belongs to SCA.  It is an amenity of SCA and WHG provides the services offered through the amenity.  When Del Webb built this community the restaurant was built as part of the many amenities of the Association.  At the time Del Webb was in control, they subsidized the restaurant to the tune of at least $250,000 and perhaps even more. Over time after Del Webb pulled out and turned control over to SCA, the subsidy stopped and overtime these restaurants failed.

    When the decision was made to reopen the restaurant and enter into a contract for WHG to manage the restaurant on our behalf, the Board saw this as the reopening of an original amenity that the builder provided to residents buying houses here.  In treating it as an amenity, the most critical issue is overseeing the size of the subsidy to operate it.  All of the monthly Yorktown Grill operating statements are posted online for your review.  Every resident can see how the restaurant is doing.  While we have been progressing downward, during January the loss was almost double what was expected.  Until the restaurant has been open for at least a year, it is hard to say whether this is a trend or not. We do not have enough data to forecast how the restaurant will perform at this point.  SCA staff and board members meet monthly with WHG to go over their previous months performance.  They know that this type of overage is not acceptable.

    The whole issue of allowing catering to outside groups was initiated by SCA.  The truth be known is that when there was a meeting with WHG to discuss their being allowed to cater to outside groups, they really wanted to focus more on doing special events (wine tastings, Mother’s Day, etc) with our residents to drive up covers rather than to jump into outside catering.

    At the time that I was on the board when the contract was signed with WHG we specifically said in the contract that there would be no catering to outside groups.  We made that decision as we wanted to protect SCA groups in being able to have first chance at reserving and holding their events in our event spaces.

    Currently we have found that there is a lot of availability in later spring and during the summer when few groups are booking the event spaces.  The thought was to perhaps now allow WHG to book outside groups during these open periods.  Before making any decision SCA has scheduled a community forum on the issue, and if the board were to vote to allow catering to outside groups it would be to do so only after making sure that outside events would not bump out SCA groups and that SCA groups would always have first choice.

    The contract with WHG is incentivized so that when we go over revenue neutral, the first approximately $45,000 will go to SCA and after that it is split 50/50.  I have confidence that with some time under their belt that WHG will deliver an amenity for which the subsidy for the services will decrease.  The key issue as with any of the amenities we enjoy at SCA is that we use them and work to make them better.  Food is an individual issue and not everybody will like what is being served or how it is being served.  Not everyone will like the restaurant and will use it.  At the same time many residents are well enjoying the restaurant, its food and service.  Many of the catered club events are earning positive reviews.  If you have less than a stellar experience, please tell your server and make sure you post your experience through the contact section on the Yorktown Grill website. I guarantee that your comments will be read and will bring about changes.

    As an amenity the restaurant is no different from all of our pools.  While we focus on the costs associated with the restaurant we forget the expense for the operation of our pools by wanting to know the cost of the water, natural gas to heat the water, electricity to run the pumps and filters, and the cost of chemicals and maintenance.

    I understand the feelings in this community that have been very divided over the restaurant representing avid supports to those who avidly want the restaurant to close today.  However, the decision has been made to reopen this amenity.  The task today is to help it succeed and to exercise strong oversize to see that our anticipated and forecast level of subsidy to run it continues to decrease.

    Martin Winger


    Well the pressure to get this information posted worked and as expected the January LOSS was $50,766 on pace with November 2023 to generate a projected $500,000 to $600,000 restaurant LOSS for 2024. If you remember I reported to you that the 2024 Budgeted Loss for the restaurant was fabricated at $200,000 by the board.

    The board’s 2024 homeowner assessment was artificially kept low when you couple the real expected restaurant losses with the two now unbudgeted hires wrongfully added to payroll just recently meaning if the budget had been honestly done adding another $1million of expense your annual assessment would have been another $140 annually or $35 quarterly. That board played games and lied to keep your 2024 assessment lower that what it should have been based on their real intentions. A new board majority coming May 1st with your help electing them is going to have their hands full based on the failed leadership of this current board. You are not going to like it because your 2025 assessment is likely to be a 20% hit when you include dealing with the responsibly of the underfunded reserves.

    Looking purely at the restaurant financials for January 2024 on the website here are a few observations:
    1. Utilities and Insurance have not been included as Steve Anderson failed to keep his allocation promise and I am guessing that adds at least a $5,000 additional monthly cost.
    2. Banquet sales were 25% higher than their modest budget while food sales were off 30% from their overly optimistic budget. This just means that enough people are not showing up for lunch and dinner. I have received feedback from observers stating that SUNDAYS are totally dead and weekdays are lucky to see a one time daily seating of maybe 30% capacity. That’s just another recipe for a failed restaurant. So to the “amenity” crowd how much annual loss is ok? And to those that think individual meal sales are going to rise over time because you were told they would, what is going to cause that?
    3. Food costs were hit with an 11% food spoilage factor. Some spoilage is normal.
    4. Labor costs for supervision and managerial are out of whack for the volume of business taking place. Wait staff labor is also too high.

    So with WHG wanting to push catering and events to all comers, that is the only financial path to save the amenity. So I support that as it is the only way to keep us out of harm’s way. And it may not work. But WHG thinks it’s worth a shot. Homeowners have raised lots of concerns that that practice will tarnish the very amenity that they were sold and wanted.

    Some homeowners want the plug to be pulled contractually after the one year mark. That may be the right decision. But you must have a board majority in place that has sound financial leadership from business people and be willing to be honest and transparent with homeowners. This new board majority if elected must clean house and rid the ranks of excess payroll and underperformers. It will be a challenge fixing years of bad policy. But it has to start with you and your votes.

    Elections matter. Stay focused on the desired outcome.

    Nelson Orth

    Martin – your article was terrific, and I applaud you for taking the time to write it. As for Mr. Anderson’s response, it was his usual garbage response.

    I believe it would be worthwhile for SCA homeowners to evaluate Country Club’s restaurant policy. If a SCA homeowner wishes to belong to Yorktown Grill, then he or she can join our restaurant. If a SCA homeowner does not want to belong to Yorktown Grill, then resign your membership to attend the Yorktown Grill. Those who want to belong then pay for the restaurant expenses. Those who do not want to belong are then prohibited from any attendance to the restaurant.

    Martin Winger

    Thanks Mr. Orth,

    With due respect, I did not write this but surely to bring it to light and create much awareness to the fact that things tend to get ugly as they continue to head on down that “kick the can road!”  I got it from bobbyioblog and think if this is happening SCA homeowners must hold its pockets for fear of “the power” reaching in them to cover theirs.


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