1 Your oils fine, but your blood - sugar levels a little low. 2 - - PowerPoint PPT Presentation

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“Your oil’s fine, but your blood-sugar level’s a little low.”

 We’re a Team – With Distinct Responsibilities

Governing Board Management (GM)

Hires a General Manager Hires Staff Drafts/Adopts Policy Follows Policy Oversight of Operation Manages Association Reviews/Adopts Budget Proposes/Manages Budget Seven Standing Committees Works with Committees

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 1. Managing and following the Governing

Documents

▪

Bylaws, CC&Rs, Articles of Incorporation

 Rules, Regulations and Procedures

 Ensuring compliance with State and Federal Laws  Seeking legal advice when necessary

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 2. Managing People

 Goal: Happy, productive & goal-oriented employees

 3. Managing Assets

 Protecting Facilities

 $150 Million in assets

 Updating assets  Maintaining existing assets

 Managing Money

 Budgeting  Hiring CFO  Constantly monitoring expenses  Ensuring GAAP is followed

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 4. Working with Governing Board

 Board sets policy; GM carries it out  Nine-directors = nine personalities  GM Reports to the President  Monday Ops Meetings  Committees advise GM/GB  Leadership is all about relationships  Meetings, meetings, meetings

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5. Managing Problems

 Safety first  Information sharing is key  “Seek first to understand, then to be

understood.”

• Steven R. Covey

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 6. Planning for the Future

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“Never, ever, think outside the box.”

Long Range Planning Issues

• 1. Changing Demographics
• 2. Infrastructure Health/New Projects
• 3. Coordination of Community Service Agencies
• 4. Our Anti-HOA Planned Community Legislature
• 5. Water Concerns
• 6. Bylaw/CC&R, Age Restriction
• 7. Too Many Courses?
• 8. Energy Conservation
• 9. Health of Sun City West Businesses

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6. Planning for the Future

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When planting your cats, make sure to space them 6 inches apart so they have room to grow.

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• Emails
• Letters
• Meetings
• Walk-ins
• Editorials
• Social Media

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• PORA handles initial complaint (except age

violations)

• May require some legal action
• Face to face meetings
• Legal/Court action

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Amenities & Facilities Valued at $150,000,000

• 7,035 Acres
• 11 square miles
• 17,106 roof tops
• Population – 31,000
• Annual budget $25 million
• Four recreation centers
• 3.2 million sq. ft. of asphalt
• Seven Association golf courses
• A 30-lane bowling facility with pool,

billiards and snooker tables

• Private Library for membership
• Two mini-golf courses
• Four fitness centers
• Six swimming pools

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Amenities & Facilities Valued at $150,000,000

• Six whirlpool/spas
• 21 tennis courts
• 5 platform tennis courts and

24 pickleball courts

• 2 racquetball courts
• 3 walking tracks (1 indoor

and 2 outdoor)

• Woodworking shop
• Metal working shop
• 4 grass lawn bowl courts
• 14 bocce courts
• 5 shuffleboard courts
• Softball field
• 2 volleyball courts
• 2 dance ballrooms
• Wii games
• 2 dog parks (1 for large dogs

and 1 for small dogs)

• Stardust Theater
• 111 Charted Clubs

• You can’t please everyone.
• Be flexible.
• Check the Governing documents.
• You are not a policy-maker.
• Surround yourself with good people.
• Have a good sense of humor

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Keys to Managing a $25 Million Company

SUN CI T Y WE ST ANNUAL RE PORT

• JUNE2018

Ge ne ra l Ma na g e r Mike Whiting

THE WOODPECKER’S GOT TO GO

• We’re in great financial shape
• No De b t
• We ma inta in o ur a me nitie s
• Sun City We st Sta nda rd s
• We ha ve o ve r $22.5 millio n in re se rve s
• We e duc a te o ur re side nts
• F
• rums
• TORCH Citizen’s Academy/ Rec

Ce nte r Ne ws / We b site

• We e kly/ Mo nthly Bo a rd Me e ting s
• We pla n fo r the future
• 5 Ye a r F

ina nc ia l Pla n

• Re se rve Study
• Bo th a re upda te d ye a rly

• We’re Tax Exempt
• No F

e d e ra l o r Sta te Co rpo ra te T a xe s

• Re duc e d Pro pe rty T

a xe s o n Go lf Co urse Pro pe rtie s

• We inve st o ur ta x sa ving s b a c k into the

Asso c ia tio n--

• Re c re a tio na l & Go lf Ac tivitie s
• Re c re a tio na l & Go lf F

a c ilitie s

• Re c re a tio na l & Go lf E

q uipme nt

SUN CI T Y WE ST I S 40 YE ARS OL D

▪ $115 Millio n in Asse ts ▪ $65 Millio n in Asse ts Ne e d

Re pla c e me nt o ve r the ne xt 30 ye a rs

ASSE T S

151 Ro o fs a t 302,571 Sq . F t. 240 A/ C Units in se rvic e

ASSE T S

2,012,238 Sq . F

• t. o f

Aspha lt Pa rking L

• ts

ASSE T S

257,074 Sq . F t o f F lo o ring

ASSE T S

Irrig a tio n Syste ms (7 g o lf c o urse s, stre e ts, la ndsc a ping ) We lls (7 a t $1.5 Millio n) 1,000,000 g a llo ns pe r c o urse pe r da y, 300 HP mo to rs

ASSE T S

Go lf E q uipme nt 123 units o f g o lf c o urse e q uipme nt inc lude s 56 mo we rs (do e s no t inc lude a ny g o lf c a rs)

ASSE T S

276 Sa nd Bunke rs

T e nnis Co mple x 16 Co urts + 4 Pla tfo rm Co urts + 6 a t K ue ntz

ASSE T S

Pic kle b a ll 8 Co urts a t RHJ + 18 Co urts a t Pa lm Ridg e

ASSE T S

DE L WE BB CURRE NT POPUL AT I ON AND ME MBE R DUE S COMPARI SON HOW DO WE ST ACK UP?

SUN CI T Y, AZ

Co mmunity Size (ro o fto ps) 27,500 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $496

SUN CI T Y, GE ORGE T OWN, T X

Co mmunity Size (ro o fto ps) 9,900 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,130

SUN CI T Y ANT HE M, NV

Co mmunity Size (ro o fto ps) 7,451 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,212

PE BBL E CRE E K , AZ

Co mmunity Size (ro o fto ps) 6,200 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,224

SUN CI T Y GRAND, AZ

Co mmunity Size (ro o fto ps) 9,802 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,370

SUN CI T Y SUMME RL I N, NV

Co mmunity Size (ro o fto ps) 7,779 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,392

SUN CI T Y L I NCOL N HI L L S, CA

Co mmunity Size (ro o fto ps) 6,783 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,452

SUN CI T Y F E ST I VAL , AZ

Co mmunity Size (ro o fto ps) 7,220 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,668

SUN CI T Y ANT HE M, AZ

Co mmunity Size (ro o fto ps) 3,800 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,680

ARI ZONA T RADI T I ONS, AZ

Co mmunity Size (ro o fto ps) 1,768 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,716

SUN CI T Y ORO VAL L E Y, AZ

Co mmunity Size (ro o fto ps) 2,488 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,790

SUN CI T Y ME SQUI T E , NV

Co mmunity Size (ro o fto ps) 6,378 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,824

SUN CI T Y ROSE VI L L E , CA

Co mmunity Size (ro o fto ps) 3,110 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $1,872

SUN CI T Y APPL E VAL L E Y, CA

Co mmunity Size (ro o fto ps) 1,700 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,208

ROBSON RANCH, AZ

Co mmunity Size (ro o fto ps) 4,600 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,362

VI CT ORY AT VE RRADO, AZ

Co mmunity Size (ro o fto ps) 3,500 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,400

CANT A MI A, GOODYE AR, AZ

Co mmunity Size (ro o fto ps) 1,700 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $2,748

T RI L OGY AT VI ST ANCI A, AZ

Co mmunity Size (ro o fto ps) 5,450 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $3,036

SUN CI T Y WE ST , AZ

Co mmunity Size (ro o fto ps) 17,192 Curre nt Me mb e r Due s (b a se d o n 2 o wne r ho use ho ld) $930 $465 if o ne o n the d e e d (40%)

DE L WE BB CURRE NT COMMUNIT Y SIZE COMPARI SON

DE L WE BB CURRE NT ME MBE R DUE S COMPARI SON

ME MBE RSHI P DUE S PE R F Y (F OR YE AR E NDING JUNE 30)

$110 $110 $110 $127 $127 $127 $133 $133 $148 $170 $174 $180 $207 $225 $258 $296 $325 $337 $355 $370 $385 $408 $408 $420 $435 $445 $465

$0 $200 $400 $600 $800 $1,000 $1,200

2013 - 4.1% Incr 2014 - 6.0% Incr 2015 - 0.0%

I MPACT

Minimum Wa g e + Co mpre ssio n Vo te r Initia tive $600,000

• r

$20/ me mb e r

$8.05 $10.00 $10.50 $11.00 $12.00 24.2% 5.0% 4.8% 9.1% 0% 5% 10% 15% 20% 25% $5.00 $7.00 $9.00 $11.00 $13.00 $15.00 2016 2017 2018 2019 2020

Minimum Wage 2016-2020

Min Wa g e % I nc re a se

OUR E L E CT RI C BI L L

4% ra te hike - APS

Ac tua l Pro je c te d F Y2017 F Y2018 Re c re a tio n Ce nte rs $582,192 $619,500 Go lf Co urse s $710,058 $806,600 (300 HP 1,000 ft. d e e p we ll pumps)* *L e ss ra in = mo re e xpe nse to pump wa te r

❑ F

ue l (g a s) pric e s a re up b y 10%

❑ F

e rtilize r a nd c he mic a ls c o sts a re up (Pe tro c he mic a ls)

❑ Building ma te ria ls c o sts a re up

T HE RE CRE AT I ON CE NT E RS ARE

VERY EFFICIENT ….

HE RE ARE E I GHT RE ASONS WHY:

GOL F

▪ USGA Re c o mme nds:

18 pe rso nne l/ c o urse

▪ Re c Ce nte rs ha s:

15 pe rso nne l/ c o urse

▪ Sa ving s/ Ye a r

$840,000 ($3/ me mb e r)

RE CRE AT I ON CE NT E RS

▪ Citie s Pro vide Ac tivitie s

▪ Re c re a tio n L

e a de rs

▪ Re c re a tio n Co o rdina to rs

▪ Re c re a tio n Ce nte rs:

▪ Club s & Vo lunte e rs ▪ Cla ss Pro g ra m – Se lf Susta ining ▪ 317,000 E

stima te d Ho urs (@ Minimum Wa g e + pa yro ll ta xe s)

▪ E

stima te d Sa ving s $3,750,000

AQUAT I C CE NT E RS

▪ Citie s Pro vide ▪ 2 L

ife g ua rds/ Po o l

▪ Re c re a tio n Ce nte rs: ▪ No L

ife Gua rds/ One PT Mo nito r

▪ 15 ho urs/ da y pe r po o l ▪ E

stima te d Sa ving s $900,000

ST RE E T L ANDSCAPI NG

▪ Citie s ▪ L

a ndsc a pe r with Be ne fits = $38,000/ ye a r

▪ Re c re a tio n Ce nte rs: ▪ Pride s x $0 = $0/ ye a r ▪ 6500 minimum e stima te d ho urs (3 F

T E s)

▪ E

stima te d Sa ving s $114,000

ST RE E T MAI NT E NANCE

▪ MCDOT

Ma inta ins Ro a ds

▪ 137,528 L

ine a r F e e t o f Main Ro a d s

▪ Do e s no t inc lud e a ny sid e stre e ts ▪ That’s 26 miles @ $550,000 pe r mile to re pa ve

▪ APS Ma inta ins Stre e t L

ig hting

▪ E

stima te d Sa ving s $ 14,300,000!

OPE RAT I NG E XPE NSE S

E xc lude s Ca pita l a nd De pre c ia tio n

▪ E

mplo ye e Wa g e s & Be ne fits

▪ Co mpe titive Wa g e s & Be ne fits ▪ NO Pe nsio n Syste m

NO UNI ON

UNI ON DE MANDS = INCRE ASE D WAGE S AND BE NE F I T S

F a c ilitie s Ma inte na nc e Sta ts

F a c ilitie s Ma inte na nc e Sta ff

F ACI L I T I E S MAI NT E NANCE

▪ 240 A/ C Units ▪ 208 T

• ile ts

▪ 1,072,449 Ga llo ns o f Po o l & Spa Wa te r ▪ 159 Pie c e s o f E

xe rc ise E q uipme nt

▪ 2,012,238 Sq . F

• t. o f Pa rking L
• ts

▪ 325,321 T

• ta l Sq . F
• t. Unde r Ro o f

▪ And SO muc h mo re !

15 F / T E mplo ye e s a nd 1 P/ T E mplo ye e Ma inta in It AL L !

“I CAN’T BELIEVE HOW MUCH THERE IS TO DO HERE!”

“I CAN’T BELIEVE HOW CLEAN

AND WE L L

• MAINTAINED IT IS!”

IN T HI S 40-YE AR-OL D COMMUNI T Y, I HE AR T WO T HI NGS AL LT HE T I ME :

Let’s talk about water

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But seriously…

Where do we stand with water in Sun City West?

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In 1 year, SCW uses 2,300,000,000 gallons of water Yes, 2.3 BILLION gallons

RESIDENTIAL: 1.1 billion gallons (average resident uses 100 gallons/day x 29,000 residents/tenants x 365 days) RCSCW GOLF COURSES: 1.2 billion gallons (3,828 AF x 324,851 gallons/AF) ______________________________________________________ Total for SCW Home and Golf = 2.3 billion gallons Does not include commercial use

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What is an Acre-Foot?

324,851 gallons

• Covers a football field to 1 foot depth
• Serves 2.5 SCW homes for 1 year

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1 acre-foot would just about fill the Chase building in Downtown Phoenix!

Name: Chase Bank Center Address: 201 N. Central Ave. Height: 486 feet Floors: 40

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Phoenix Lake Mead Lake Havasu

What happens in Lake Mead affects Phoenix and Tucson (CAP Canal)

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Arizona gets 1.6 million acre-feet/year

So what’s happening with Lake Mead?

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• Shortage would be declared at the start
• f a year if water levels drop below 1,075

feet above sea level

• If a shortage is declared, states must

reduce water consumption

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Levels are dropping!

Dead Pool = zero water available; agreements end

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How likely are water reductions?

So how is the Colorado River divided?

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It ONLY works if everyone is involved!

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That means Sun City West also needs to do its part

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RCSCW’s situation

• SCW’s 2,372 AF allotment benefits residential use
• SCW uses 3,500 to 4,000 AF/year on our golf courses
• Grandfathered rights
• Effluent credits
• RCSCW golf course water is all groundwater – the Best of the Best!
• RCSCW groundwater rights are grandfathered (granted in perpetuity)
• But remember … the Colorado River Basin States are in this together!

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Water Availability Golf Trends Demographic Shifts

Three issues in particular can have dramatic impacts on our future, depending on how they trend:

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What do we know?

➢ We have a 50-year generation span with various interests ➢Demographic shifts will force changes to properties, clubs, events ➢Golf numbers will stay level or drop off ➢There will be increased demand for new, outside activities using limited greenspace ➢ Dues must remain reasonable while rising gradually to cover the costs of utilities, insurance, wages, equipment, etc.

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What are we unsure about?

➢Will drought continue? ➢Will water rationing kick in? ➢What specific facility changes will our new population demand?

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Two things we know for sure:

• 1. Any major changes we make to address water

shortages, golf trends or changing demographics will be very expensive!

• 2. Planning ahead let’s us avoid special assessments.

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