Management Report – April 2022

Finance:

Financial Report

The Recreation Centers of Sun City, Inc. (RCSC) ended March 2022 within its operating and capital budget year to date. All Divisions except for Buildings & Infrastructure met or exceeded their net operating budget projections year to date. Building & Infrastructure is $18.6k unfavorable to budget year-to-date due to due to prepurchase of pool heaters and water fountains that will be charged to the appropriate center later in the year. Operating income for March totaled $2,698K and was $312k (11.6%) favorable to budget. Operating expenses in March were $1,585k and $51k (3.2%) unfavorable to budget. March Operating expense unfavorability was primarily driven by building repair services, spending on the unbudgeted IT Upgrade project, and spending greater than forecast on fertilizer. Year to date net operating excess excluding projects is $973k (32.2%) favorable to budget.

Cardholder Services Report

Payments on past due assessments in March were 5.9% of past due balances. Overall accounts receivable increased in March by 0.8% and is up 1.9% from the beginning of the year. Overall accounts receivable past due balances have decreased in March by 1.3%. March assessments went 30 days past due at a rate of 5.0% and January assessments went 60 days past due at a rate of 2.5%.

Payments from our third-party collections firm totaled $33,939 in March. Year to date payments through our third-party collections firm total $94,173. Payments made in March through the online RCSC Web Portal totaled $181,364 from 383 property owners. Year to date web portal payments total $521,550 from 1,124 property owners.

In March, property transfer balances increased by 0.04%. Outstanding balances related to property transfers represent 52% of all receivables and 53% of past due balances. March trustee sale notices on Sun City AZ properties ended at 28, and properties owned by lending institutions remained at 1.

Information Technology Report

In March, the Information Technology team received 152 new service requests, and closed 144 requests by month end. Year to date, IT has received 412 service requests, of which 32 remain open. On average, IT is continuing to close service requests in less than one day in 2022.

RCSC has ordered all equipment to update the server and storage environment. Expected delivery will be anywhere from 2 to 8 months due to supply chain issues. RCSC has executed contracts with Cox to install SDWAN to 15 of our facilities. This installation will start in April. IT is expecting significant improvement in network speeds with this upgrade, and this project will replace some end- of-life network equipment as well. The equipment for this network upgrade project is being delivered; we have received equipment for 6 of the 15 Locations. The first scheduled installation has begun at Willowcreek Maintenance.

Human Resources Report

Human Resources began the month of March with 11 open job requisitions and added 15 new requisitions during the month. Human Resources filled 19 open requisitions and ended March with 7 open positions. Year to Date, HR has opened 71 job requisitions and filled 69 job openings. The time-to-fill requisition Key Performance Indicator (“KPI”) in March was 11 days, due mainly to the HR Recruiter being out of the office for two weeks in the month of March.

Building & Infrastructure:

Projects:

In Work

Lakes East/West Maintenance Yard (PIF)

• Budget: $4.0M Total Cost to date: $1.0M
• Interior stud framing, electrical and fire sprinkler rough-in began the week of 4/11.
• Status: Although we have experienced weather and shipment delays, we are not predicting any delays in either cost or schedule at this time.

Mountain View Rec Center Phases 1 and 2 (PIF)

• Budget: $27.3M Total Cost to date: $81k
• Board imposed 90-day hold has recently Revised proposal from CCBG has been requested.
• Status: Schedule to be assessed upon receipt of revised CCBG proposal

Sun Bowl Softball Field Improvements (PIF)

• Budget: $1.0M Total Cost to date: $1,000
• Reviewed initial architectural and civil engineering drawing set. Held for updates from mechanical and electrical design.
• A follow-on Request for Proposal (RFP) has been sent to CCBG for design of the new clubhouse and lighting system components of the project.
• Status:

Viewpoint Lake Repair (PIF)

• Budget: $8.0M Total Cost to date: $84k
• Pacific Aquascape International submitted a draft AIA 141-2014 contract to RCSC on 04/04/22. Contract is under review. Initial design activities have been authorized to keep overall project schedule on track prior to contract execution.
• Status: Project to conform to revised PIF budget

Recently Completed

Bell Rec Center

• Removed 13 existing wall sconces around the pool area and replaced with new LED Project was completed 04/08/22 at a cost of $8,659. Contractor: Accel Electric
• Replaced drift eliminators and tower fill at the Bell cooling Project was completed on 04/15/22 at a cost of $14,110. Contractor: Capital Water Treatment, Inc.
• Removed and replaced fascia and shingles on the shade structure ramada at the Del Webb statue. Project was completed on 04/01/22 at a cost of $10,875. Contractor: DFG Builders LLC

Grand Center

• Added sound dampening curtain at exit door location in the Camera Club Project was completed 04/15/22 at a cost of $2,318. Contractor: Ace Acoustics

Lakeview Lanes

• Removed and replaced a 5-ton Trane rooftop unit (RTU) at the bowling Project was completed on 04/01/22 at a cost of $9,845. Contractor: Sunstate Mechanical

Marinette Rec Center

• Removed and replaced a 3-ton Trane packaged heat pump over break Project was completed on 03/10/22 at a cost of $6,938. Contractor: Custom Cooling

Sundial Rec Center

• Fresh bumper and court lines were painted at the Bocce Project was completed 04/07/22 at a cost of $4,200. Contractor: Exquisite Painting

On Hold

Sundial Rec Center (Capital)

• Budget: $500k Total Cost to date: $0
• A quote for the follow-on order of 2 additional dehumidifiers was received from W.D. Manor on 01/10/22. A significant 47% price increase for these units has led RCSC management to modify our purchase request to only one dehumidifier to fit within the 2022 budget allocated for this A revised proposal was received 02/08/22 and is under review. Contractor: W.D. Manor Mechanical Contractors.
• Status: Yellow. Increased inflationary and supply chain costs may further impact this project until the contract is signed.

Skilled Trades (Repair and Maintenance)

• Completed 398 work orders in March 2022

Solar:

New Issues:

Issues Resolved:

Open Issues:

• WB/WC Maintenance – Data Loggers/All Inverters

Cox has deployed internet inside the building, and it is working. Waiting on IT and Cox for the final hookup and activation, scheduled for 4/20/22.

Production Data:

After including March’s production data, the lifetime to date production versus expected went down slightly and is over expected by 3.35%. The percentage of inverters producing above expected stayed the same at 73%.

Preventive Maintenance:

The yearly preventive maintenance will be scheduled with Kortman Electric next month.

Golf & Grounds:

Pro Shops

Total rounds for March were 47,402. The total was 1,910 greater than prior year and the highest recorded total for March in at least the last 17 years. Among the regulation courses Riverview played the most rounds (7,313), followed by Lakes West (7,122) and Willowcreek (7,067). Willowbrook recorded the most rounds among the executive course with 4,642 rounds played.

On April 16, 2022, 60 golfers teed it up under a full moon, for a night of fun and laughs. The round was preceded with a light dinner in Talisman, served by Lakes East snack shop staff. At the end of the evening, smiles were in abundance as the golfers came off the course and headed for home. John Velenza and Doug Van Orden took first place in the A-Flight, Jan Lunceford and Wendell Waller took first place in the B-Flight and Gary Bialowas and Nita Heeter took first place in the Callaway Flight.

Saturday golf clinics reintroduced in March proved to be popular. For the month over 500 students attended the clinics. Free golf clinics will be offered again in November. Through March we have had 52 students participate in our Get Golf Ready program.

Snack Shops

Snack Shops benefitted from the heavy golf traffic, exceeding budget by 14.3% in March. Snack shop closing times will move to the 3:00 p.m. closing time effective May 2. After 3:00 p.m. limited items will be available in the golf pro shops.

Golf Courses

With 100-degree days right around the corner, the pace of transition from winter rye to summer Bermuda can be expected to increase. To promote Bermuda growth, fairway heights are lowered to open the grass canopy, which permits the Bermuda grass to receive more sunlight. During this time of transition, it will not be uncommon to see brown patches on the course as the rye dies and the Bermuda begins to grow. Slow release fertilizer has been applied to all courses to provide the Bermuda nutrients for summer growth. Courses have been aerified using solid tines to address compaction resulting from winter play.

Lawn Bowl/Grounds

Lawn Bowl greens have begun receiving their first verticutting of the season. Pace of the Lawn Bowl greens range from 13.2 seconds on Lakeview East to 14.8 seconds on Mountain View. Moisture readings range from 8.0 on Bell South to 11.0 on Lakeview West. All Lawn Bowl greens have been aerified using needle tines to relieve compaction resulting from winter and spring play.

Weed control remains a major and time consuming task for the Grounds crew. All centers with grassy areas, Sunbowl and the softball field, have had a spring fertilizer application as we prepare for Summer Bermuda grass growth.

Bowling:

Lakeview Lanes hosted the 27th Annual Ladies No-Tap Tournament on March 26th with 90 bowlers participating. The April No-Tap Tournament had 90 bowlers as well.

The Summer League Schedule is published for both centers. A new league program for the summer will be a No-Tap League on Tuesday evenings at Bell Lanes. There are currently 140 new bowler sign-ups for the Summer Leagues.

The 32nd Annual Sun City Open Tournament is scheduled for the last weekend in April and first weekend in May. There are currently 62 teams signed up. A second squad has been added to the first weekend to accommodate the overflow bowlers.

The Bell Lanes Summer Tournament program has been added to the website. These events occur May through September on the last Sunday of the month. The flyer for the May event will be available in May at Bell Lanes.

Bowl with the Director continued in April and will continue the first Thursday of every month from 10:30 am until 12:00 pm at Lakeview Lanes. This event is free to all RCSC Member/Cardholders and Sun City Bowling League Participants. The purpose of this event is for anyone who may be interested in getting back in to bowling, for current league bowlers to come by and get some extra practice and coaching, and for an opportunity to chat with Mike Dirmyer about any bowling related topic. The events have been well received and the feedback has been tremendously positive. The next event is May 5, 2022.

Angry Birds Bowling has continued with great success. Since its introduction, the event has averaged 30-40 participants every Saturday night. Angry Birds Bowling is a bowling game that aligns with the popular app game and is a fast paced, 5-frame bowling game filled with excitement.

The two bowling centers have had 68 perfect 300 games bowled in league and tournament play this season.

The Sync Scoring system from Brunswick released new software that was uploaded to our system. The biggest new feature to this software upgrade adds a reset button to the tablet. You are now able to reset the pins from the button on the ball return or by tapping the specific area on the tablet.

Operations:

Chartered Clubs

The attendance report for the first quarter of 2022 is attached. Based upon the attendance data received we are seeing approximately an 84% compliance rate from clubs. The clubs office has been in communication with those clubs who have not complied with the attendance reporting requirements in Board Policy 12. Additional actions may be necessary for those clubs that continue to not meet the requirements in Board Policy 12.

Centers Operations

The review of fitness centers to identify the center best suited for the trial program of enhanced cardio equipment has started. Of key concern are the power requirements and the determination of how power will be provided for the equipment. We are pending response from our Life Fitness distributer for the identification of the precise equipment models and configuration to meet the requested equipment requirements.

Events and Entertainment:

The Sundial Ticketed Concerts concluded its 12-show series on Wednesday evening, April 6th when the rescheduled Manilow and Streisand show took the stage. What an enjoyable, memorable performance it was, bringing a grand conclusion to the series. Britain’s Finest the Complete Beatles Story and One of These Nights, an Eagles Tribute, both had Sold Out evening performances, and MJ Deja Vu the Michael Jackson Experience was not far behind in ticket sales as well. All memorable performances by seasoned entertainers all eager to get back in front of live audiences.

The Sun Bowl continues to rock, and the dance floor remains full from beginning to end of every show. The final Sun Bowl show of the Spring series is Sunday, April 24 when The Main Event returns to Sun City.

A big thank you goes out to the 34 volunteer that helped us stuff over 6300 plastic Easter eggs with candy and prizes along with those that volunteered at Sun Bowl to help make the Easter Egg hunt a huge success. Fun was had by all. In fact, the Easter bunny made a special appearance during the concert on Easter Sunday where she played electric guitar during a performance with Faded Jeans band. Hundreds in attendance stopped dancing and captured the moment on their own cellphone video cameras.

The next performance to be hosted by the Events and Entertainment Department is a free, indoor concert at Sundial Auditorium on Wednesday, June 15 when we welcome back to Sun City “Americana”. Doors are at 6:00pm and show time is 7:00pm. See you there.

Have a safe, great summer!

ATTACHMENT: Chartered Club Attendance Summary