Sun City Anthem

Tuesday, August 15, 2017

Former Sun City Anthem Finance Member Sheds Light on Various Association Financial Decisions

Former Finance Committee Member
Says Community Needs History Lesson

transparent-but-wait-theres-more.png (1738×392)
by
Barry Goldstein

As a former member of the Sun City Anthem Finance Committee, I was privy to many details of the past financial condition of Sun City Anthem.

I also worked with Forrest Quinn, the current Treasurer of our association.

I'm bringing this to your attention because I was there first-hand when so many aspects of SCA history took place, and I would like to provide some of those details to you.

First...

The Transition to Self Management

self-management.jpg (1200×936)

After visiting local Homeowner Associations and some in Arizona, the board presented what they estimated we would have to pay a top line GM.

If you look at the slide show presented by Mr. Nissen, the former association Treasurer, the salary was projected to be $175,000

That annual projected income figure is approximately $100,000 LESS than the current amount being paid to the General Manager.

The Board never told us what the other communities paid their General Manager.

Let's remember the GM does not manage our individual homes.

She is responsible for the upkeep of three buildings and common grounds.

She is also responsible for the upkeep of the grounds for the 162 Villas.

Now let's deal with...

 RMI/FSR
fslogo.jpg (923×896)
The search team narrowed down their management choices to two or three firms, one of which was FSR.

The firm higher on the list than FSR was visited by three board members.

Strangely, without reason given, that firm was eliminated and FSR was rehired.

Why strangely

This firm spent a great deal of money to obtain the Sun City Anthem contract. 

Three Board members visited them, and suddenly, following that meeting, they voluntarily withdrew from consideration.

The obvious question ? 

Why

Why, after months of preparing a detailed analysis, did they do so?

Despite that question constantly being asked, THE BOARD REFUSED TO RESPOND, the matter suddenly disappeared, and FSR was retained.

How many years did we hear from the Board of Directors that FSR was not doing their job properly?  

Five years, six years?

Did they ever contact one of the other companies on that list?

No, they allowed (in their words, not mine),  an incompetent firm to continue managing our association assets.

The result of that decision?

An almost $2,000,000 cost to repair Liberty Center.

Why didn't they give another company an opportunity to prepare a formal analysis and quote?

I have no idea; they know they don't have to explain their decisions, and rarely do.

It also seems rather strange in my opinion, that a former board president, instrumental in keeping FSR here,  (Jean Capiluppo), is now the president of Anthem Council.

Guess who the management company is for Anthem Council?

You guessed it.
fslogo.jpg (923×896)
Who pays more than half of the fees to Anthem Council?

You guessed it.

HOA.JPG (2303×1954)

How is this possible?

Once again, there has been no comment from the Sun City Anthem Board of Directors responding to this matter.

Remember, according to the Sun City Anthem Board, not my words, but theirs, FSR was incompetent in their management of our association.

Now about...

The Supposed Surplus

Budget+Surplus.jpg (640×480)

Yes, Mr. Quinn (Association Treasurer)  and Mr. Orlick (Association Chief Financial Officer), say there is a positive variance of approximately $480,000.

However, it did not tell the full TRUE story.

What was omitted , was that a vast number of employee positions had not yet been filled, the result of which drastically understated what would be the true expenditures.

We have no idea what the cost of those positions will be with salary and benefits based on a full employment basis. 

Again nothing from the Board or General Manager (Sandy Seddon) regarding an estimate of those costs.

In addition to the true salary, bonus, and benefit figures, the General Manager and Board of Directors have also now gone silent on the cost of the repairs to Anthem center locker rooms.

That money will again be taken from the reserve account.

How much will be needed to replenish that account?

Based on these ADDITIONAL numbers, I seriously question if the surplus claimed by Mr. Quinn and Mr. Orlick really exists.

There is not enough information being divulged to the members.
- - - - - - - - - - - - - -
Anthem Opinions sends it sincere thanks to Barry Goldstein for his excellent commentary.

Note:

When Quinn sent his prior elbast to community members, leaving little doubt to many as to his attempting to meddle in the Removal effort, and then...subsequently forwarded by Danielle Bartle, the Sun City Anthem Activities Director, to all association clubs, an ACT that SPECIFICALLY VIOLATED Sun City Anthem regulations,  Mr. Goldstein publicly responded with a response asking Quinn for clarification of his analysis.

Quinn has REFUSED to respond. 

Bartle has NOT BEEN SANCTIONED IN ANY WAY by the General Manager, Seddon,  for violating association guidelines.

Are these actions acceptable behavior?

It is ... to those who oppose the Removal effort !

Got a comment?

Send it to us at:

scaopinions@gmail.com
  1. From Julia Lei...to...Anthem Opinions

    Hi Barry,


    Thanks for your in-depth "report" about our Board and the new Management team. Sounds like the board is either incompetent or corrupt. The board is supposed to oversee the effectiveness of the management team. When they work in concert, there is no check and balances.


    My six cents is that "this is a number's game." We have "voter apathy" problem in that only a small percentage of the residents care and vote. Some are absentee residents .. they don't care. A great number of those who are more permanent residents are indifferent about the "State of the board and the self management team." We need to tell the stories, the problems to more residents. We need to do analysis why and how the board members are elected ?


    I have lived in SCA for three years, Only until recently, I became aware of the dark stories about our board and the mismanagement of their power. Thanks for this Anthem Opinions blog to stay vigilant about the State of the SCA.

    Hope more residents will begin to pay attention.



1 comment:

  1. From Julia Lei...to...Anthem Opinions

    Hi Barry,


    Thanks for your in-depth "report" about our Board and the new Management team. Sounds like the board is either incompetent or corrupt. The board is supposed to oversee the effectiveness of the management team. When they work in concert, there is no check and balances.


    My six cents is that "this is a number's game." We have "voter apathy" problem in that only a small percentage of the residents care and vote. Some are absentee residents .. they don't care. A great number of those who are more permanent residents are indifferent about the "State of the board and the self management team." We need to tell the stories, the problems to more residents. We need to do analysis why and how the board members are elected ?


    I have lived in SCA for three years, Only until recently, I became aware of the dark stories about our board and the mismanagement of their power. Thanks for this Anthem Opinions blog to stay vigilant about the State of the SCA.

    Hope more residents will begin to pay attention.

    ReplyDelete