Financial:
Financial Report
The Recreation Centers of Sun City, Inc. (RCSC) has ended August 2019 within its operating and capital budget year to date. All divisions with the exception of Golf have met or exceeded their net operating budget projections year to date with overall income at budget and overall operating expenses 3% favorable to budget. Golf fell below budget operationally due to the timing of the purchase of seed which was budgeted for a September purchase. Overall operating excess is 25% favorable to budget. In the month of August overall RCSC has exceeded revenue by 4%. Operating expenses were higher than budget primarily due to the early purchase of seed by Golf. The month of August was led by the Bowling division with net excess favorability of 24% driven by increased revenue. Golf revenue continues to improve with August actuals exceeding budget by 6%.
Cardholder Services
Payments on past due assessments in August were 10.4% of past due balances. Overall accounts receivable decreased in August by 4.3% and is up 1.0% from the beginning of the year. Overall accounts receivable past due balances have decreased 3.0% since the beginning of the year. July assessments went 30 days past due at 6.9% rate and June assessments went 60 days past due at a 3.2% rate.
Payments from our third-party collections firm totaled $7,779 in August. Year to date payments through our third-party collections firm total $64,663. Payments made in August by Cardholders through the online RCSC Web Portal totaled $118,184 from 256 property owners. Year to date web portal payments total $1,093,646 from 2,371 property owners.
In August property transfer balances decreased by 7.0%. Outstanding balances related to property transfers represent 51% of all receivables and 52% of past due balances. As of August there are no pending balances for lender owned properties. At the end of August trustee sale notices on Sun City properties ended at 35 and properties owned by lending institutions increased to 7.
Projects:
Bell Center
• Silvercraft Club Room
All club items have been moved back into the club room from temporary storage. Countertop installation and rehanging of shelves to be completed by 9/20. Most significantly the completion of cabinet doors is pending by RCSC Skilled Trades staff. These are approximately 70% completed with the completion of these items scheduled for the week of 9/23/2019. Final electrical will be completed upon placement of tables. Work included flooring, ceiling grid, overhead lights, cabinetry, paint and environmental remediation. Contractor: Multiple (Cost $81,955)
• Library Book Drop
Closure of the access road and asphalt demo is expected to begin by 9/23/2019. The access road closure will continue through the completion of the book drop island which is estimated to be 10/11/2019. This project includes the placement of library book drops on an island on the north access road behind the library, installation of an access gate in the block wall and lighting upgrades along the access road. The costs of this project are to be reimbursed by the Friends of the Library. Contractor: Regional Paving, Accel Electric, Kingsley Equipment (Cost $67,403)
Grand Avenue
• Review of the construction contract is completed and pending execution by both parties.
• Final permit application submitted to ADOT. Working with ADOT on an RCSC insurance requirement that falls short of ADOT requirements. Awaiting an approval from ADOT to accept the current level of insurance from RCSC.
• Awaiting response from the Vintage Vehicle Club on the space layout. Changes to support use by the club have been provided to the architect for inclusion in the design plans.
Lakeview Center
• Upper Restroom Remodel
All bids have been received and currently being reviewed for recommended contractor selection to the Bid Commission. Contractor: TBD (Budget $110,000)
Marinette Center
• Pool Deck Replacement
No change on this project. The bid packet for this project was submitted to the Bid Commission and approved. This project will include the preparation of the delaminating areas of the current deck and the installation of a rubber decking material throughout the pool, spa and shower areas. Based upon historical usage of this facility this work has been pushed to November and will be completed from 11/11/2019-11/27/2019 with the pool area reopening for the Thanksgiving holiday weekend. With night time temperatures going into the low 50’s this is the latest in the year that this work can be scheduled as lower temperatures affect the curing of the surface. This schedule has been reviewed with the Aqua Fitness club and the club is adjusting their scheduling to accommodate the work schedule. Contractor: Rubaroc USA Inc. (Cost $125,328)
• Pool Filter Replacement
No change on this project. The bid packet for this project was submitted to the Bid Commission and approved. This project will include the replacement of the existing cartridge filters for the pool with deep bed sand filters with glass media. The replacement filters will provide more granular filtering and allow for backwashing of filters rather than manual cartridge cleaning. The replacement of the filters will be done during the closure period for the pool deck replacement. Contractor: Exceptional Water Systems, Osiris Pools (Cost $31,261)
• Spa Filter Replacement
No change on this project. The bid packet for this project was submitted to the Bid Commission and approved. This project will include the replacement of the existing cartridge filters for the spa with deep bed sand filters with glass media. The replacement filters will provide more granular filtering and allow for backwashing of filters rather than manual cartridge cleaning. The replacement of the filters will be done during the closure period for the pool deck replacement. Contractor: Exceptional Water Systems, Osiris Pools (Cost $20,600)
• Pickleball Pavilion Lighting
This project is pending the receipt of the fixtures. Upon receipt the installation will be scheduled. We have committed to the club that the lighting project will be completed before the fall tournament from 10/29/2019-10/31/2019. Contractor: Accel Electric (Cost $63,992)
Sundial Center
• Club Restroom Remodel
All bids have been received and currently being reviewed for recommended contractor selection to the Bid Commission. Contractor: TBD (Budget $100,000)
• East Parking Lot Lighting Improvements
No change on this project with receipt of fixtures pending. Additional lighting is being added to the solar canopies on the east side of the center to provide better night time illumination adjacent to the building. Similar fixtures have been added to other centers and provided the desired lighting improvements. Contractor: Accel Electric (Cost $7,667)
South Pro Shop
• The costs to complete the pending items: parking lot asphalt, patio counter, interior pendant lighting and exterior signage has been approved by the Bid Commission. Most work will be scheduled during the closure for overseeding with the building signage having a longer 8-10 week lead time. Contractors: Regional Pavement, Bootz & Duke Signs, RCSC Skilled Trades (Cost $52,915)
Golf & Grounds:
Pro Shops
We had 80 participants in our Patriot Day golf event on August 30. Patriot Golf Day was organized with the help of PGA of America to raise funds for the Folds of Honor Foundation. Through entry fees, the 50/50 raffle and pro shop collections we raised a total of $1,140. The money raised is used to fund scholarships for spouses and children of military service men and women killed or disabled while serving our country.
On Friday October 18 will be hosting our first “Shootin’ with a Deputy” golf tournament. This event was organized by MCSO as means of opening lines of communication with Sun City residents. The event will be held at the South Golf Course and will consist of two 9-hole shotgun events. Players will be able to choose between a 7:30am or 10:00am start time. All participants will be invited back for lunch at 12:30pm, providing more time to meet and greet the MCSO deputies. The cost of the event is $20.00 per person plus green fees paid on the day of play.
Free golf clinics begin Saturday November 9th at Lakes West/Lakes East and will be held on Saturdays through November 30. The clinics begin at 9:30am and are taught by our local PGA and LPGA teaching professionals. The clinics are geared for beginners, but are also beneficial for those looking to brush up on the fundamentals. Over the course of four weeks, instruction will be given on chipping, putting, irons and woods. Clubs will be provided for those that do not have their own. There is no need to preregister, though we do recommend arriving at least 15 minutes early.
On December 12 we will be hosting a fundraising tournament to raise money for our Sun City Foundation which assists those who have outlived their retirement. The format will be Beat the Pros, Director of Golf Brian Duthu and Pro Shop Manager Chris Linam, and will be made up of two person teams. Teams that beat the Best Ball score of the Pros will equally share the prize pool. The entry fee will be $40 and the event will be held at the South Golf Course. In addition to bragging rights for beating the pros, there will also be a chance at a Pebble Beach Vacation.
Snack Shops
Snack Shop closing times will move to 3:00pm beginning October 1. Hours of operation can be extended based on demand. Although Snack Shop revenues have recovered some, year to date total revenues still trail budget. We appreciate your continued support.
Golf Courses
Long range forecasts are favorable for a September 30th start, as a result overseeding will begin as originally scheduled. Overseeding will begin on North, Lakes West, Willowbrook and Riverview. These courses will reopen October 19th, with cart path restrictions in place until November 8th. The remaining courses will close October 21 and reopen November 9 with cart path restrictions in place until November 22.
The practice area on the South Course will open September 30, to coincide with course closures as a result of overseed. As a reminder, the practice putting and chipping green surfaces will not be overseeded this year to protect them long term. As a result the green speed will be significantly higher on the practice greens than on the golf course. The difference in pace will increase as we move deeper into winter.
The yellow tees on Lakes West are now open for play. Ratings for the yellow tees as well as updated course ratings for the other tees are available in the pro shop. Lakes East was re-rated on September 4, those ratings will also be made available once they are received. Scorecards for both courses will be updated when current inventory is exhausted.
Grounds/Lawn Bowling
Oakmont and Mountain View Lawn Bowl greens have received final leveling. Mowing heights have been lowered to their final cutting heights on both greens. We expect both greens to be open for play October 1. The greens at Lakeview and Bell have also undergone minor leveling adjustments. Sun City will once again be a host site for US Open from November 3-9.
A couple of late season monsoon storms resulted in minimal damage, including the loss of a Bottle Brush tree at Lakeview. The softball field and outer turf areas of the Sun Bowl Amphitheater were overseeded on September 23. The softball field will be closed until October 18. Overseeding for the Lakeview Center is scheduled for the middle of October.
General:
For those who may not be aware, the monthly management report is available on our website www.suncityaz.org under the RCSC tab. Also, if you have not done so already, please sign up on the RCSC email list where you can designate topics of interest and stay in the loop with RCSC News Alert Emails!