Re: [SCBuzz] MISMANAGEMENT IN OUR SUN CITY SUMMERLIN

Mr. Silver, here are a couple quotes that explain why these conditions exist in Sun City.

"Great Things Don't Come Out Of Status-Quo. Great Things Come From Vision"

"What Is Attractive About Losing Money"

The SCSCAI leadership is infected with "Group-Think" brought on by a small political faction making it impossible to make rational decisions for our community. What you have pointed out is the results of "Group-Think", our leadership (BoD) will not be able to think for themselves until this infection is eliminated.

Bernie, thanks for keeping our community informed,  

Dwain Kramzar

(702) 582-8064

PS: some of our political leaders think; "second opinions confuse the patient" 

What is Groupthink? (a perfect description of our Sun City leadership for 10-15 years)  

Groupthink, a term coined by social psychologist Irving Janis (1972), occurs when a group makes faulty decisions because group pressures lead to a deterioration of "mental efficiency, reality testing, and moral judgment" (p. 9).  Groups affected by groupthink ignore alternatives and tend to take irrational actions that dehumanize other groups.  A group is especially vulnerable to groupthink when its members are similar in background, when the group is insulated from outside opinions, and when there are no clear rules for decision making.

On Mon, Aug 20, 2012 at 3:00 PM, Bernard Silver <silverinvegas@yahoo.com> wrote:

To all.

REFERENCE:  My original posting shown below:

Sent: Saturday, August 18, 2012 12:46 PM

Subject: Re: [SCBuzz] MISMANAGEMENT IN OUR SUN CITY SUMMERLIN

Bernard Bronstein responded and appears to me to be willing to accept as fact that the annual losses of

operating three golf courses and associated restaurants are acceptable.  Lets review what the current FY budget is.

Within the approved and published, SCSCAI Budget for FY2013, July 1, 2012 thru June 30, 2013  there are some clear numbers relating to Revenues and Expenses. 

For Golf Courses, plus Food & Beverage, the Expenses are $6,595,766 and the Revenues for these

two operations are $4,432,536.   Thus, the Budgeted loss is $2,163,230.  This is an amount within the unit owner's Annual Assessment that has to be funded, and it is $278.  

In addition to this, there is a clear additional $60 per unit for Golf Course Reserves. 

Thus the unit owners are supporting these two businesses with a Budgeted $338 portion of their

$1,248 Annual Assessment.  This is 27% of our Annual Assessment.

In my opinion, this is still a lower value than what it would be with a full accurate attribution of Expenses.

For example, one has to consider that in addition to the shown $338 Budgeted Assessments from unit owners

to cover these losses,  there are other expenses that are not clearly attributed to these two businesses. 

These may be Legal Fees for normal association activities, Legal Fees involving 'Golden Parachutes', Legal Fees for resolving the growing number of ex employee claims, and of course any increase in Insurance premiums as a result of our legal problems.

Be reminded that several years ago, about $400,000 per year of golf course grass maintenance was transferred to the Landscape Dept.

So, when I provide a non accountant estimate of the losses, using the published by SCSCAI Reports, being well over $2,300,000 per year from these 2 business, I believe there is a lot of credibility in the numbers and justification for naming the Subject: MISMANAGEMENT IN OUR SUN CITY SUMMERLIN.

Be reminded, around 1997, the number of golf rounds played was about 180,000 per year.

At this date, we are down to about 90,000 (50% less) and we have considerably higher expenses. 

This type of mismanagement would not be tolerated in a normal commercial corporation, but the "Managers"

of our CIC have been successful in continuing without changes because most of the very senior citizens in

this age-restricted community are not aware of how they are being abused.

Contrary to Bronstein's opinion, I do not get any kicks, joy, or anything selfishly pleasing out of these reports.

I will not sit silently and permit this type of abuse where during my 16 years here I have not seen any real evidence of making changes in any tangible attempt to reduce the losses with a published plan.

Face facts.  Our outside CPA missed a $1,400,000 error in Reserves for two years.  I would think seriously about putting the Audit task out for competitive bids.  Also, it appears that our outside legal council, earning big fees have been heavily tilted in protecting Board Directors instead of our 7,779 CIC unit owners.  With these two facets of Expenses I would also think seriously about developing clear Work Statements for the professional services we need and putting them out for competitive bids.

Note that Bronstein is very familiar with persons on the Board and Standing Committees.

Therefore I invite him, or any others to show where my above numbers are incorrect. 

In reality, it appears to me that Bronstein doesn't like the term 'Senior Abuse' and any attempts to enlighten those who are abused.  Is he one of those drinking champagne?

Perhaps, the real point that he is trying to make is that he dislikes me communicating with outside media sources.

My response to this is simple.

For a long time, I received no response when I plied the then President with questions relating to possible IRS tax liabilities being imposed on our members because our Board incorrectly classified some personnel for many years as 'Independent Contractors' instead of 'Employees'.  This was in violation of a specific SCSCAI Board Resolution on this detail, and IRS Regulations. In frustration, to find out our member liabilities I went to an outside source, the IRS, and received the answer.  Changes were then made and our members were protected.  Perhaps Bronstein is holding a grudge because he was a Board Director during this period of wrong doing and contributed to the negligence.

If my communications with outside sources is so troublesome, then lets get our SCSCAI Management System in

place where reasonable questions, appropriately submitted, are answered in a timely manner. 

Is this already covered in our CIC Management System, or is it a case where we don't have one? 

Bernie Silver

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From: BBMDJD <bbmdjd@cox.net>
To: SCBuzz@yahoogroups.com
Cc: BOD <bod@suncitylv.com>
Sent: Sunday, August 19, 2012 8:33 PM
Subject: Re: [SCBuzz] MISMANAGEMENT IN OUR SUN CITY SUMMERLIN

 



Bruce: If the reference to me is supposed to be some kind of proof about Silver's fantasies about secret meetings it is what is now known as "Reidism"; i.e. make an allegation and then challenge the target to prove it is wrong, thus giving it credence. Also the special reserve assessment was not only for golf reserves but for all reserves which were on the verge of depletion and below the "adequacy" amount mandated by law because of the policy of not raising dues to the required levels once Del Webb and its subsidies left the management of the Association. At the same time 2 smaller non-reserve assessments were imposed because the operating funds were bankrupt.

Of course there was the usual reflex opposition by Mr. Silver on the specious grounds that the assessments (amounting to a total of about $900 which could be spread out over 6 months) would drive many elderly SCSCAI members out of their homes. Specious because the outstanding delinquencies (three months or more overdue) at the time  were about 1% or less of the membership according to the Controller's office. Needless to say no one was driven out of their homes just like no one will be driven out of their homes because the annual dues of $104 per month contains about $25 which according to Silver is "elder abuse" because it is there to make up for golf/restaurant shortfalls which he calculates as $2.3 million.

Having nothing good to say about the Association in the past 12 years he continues to rant and distort and publicize to the public for  his own fear-mongering purposes. It must feel great to be a self-righteous crusader against "elder abuse" in SCSCAI management even if it is only a figment of the imagination.

Bernard Bronstein

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