Financial Report:
The Recreation Centers of Sun City, Inc. (RCSC) has ended July 2020 within its operating and capital budget year to date. All Divisions, with the exception of Bowling and Food Service, have met or exceeded their net operating budget projections year to date with total operating income $60k (~1%) favorable to budget and operating expenses $896k (9%) favorable to budget. Bowling and Food Service declines are driven by the COVID-19 closure and restrictions with Bowling remaining closed until Phase II of the reopen plan. Income favorability is driven by higher than budgeted income in the Building & Infrastructure and Golf Divisions. Operating expense favorability is primarily driven by lower payroll, utility and general operating expenses across multiple Divisions. Year to date operating excess without projects favorability is $928k (38%) favorable to budget. RCSC is continuing to see the effect of the COVID-19 related shutdown with July monthly operating income shortfalls in Bowling and Food Service totaling $56k. However, Golf operating income excess of $77k in July offset the shortfall.
Since there is no monthly Board meeting in the month of August, the following Treasurer’s Report is included in this management report. The balance of unrestricted funds as of July 31, 2020 was $15,558,984 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of July 31, 2020, PIF had a balance of $17,708,892 plus $612,914 collected in July that was transferred into the PIF account the first part of August 2020. The Capital Reserve Fund had a balance of $5,373,119 as of month end. The corporation operated within its budget year to date 2020.
Cardholder Services:
Payments on past due assessments in July were 6.4% of past due balances. Overall accounts receivable increased in July by 1.1% and is up 10.9% from the beginning of the year. Overall accounts receivable past due balances have decreased in July by 1.2%. June assessments went 30 days past due at a 4.6% rate and May assessments went 60 days past due at a 1.6% rate.
Payments from our third-party collections firm totaled $25,013 in July. Year to date payments through our third-party collections firm total $73,354. Payments made in July through the online RCSC Web Portal totaled $147,301 from 323 property owners. Year to date web portal payments total $1,250,033 from 3,057 property owners.
In July property transfer balances increased by 7.9%. Outstanding balances related to property transfers represent 52% of all receivables and 51% of past due balances. At the end of July trustee sale notices on Sun City AZ properties ended at 24 and properties owned by lending institutions decreased to 3.
Projects:
WiFi Upgrades
Additional delays on the scheduling of cabling occurred. Completion of the required cabling and equipment installation is scheduled for the week of 8/31/2020.
Bell Center
- Social Hall Restroom Renovation
This project includes the full renovation of the social hall restrooms including the inclusion of accessible facilities. Bids from contractors were received and the bid packet has been approved by the Board bid commission. The demolition work will begin on 8/26/2020. The work is projected to be completed in 9 weeks. Contractor: K.L. McIntyre (Cost: $160,487)
- Social Hall Kitchen Renovation
This project includes the full renovation of the social hall kitchen will replace flooring, lighting and cabinetry in the kitchen and the trash receptacle areas. Bids from contractors were received and the bid packet has been approved by the Board bid commission. The demolition work will begin on 8/26/2020. The work is projected to be completed in 12 weeks. Contractor: K.L. McIntyre (Cost: $126,926)
Grand Center – Building I
- Clubs have moved into Grand Center and are operating on revised summer hours of 8:00AM-4:30PM daily.
- Most pending items have been completed within the club rooms with several minor items remaining.
- The RCSC Grounds Department is working on the landscaping on the site and is expected to complete this work in September.
- Pending is the 103rd Ave monument sign and building signage. Final signage design has not yet been completed.
Grand Center – Building II
- The bids from contractors were reviewed and the bid packet presented to the Board bid commission for review and approval. The bid commission has approved the selection of Robert E. Porter Construction, Inc. to complete this project.
- A letter of intent has been provided to the general contractor to allow the engagement of subcontractors while the construction contract is finalized. The contract is expected to be fully executed by the end of the month with general contractor mobilization beginning shortly thereafter.
Lakes East/West Maintenance Yard
- No changes during the month of August.
Mountain View Center
- No planning or design work completed since the last report.
Solar:
New Issues:
- Mountain View – # 14
Inverter had a clock failure. 7/13/2020 B&I reset, tested battery (3.0 volts), set date and time, issue resolved.
Issues Resolved:
- Fairway Center – # 10
On 8/24/2020 an ABB inverter from the Lakeview Lanes site was moved to Fairway Center and installed to replace this damaged inverter. Because this site uses ABB inverters throughout, an ABB inverter is required to maintain the production data communication. New ABB inverters are no longer provided by the manufacturer, so a relation of an inverter is necessary. A replacement SMA inverter will be placed at the Lakeview Lanes site and will integrate with the other SMA inverters at this site for communications. This inverter has been received and is pending an electrical transformer replacement before it can be installed. This is projected to be completed the week of 8/31/2020.
Open Issues:
- Oakmont Rec Center – # 01/02/03/04/05/06
The inverters at Oakmont Center are not reporting production data. This has been an outstanding issue since July 2018. The production meter shows overall production data for the site, but the individual inverters are not reporting production to the Also Energy aggregation reporting site.
The Kortman technician has been working with both Also Energy and Fronius to resolve the communication issues after the replacement of the data logger. Both Also Energy and Fronius indicate the configurations are correct and the data logger should be communicating. The physical wiring has been verified to be good. This is being escalated at both Also Energy and Fronuis for a resolution.
- Lakeview Rear – # 01/02/03/04
Similar to the Oakmont site the inverters at the Lakeview Rear site stopped communicating with the Also Energy data logger and thus the Also Energy aggregation reporting site. The Lakeview Rear inverters are Fronius models similar to Oakmont Center with these two sites being the only Fronius inverters in the RCSC Solar environment.
Pending confirmation of restored functionality at Oakmont Center.
- Lakeview Lanes – # 01/02/03/04/05/06/07/08/09
Production results significantly lower than expected for this group of inverters. Four of the replacement SMA inverters were installed at this location and the production output was similar to the PowerOne/ABB models removed. DC voltages from the solar panels were field tested and did not indicate significant under supply of voltages. Additional investigation needed on these inverters to identify a cause of the under production and if preventative maintenance tasks positively affect performance.
The transformer at this location will be replaced the week of 8/31/2020 to resolve several issues at this site. After this replacement additional work on the under production can continue.
Production Data:
After including June production data, the lifetime to date production versus expected went down again slightly and is over expected by 5.44%. The percentage of inverters producing above expected reduced by 3 inverters to 79%. Two of these inverters had small reductions of less than 0.06% that moved the overall inverter production from just over even to expected production to just under expected production.
Golf & Grounds:
Pro Shops
Golf rounds in July increased by 4,825 over prior and represent the most rounds played since 2006. For the year, Riverview has played 34,205 rounds, followed by Lakes West (33,238 rounds), South (32,639 rounds), Willowcreek (31,692 rounds) and North (27,545 rounds). For the month, 59% of rounds played were played by Annual No-Fee and Annual Surcharge Fee Golf Passes.
On September 4 we will be hosting a fundraising event to support Patriot Golf Day and the Folds of Honor Foundation. Due to ongoing COVID-19 restrictions, the format will be a straight sheet start beginning at 7am, results will be announced via email with no formal lunch following play. Entry forms are available in all pro shops, entry fees may be paid by credit card or off the cardholder’s account. Winners of skins will have the money deposited into their Advanced Deposit account. We currently have 61 participants registered to play, slightly ahead of last year’s total at this time.
Snack Shops
Snack shop closing time is now 1pm, after the snack shops close, snacks and beverages are available in the pro shop.
Golf Courses
All major summer agronomic procedures have been completed and overseeding is a month away. Overseeding will begin on September 28 for South, Lakes East, Willowcreek and Riverview. These courses will re-open on October 17 with cart path restrictions in place until November 6. The remaining courses will close October 19 and re-open November 7 with cart path restrictions in place until November 20. We are currently not planning an overlap period during which all courses will be closed; however, we will be monitoring long range forecasts as we near the September 28 start date. Should forecast temperatures prove problematic for overseeding, we will move the start date for the first wave of course closures to October 5. Should this change prove necessary, it will result in an overlap period of course closures as we will not move the second wave of course closures back.
Lawn Bowling/Grounds
Bowlers may have noticed the strong discoloring of the greens recently. Unfortunately, a growth regulator was over applied and resulted in the browning of the green surface. This misapplication will not result in any long-term issues and the greens have already begun to get their color back. We have increased watering to aid in the recovery process.
Green speeds and moisture readings are as follows:
Lakeview East 10.6 seconds 18.5 MQ
Lakeview West 10.0 seconds 20.2 MQ
Bell North 9.8 seconds 19.9 MQ
Bell South 9.2 seconds 15.6 MQ
Mountainview 8.9 seconds 13.5 MQ
Oakmont 9.0 seconds 27.5 MQ
The lack of monsoon activity has resulted in less cleanup work than most summers. However, the lack of moisture has also placed increased stress on plants. To help offset the lack of rain and higher than normal temperatures, watering times in landscaped areas have been increased. The softball field will be closed towards the end of September for overseeding, a definitive date has not been selected.
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!