Management Report – March 2021

Financial:

Financial Report

The Recreation Centers of Sun City, Inc. (RCSC) has ended February 2021 within its operating and capital budget year to date. All Divisions, with the exception of Food Service and Member Services have met or exceeded their net operating budget projections year to date with total operating income $50k (1%) favorable to budget and operating expenses $363k (14%) favorable to budget.  Member Services led the declines as a result of the cancellation of shows in 2021 due to COVID-19 restrictions driving down Ticket Sale income.  Operating expense favorability is primarily driven by lower utility, general operating and repair and maintenance expenses across multiple Divisions.  Year to date operating excess without projects favorability is $453k (31%) favorable to budget.

Cardholder Services Report

Payments on past due assessments in February were 7.0% of past due balances.  Overall accounts receivable decreased in February by 0.2% and is up 1.2% from the beginning of the year.  Overall accounts receivable past due balances have decreased in February by 1.3%.   January assessments went 30 days past due at a 5.8% rate and December assessments went 60 days past due at a 1.5% rate.

Payments from our third-party collections firm totaled $49,004.81 in February.  Year to date payments through our third-party collections firm total $52,399.94.  Payments made in February through the online RCSC Web Portal totaled $178,833 from 391 property owners.  Year to date web portal payments total $347,904 from 773 property owners.

In February property transfer balances decreased by 1.0%.  Outstanding balances related to property transfers represent 52% of all receivables and 52% of past due balances.  At the end of February trustee sale notices on Sun City AZ properties ended at 33 and properties owned by lending institutions decreased to 1.

Information Technology Report

• Supported the Zoom interview process for the GM position.
• Continue to oversee the data cabling at Grand II and Lakes Maintenance projects.
• Deployed anti-virus software updates to all PCs and Servers.
• In February the Information Technology team responded to 102 service requests closing 101.

Human Resources Report

In February Human Resources processed 16 job requisitions. Time to fill requisitions Key Performance Indicator in February was 7.0 days.

Projects:

Bell Center

• Removed and replaced a swamp cooler serving the maintenance area. Project completed on 03/02/21. Contractor: Custom Cooling
• Installed a new 12” wide cast-iron drain at sidewalk location outside of the billiard room to resolve a drainage issue. Project completed on 03/10/21. Contractor: Estrella Concrete Contracting

Fairway Center

• Painted 1st and 2nd floor men’s and women’s restrooms. Painted breakroom. Project completed on 02/19/21. Contractor: Exquisite Painting
• Removed and replaced drift eliminators in the cooling tower, which is part of the central plant for the facility. Project completed on 03/08/21. Contractor: Capital Water Treatment

Grand Center – Building II

• RCSC has contracted with General Contractor (GC) Robert E. Porter Construction, Inc. to construct this project. Project commenced on 09/14/2020 with a projected duration of 6 months. The GC will be given more time to incorporate Owner and APS change requests; contract time increase to be determined pending Maricopa County inspection of the APS change. The inspection schedule is still pending.
• Interior painting, tile work, and ceiling grid installation now underway. Rollup door installations were completed 03/05/21.
• Bi-weekly progress meetings are being held with RCSC, CCBG Architects, and the GC all in attendance.

Lakes East/West Maintenance Yard

• Plan Review drawing set was submitted to Maricopa County Planning and Development Department and Sun City Fire & Medical Department on January 29. Review comments were received March 3 and March 4, respectively, and are currently under evaluation with the architect.

Lakes Snack Shop

• Installed water infrastructure and an ice maker on top of the soda fountain. Project completed on 03/08/21. Contractors: Air-N-Sun Mechanical, Sunland Plumbing

Lakeview Lanes

• Painted arch pillars and installed vertical roll shades at George’s Café outdoor seating location. Project completed on 03/02/21. Contractors: Exquisite Painting and Phoenix Tent and Awning Company

Mountain View Center

• RCSC has engaged with CCBG Architects, Inc. for architectural services to provide a master site plan for the Mountain View Recreation Center. The master site plan will provide a functional footprint for the proposed new center’s components: Fitness Center, Gym, Theater, Resort and Fitness Pools. CCBG will begin the coordination process with Maricopa County for parking and other zoning issues. CCBG will also coordinate with Sun City Fire District to review access requirements.

Oakmont Center

• The building permit for the Lawn Bowl Lighting project was received from Maricopa County on 03/04/21. Final installation process began on 03/08/21. Project work scheduled to be complete by 03/19/21, pending a final inspection by Maricopa County. Contractor: Accel Electric

Riverview Snack Shop

• Installed electrical infrastructure and an ice maker on top of the soda fountain. Project completed on 02/23/21. Contractors: Air-N-Sun Mechanical, Accel Electric

Skilled Trades

• Completed 254 work orders in February 2021

Solar:

New Issues:  N/A

Issues Resolved:

• Lakeview Lanes – Inverter #01

Inverter is not reporting production, Kortman and Also Energy worked together to resolve this issue.

 Open Issues:

• Oakmont Center – # 01/02/03/04/05/06

The inverters are reporting data correctly for daily but not for history. This issue is Also Energy’s, they have a team working on a new driver to resolve this issue. There is no estimated timeframe to complete this repair.

Production Data:

After including February’s production data, the lifetime to date production versus expected went down slightly and is over expected by 4.73%. The percentage of inverters producing above expected remained the same at 76%.

Bowling:

Summer bowling leagues are scheduled to begin the first part of May 2021. Summer league officers will be required to sign an agreement stating they will accept the responsibility to monitor the individual bowlers and would approach and enforce anyone violating RCSC COVID Rules and Regulations.

We have discussed the possibility of re-starting the RCSC summer no-tap tournaments. Social distancing and mask policies will remain the same as in league and open play.  All entrants will be required to sign an acknowledgement, stating that they understand and will abide by the RCSC COVID Rules and Regulations.  Spectators will not be allowed in the bowling centers.

Golf & Grounds:

Pro Shops

Rounds played in February totaled 41,576 exceeding prior year and erased the rounds deficit to prior year in January. February rounds were the 2nd highest recorded total since 2009 and were the highest recorded rounds for a non-leap year in that span.  Total rounds for the year stand at 78,578, which represents the 3rd highest total since 2007.

Due to continuing Covid-19 distancing restrictions, we did not host our annual demo day this year.  We can, however, still order equipment from any of the major club manufacturers, including Ping, Callaway and Taylor Made.  If you are looking for a custom set, our PGA professionals can provide a fitting session for a fee.  Once you have your specifications, please see Chris Linam at Riverview Golf Course to place your order.

Snack Shops

With continued reduction in seating capacity, due to required distancing, Snack Shop demand remains light.  As we did last year, we will begin closing at 3 p.m. earlier than we would under normal circumstances.  We expect Snack Shops to begin closing at 3:00 p.m. on April 12.

Golf Courses

The bunker refurbishment project at Lakes West that was postponed last year, has been rescheduled for later this year.  The project is scheduled to begin the last week of July and to finish by the end of August.  We will be closing 9 holes at a time while the renovation is in process, which will allow us to incorporate the normal yearly greens aerification process into these closures.  Work to be completed is the removal of existing bunker sand, re-establishment of original bunker cores, check performance of existing drainage discharge, installation of Better Billy Bunker liner, installation of new drainage and installation of new bunker sand.

Lawn Bowl and Grounds

Lawn Bowl pace is running from a low of 12.8 seconds on Lakeview East to a high of 14.3 seconds on Bell North.  Moisture readings are fairly consistent running from a low of 10.0 at Oakmont to a high of 11.6 at Lakeview East.  The lighting project at Oakmont should be completed on March 25 following a long waiting period for county permit.

Olive trees at Duffeeland were treated on February 24, to discourage the bearing of fruit.  The lack of fruit will ease clean up and improve the overall appearance of the park.  Spring weeds are popping up regularly and each center is on a consistent rotation of treatment.