Sun City Anthem Board
Member
Jim
Mayfield
Addresses Liberty
Center Concerns
I have observed several posts in your blogs on the subject of Liberty Center as well as questions from Members.
The below response is one I sent to a Member who
sent well written, objective questions to the Board.
I am sending it to you for your
information.
I will not accept requests for follow up
questions until after the February Board meeting.
1. What are the problems that have been identified at Liberty
Center?
The initial problems identified were roof leaks,
excessive water penetration into the interior walls, and suspected mold related
to the roof leaks and water penetration.
Because of the scope of work, requirements of the
State Contractors Board, and a desire to have a professional, independent
assessment and supervision of needed work, the Board retained a professional
A&E (architecture and engineering) firm to manage the Liberty facility
assessment and repair process.
Once the repair work was initiated, much drywall
had to be torn out in order to have access to the areas in the roof, ceiling,
and walls that had incurred water intrusion damage.
Once the interior skeleton of much of the building
was visible, the A&E firm advised the Board that additional problems may
exist in the building that should be professionally assessed and for which
corrective action plans should be developed.
I am reluctant at this time to state a list of all
specific additional work that needs to be performed because the professional
assessments necessary to document the problems are still on-going.
What we do know is that
additional water problems have been identified in both of the locker
rooms. Several of the main mechanical systems need
assessment.
2. What are the instructions to the A&E firm from the
Board?
Once the magnitude of the original problem was
identified and other possible problems detected, the Board instructed the
A&E firm to expand its assessment work to include all--ALL--major components
and mechanical systems at Liberty Center.
The Board clearly stated that while Liberty Center
is closed, that all possible problems should be fully explored, assessed and
repaired before Liberty Center is placed back in operation.
In the long-term, this will save Members the
inconvenience of having multiple closings of Liberty Center and the cost of
multiple removals of drywall to have access for needed repairs.
In short, our direction has been to be complete,
do the job right, and to insure that once Liberty Center is placed back in
service it is in the condition or a like-new building with all all mechanical
systems and structural issues repaired in fully serviceable, like new
condition.
3. What will it cost?
The estimates the Board has received and reviewed
are not complete.
The reports of multiple contractors and
sub-contractors are needed to insure a comprehensive report.
Candidly, several of the original estimates
appeared excessive.
Therefore, the A&E firm was directed to obtain
additional estimates for certain aspects of recommended work.
(As an old, underline old, CFO and auditor, I know
how easy it is to spend other people's money.)
Now here is the rub.
Under estimating the costs will only cause
distrust in the credibility of the Board if actual costs come in higher.
Substantial over estimating costs (under a "better
safe than sorry" approach) will only cause Chicken Little to run amok.
Executing a reliable assessment and corrective
action plan based upon independent, professional and competent work takes
time.
What we do know is that the
A&E firm has told the Board that the current estimated cost for needed
repairs should not exceed $400 to $500k.
But, assessments of all major
systems are not complete.
If additional problems in
major systems are identified, the cost could still
increase.
4.
How will the work be paid for?
Several sources of funds may be available to pay
for the repairs.
The primary source will be
recovery under SCA's property insurance policy.
A claim has been filed, and
SCA is awaiting a response to its claim.
If
the insurance proceeds are not sufficient to provide all funds needed, the second source will the SCA reserve funds that are
accumulated for this type of purpose.
Now, I hate to even mention the next source
because I know the grapevine and blogs will light up over this one.
But, Members need to know that
the Board is exploring any possibility for additional recovery from one or more
legal actions.
Providing detail description on this process at
this time could hurt the eventual recovery of funds from this source.
So, I am stuck with either being silent and
thought a scoundrel or running off at the mount and proving it.
For now, the Members should know that all sources
of recovery will be explored by the Board.
5. Will the Liberty Center costs require a special
assessment?
No.
I am the former Treasurer and am familiar with the
finances of SCA.
I am also coordinating with the current Treasurer
for his input and checking of my work.
Insurance proceeds and reserve fund contributions
will be more than adequate to cover even worst case estimated costs at Liberty
Center, without significantly eroding reserve funds and causing the need for a
special assessment of an increase in the annual assessment to replenish reserve
funds.
6.
Could similar problems exist at the Anthem and
Independence Centers?
Yes.
Problems related to long-term maintenance
deficiencies identified at Liberty could exist at the other centers.
But, I hope Members will not blow this one out of
proportion.
Until SCA becomes self-managed as of April 1 and a
highly qualified Facility Director and Engineer is hired, the question will
remain a question.
What we know today is that no emergency conditions
exist at Anthem or Independence Centers, such as were identified at Liberty
Center.
Furthermore, once the new Facility Director and
Engineer is on-board, he/she will need at least six months to become familiar
with the large amount of square footage in SCA facilities for which he/she will
be responsible.
No indications exist today that a special
assessment or increase in the annual assessment is required.
I believe it would be extremely unwise to try to
project future needs out of a crystal ball.
7. How will future developments be communicated to
Members?
I plan to provide monthly updates at the monthly
Board meeting through the March meeting.
Beginning in April, it will be the responsibility
of the SCA General Manager to provide updates.
SUMMARY
The problems at Liberty Center are serious and
correcting the problems will be expensive.
Getting to the bottom of why the problems occurred
will be a responsibility of the Board.
But, the more important step will be addressing
with the SCA GM, plans to significantly strengthen future preventative
maintenance programs and routine maintenance protocols.
I hope the Members remember that the Board took
action to address the problems within 12 hours of first being notified of the
emergency conditions manifested at Liberty Center.
I also believe this incident under scores the need
to have quality reserve studies and continuous reserve funding strategies to
keep SCA reserves funded at levels well above national averages.
Both of these goals have been long-term objectives
of SCA Boards.
NOTE:
Please forgive any grammar or punctuation errors.
I do not guarantee proof reading of my own work.
I also remind you that these are my answers and do not represent the position of
other Board members or the whole
Board.
Jim Mayfield
Board Director
Sun City Anthem
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- From Tim Stebbins...to...Anthem Opinions
The message posted from Jim Mayfield included a suggestion there may be some sort of suit or legal action to recover costs of the repairs.
I would be all for that but such action might be tricky. See NRS 116.31088 below. - -----------------------------------------------------------NRS 116.31088 Meetings regarding civil actions; requirements for commencing or ratifying certain civil actions; right of units’ owners to request dismissal of certain civil actions; disclosure of terms and conditions of settlements.
1. The association shall provide written notice to each unit’s owner of a meeting at which the commencement of a civil action is to be considered at least 21 calendar days before the date of the meeting. Except as otherwise provided in this subsection, the association may commence a civil action only upon a vote or written agreement of the owners of units to which at least a majority of the votes of the members of the association are allocated. The provisions of this subsection do not apply to a civil action that is commenced:
(a) To enforce the payment of an assessment;
(b) To enforce the declaration, bylaws or rules of the association;
(c) To enforce a contract with a vendor;
(d) To proceed with a counterclaim; or
(e) To protect the health, safety and welfare of the members of the association. If a civil action is commenced pursuant to this paragraph without the required vote or agreement, the action must be ratified within 90 days after the commencement of the action by a vote or written agreement of the owners of the units to which at least a majority of votes of the members of the association are allocated. If the association, after making a good faith effort, cannot obtain the required vote or agreement to commence or ratify such a civil action, the association may thereafter seek to dismiss the action without prejudice for that reason only if a vote or written agreement of the owners of the units to which at least a majority of votes of the members of the association are allocated was obtained at the time the approval to commence or ratify the action was sought.
2. At least 10 days before an association commences or seeks to ratify the commencement of a civil action, the association shall provide a written statement to all the units’ owners that includes:
(a) A reasonable estimate of the costs of the civil action, including reasonable attorney’s fees;
(b) An explanation of the potential benefits of the civil action and the potential adverse consequences if the association does not commence the action or if the outcome of the action is not favorable to the association; and
(c) All disclosures that are required to be made upon the sale of the property.
3. No person other than a unit’s owner may request the dismissal of a civil action commenced by the association on the ground that the association failed to comply with any provision of this section.
4. If any civil action in which the association is a party is settled, the executive board shall disclose the terms and conditions of the settlement at the next regularly scheduled meeting of the executive board after the settlement has been reached. The executive board may not approve a settlement which contains any terms and conditions that would prevent the executive board from complying with the provisions of this subsection.
This is how BOARD MEMBERS SHOULD ACT in providing up to date information to homeowners.
Sadly, rather than allow this statement to act on its own, another publication has taken this opportunity to continue making EXCUSE AFTER EXCUSE in a feeble attempt to justify the lack of competence exercised by then Sun City Anthem President, ROZ BERMAN, for not bearing the true responsibility of the disaster.
Unfortunately we all know that had she demanded the property be professionally inspected PRIOR TO ACCEPTANCE, none of this would have ever occurred.
We have documented proof resident Forrest Fetherolf, made every attempt to have that inspection completed and received a deaf ear.
What would Pulte had done if the inspection would have been demanded ?
Demolish it ?
I think not !
A screw up is a screw up...and it's time we received an apology for the "mistake" that will cost Sun City Anthem $400,000 to $500,000.
On the positive side, the then Board DID SUBSEQUENTLY remove ROZ BERMAN from the Presidency shortly thereafter.