SCA MANAGEMENT’S FAILURE TO RESPECT THE LAW!
On Thursday 10/26 at the SCA Board of Directors Meeting the last item on the agenda involves a complaint I filed after management and the board rejected a lawfully submitted rebuttal to the September article in SPIRIT co-authored by Greg Swenson, SCA Treasurer, on the Main Reserves.
Here’s what I wrote:
In the September 2023 Spirit Magazine Co Authors Greg Swenson BOD Treasurer and Mike Quinn, Finance Committee member partnered with Andy Muha, Chair of the Finance Committee to describe define what is a reserve study and support the 5 Year Reserve Study( 2024-2028).
Here is an opposing opinion as to what was asserted. I support funding the Main Reserves at 100%.
Mr. Muha asserts that “ To be at 100% , we would need to contribute and additional $5.9M to reserves in 2024, or $829 per residence.” He continues, “ So what is the “ right” percentage, is it 68%, 80 % or 100%?” He states “the answer- ‘it depends.”
First increasing the Main Reserves would be done over about a 5 year period through a combination of tight control of spending and gradual assessment growth to the Main Reserves. Doing it all in 2024 was just a “straw man” tactic. The fact is that over a number of years the board has drained the reserves from a previous 90% standard to where if this 2024 budget is ratified the reserves at the end of 2024 will be 68.4 %.
Two previous board Treasurers and members of previous Finance committees, Forrest Quinn and Jim Mayfield both have sounded the alarm against the current board’s mishandling of the Main Reserves. Jim Mayfield has said , “The Main Reserves are a mess and ought to be brought back to the 90% standard that was customary when I served.” He also mentioned that the current method used by the board’s Reserve Specialist is the least preferred and reliable method for funding has been widely rejected by HOAs across the country.
All Reserve Specialists agree that funding the reserves 100% provides the best protection for homeowners from the unexpected and insulates them the best from possible special assessments. Mr. Muha’s answer remember was , “ It depends.” And that we agree on. However he asserts that “ the reserve balance over the next five years is more than adequate to maintain SCA’s assets in top- rate condition.” What happened to, “ It depends?” His conclusion is flawed by his own words.
Steve Anderson , HOA President, on Nextdoor earlier when defending the board’s pending actions for the Reserve Study and Assessment Component for the 2024 Budget said.” The key point is do we have sufficient cash flow to meet our planned and unexpected needs.”
RY on Nextdoor responded by saying,” As far as your argument that you are funding for the unexpected is pure contradiction because you cannot measure the unexpected.” “ The disaster with the Villas on your watch documents that. Their reserves were underfunded and the unexpected happened.”
Exactly! Mr. Anderson’s position is clearly refuted. In addition, what if Hurricane Hillary had hit us hard or an earthquake causes significant damage to cause insurance problems or whatever as that would be the unexpected and the best protection for homeowners is 100% funding of the reserves. The current board and current Finance Committee minimize or ignore the possible unexpected.
And because “it depends “,I urge all homeowners to show up at the November Budget ratification meeting and vote to reject the 2024 Budget.
PRIOR TO FILING THE COMPLAINT I WROTE AND SENT THE FOLLOWING CERTIFIED LETTER.
September 22, 2023
Ms. Doris Logar, Community Manager
Board of Directors VIA CERTIFIED MAIL
Sun City Anthem Community Association Incorporated
2450 Hampton Road
Henderson, Nevada 89052
Dear Management and Board of Directors:
- The September Spirit Magazine, an official publication contains the views and opinions of an officer and agents concerning an issue of official interest written by Greg Swenson, Mike Quinn and Andy Muha regarding Main Reserves for 2024. I have an opposing view and have enclosed the response to be published in the November Spirit with equal space. This will allow time for readers to determine their vote for the Budget Ratification meeting in November. NRS 116.31035 Publications containing mention of candidate or ballot question: Requirements; limitations.
1. If an official publication contains any mention of a candidate or ballot question, the official publication must, upon request and under the same terms and conditions, provide equal space to all candidates or to a representative of an organization which supports the passage or defeat of the ballot question.
2. If an official publication contains the views or opinions of the association, the executive board, a community manager or an officer, employee or agent of an association concerning an issue of official interest, the official publication must, upon request and under the same terms and conditions, provide equal space to opposing views and opinions of a unit’s owner of the common-interest community.
3. If an association has a closed-circuit television station and that station interviews, or provides time to, a candidate or a representative of an organization which supports the passage or defeat of a ballot question, the closed-circuit television station must, under the same terms and conditions, allow equal time for all candidates or a representative of an opposing view to the ballot question.
4. The association and its officers, employees and agents are immune from criminal or civil liability for any act or omission which arises out of the publication or disclosure of any information related to any person and which occurs in the course of carrying out any duties required pursuant to subsection 1, 2 or 3.
5. As used in this section:
(a) “Issue of official interest” means:
(1) Any issue on which the executive board or the units’ owners will be voting, including, without limitation, elections; and
(2) The enactment or adoption of rules or regulations that will affect the common-interest community.
(b) “Official publication” means:
(1) An official website;
(2) An official newsletter or other similar publication that is circulated to each unit’s owner; or
(3) An official bulletin board that is available to each unit’s owner.
(Added to NRS by 2011, 2414)
- In the event that Management and/or the Board rejects publication of the piece I ask that you accept this as an official complaint for failure to abide by NRS116.31035 and place the complaint on the October 26 Executive Board Open Session with these materials for homeowners to read. NRS 116.31087 Right of units’ owners to have certain complaints placed on agenda of meeting of executive board.
1. If an executive board receives a written complaint from a unit’s owner alleging that the executive board has violated any provision of this chapter or any provision of the governing documents of the association, the executive board shall, upon the written request of the unit’s owner, place the subject of the complaint on the agenda of the next regularly scheduled meeting of the executive board.
2. Not later than 10 business days after the date that the association receives such a complaint, the executive board or an authorized representative of the association shall acknowledge the receipt of the complaint and notify the unit’s owner that, if the unit’s owner submits a written request that the subject of the complaint be placed on the agenda of the next regularly scheduled meeting of the executive board, the subject of the complaint will be placed on the agenda of the next regularly scheduled meeting of the executive board.
(Added to NRS by 2003, 2218; A 2009, 2892)
- Further this letter serves to notify the board and management know that should SCACAI fail to abide by the provisions of NRS 116 on this matter an Intervention Affidavit will be filed asking to hold the board and management accountable for bad faith violations and seek fines, costs and other disciplinary action that the Commission would find appropriate to discourage abuse of power by management and the board. NRS 116.1113 Obligation of good faith. Every contract or duty governed by this chapter imposes an obligation of good faith in its performance or enforcement.
Time is of the essence.
Sincerely
Robert A. Stern Henderson, Nevada 89044
IN back and forth written communications with Doris Logar Community manager she claims the article written by Greg Swenson “does not contain the views or opinions of a Board Member concerning an issue of official interest.” For those of you that can review all of this and want to you can see their dishonesty. And when they added the complaint to the 10/26/23 BOD Agenda they chose to leave out the paperwork trail so that homeowners would be in the dark. I asked them to add it to the Board Book which would be proper and transparent. They refused and challenged me to appear. I have experienced their kangaroo court tactics before and I won’t play their game.
This is such flagrant abuse of power that the 2024 election hopefully will create a new board majority to put us on the road to eliminating current management and minions.
I know this is long so forgive me but presenting the detail is important.
Until next time…Robert
Bob, well stated and extremely thorough. Thanks for the input and keep us informed.
Mr. Stern, I appreciate your diligence on this SCA HOA Management. If replacing some of the HOA Board members will stop the nose bleed, do u have any recruits to replace the departing HOA Board? Please keep us informed.
Hi Barbara
Thanks for the question as it is something a number of people have asked me privately. I am in discussion with a number of qualified people who are waiting to make a decision. One of the concerns is that the weaponized counsel will act unlawfully and attempt to disqualify people as he did with Pam Williams. She fought back and prevailed. A lot is at stake here for the Community. Our board culture of the past few years has been dominated by an arrogance and abuse of power and an unqualified management and staff that creates so much busy work for board members( with their permission) that their oversight responsibilities are slighted as they become worker bees.
If a new board majority can be elected( and I think with help from so many like you communicating within my network) it is very possible the entire mode of governance can be transformed. The ill advised food and beverage policy at Anthem Center that was approved and sent to all of us by mail and being revoked on Thursday is an example of current bad governance. Luckily the backlash was so strong it was revoked. David Berman and I actually agreed on something. Board Members must not be constantly going to meetings and putting out fires. Board members should be able with a properly organized and efficient management contribute 30 hours a MONTH not a week.
A new board majority takes 4 votes. It is my hope that the Community will support candidates that will change the culture so that
1. Weaponized counsel tactics against homeowners will be eliminated and the rule of law respected and followed. Replacing current General counsel is a priority.
2. Board members will reverse the upward delegation by COO Sandy Seddon and not be worker bees but rather policy proponents as the governing documents provide. This means that the staffing of management will need an overhaul. The payroll is bloated and in certain key areas underperforming. This will take board members that can see beyond their middle manager aspirations awaiting success and power that they did not achieve in their lives earlier. This is a common problem in mature HOAs. A new board will have to figure out how to transition.
3. The financial focus will be to maintain existing assets properly while beginning to incrementally restore Main Reserves to the previous 90% standard. It will take a number of years of prudent financial management and common sense.
4. The restaurant is not a campaign issue and should be allowed to run its course under the terms of the contract. The Board should not attempt to micromanage. The accounting for the restaurant and transparency is an issue as the board and CFO have really botched this. I won’t get too much into the weeds but it is known that utilities and lack of meters and other accounting issues have been mishandled. The 2024 Budget has not been properly prepared as the gross revenues are not even budgeted for and disclosed( as required by Nevada law) in the Revenue section. It is my view that the current CFO with title inflation is unqualified and overpaid and ought to be replaced. The On the Job training has really hurt our operational performance. A new board ought to support that.
5. And so as we get closer to 2024 I believe 3 strong candidates will emerge. Once nominations close in February I will become more involved in supporting their candidacy.
It is my hope that the current board holds off on new capital projects outside the Reserves and discloses what it intends to spend in 2024 from the Main Reserves by disclosing each asset expenditure. They have really botched the Reserve Study action plan by Steve Anderson declaring it dead on arrival as it relates to 2024’s approximate $4.5 million expenditure schedule. Think about it. They approved a Reserve Study with paid for Reserve Specialist’s current work in the late summer of 2023 to begin January 1, 2024 and then immediately after approval rejected the Reserve Specialist’s 2024 expenditure schedule while approving a 2024 Budget. This is crazy making and financial incompetence. The Community deserves better governance and hopefully the 2024 election will bring us results that will bring positive change. It is the only way to stop the nose bleed. Thanks Barbara.