Former Finance
Committee Member
Says Community Needs
History Lesson
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
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.
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
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?
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?
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.
Who pays more than half of the fees to Anthem
Council?
You guessed
it.
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
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:
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.