Here is the Letter To The Editor that appears in the Independent newspaper this week: "Golf Meant To Be For Members." $10 and a cup of coffee,"and "the greatest real estate deal since the Dutch bought Manhattan Island," are just a couple of the quotes from Jubilee regarding the purchase of Sun City golf courses. The 1977 agreement (Quail Run came two years later) included 7 golf courses, a total of 968 acres, a water district system with wells and 194 pieces of equipment. The value was estimated to be worth 12 million dollars. DEVCO always wanted the RCSC to own the courses. The company had no interest in owning or running them. The problem was, board members were concerned they would become a "money pit." The purchase price was too good and adding them as amenities made perfect sense. The agreement contained two provisions; they would remain golf courses and golf would be "revenue neutral." Golf has long struggled to break even. Many have argued, it shouldn't have to. This letter has nothing to do with any of that. In fact, golf is too important not to subsidize. There's more than 4000 Sun City residents who play golf. The problem is how little the membership knows about the actual costs. It's been well hidden; that wasn't by accident. In April, at the Member/Board Exchange meeting, things changed. Long-time members were complaining about scheduling tee times.The pandemic created an opportunity the RCSC management seized on. Golf was the only game in town and non-residents started flocking to our courses. Turns out, Sun City golf was cheaper than virtually every other golf course around us. We learned non-residents could buy full play passes at a fraction of the price it would cost them to golf elsewhere. We learned they had access to the web portal for tee times, just like members. We learned the full play passes included golf cars for less money than members could rent them for. Now there's a question whether outsiders can join small groups (30 or more) and pay a small charge and bypass the lottery? The RCSC management team will tell you it's no big deal; that's it's revenue they need. That's simply a load of horse manure. By the time the ADWR 5th water management plan (turf reduction) is completed (circa 2027), the members of the RCSC will have invested roughly 100 million dollars in our golf courses and related buildings. That's not the money collected from golf fees, that's every member who has paid their PIF and their annual lot assessments to subsidize golf. What RCSC members should never have to subsidize is golfers living outside Sun City; nor better access to prime time tee times; nor cheaper golf car rental. Those non-residents paid nothing towards that 100 million dollar investment made by members. At the September Member/Board Exchange meeting you will have the chance to let them know, members matter. Members should always come before those living outside our remarkable community. It's how Sun City was built and why it was so successful.
Jean Totten as One Day At A Time: Excellent letter, Bill! If this doesn't trigger a beaucoup of golfers lined up to speak at the Member Board Exchange on Monday the 12th, then nothing will. (And it's bowling, too.) Members! Members Matter! Members Come First!
I suspect this creative accounting, bait and switch activity reporting, and gross neglect of fiduciary responsibility can be found throughout the RCSC reporting and management.
Just ask'n but...what's the preferred method of transparency that will satisfy the Membership? Showing the ledgers to the Members or perhaps going thru a State or Federal agency? I prefer keeping it an in-house (RCSC) transparency! Is or does the finance committee do a deep enough dive into the records or are they being restricted from seeing them as well? Just random thoughts!
I've listened to so many folks tell me "i hate golf" over the years, it's painful for me to think about. I never have, never will. Its been an integral part of Sun City's storied past and will be for years to come. The tragedy has been how it's been treated by the management team and failure by boards to even begin to address it. That's why they are elected. I can't help but think back to a year ago when the police wanted to throw us out of the Sun Dial auditorium for trespassing. Say freaking what? It's the mentality that has been shoved down our throats for the past 15 plus years. Cardholders; indeed. When we lost the concept we were the owners, we simply became window dressing whereby they just did whatever they wanted. It ultimately comes back to the question; who owns Sun City? I will tell you who doesn't own it, the management team. I would argue we elect board members to represent the membership but for years now we've been told they were their to be loyal to the organization which all too often translated to being loyal to the general manager. The entirety of the structure has been turned on its ear. The good news is its fixable. We are three new board members away from a majority who believe members should have a voice. This coming election will turn on how members view what is going on. Nothing is more revealing than this non-resident full play pass dilemma. Neither the majority of the board and especially the management team gave two shits about outside play. They've simply treated it as cavalierly as they always have. They simply don't care. I'm looking forward to the meeting. Will they deny the 100 million dollars? Will they say i am exaggerating? Telling a lie? There's an easy answer, open the freaking books. Show us every nickle spent from 2000 (first PIF funds available) and then show us every 990 during that same period. To make it even more fun, go to the PIF long range plan posted on their website. There's another 30 million dollars listed for golf courses and out buildings. By the way, before they start running at the mouth, they need to go back and look at what it says in the purchase agreement regarding golf courses. Clearly, the two lakes that feed the golf courses, half of those expenses need to be factored into the cost of being revenue neutral. I know, they want to pretend that agreement doesn't mean anything. It's not even the argument anymore. That train has left the station. We are subsidizing golf, what we should never be doing is subsidizing golf for anyone living outside these walls. It wasn't the RCSC that will be spending the 100 million dollars, it's everyone of us living here. End of story.
As I've said before...a complete income and expense statement; a balance sheet and the auditors report if we haven't seen it, with the accompanying management report. We need to DEMAND quarterly complete financial reports; no summary BS overviews in the management report. THAT is not a finance report! Plain and simple. And, is the Committee doing a deep dive? We need to publicly ask them. There are tens of millions of dollars here - past, present and future - and they treat this like Monopoly! And, who are the owners? Aren't we the shareholders of the corporation? Don't shareholders get complete annual financial reports of the corporation with all of the numbers? I'm tired of the nonsense. It's time to spell out fiduciary responsibility again in big bold print; my money is on - they fail the compliance test! And, if we find the Finance Committee is restricted, for whatever reason, then it's time we take another step because there's something "fishy in Denmark."
And I've heard there's a place that's getting ready to hire 87,000 new employees....But boy, I sure don't want to go thru that route. It would surely open up a whole new can of worms and take us into places we care not too tread! The Members pay the bills of the RCSC and just like any household who watches what they spend, we should have that information available to us unless there's something they're trying to hide? I would vastly prefer that the Finance Committee dig thru the financials and the whole situation can be taken care of in-house, as it should be! But they're required to see ALL the information, not just the selected numbers they want us to see.
You're right on all counts! Our quarterly Finance Committee meetings were for the "deep dive" reviews. Monthly meetings were to just make sure we were keeping bills paid on time, there were no "big" unexpected surprises popping up, or if there was a need for an emergency expenditure of some sort. These were much smaller organizations, but we still operated with a focus on due diligence and fiscal responsibility at all times. We were responsible to donors and members...501c(3) and 501c(6).
We finally got some push back on the golf figures we have spent the summer discussing. Unfortunately it was posted on the Sun City Advocates page. It appears it was in response to what was said on TOSC. Dave Wieland told us we were all wrong and he was right about the actual golf losses. To be honest though, i have no idea what he was saying what they really were because the way the data was posted was meaningless to me. Perhaps i'm just a dullard. For anyone following the thread with over 8000 views regarding golf on TOSC, i went to great lengths to post the numbers regarding golf. To be very clear, they were their (the RCSC's) numbers. Dave's rebuttal was something he "gleamed" from a finance/budget meeting. The good news is, he will be happy to share them with me at the member/board exchange meeting. As i have always said, i'm more than happy to look at any information and if i'm wrong, promptly admit it. The biggest issue/difference we have is his claiming the 990's filed by the RCSC each year aren't correct. Say freaking what? As i explained to him, in my role as president of a not for profit organization we filed LM2 reports every year. They served the same exact purpose as the RCSC's 990's. I didn't personally fill them out, our accountants did. However, it was my signature on the bottom line and if they were wrong, it was my ass on the line. Virtually the same applies to the RCSC; their accountants filled them out, someone in the organization signs them. They too are accountable for their accuracy. For months now, Dave has argued the 990's are meaningless. I've asked him to explain why numerous times; he never has. It's illogical to think the expense side of their filings for golf are in error when in fact their revenue side matches up. There's literally a page (Section 3) that lists three primary expense and revenue generators; they are; Recreation Centers, Golf Division and Bowling Division. Each of these categories has an "expense" column and a "revenue" column. There's always been a question on how much the RCSC has spent on golf. There's nowhere it's been posted. Dave says he has that information, we'll see. For now, unless and until he produces it, i/we are stuck believing the what the RCSC sends the federal government each year i guess. If Dave tells me why the RCSC has lied on the 990's, i will gladly pass that information along as well. I'm sure there's a solid explanation for misleading the government (tongue in cheek). In fairness to Dave, for some reason he can't post here. He used to but can't now.
Yikes, i awoke to a message from a reader of the Sun City Advocates page who asked me how Dave Wieland could discount/dispatch the 990's if he never even saw them? It was a good question, the kind most logical thinking people would ask. In response i went to the Advocates blog and saw he indeed did admit he's never seen them. Did i mention, yikes. Let me be very clear about this, virtually all RCSC members volunteering to serve on committees and boards are good people who just want to do their share to make Sun City the special place it is. I've always believed that. Members don't get involved for the wrong reasons, they simply don't. They may have their biases, they may even have their agendas, ultimately, that was why i have always been so keen on how Sun City was built. It was literally the perfect mouse trap. Everything was constructed so there were checks and balances. If the general manager crossed the line, the board could reign him/her in. If the board crossed the line, the membership could pull them back. If a minority of the membership tried to do something stupid, there were safeguards. It was a creation crafted over years and years of hard work, dedication and commitment. It was also a structure that was slow moving and careful. That clearly didn't suit the general manager who wanted to move more quickly without the membership getting in her way. The changes foisted on the community weren't by accident. With each step, the community became less involved. With each step, the board had less work and became more dependent on the general manager. As i have written numerous times, a Faustian bargain it was. The problem is, as we have moved in this "new direction," we have relinquished the very essence of what Sun City is, why it was built. The idea board members would buy into the logic that it's okay to allow non-members cheaper golf rates, equal (or better) access to prime time tee times and golf cars at a fraction of the cost is insanity. PURE AND UTTER INSANITY. I suspect one could make the argument we need that 300k of revenue to survive. In the thread it's not about golf, we went to great lengths to show you, it has nothing to do with the revenue side of the discussion. In fact, if you look closely at the numbers, the RCSC is flush with cash. On top of that, the growth numbers associated with outside play where non-residents are paying full plus prices for golf are growing faster than the pittance we collect in outside full play pass sales. The only thing those passes do is take prime time tee times away from members. This is exactly what happens when you diminish the role of the "owners." The hired help looks at the business side of the equation. The board is elected to look after the community side of the equation. If there is to be an error, it should always be on the community side of the argument. ALWAYS. We all are at a turning point in Sun City's future. This coming election can change the course set back in 2006. We can elect members who believe it's community first, or we can elect candidates who see it as corporation first. In my humble opinion, it's time to return to our roots, a time when members mattered.
Unfortunately Dave hasn't been able to figure out how to cut and paste links to the 990's yet. I'm sure he will get it and i really want to hear his thoughts on them. The one aspect he has continued to express is the losses in golf are due to depreciation, rather than actual dollar losses. I've heard others argue this, so who knows? I will make this as simple as possible and then put the turd right smack dab in the pocket of where it belongs in, so bare with me. In the beginning, the golf courses were purchased under the conditions of being revenue neutral. The money taken in from golf was supposed to cover the costs to run them. Those costs included; water, feed, equipment, labor (both for maintenance and pro shop and snack bars), utilities, half the cost of the two lakes, the management assigned to the oversight, digging new wells and all water distribution. On top of the labor rates, they should be factoring in the benefit side for those employees. The purchase price of new golf cars. Everything golf related. Think of it as if, where we would be if we didn't own them at all. The simple reality is, they had no real chance to do that. It sounded good, it was unrealistic. As i have said numerous times, golf is too important an amenity to fail. What should have happened along the way was clear and unambiguous accounting so everyone knew and understood what was going on. The RCSC got a freebie when the PIF was passed. It gave them the ability to spend (invest is a better word) a lot of money in golf without having to account or ask for it. The bigger problem was, it left other important aspects of Sun City shorted. Think technology, the ability to purchase the Lakes Club, the investment in continuing education (just as examples). It's what happens when you take the members voices away. When you decide the general manager and the board are the sole arbiters of what's important. Let me be clear; that was then, this is now. I have no interest in fighting over yesterday. This entire focus has been about looking forward; not backwards. I have been obsessively blunt, this entire process has simply been for RCSC members to understand one thing; We cannot nor should we ever consider letting non-members use our amenities for less money than members pay. NEVER. Imagine if the RCSC sold unlimited swimming pool passes for $100 and outsiders came as often as they wanted. And then give them a mechanism to bump you from using that amenity because they had a way to bump you. Or let them join your club for a small amount (pick a number, it really doesn't matter), because ultimately they aren't paying the $496 lot assessment, haven't paid any PIF and are just using the amenities because it's cheaper than anywhere else. It's senseless. That is what is happening on our golf courses. Management doesn't give a damn, nor did a majority of the board who voted to not fix this travesty. That's what is at issue here. Dave wants to debate numbers, i want to discuss reality. I wrote 100 million dollars in the letter to the editor. Is it 90 million or 110 million? Does it really matter? You know they will never show us, they simply can't afford to let members know the truth. At this point i don't even care about the dollars. What i do care about is Sun City restoring the days when members mattered. What they said and felt drove the bus, not managements ideas on what Sun City should be doing be the guiding light. This coming election is the chance to restore the community's voice. Because we all know, the majority of the board cared more about management than what the members said. That's wrong.
I read your article in the newspaper. However, how can an individual like me make a difference? I will vote but have absolutely no idea how or who to vote for. To quot you 'MEMBERS MATTER" Can we just vote all of them out and start all over??????
Well said, Bill, as the tip of the iceberg meets the Titanic. Mr. Pearson you are on the mark in many ways most of the time. Why aren't you a candidate for the RCSC BOD? I would love to see your energy there and not just a voice from the audience. One of nine with a vote has more power than of thousands without a vote. That is why this is the "Talk" of Sun City. You could be walking the "Walk" of Sun City. Jean Totten is a brave and influential candidate that needs the partnership of your knowledge and communication skills. Strap on the gear and lets go! Sampson, grow back your hair! You say you want to look forward, then be a candidate for meaningful action. The current RCSC BOD needs a giant bear hug from both you and Jean as future BOD members. If you throw your hat in the ring by the September 12th exchange, the coffee is on me. It would be a celebration of change and not an exchange of anger.
May want to catch up: Bill Pearson to pick up a packet to be a candidate (08.23.2022) https://talkofsuncity.com/threads/bill-pearson-to-pick-up-a-packet-to-be-a-candidate.4440/
Thanks eyes for the reminder and to both Peg and Bob, sorry to let you down. My position/decision to run was based on the premise i would do so to insure there were three candidates who were committed to the premise members mattered. When it looked like there would only be two, i decided, as much as i didn't want to do it again, i would. To my delight, there will be at least three candidates i know believe we need a change. I've been down that road of being on the RCSC board and for near on 20 years have been writing and saying things in hopes of restoring Sun City to its once unique structure of governance. We need new people with new ideas and new energy. I also know i am a polarizing figure and don't want to hurt the quality candidates i will get behind. My efforts going forward will be to do everything i can to support, promote and elect those three candidates. It's time for a change and if we elect the right candidates, we will see that change start to take place.
