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Monday, September 25, 2017

Sun City Anthem Treasurer: Before and After Election ((Part One)

 Would the Real Forrest Quinn
Please Step Forward ?
(Part One of Two)

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Forrest Quinn is the Sun City Anthem Treasurer, and is now (along with other members of the Sun City Anthem Board) the subject of an impending formal Nevada Real Estate complaint resulting from actions that allege his interference with the Removal election.

This is the first part of a two part series examining Mr. Quinn prior to his election to the Sun City Anthem Board and his actions since that election.

Let's look at this individual closely and ask yourself:

Were the unit owners DUPED when he was elected to the Sun City Anthem Board of Directors earlier in 2017?

Mr. Quinn had been the former Chairman of the association finance committee and had NUMEROUS disagreements with former Association Treasurer, Thomas Nissenone of the four individuals subject to removal.

On February 25, 2016, he asked permission from Anthem Opinions to submit an article for publication.

Because our publication welcomes articles from current and past members of the Sun City Anthem Boards, we were most happy to do so.

That article was entitled:

"Former Sun City Anthem Finance Committee Chairman Asks Questions of 2016 Board Candidates"

We suggest you read it.  

It can be obtained simply by clicking on this link:




Let's go back in time and look closely to some of the points he addressed a year BEFORE he was elected to the Sun City Anthem Board and compare them to his ACTIONS TODAY.

By reading the article, you will see that he asked the 2016 candidates a number of questions.

Quinn would first ask:


Should SCA Board Members Be Disciplined for Misconduct?



How should SCA’s governing documents be changed to censure, discipline, demote, or remove board members who fail to follow NRS 116, SCA’s Board Policy Manual or Board Resolutions?



TODAY

As initially stated, he is now subject to a formal complaint for actions he, himself, has committed , alleged to have VIOLATED NRS 116 regulations pertaining to ballot election interference.

If found to have violated the Nevada statues, what would be his current position on HIMSELF?

What is Being Done and What Should Be Done, to Mitigate the Liberty Center Damages?

Has FSR’s payroll (which SCA reimburses) been reduced to reflect the reduction in service?   If so, how much money is the community saving per week, or per month?

Should/Has FRS’s monthly management fee been reduced/suspended due to the reduction in services?

TODAY

Now that he is the current Association Treasurer, what has he done to curb association payrolls? 

The top 5 management positions in Sun City Anthem now exceed an annual compensation level of  $1,000,000 plus the cost of benefits.

How Will You Evaluate Employee Performance?

Within a year or so, SCA’s new employees will be expecting pay raises and/or bonuses.  How will you determine if they did an unsatisfactory job, an adequate job, or an excellent job? 

Will pay raises be granted for increasing the number of bus trips, organizing more parking lot sales, cleaner bathrooms…. Just how will employee performance be determined?

TODAY

836 Sun City Anthem Unit owners have signed a "no confidence" petition against Sandra Seddon, the Association General Manager. 

The cover letter which accompanied these complaints asked they be included in the employee personnel file for purposes of future employee evaluation.  

Has this taken place?

In addition, formal complaints are being filed with the Nevada Real Estate Division alleging  the General Manager and Community Association Manager for Ballot interference violation.

If found to be in violation of Nevada law, what course of action does he favor in light of HIS own comments?

How Will You Measure SCA’s Performance After Transition?

A business can measure performance by:  

Its percentage increase in sale, an increase in profit, a cost reduction, its return-on-assets, its return-on-equity, etc.   

As a non-profit entity, other than lowering costs, none of these business metrics are particularly suitable for SCA. 

What performance goals will you set and how will progress toward those goals be measured?  

On April 1, 2017, you will look back and say: “Transition was a success(failure) because….?

TODAY

Where is Mr Quinn's outline of how he will evaluate employee performance? 

Especially in the discovery that $1,500,000 of budgeted reserve projects seem to be deferred?

Also, if there is a difference between a for-profit and not-for-profit organization, what was the purpose of employing a Chief Financial Officer and paying that individual close to $200,000 per year?

How has he influence lowering costs? 

What is the Future Role of SCA’s Finance Committee?

Should the Finance Committee be an independent body like SCA’s Audit Committee, providing independent analysis and opinions to the SCA’s community?

Or, should the Finance Committee remain under the control of SCA’s board? 

(Unfortunately, to the detriment to the community, the FC’s original, useful and insightful work is often suppressed, censured, trashed and/or ignored by SCA’s board).

TODAY

What has he done to increase the input by the SCA finance committee? 

Why hasn't he addressed the current insurance crisis that exists?

Did SCA have Surplus Cash on 12/31/15?

In the three years from 12/31/12 to 12/31/15, SCA’s year-end cash balance has doubled from $1,334,000 to $2,726,000.  

This is an increase of $1,392,000, or nearly $195/home.   

How has SCA changed since 2012 so that SCA now requires twice as much cash-on-hand?

TODAY

Now as the Association Treasurer, perhaps he  might answer his own  question ???

Assuming We Can’t Change its Use, How Much of a Subsidy Should a Restaurant Vendor Receive from SCA?

I use “subsidy” in the sense that a vendor pays less than SCA’s full cost to maintain the restaurant.  

I estimate SCA’s cost ranges between $160,000 to $200,000 per year (See Note 1 below).   

As I recall, Café V’s (then Vic’s) original lease was $48,000 /year plus utilities, so they paid about $90,000/year against SCA’s total costs.  

Under my definition, Café V received a $70,000 to $110,000 “subsidy”.

Based on our experience, it is unlikely any vendor can pay SCA’s full cost to maintain this space.   

Any future vendor will likely require either a direct and/or indirect subsidy.  Should SCA’s annual subsidy to a restaurant be:

$0 (zero)/year
$50,000/year ($7.00/home)
$100,000/year ($14.00/home)
$150,000/year ($21.00/home)
$200,000/year ($28.00/home)
$200,000+/year

For example, if SCA grants a $14/home subsidy, would a restaurant provide residents with more than a $14/home return in value?

If we can change the restaurant to an alternate use, SCA’s cost to maintain that space will not drop to zero.  

Any alternative use will require a “subsidy” for utilities, reserve contributions, janitorial services, R&M, insurance, etc.  

This could easily be $80,000 to $100,000 per year.

Note #1 SCA’s Cost to Maintain the Restaurant Space  

SCA’s accounts are not well organized, so SCA’s total cost is difficult to determine.  

My estimated cost includes $80,000 to $100,000/year of Reserve Fund contributions, $40,000/year in utilities, $15,000/year of Property Tax, $5,000/year in Service Agreements, $20,000/year in Repairs & Maintenance plus unknown amounts for Insurance, Janitorial Services and Other.  

Even if the Restaurant remains closed, many of these costs will remain.
TODAY

What if it is true that a tax exempt HOA is not allowed under IRS rules to subsidize a for-profit business?

Tomorrow...we examine his election to the Treasurer position a few short months ago.

Got a comment?

Send it to us at:

  1. From Jerry Lafavor...to...Anthem Opinions

    It is my humble opinion that an "on site" restaurant is an amenity that offers one more advantage over other properties.

    The fact that it is ample in size with an outstanding view is an added benefit.

    I have lived here since Trumpets. It appears all of our previous restaurants have missed the mark on what the residents would like what is offered.

    It appears obvious that a "high end" restaurantis not wanted.

    There are many of those in the city today. It seems, price, quality of food, and service are the criteria needed to be addressed.

    It also seems to me the bar, with beverages priced right, is an excellent asset to this amenity.

    Of course the area could be changed to just another meeting room if that is what the residents choose.

    But I am sure that once the potential of a restaurant disappears, it will never return again.
    So, I guess the question is, Is this an an amenity or is it just an unnecessary expense.

    I think of it as an amenity.

1 comment:

  1. From Jerry Lafavor...to...Anthem Opinions

    It is my humble opinion that an "on site" restaurant is an amenity that offers one more advantage over other properties.

    The fact that it is ample in size with an outstanding view is an added benefit.

    I have lived here since Trumpets. It appears all of our previous restaurants have missed the mark on what the residents would like what is offered.

    It appears obvious that a "high end" restaurantis not wanted.

    There are many of those in the city today. It seems, price, quality of food, and service are the criteria needed to be addressed.

    It also seems to me the bar, with beverages priced right, is an excellent asset to this amenity.

    Of course the area could be changed to just another meeting room if that is what the residents choose.

    But I am sure that once the potential of a restaurant disappears, it will never return again.
    So, I guess the question is, Is this an an amenity or is it just an unnecessary expense.

    I think of it as an amenity.

    ReplyDelete