We interviewed Director Gusich about the problem:

The number one issue is we haven’t had people running the projects with the proper experience or qualifications. We also don’t have the inhouse resources to evaluate estimating, drawings, budgets, or scheduling. A PM that is specialized in new housing projects will most likely not be successful on projects outside his area of expertise. Large projects require expertise in several disciplines. Also, Construction Management project controls are typically much different than manufacturing project controls.

Another problem is that the Grand attorney has recommended against AIA contract usage. The American Institute of Architects not only has standard contracts, but it also provides it’s members a host of project control process’.

After reviewing the Falls and Photo/ Glass/Clay project documentation, it’s clear that shortcuts were taken, and proper project controls were/are missing. A project needs to be set up with files, and logs before any work is done in the pre-construction phase. An additional set of files is created when the project enters the actual construction phase to control Cost Projections, Changes, Billings, Drawing logs, RFI’s, Lien Waivers, Meeting Notes, etc.

Just as we subcontract payroll benefits and water management because we don’t have the expertise or resources. We should also let the professionals who have the resources to execute the Constuction Management process. History shows us failure costs us money and time with an inferior process.

We spoke to Board members, and they were told we would once again allow cash purchases at the golf courses and snack bars in November. This has obviously not happened. We saw credit card fees balloon to over $ 500,000 this past year. We were told the computer system we currently have doesn’t support other credit card processors.  Our GM needs to look for ways to save us money not spend more.

Jeff sadly has been misinformed.

“The Contract specifically requires the contractor to compact and backfill to 90% maximum density. The Contract details how to accomplish this. Thus, if the compaction is not done properly, the Contractor will be responsible. When the Board asked the irrigation consultant during executive session whether or not it should require compaction testing, the irrigation consultant gave their professional opinion that testing would not be practical and would be exorbitantly expensive. This is not the type of testing that can extrapolated. In order to be meaningful, you would have to test every few feet. This would be prohibitively expensive. In the consultant’s opinion, this expense did not make sense in light of the fact that the Contractor is contractually obligated to remedy any areas where compaction was not proper.”

The Truth about soils engineering.

A Geotech engineering firm would never recommend soil testing every few feet. (not buying that BS) Depending on the project (ours would be trench backfill) the engineer would most likely test the backfill at 100-foot intervals. He would fist observe the moisture content of the soil used for backfilling, classify soil type, do a moisture content test, observe the ” lifts” ( the layer depth usually in 1-foot or 6 ” layers) and insure the backfill activities don’t cause problems’ in the future. It is obvious that our GM is simply trying to CYA for not holding our contractor to the contract and the advisement from a lawyer or irrigation consultant does not tell the total story. We replaced concrete cart paths. Soil compaction under paths require more compaction due to wheel loads and we should ensure that we won’t have future disruption to our course or receive an inferior product. If someone doesn’t possess a fundamental skillset, he cannot come close to predicting future soil conditions of disturbed area. You can look at the City of Suprise website that also provides compaction requirements for different conditions.

This reminds us of how our community was impacted by work perhaps not done according to codes or industry standards.  Perhaps we won’t have financial impacts which time will tell, but we had to wait an additional 6 months for rework due to the fire for our restaurant to open again. We don’t need holes closed next year for rework.

Don’t settle for less that we pay for should be our Montra!

1. Breach of Fiduciary Duty

• Failing to act in the best interest of the organization or its members.
• Mismanaging finances or resources.
• Acting in ways that prioritize personal gain over the community’s needs.

2. Lack of Transparency or Accountability

• Withholding important information from members or other board members.
• Failing to disclose conflicts of interest.
• Engaging in actions that undermine trust within the community.

3. Violation of Governing Documents or Policies

• Ignoring or contradicting bylaws, rules, or policies that govern the organization.
• Making decisions without proper authority or procedures.

4. Incompetence or Poor Performance

• Demonstrating an inability to effectively fulfill their responsibilities.
• Failing to attend meetings, contribute meaningfully, or follow through on commitments.

5. Ethical Misconduct

• Engaging in harassment, discrimination, or unprofessional behavior.
• Participating in fraudulent or dishonest activities.

6. Conflict with Community Interests

• Making decisions that do not reflect the needs, desires, or values of the community.
• Showing favoritism or ignoring input from members.

7. Deterioration of Relationships or Reputation

• Creating conflict or divisiveness among board members or within the community.
• Damaging the organization’s reputation through inappropriate behavior or public statements.

After consulting with some valley experienced HOA attorneys, it is clear that we pay an unusually high rate for our legal expenses. Most large HOA’s pay less than $ 50,000 per year. We retain our Association Attorney at $ 24,000 per MONTH. Conversations with past SCG board members have yielded a common theme. It appears that we did pay a lower legal fee up until four or five years ago. At that time, we had a strong and seasoned GM. We replaced him with a less qualified person and up went the fees. We next replaced him with a BOD member with suspect qualifications and up went the fees. We replaced him with a GM trainee who had golf experience and up went the fees. Perhaps Poor hiring?

It is clear that the costs for legal services are directly proportional to the level of experience and competence of a GM. So, we pay an inexperienced GM over $250,000 and a lawyer $288,000. We also added a new layer of management at six figures. so, we now approach $700,000 for decision makers when we in the past we could do it for $200,000. Not good

Yes, we paid a consultant over $ 100 ,000 for the change.  Most people aren’t aware that the name change is just for a DBA moniker. Our legal name is still Sun City Grand. We also paid over $50,000 for changes to the entrance signage. There are most likely on-going changes to Stationary, Logos and Signage that will get reworked that are costs yet to be realized.

And another $110,00 for the infamous space planning study.

People in the Pet Club have submitted proposals for additional seating and shade structures along with additional gates.

The turf is also beyond its useful life; however, no action has taken place.  It appears that the substrate is saturated with

urine and washdown fecal matter so when you wash down and area after a pet has done his or her business the water

just runs down on top of the turf to another spot. Disgusting!!! Purchasing had bids for turf replacement in early summer

but staff hasn’t got the go ahead from the GM to proceed. If we don’t see action, we may have a more serious problem. We can

find time and money to do other projects but the dog park continues to take a back seat. Let’s show up at the next BOD

meeting in numbers and let our voices be heard.

• We were told that months ago “site visit ” reports were requested and the response from Jeff Hochman was the reports were not in Marvin Mills contract.
• Another BOD member said that ” the reports are staff’s responsibility” and of course Rene agreed.
• So Board members are not allowed to validate that what we have paid for is actually being constructed according to plans and specifications? We need to “TRUST BUT VERIFY”. Perhaps if we had done professional inspections and had a real Manager, we wouldn’t have had a fire at the Falls.

Once again, the BOD lets our community down with lack of real accountability and Fiduciary responsibility.

The ” Project Brief ” was submitted by LRP in May of 2023.  That’s almost a year and a half ago. The project was to improve our Food and Beverage capabilities at Desert Springs and make Golf Oriented improvements. The actual scope has yet to be determined. Once again, the LPDP influenced by madam president, has been so cumbersome that the project moves forward at a snail’s pace with several starts and stops. The team members, while good intentioned are constrained by real leadership and direction from CAM or our BOD. Who really wants a putting course or what kind of restaurant are we getting?

Let’s keep doing surveys until we get the answers some BOD members want………a travesty

The 2025 budget has indicated $288,000 for legal fees.  The why again is because our management style has moved to ask for legal advice on almost everything. This type of style usually indicates a lack of business experience for judgement decisions. How could we mitigate theses expenses? We could hire on staff a paralegal ($ 88,000) that could take care of contracts. leases, insurance issues etc. and only use the attorney for backup or critical issues. ($ 100,000). That could possibly save us $ 100.000.

You Can…..

• Sign our Petition
• Get your friends involved
• Attend BOD meetings
• Hold our leaders accountable