Financial:
Financial Report
The Recreation Centers of Sun City, Inc. (RCSC) has ended February 2020 within its operating and capital budget year to date. All Divisions have met or exceeded their net operating budget projections year to date with total operating income $325k (7%) favorable to budget and operating expenses $352k (12%) favorable to budget. Income favorability is driven by higher than budgeted income across all Divisions led by Building & Infrastructure and Golf. 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 $667k (45%) favorable to budget.
Due to the coronavirus, RCSC cancelled the March 26, 2020 Board meeting. Therefore, the report is being included in this section of the Management Report. The balance of unrestricted funds as of February 29, 2020 was $15,938,974 which includes a $2.5M cash reserve. Restricted funds include the Preservation and Improvement Fund (“PIF”) and the Capital Reserve Fund. As of February 29, 2020, PIF had a balance of $17,033,092 plus $530,892 collected in February that was transferred into the PIF account the first part of March 2020. The Capital Reserve Fund had a balance of $5,288,915 as of month end.
Cardholder Services
Payments on past due assessments in February were 10.8% of past due balances. Overall accounts receivable decreased in February by 3.6% and is down 2.0% and past due balances have decreased 1.7% since the beginning of the year. January assessments went 30 days past due at a 5.5% rate and December assessments went 60 days past due at a 1.5% rate.
Payments from our third-party collections firm totaled $8,125 in February. Year to date payments through our third-party collections firm total $16,104. Payments made in February through the online RCSC Web Portal totaled $145,177 from 312 property owners. Year to date web portal payments total $277,495 from 607 property owners.
In February property transfer balances decreased by 5.0%. Outstanding balances related to property transfers represent 55% of all receivables and 56% of past due balances. At the end of February trustee sale notices on Sun City AZ properties ended at 29 and properties owned by lending institutions remained at 2.
Projects:
WiFi Upgrades
- Recent alternative issues have taken precedence. A schedule of cabling needed for additional wireless access points will then be worked through upon completion of these alternative issues.
Bell Center
- Bell Lanes West and East Entry Lighting Improvements
This project has been completed. Lighting improvements are planned for both entries at Bell Lanes, as well as the rear driveway serving George’s Café. Contractor: Accel Electric (Cost $5,310)
- Table Tennis Room Light Diffuser Replacements
Diffusers have been received and pending installation. Replacement diffusers for the light fixtures in the table tennis room have been ordered and will be installed when received. The current diffusers have been replaced over time and do not project a consistent lighting color in the room. Replacement diffusers will provide even light levels and color. Contractor: RCSC Skilled Trades (Cost $1,550)
- Lighting Improvements to Central Plant Building
This work has been completed. Lighting fixtures in the HVAC central plant building will be upgraded to LED fixtures in providing additional light inside the building. Additional lighting is also being added outside the building to better illuminate walking pathways.Contractor: Accel Electric ($4,824)
- Repair and Replacement of Concrete
Repair of concrete areas around the Center are being scheduled. This includes removal and replacement of sections, grinding down elevated joints, and replacement of the sidewalk ramp near the club area parking lot entry. Contractor: Estrella Concrete Contracting (Cost $2,875)
- Replacement of Pool Deck
The replacement of the pool deck with a rubber surface material similar to that installed at Marinette Center in 2019 was slated for completion later in the year. This project has been rescheduled for earlier completion. This will include the surface preparation and installation of the material on all deck surfaces and the caps of the walls on the interior of the walking pool. The project is slated to begin on 4/6/2020 and be completed by 5/1/2020. Contractor: Rubaroc USA (Cost $276,527)
Fairway Center
- Outside Assisted Restroom Automatic Door Installation
The installation of an automatic door with push button controls has been installed on the door of the outside assisted restroom.
Contractor: Quality Lock and Key, Accel Electric (Cost $5,652)
Grand Center
- Changes to the roof joists were designed and submitted to the County for approval in lieu of the ones that were delayed. County approval was obtained, and joists received. Joist installation scheduled for completion by 3/27/20. This change in design reduced the delay by approximately 10 days.
- Roof decking in the addition has been going up as the roof joists are installed.
- Interior steel studs for walls in the addition are going up.
- Drywall on the existing building section is 90% complete.
- The scheduled substantial completion date has been brought back to the first week in June.
- The deferred permit submittal for the greenhouse have been approved. Greenhouse delivery is projected for 6-7 weeks.
No permit status change fort the submitted plans for the second building.
Lakeview Center
- Indoor Spa Dehumidifier Replacement
Work began on 3/16/2020 to install the new dehumidifier. The old unit has been removed and the new unit set in place. Currently pending duct work modifications and turn up of the system. The dehumidifier in the indoor spa at Lakeview Center is aged and scheduled for replacement in 2020 due to increasing performance problems and costs to repair. The bid packet has been approved by the Bid Commission and the unit ordered. There is a 10-12 week lead time for delivery of the unit. Contractor: WD Manor (Cost $90,495)
- Indoor Spa Pump Room
This work is in progress. Water heater supplying outdoor shower and shower inside the spa room has been replaced. Repairs in the room expected to be completed by 4/3/2020 with spa pump motor starter replacements scheduled after this. Repairs to the indoor spa pump room will be completed during the closure of the spa for the replacement of the indoor dehumidifier. Work will include wall framing, installation of wall board and FRP panels to repair the wall and reduce moisture exposure in the future and the replacement of a hollow metal door into a service area. Additionally, the replacement of three spa motor starters will be completed during this maintenance window. One of these antiquated starters failed in 2019 and was replaced with the remaining three scheduled for replacement in 2020. Contractor: BluSky Restoration, Sunland Plumbing, Accel Electric (Cost $16,164)
- Lakeview Lanes West Parking Lot Lighting Enhancements
Changes to lighting layout were recommended and currently pending updated photometrics for the new configuration. Additional lighting in the west parking lot at Lakeview was identified to be needed. LED fixtures will be mounted on the two light poles in the west lot. Two additional light poles will be added to the far west end of the lot to extend lighting through to the southeast end of the Lakeview parking lot. Scheduling is pending receipt of the fixtures. Contractor: Accel Electric (Budget $18,000)
- Lakeview Lanes Café Water Heater Replacement
This work is complete. The 100-gallon water heater supplying the Lakeview Lanes Café is failing and is being replaced. Replacement is scheduled for Friday 2/21/2020.
Contractor: Sunland Plumbing (Cost $8,208)
- Repair and Replacement of Concrete
Repair of concrete areas around the Center, Hillside Park and Lakeview Lanes are being scheduled. This includes removal and replacement of sections, grinding down elevated joints, and installation of ramps. Additionally, the removal of deteriorated asphalt near Lakeview Lanes and replacement with tinted concrete will be completed. Contractor: Estrella Concrete Contracting (Cost $21,250)
- Railing and Ramp Wall Painting
The railing, gate, pillars and ramp walls at the Red ramp at Lakeview Center have been painted. The railings were showing deteriorated paint and rusting. Contractor: Exquisite Painting (Cost $4,850)
Mountain View Center
- No change for this project and waiting input from the ad hoc committee before proceeding with site design work.
- The following reports and surveys have been completed for the planning tasks for the renovation of Mountain View Center: title report to show property encumbrances and easements, topographical survey data, and soils testing/report.
Oakmont Center
- Water Heater Replacement
This work has been completed. The water heater supplying the Men’s locker room is failing and scheduled for replacement. The unit has been ordered with installation estimated for mid-March based upon order lead times. Contractor: Sunland Plumbing (Cost $4,988)
Riverview Golf Course
- Parking Lot Lighting Upgrades
This project has been completed. The current metal halide light fixtures at the Riverview Golf Course are being replaced with LED retrofit kits. The operational costs of the current fixtures and bulb replacements are high. The replacement LED fixtures have been ordered and anticipated for installation in early March. Contractor: PLG, LLC, Utility Construction (Cost $9,432)
Sundial Center
- Repair and Replacement of Concrete
Repair of concrete areas around the Center are being scheduled. This includes removal and replacement of sections and grinding down elevated joints. Contractor: Estrella Concrete Contracting (Cost $3,670)
- Exterior Wall Repair and Painting
Areas where exterior stucco was damaged have been repaired and painted.Contractor: Exquisite Painting (Cost $3,920)
- Water Heater Replacement
The installation was delayed with the work being completed on 3/24/2020. The 100-gallon water heater supplying the center was scheduled for replacement in 2020. This unit will be replaced with a Rinnai tankless unit, an insulated 100 gallon holding tank, and a soft water system. The existing recirculation pump will be re-piped to function with this replacement system. Contractor: Sunland Plumbing (Cost $17,255)
Solar:
New Issues:
Sundial – # 6
This inverter is only reporting production data at intervals up to 3 days. Longer historical reporting is not presented. Identified as an issue with the inverter and a warranty replacement was ordered. This replacement has been received and scheduled for installation on 3/31/2020.
Issues Resolved:
None to report.
Open Issues:
Lakeview Production Meter
Production meter is not responding 2/14/2020. B&I reset did not resolve issue. This issue has not been resolved. Production information is available from the individual inverters at this time although not from the production meter.
Sundial – # 14
Inverter is only producing half what it should be. Kortman notified 2/12/2020. This issue is still open.
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 AlsoEnergy aggregation reporting site.
No resolution to this data integration reporting issue this month. Focus has been on the preventative maintenance tasks below.
Lakeview Rear – # 01/02/03/04
Similar to the Oakmont site the inverters at the Lakeview Rear site stopped communicating with the AlsoEnergy data logger and thus the AlsoEngery 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.
No resolution to this data integration reporting issue this month. Focus has been on the preventative maintenance tasks below.
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.
No resolution to this production issue this month. Focus has been on the preventative maintenance tasks below. The preventative maintenance steps may identify solutions when these inverters are addressed.
Production Data:
The adjustment for weather has been completed for both 2015 and 2016 with the overall production data for 2015-2019 now reflecting this adjustment. Only 2014 remains pending for adjustment. With the adjustments made for 2015-2019 the production over the life of the systems is 5.19% over expected. There is an approximately 50% increase in the number of inverters positively producing versus expected after making the adjustments for this 5-year period. In total 80% of inverters are showing positive production to expected.
Preventative Maintenance:
Preventative maintenance tasks on all solar systems have been completed. Additional repair items are being scheduled for completion.
Golf & Grounds:
Pro Shops
Good weather and an extra day resulted in rounds played increasing by 5,638 compared to prior year. Through February we have played 8,133 more rounds compared to prior year. Total rounds played represent the highest total over the since 2014.
Beginning March 1, days with straight sheet starts changed to a 7:00 a.m. start time. It is easier for the maintenance crews to stay ahead of play on straight sheets, enabling us to offer an earlier starting time than the 7:30 a.m. start for cross-over starts. The straight sheet start time will be moved up in 15 minute increments as daylight allows. The recent modification to golf operations has switched all courses to operate with straight sheet starts.
As golf has remained open for play, we have taken steps recommended by the USGA to reduce touch points throughout the courses. These include inverting the cups so holed shots remain close to the surface, removed ball washers, removed bunker rakes, removed sand caddies on par 3 holes. We have also implemented straight sheets to reduce traffic in the pro shops, waived the 3 cart rule to allow for social distancing, provided gloves for cash handlers, keeping doors open where possible and have received valuable help from RCSC center staff to provide regular cleaning around the pro shops. We will continue to monitor best practices as provided by CDC, the USGA and other golf course operators and adjust operations as appropriate.
Snack Shops
In previous years snack shops have remained open until 5:00 p.m. on a regular basis as they were busy enough to support the change. With the current changes to snack shop operation, as part of the COVID-19 response, we expect snack shops to begin closing at 3:00 p.m. on April 13.
Golf Courses
Beginning April 6, spring fertilizer applications will begin at South. We are not using an outside vendor this year as we have in previous years. These applications should have little to no impact on play. There is no firm schedule to announce but after South, Quail Run will be fertilized, followed by North, Lakes West/Lakes East, Riverview and Willowcreek/Willowbrook.
Grounds & Lawning Bowling
Lawn Bowl greens are currently closed and therefore are not being monitored for pace. Regular maintenance continues and with current closures, we will begin some of our spring/summer maintenance practices sooner than normal.
The recent heavy rains have led to hearty growth of weeds. These are being treated both mechanically and chemically. As with golf, grounds will begin fertilizer applications starting in April.
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!