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Once the July board marathon was complete, Treasurer Roz Berman held a meeting for Villa owners to begin the process of explaining her research into the Villa reserve funding situation. Roz will be holding several more meetings in the next few months to continue the process,

Property and Grounds’ first report on security has resulted in a Board/P&G workshop which will be held this Thursday evening (8/9). This workshop will allow the Board to prioritize the committee recommendations, and decide how to approach those recommendations that need additional research.

The document project is moving well, and we have expanded the staff to include three new volunteers. One of the objects of the project is to gather whatever documents we can to help us defend ourselves in the Trumpets lawsuit. If you are discreet, are willing to sign a confidentiality agreement, and have some auditing background, contact Elaine Berg, as we have a project we need to staff. Elaine also needs a few more volunteers who are discreet and know their alphabet to continue the sorting project.

At the July Board meeting, the Board began the annual budget cycle by enacting a series of guidelines to be used by the Finance Committee in creating our 2008 budget. These guidelines range from how to handle reserves to what to keep in available cash for next year, but it should be noted that they are just guidelines, not hard and fast rules. As always, the budget will be prepared for a walkthru in October and must be ratified at a homeowner’s meeting on November 15. I encourage anyone who has in interest to come to the budget work sessions which will be held over the next few weeks. The budget schedule is available on the Association website.

The most exciting recent news is Scott Fewell’s proposal to turn the Spirit from a developer’s sales tool into a lifestyle magazine for SCA residents. Right now, Scott’s greatest need is for people who would like to write articles for the new Spirit. Anyone, not just those with writing experience, is invited to submit a writing sample for Scott’s review. This could be one of the most exciting and rewarding volunteer opportunities in Sun City Anthem.

At the request of residents, the board obtained several legal opinions from our attorneys, which were read at the July board meeting. These opinions were on the Trumpets lawsuit, the legality of the April 26, 2007 board meeting, and on the Villa reserve settlement agreement. These opinions can be found on the Association website.

Regarding the Association website, www.SCA-HOA.com, I want to personally thank all of you who have recently signed up to receive my email bulletins. I have been told that we have gone from fewer than 800 subscribers to official emails on May 1, to over one thousand subscribers today. For those of you who receive this and other email bulletins, please encourage all your email-literate friends to sign up on our website. We would like to be able to reach as many residents as possible through these emails, and my personal goal is to have 3000 homes accessible by the time my presidential term is complete.

Thank you all for your volunteer help and your interest in making Sun City Anthem all that it can be for all of us.

In previous Updates I’ve emphasized the Board’s commitment to make informed decisions so that we continue to be a financially secure and well-managed community. This week’s Board Update focuses on our progress towards that goal in two critical areas: Financial Management and Trumpets. While the results of our recent efforts won’t be known immediately, I am confident we are moving in the right direction on both fronts.

At its most fundamental level, financial security means taking in more money than one spends. One reason I believe we’re headed in the right direction is the news this week from our Communications Manager, Scott Fewell. After many months diligent work by Scott straightening out the accounting, the June issue of Spirit Magazine produced approximately $45,000 in advertising revenue, offsetting $26,000 in production costs and returning a net $19,000 to our Association coffers. Now that the books are in order, Scott will begin to transform The Spirit from “a glossy sales tool” created by the developer to a community magazine that contains information and articles reflective of our lifestyle. Please get in touch with Scott if you have ideas or interest in helping with this effort. (click on Communications Manager-Scott Fewell under e-forms on www.SCA-HOA.com )

Equally important to financial security are accountability and accurate reporting. Our Finance Committee is intent on improving both, and recently held two workshops to that end. The first workshop was with Red Rock Financial, the collection agency owned by RMI that does our collection work. The second was a workshop with the Board to establish a common understanding and direction. Both workshops were open to residents and several took advantage of the opportunity to learn more about the financial workings of our Association.

The main focus of the workshop with RRF was a detailed presentation by Sabrina Gayhart from Red Rock and Roz Berman, our Treasurer, on the collection process we currently use. Their knowledge and insight was invaluable and their preparation obvious as they responded to questions from Board members, the Finance Committee, and residents both during and after the presentation. The Board, the Finance Committee and RRF all left with a list of action items that should help us use the process better in the future.

The Board’s workshop with the Finance Committee was particularly helpful for the four new board members, since only one, Roz Berman, has gone through a budget cycle. Topics of discussion included our investment policy, problems with our financial reporting and proposals to address them, planning and responsibilities for the 2008 budget, and RMI’s recent transition to a new accounting system, RMIConnect. Due to the Finance Committee’s interest in understanding the improved reporting capability of the new system, several of us met separately with RMI to discuss our concerns further. We hope this will lead to increased visibility into our financials and improved communication between SCA and RMI financial teams.

On the management side, there was a lot of activity on the Trumpets lawsuit. As you might remember, on May 24, our attorney filed a motion to dismiss several parts of S&D’s complaint. On July 10, S&D’s attorney responded to our motion to dismiss, and our attorney answered the same day. As was first noted in the May 26 Board Meeting by Vice President Bob Berman, we have been in negotiations with S&D, through our attorneys, whereby they would leave our premises amicably while the court case continued. When these negotiations broke down and were terminated without an agreement two weeks ago, the board decided to pursue eviction proceedings against S&D. The unlawful detainer action to accomplish this was filed with the court this afternoon. Some of you might question why this eviction motion wasn’t filed sooner. As with many things in life, timing is everything in litigation. The Board felt it best to try to recover control of Trumpets through negotiations. When that failed, we immediately agreed to go to court to regain control of our premises.

The first hearing on S&D’s suit against SCA will be Tuesday, July 17 at 9:00 in Department 11 of the District court. The first hearing on our eviction proceedings is scheduled for August 20 at 9:30 a.m. in Department 12. All the legal documents are public, and can be retrieved from our website, including the motion filed today. I will keep you posted following the scheduled hearings.

In closing, I want to extend my thanks and the Board’s to those residents who continue to let us know what’s on your minds and offer suggestions on how to make Sun City Anthem live up to its promise to us all. If you have questions you want the Board to answer, or items you want to bring to our attention, please use the Board of Directors e-form on the www.SCA-HOA.com website.

The Board’s focus last month was communication. We initiated the Board update published by email bulletin each Friday except the Friday following the Board Meeting. Later in the month we had our second Town Meeting, this time in the evening. We will be alternating the Town Hall Meetings, holding one month at 6:30-8:30 in the evening and the next at 10:00 to noon.

To give the community one more view into how the Board operates, we have opened the Board book review to the membership. This monthly meeting is strictly procedural, no board business is done, but it forms the basis for a smooth running board meeting. Board members review the agenda and supporting documentation, determine if resolutions are worded properly, assure that there is sufficient information to make board votes, and decide who will make and second the motions needed to get our work done.

The communications enhancement I’m proudest of is the online Board Book. Every month, the agenda we post on the SCA website will be linked to the backup documentation for each agenda item. From now on, every homeowner who registers on our website will be able to view all the resolutions, committee reports and other information the board uses to make decisions on Association business.

I encourage everyone to use the Sun City Anthem website, the only official source for up-to-date information about the association. We have added so much to the website in the past month that our internet provider is complaining that we’ve quadrupled our online information, and are currently using 400% of our allocated storage.

At the June Board Meeting last week, the Board established a new ad hoc Process and Planning Committee. This Committee was established in response to member concerns voiced during the recent election that we can’t continue running an $8 million association without a business plan.

The Process and Planning Committee will take on the responsibility for developing a comprehensive business plan for the Association and recommend changes to our policies and procedures so that we continue to be a well-managed and financially secure community in the future. The Business Plan will document the association’s need for services over a five-year horizon, a determination of which services we will provide, how, and at what cost. The Process effort will identify processes already in place, opportunities and recommendations for improvement, and additional processes and procedures that should be implemented for the continued successful operation of our community and association.

What do I mean by a process? A process may be as simple as how a member can put an item on a board meeting, or as complex as how we dispose of surplus assets. A procedure might be how the fitness center’s request to replace worn out treadmills passes through various committees for approval. In this case, the request would be reviewed by Lifestyle, Property and Grounds, and Finance committees before being placed on a board meeting agenda for a decision.

We anticipate this Committee will have nine to eleven members, five of whom will come from standing committees. The rest will be volunteers from the general membership. We are looking forward to members with prior experience in business planning, policies, and procedures in large organizations volunteering for this committee.

In addition to this new opportunity to help plan our future, the Finance Committee is looking for additional members, and Channel 99 is looking for members to train as camera operators.

Any member may apply to serve on a committee. Some committees require specific expertise, for example, Finance Committee members should have a background in accounting or finance. Others, such as joining the Channel 99 camera crew, only require enthusiasm and willingness to learn a new skill. Additional information on open committee positions is available on the www.SCA-HOA.org website, or you can contact the Committee Chairperson. Applications are taken at the Association Office during business hours.

And what would a board president’s report be without an update on the Trumpets lawsuit. On May 23rd, our attorney filed a motion to dismiss several of the allegations in S&D’s complaint. S&D has until July 3rd to file a response to our motion to dismiss, and we will file our answer by July 11. Our first court date is currently scheduled for July 17 at 9 AM in Department 11 of the courthouse. Both the complaint and our motion to dismiss are posted on our website. As soon as the responses are filed and become public we will be post them to our website as well.

Another topic of much discussion is the agreement on Villa reserves between SCA and Pulte that was approved at the April 26 board meeting but has never been released. The agreement was never released because of a Pulte “boiler plate” confidentiality clause. Last week at my request, Pulte attorneys agreed to waive the confidentiality clause allowing me to release the agreement.

This agreement was placed on the website because it doesn’t affect just the villa owners. By signing this agreement the prior board released Pulte from any further responsibility for funding past Villa reserves in exchange for the $241,000 payment and the agreement to refresh the Villa hardscape. As you can see from reading it, the Association accepted liability from Pulte on any future complaints regarding reserve funding for the villas. The Association now has all responsibility for Villa reserves, and further claims or discussions must be with the Association, and not Pulte.
The board has scheduled a meeting with the villa owners on July 20 at 2:00 pm to discuss the impact of the Del Webb settlement. Roz Berman, our board treasurer, has prepared a presentation for the villa owners, but all residents are encouraged to attend.

I’ve only mentioned a few of the hot topics you’ll be hearing about for the next few months as we resolve some legacy issues and develop a plan for our future. Whether or not you’ve been motivated to join a committee in the past, now is a great time to get involved and make sure our Association is everything you want it to be.

Of all the opportunities we are creating for more open communication between the Board and the community, I believe that the most important is the complete and accurate explanation of the items on the Agenda for the regular monthly Board of Directors Meeting. Until now, the only place where all Agenda items and their supporting documents were kept was in the Board Book, which could only be reviewed in the Association office during business hours. In the past, the Board Book was not available until the week of the Board Meeting. There was a single copy of the Board Book, so the few residents who made the extra effort to go to the office and ask to review the Board Book were often told that the Board Book was out for review by the Board or another member and unavailable. As many of you have noted, items were added to and removed from the Agenda right up until the start of the meeting, the item descriptions that were on the Agenda were somewhat cryptic, and the Board Book rarely included all the supporting documents. The result was that members attending a board meeting had little or no understanding of the issues the Board planned to address, even if they took the time to review the Board Book prior to the meeting. Board discussion of the items during the meeting should have shed some light on the issues, but there was little or no discussion of items by the Board during the meeting prior to their taking action, implying that they had held their discussions prior to the meeting in a closed venue.

The Agenda and Board Book describe Association business, and you, the members, have a right to know the business of the Association other than those topics restricted to Executive Session. Starting this month, along with the Agenda for the Board of Directors Meeting, we will post the supporting documents previously available only in the Board Book on the www.SCA-HOA.org web site. From the posted Agenda, members can simply click on an agenda item to view any additional documents pertaining to the item.

Since the Agenda and Board Book represents Association business, they should only be available to and accessible by SCA homeowners. By posting the Agenda and Board Book on the community web site, www.SCA-HOA.org, access is restricted to SCA members via Resident Login. The Agenda sent to those subscribing to e-mail updates will not be linked for direct access to Board Book documentation; members will have to log onto the web site and access the Board Book documents from the copy of the Agenda posted under What’s New? and Documents-Agenda-Board of Directors.

We plan to post both the Agenda and Board Book documents, such as Resolutions, Committee Reports, Financial Reports, and motions, the morning of the Town Hall Meeting in order to include the final committee reports that are due at 4 p.m. the preceding day. You will be able to review them before the Town Hall Meeting, Board Book Review, and the Executive Board Meeting. Once posted, the Agenda will not change, but you will notice that all Board Book documents are marked either DRAFT or UNAUDITED. This is required since the material will not be “Board Meeting” ready until the Board Book Review held on the Tuesday the week of the Board Meeting, resolutions and motions may be amended during discussion at the Board Meeting, and our financial documents are not official until they are audited at the end of the year.

I’d like to take this opportunity to clarify the purpose of the Board Book and the Board Book Review. The Board Book is a working document and therefore no longer exists once the Board of Directors Meeting is adjourned. The Board Book Review is a meeting of the Board and Community Manager to review the Agenda from a procedural perspective only, to make sure the meeting runs smoothly. It is during this meeting, for example, that the Board members decide who will read each Resolution aloud, who will make which motion, and that the documents are correct. From now on, the Board Book Review will be open to members and begin with a member comment period, as required in all open meetings of the board; however, no discussion of agenda items is allowed, since under NRS116 all Board discussion and action on Association matters, other than those reserved for Executive Session, must be at an open board meeting and will take place at the regular monthly Board of Directors Meeting usually attended by several hundred members rather than the few who may attend the Board Book Review.

Please note that access to the posted Agenda or the Board Book from external web sites is not authorized. The agenda and all related documents are SCA-CAI property, and should not be posted on public web sites or made accessible to nonmembers. Your cooperation is requested so that we can continue to make information on Association business available to members via our community web site.

I appreciate that many of you are using the Board of Directors e-form on the www.SCA-HOA.org web site to share your thoughts with the Board, and encourage all of you to let us know what’s on your mind. If you don’t already have access to the www.SCA-HOA.org web site, simply “click on” e-forms on the Main Menu, then complete and submit a New Resident Login Request Form. If you have a login id and want to stay up-to-date on Association matters, sign up to receive e-mail Bulletins by clicking on that option on the Resident Menu. Through open, informed communication we can make Sun City Anthem live up to its promise to us all.

UPDATE Published 8 June 2007

Before I became a Board Member, I found the number and type of meetings our Board held confusing, and my repeated request for clarification only increased my frustration. Now that I’m not only on the Board but President of it, I find myself the recipient of similar requests from other members. Fortunately, I am now in a position to get some answers for all of us who want to be assured that when the Executive Board meets, it does so in a manner compliant with NRS116.

Armed with a chart listing all the types of “meetings” of the Board that have been convened in the recent past, I contacted both Bruce Alitt, Chief Investigator for the State of Nevada, Real Estate Division and the Office of the Ombudsman; and John Leach, our Association’s legal counsel.

The first thing I learned from my conversations with these two men is that NRS116 is only specific on two types of board meetings: “A meeting of the executive board must be held at least once every 90 days. (NRS116.31083.1), and “An executive board may meet in executive session” only for one of the reasons specified in NRS116.31085.3, leaving the requirements for other meetings of the board open to interpretation. In general, Mr. Allit and Mr. Leach were in agreement on their interpretation of notice, agenda availability, unit owners’ attendance and right to speak at meetings. Where they differed, I have elected to follow the more restrictive interpretation. I’m certain that like me, you will be surprised by some meeting requirements and you won’t like all of them, but I am confident that, like me, you will respect and follow them.

Any time a quorum of the board “meets” regarding Association matters, it constitutes “a meeting of the executive board” and is subject to one of the two NRS116 cites referenced above. The meeting location can even be ”virtual,” such as a discussion by phone or e-mails in which a quorum of the board participates. Critical to this interpretation is the need for a quorum of the board, that is, a majority of the board must participate.

In general, notice of any meeting of the executive board, except for an emergency meeting, must be sent “not less than 10 days before the date of the meeting.” This notice may be sent either via US mail, electronic mail, or in a community publication that is sent to each unit’s owner. We will continue to use The Spirit and The Relay insert to publish the required notice of our monthly Board Meeting and other regularly scheduled meetings of the executive board. For convenience, the Notice will also be posted on the bulletin board in Anthem Center and distributed using an e-mail Bulletin. In the event that an emergency meeting of the board is needed, the only Notice will be on the bulletin board in Anthem Center and distributed using an e-mail Bulletin when the meeting is scheduled.

“The notice of a meeting of the executive board must state the time and place of the meeting and include a copy of the agenda for the meeting OR the date on which and the locations where copies of the agenda may be conveniently obtained by the unit’s owners” (NRS116.31083.4). The Notice for the regular monthly Board Meeting will continue to state where and when the Agenda will be available. It is our intent that it will available at the Association Office, posted on the bulletin board in Anthem Center and http://www.SCA-HOA.org and distributed as an e-mail Bulletin at least 4 days prior to the date of the meeting. The agenda for meetings of the executive board other than the regular monthly Board Meeting will be included with the Notice. Since typically no action will be taken by the board other than at the regular monthly Board Meeting, a detailed agenda is not required. For example, the Notice for the Town Hall Meetings will simply say: “Agenda: Open Discussion.“

As provided by NRS116.31085, a unit’s owner may attend any meeting of the executive board, except executive session, and speak at any such meeting. As allowed under NRS116, the executive board will allow any unit’s owner to speak during a comment period at the beginning of every meeting. There will be an additional comment period at the end of the regular monthly Board Meeting. No member comments will be allowed during the business portion of a meeting of the board, that is, when the board is discussing and voting on matters on the agenda. Each member will be allowed a maximum of two minutes, and unused time cannot be ceded to allow another member more time. Members should limit their comments to Association business, and not use this forum to criticize or complain about other members. The board will respond to questions and comments at its own discretion, and may not act on any matter unless it is on the duly published meeting agenda.

“Not more than 30 days after each meeting of the executive board, the secretary shall cause the minutes or a summary of the minutes of the meeting to be made available to the units’ owners.” We will continue to make the minutes available at the Association office and on the http://www.SCA-HOA.org web site. Beginning with the August issue, the Spirit will contain only a summary of action taken by the board.

The only meetings of the board that a unit’s owner may not attend or speak at are executive sessions. As provided by NRS116.31085.3, an executive board may meet in executive session only to:

UPDATE, Published June 1, 2007

This is the first Sun City Anthem Community update from your new SCA Board of Directors. The purpose of these weekly updates is to keep you informed on what the Board, Committees, RMI, and other volunteers are doing to make our community better. Sometimes the updates will be short. Sometimes, like this week, the updates will be longer. All of them will be informative.

This week I’ll share some of what has been keeping your new Board busy since they were seated just a month ago. Our first few days were filled with training classes and debriefing by the prior board on ongoing issues. Then the seven of us got busy working to deliver on the promises of the recent election.

The most important commitment, at least from my perspective, was to improve communication between the Board and you, the community.

Even as the election results were being announced, newly elected Director Barry Friedman was booking Freedom Hall for our first Town Hall Meeting since last fall. At noon just two weeks later, over 200 of you gathered to ask questions and share your ideas with the new board. Trumpets, Rec3 amenities, and Community-wide communications were the hottest topics, with CC&R enforcement, investment management and reporting, and external community relations close behind. Our goal as a Board is to research all the topics raised by members at the meeting, provide a response and take action where appropriate. Now that we are in litigation with S&D, it is even more imperative that your board limit its comments on the situation to maintain client-attorney privilege, but we will provide monthly updates on the Trumpets litigation and post all documents filed in the case on the www.SCA-HOA.org website.

Another common campaign theme in the recent election was our association’s lack of a plan for the future, referred to by many as a Business Plan. Bob Frank, our newly elected Vice President, has taken on the responsibility to oversee a comprehensive planning effort that will focus both on the development of a Business Plan and Operational Processes. The Business Plan will document the association’s need for services over a five-year horizon, a determination of which services we will provide, how, and at what cost. The Process effort will identify processes already in place, opportunities and recommendations for improvement, and additional processes and procedures that should be implemented for the continued successful operation of our community and association. Over the next several months Bob will be seeking volunteers with experience in Planning and/or Process to help with all aspects of this project. Managing this critical project will complement Bob’s assignment as new Board Liaison to Property and Grounds Committee, where he will oversee the implementation of our new fixed-asset management system to track our Reserved assets.

Roz Berman, our newly elected Board Treasurer, has immersed herself in the Villa financial situation to help us resolve this issue, and she will return to the Finance Committee as Board Liaison. Starting in July, Roz’s priority will be development of the 2008 Budget. With a Finance Committee that also includes three CPA’s, I am confident that our financial future is in good hands. The Finance Committee is currently looking for a new member. Details are posted on the www.SCA-HOA.org website.

Kay Dwyer has accepted the position of Assistant Treasurer to ensure a smooth transition of responsibilities. Kay will also be the new Board Liaison to Covenants Committee. In this role, she will help the Covenants Committee implement its authority to impose sanctions for violations of our governing documents, approved by the Board at the May 24 meeting, enabling the board to be an appellate body as our By-Laws intended.

Elaine Berg will remain as Board Secretary and will assume responsibility as Board Liaison to the Architectural Review Community. Lanie has volunteered to oversee getting our association documents organized and accessible, and will be counting on the help of many in our community to achieve this ambitious goal. As a result of her experience as Board Liaison and Chair of the Elections Committee, Lanie proposed that the Election Committee charter be changed, changing the Board Member’s role from Committee Chair to Liaison. To affect this and remain NRS 116 compliant, she also proposed the charter of a Nominating Committee, with a Board Member as Nominating Committee Chair and Liaison to the Elections Committee. The Resolutions approved by the Board at the May 24 meeting amending the Election Committee Charter and creating the Nominating Committee are posted on the Association www.SCA-HOA.org website.

Bob Berman will remain Board Liaison to Security Patrol and Emergency Preparedness, both of which he helped establish, and will continue to oversee the Rec3 effort for the Board. As the new Board Liaison to the Editorial Content Committee, Bob will be instrumental in improving communications. In that vein, the Board is also considering the re-establishment of a Communication Committee to oversee and improve the effectiveness of all existing communications media: Channel 99, Spirit, the website, and to explore creating a community newspaper.

If you attended the May 24 Board Meeting, you witnessed Sun City Anthem history being made.

Instead of Blue Cards, members wishing to address the Board were given numbered tickets and took turns speaking at the podium during Member Comment period. As newly elected President, I expanded the board’s decision to open the discussion to members before each Board vote and offered members the additional opportunity to address the Board before we adjourned. In hindsight I’m glad I sacrificed Parliamentary Procedure to allow more residents to discuss issues before the Board.

In the future, we will restrict the Member Comment period to issues not on the meeting agenda. We will continue to open the discussion of Agenda items to the community prior to Board vote. We will also look to our Community Manager, Terry DaSilva, to keep us on the straight and narrow as we master the art of conducting meetings that accommodate member comments and discussion while enabling the board to conduct association business on schedule.

Remember that you can contact the Board anytime using the Board of Directors e-form on the www.SCA-HOA.org website to let us know what’s on your mind.

I look forward to seeing you at the Town Hall Meeting on the 21st and the June Board Meeting the following week.

Mike Dixon
SCA Board President

Board President Updates

NOTE: The most recent Update is on top

UPDATE Published 8 June 2007