Board Director Reports on Liberty Center Status

Board Member Reports on Liberty Center Status as of February 25, 2016

by

Jim Mayfield

Sun City Anthem Board Director

Since the report on Liberty Center was issued in January, the professional engineering firm retained by the Board submitted its assessment report on the roof and interior defects at Liberty Center.  The report documents interior and roof issues at Liberty Center that, in its professional opinion, are related to construction defects, deficient maintenance procedures, and normal wear and tear.

In order to minimize the financial cost of necessary repairs to the Members, the Board initiated two actions to recover the cost of repairing the damages. 

First, SCA filed an insurance claim for repair of damages that it believes are insured losses.

Second, the Board continued its consultations with attorneys to determine if SCA has legal actions it may take to recover the costs to repair the damages at Liberty Center from a third-party.

As reported by the President, the Board has retained special counsel to initiate a construction defect cost recovery process under Chapter 40 of Nevada law.

The urgency to file this action was a result of changes to Chapter 40 during the recent legislative session. 

Specifically, the revised Chapter 40 requires that only claims filed before February 24, 2016 will be interrupted under the terms of the less restrictive conditions under Chapter 40 that existed before the recent legislative changes.

The first step in the construction defect cost recovery legal process requires SCA to provide the developer notice of the alleged construction defects and provide the developer up to 90 days to independently assess the damages and agree to assume responsibility for correcting the defects. 

Accordingly, all repair work to correct problems at the Liberty Center has been halted. 

If the developer notifies SCA that it will not voluntarily assume responsibility to correct the defects or after 90 days, SCA may resume work to correct the defects.

The estimated time needed to compete the interior and roof repairs is 10 weeks.  

Therefore for planning purposes, residents should plan for Liberty Center, including the outdoor pool area, to be out of service through August 2016.

Special counsel has reviewed the assessment report of the professional engineering firm mentioned above.  Special counsel advised the Board that the assessment report is now a work product pursuant to the Chapter 40 action. 

Accordingly, the report is a confidential attorney-client work product and will not be available for public disclosure at this time.

Cost paid to date is $51,843.44. 

This amount does not reflect actual cost incurred to date since work has been performed for which contractors have not submitted invoices approved for payment.

I shall provide an undated report in March. 

After March, control of the project and reports on Liberty Center will be the responsibility of the SCA General Manager.