JULY 2024 SCA UPDATE!
Kudos to the Board for having rid the Community at June 27th board meeting of The Clarkson Law Firm as general counsel with a new firm. Hopefully homeowners rights will be respected and the board will be properly advised and comply with our governing documents and the law.
The restaurant debate continues as the board approaches the 2025 Budget. In June ,YORKTOWN lost another $46,503 for a six month loss of $233, 963 excluding utilities and insurance, As you may recall the previous board deceived you by projecting only a $200,000 2024 Budgeted loss for Yorktown. It will be closer to $500,000. David Berman continues his unrelenting support as he continues to attempt to manufacture arguments justifying the restaurant’s existence. It’s absurd. It’s a lost cause. He is part of the failed leadership that influenced and supported bad financial decisions. Change is needed.
Resident Patrick Hays wrote in support of Berman, “My wife and I bought here when there was a functioning restaurant with the expectation that it would always be available as an amenity.” Let’s examine if his expectations premise is valid.
1. The governing documents do not guarantee a restaurant. Mr. Hays signed his acceptance of the governing documents as part of closing. He has no reasonable expectation for a 100% financed SCA restaurant losing $500,000 annually.
| 1. | At the time of Mr. Hays’s purchase there was a third party operator receiving a subsidy from the developer. When restaurant was no longer needed for sales purposes the subsidy was withdrawn. The restaurant closed. The third party made that decision. So the best Mr. Hays could expect to meet his expectations was a third party restaurant owner getting a subsidy. That concept failed over and over again and the board gave up. |
| 2. | Years later 4 board members foolishly voted to 100% deficit finance the restaurant and go all in on financial risk far exceeding what any home buyer had any right to expect. That’s the rub. And their projections were not just dismal to begin with they were wrong by wide margins. They had no clue what they were doing. Homeowners were duped. This may seem harsh. It is and deservedly so. This current board’s challenge is to make a decision and reflect that decision in the 2025 Budget. What’s in best interests of homeowners. Certainly not more of the same. |
| 3. | Those that oppose the current financial model of the restaurant make compelling arguments. Barry Goldstein wrote, ” There are not 200 other pools, gyms or courts nearby that compete with other benefits of living in our community.” ” I do not have to pay every time I want to use the pool, gym or courts. I do have to pay every time I want to eat at the restaurant.” The 100% deficit financed restaurant was and is NOT the standard amenity. It’s a loser as currently structured. |
Based on the governing documents and economic realities, everyone ought to manage their expectations. I think the board wants some form of a downsized operation where folks can gather while significantly reducing operating losses. After August the board will need to reflect its decision in the 2025 Budget. The decision could even come sooner.
THE JUNE 27th Board Meeting comments:
1. The Board needs to realize that CAM , James Arteaga, is just the wrong person for the job as he couldn’t even get the meeting location communicated correctly. Some people went to the theater and were redirected after receiving an incorrect notice.
| 1. | Notice this board as previous boards seem to decide everything in secret discussions outside of the meetings while the community is to be privy to their discussions. Then they come to the open meeting with orchestrated motions and seconds and pass what was previously secretly decided. It’s just wrong. It’s not what Nevada law requires. But as we know the law no longer matters. There is no working enforcement mechanism. |
3.The board still violates Nevada law by not disclosing monthly financial statements as prepared and shown to Board Treasurer.. They seem to be wrongfully sticking to quarterly disclosure. It’s just wrong.
| 1. | One seasoned observer commented on how inarticulate specific staff and board members were. So much so, that they and others left the meeting in frustration. This can be fixed by hiring a well seasoned and articulate CAM to be the primary speaker rendering the reports and referring any comment questions to those in charge of that area. Unfortunately their lack of skill in communicating does not reflect well on their abilities. The board has an opportunity to turn a weakness into a strength by reformatting the board meetings. No need to read written reports into the record. Just submit them. Use the board meetings to discuss agenda items not orchestrate prearranged outcomes. If homeowners have an opportunity to listen to the board’s internal discussions then perhaps they can discuss and challenge them at COFFEE WITH THE BOARD or in other lobbying efforts. |
The community would be better served if the agenda was split into two sections. 1. Discussion only and 2, Action items. By doing so, concerned homeowners can lobby board members outside of meetings if so desired before any votes are taken.
ANTHEM COMMUNITY COUNCIL
The board is actively looking as to how best to confront the costly assessment SCA receives annually. I sent a proposal to certain board members and the Finance Committee as to how to achieve a good result. It’s a complex issue but change can be made to benefit SCA, Solera, Coventry, Anthem Highlands and other members but because SCA has about 52% of the total assessment it needs to take on the leadership role. The plan should be put in motion so that 2026 Budget year can be favorably impacted.
Until next time…Robert