UPWARD DELEGATION & THE PETER PRINCIPLE!
With Yorktown open and operating the journey of viability and at what cost emerges. The board has a responsibility to ensure that the accountings are accurate and all inclusive so that it can monitor performance. How SCA determines success or failure needs to be defined because the contract contains elements for measurement of operations. Where is COO Sandy Seddon in all this?
- The parties agreed that Yorktown had to be opened for 1 year before considering termination of the contract and if so triggered there would be a 6 month notice.
- Every August 15 WHG provides its budget for the following calendar year and SCA has approval rights to be exercised within 45 days which allows it to be incorporated into the SCA annual budget usually approved by the board at September Board meeting. So this should be in place for 2024 Budget.
- Utilities especially electricity and gas are not set up with exclusive meters for the restaurant. The board made the decision to not install meters claiming the expense was too great but assured homeowners that they had already thought thru an effective allocation process that would be satisfactory. Yet there is no transparency. Through July there is no indication that they have kept their word. Surely during construction and start up operations utilities were consumed but not accounted for and allocated as promised.
- The contract can be terminated if WHG does not meet certain financial measurements and President Anderson has publicly assured homeowners competent monitors are in place. SCA must remain vigilant. I find it interesting that Mr. Anderson rather than COO Sandy Seddon assumes the mantle of responsibility when in fact our operational structure calls for Ms. Seddon to own the responsibility. And neither have the business credentials nor track records to assure us of a good result. Welcome to upward delegation and the Peter Principle alive and well in SCA.
SCA needs to make some personnel changes to protect homeowners financially. It will take a new board majority and new leadership to make better financial decisions including the proper funding of the Main Reserves. Until next time….Robert