general manager’s administrative review february 1 - 29

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General Manager’s Administrative Review February 1 - 29, 2020 Summary by the Numbers Activities A. Event Revenue 1. Activities had 22 ticketed events during the month of February 2020, compared to 19 ticketed events (and 6 free) during the same period last year. In addition to the 22 ticketed events offered in February 2020, FIVE events were free to all Sun City Grand residents. 2. Of tickets sold for February, 2,378 were sold online compared to 2,484 for the same period last year; box office numbers totaled 1,030 and 1,008 respectively. 3. Revenue generated totaled $83,962 for February 2020 compared to $51,666 for the same period last year. B. Room Reservations/catering 1. Room Rental Revenue posted for February 2020 is $5,627compared to $5,494 for February 2019. 2. $1,350 of liquor services (bar requests) booked in February 2020 compared to $1,300 in February 2019. C. Grand Lifestyles Magazine 1. Revenue for Vendor Commercial Ads for February 2020 totaled $11,196. D. Grand Learning 1. We have 3266 class enrollments this semester. 2. 1,126 students are participating. 3. There are 71 single session classes and 61 multi-session classes. E. Association Patrol monitored events during February 2020 1. There were 41 events monitored in February. Community Standards A. Architectural Review 1. ARC received 308 applications; 266 were approved, 31 were disapproved, 5 were withdrawn, and 6 were incomplete. 2. Last year there were 214 applications reviewed in February. (44% increase) B. Walk-In-Visitors 1. The Standards Department assisted 934 visitors compared to 909 in February last year. 2. Daily average in 2020 was 49 compared to 43 in February 2019. Page 1 of 22

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General Manager’s Administrative Review February 1 - 29, 2020

Summary by the Numbers

Activities A. Event Revenue

1. Activities had 22 ticketed events during the month of February 2020, compared to 19 ticketed events (and 6 free) during the same period last year. In addition to the 22 ticketed events offered in February 2020, FIVE events were free to all Sun City Grand residents.

2. Of tickets sold for February, 2,378 were sold online compared to 2,484 for the same period last year; box office numbers totaled 1,030 and 1,008 respectively.

3. Revenue generated totaled $83,962 for February 2020 compared to $51,666 for the same period last year.

B. Room Reservations/catering 1. Room Rental Revenue posted for February 2020 is $5,627compared to $5,494

for February 2019. 2. $1,350 of liquor services (bar requests) booked in February 2020 compared to

$1,300 in February 2019.

C. Grand Lifestyles Magazine 1. Revenue for Vendor Commercial Ads for February 2020 totaled $11,196.

D. Grand Learning

1. We have 3266 class enrollments this semester. 2. 1,126 students are participating. 3. There are 71 single session classes and 61 multi-session classes.

E. Association Patrol monitored events during February 2020

1. There were 41 events monitored in February.

Community Standards A. Architectural Review

1. ARC received 308 applications; 266 were approved, 31 were disapproved, 5 were withdrawn, and 6 were incomplete.

2. Last year there were 214 applications reviewed in February. (44% increase)

B. Walk-In-Visitors 1. The Standards Department assisted 934 visitors compared to 909 in

February last year. 2. Daily average in 2020 was 49 compared to 43 in February 2019.

Page 1 of 22

C. Compliance1. Activity Breakdown

a. There were inspections of 205 ARC applications compared to 170 lastFebruary.

b. There were 72 resale inspections compared to 55 in February 2019.c. There were 21 neighborhood inspection reports compared to 31 in February

2019.d. There were 24 owner reports compared to 31 last February.e. The department sent out 46 non-compliance letters, 76 in February

2019.f. The largest number of issues in February involved Exterior Paint

Maintenance and decorative objects/parking.g. There were 159 issues closed this month, 56 last year in February.

Creative Projects/Communications A. Grand TV

1. COX Cable Channel 1960 is unable to provide viewer numbers of GrandTV due to expired contract agreement.

2. 8,902 impressions were made on our Vimeo website in the month ofNovember.• 6,373 were played from Desktop• 554 were played from Tablets• 1,489 were played from Mobile Devices• 2 were played by Smart TV

3. Videos with the most views this month was the Tour of Sun City GrandPromo video with 608 plays.

B. E-Notifications1. E-Notification Users: 7,430 residents are signed up to receive e-Notifications.

C. Website1. Website Users: 5,963 residents are registered on suncitygrand.com.2. 171,219 Pageviews from January 1-31, 2020.3. 18,340 Residents visited suncitygrand.com from February 1, 2020, to February

29, 2020.4. 32 submissions were made to the Ask Us form on suncitygrand.com from

February 1, 2020, to February 29, 2020.5. Top Ten Visited Pages:

• Home• Login• Golf Course Information• About Golf• Member Dashboard• Classified Ads• Calendar• Golf Tee Time• Event Tickets• Charter Clubs

Page 2 of 22

6. Home Page Bubble Counts• How to Consent – 255• Make A Tee Time – 14,523• Buy A Ticket – 7,327• Ask Us – 215• Board Advisory – 1,819• Submit Work Order - 215

7. Residents on average visited suncitygrand.com the most in February onSunday and Thursday from 7 a.m. to 8 a.m. in the United States orCanada on a desktop computer. Sixty-three percent used a desktop,eleven percent used a tablet, and twenty-six percent visitedsuncitygrand.com on a mobile device.

8. Forty-five percent of our website users are in the 65+ age group, twenty-five percent of our users fall into the 55-64 age group and twelve percentof our users fall into the 45-54 age group. Fifty-two percent of our websiteusers are female, and forty-seven percent are male.

Finance A. Delinquencies

1. There are (26) delinquencies as of February 29, 2020, with anoutstanding balance of $47,023 compared to (19) delinquencies totaling$42,953 last year.

Fitness Centers A. Fitness Center Attendance for February 2020

1. Total Attendance: 53,211 - up 2.8% over last year’s total of 51,755.2. Adobe: 30,219 is a 2.6% increase over 2019 at 29,436.3. Cimarron: 22,992 beat last year’s total of 22,319. A 3% increase.4. YTD Total 107,578 through the end of February. This is a 0.1% increase over

2019 at 107,470.

Golf Department A. The Grand Cafe

1. Gross Sales YTD 2020 - $98,1952. Gross Sales YTD 2019 - $79,6293. Number of Ice Creams Sold YTD 2020 – 15,3804. Number of Ice Creams Sold YTD 2019 – 12,860

Human Resources A. Staffing

1. There were 2 full-time and 4 part-time employees hired in February, while3 full-time and 6 part-time employees departed.

Maintenance Work Orders A. Work Orders

1. 211 work orders were submitted in February 2020.2. 70 work orders were completed.

Page 3 of 22

Membership A. Resale Figures

1. 79 escrows opened in February; 68 escrows opened in February 2019.2. 169 escrows opened YTD; 36 more compared to 2019.

B. Renters1. 91 renter cards issued in February compared to 110 in February 2019.2. 474 renter cards issued YTD; 42 less compared to 2019.

C. Average Age in Sun City Grand1. 76 - Average age of sellers YTD2. 69 - Average age of buyers YTD3. 72.5 - Average age SCG as of July 2019

Department Updates

Activities A. Upcoming Events

1. Special Grand Events – look for more information and details in the GrandLifestyles magazine!

• The 6th Annual SCG Car Show & Market is Saturday, March 7.• The 16th Annual SCG Arts & Crafts Faire is Saturday, March 14.• Spring Semi-Annual Garage Sale is now in March, on Saturday, March

28! Spaces are on sale – get yours today in the Activities Office. CAM cardrequired.

• Join us for a trip back to the 50’s…with the Holy Rock Rollaz, April 21,7:00 p.m. This rock & roll band is a must see! Tickets are available in theoffice or online – get yours today!

• We are excited to welcome to SCG, Carla Cook, the daughter of thelegendary Sam Cooke. Join us on Wednesday, May 13, at 7:00 p.m. forthis special musical event. You won’t want to miss out on this specialperformance.

B. Grand Favorites1. Wine Down Wednesdays are a Grand time! Here is the lineup for March and

April:3/4/20 Soul Impression Cousin’s Maine Lobster 3/12/20 DJ Curtis Modern Tortilla CANCELLED 3/18/20 Spotlight Band Cheese, Love & Happiness 3/25/20 JTL Band Aioli Burger 4/1/20 The Bank Modern Tortilla 4/8/20 DJ Curtis Fry Bread Truck 4/15/20 Spotlight Band Aioli Burger 4/22/20 JTL Band Rocco’s Cheese Steaks 4/29/20 Soul Impression Queso Good

For more information see page 65 in March’s Grand Lifestyles magazine. We hope you’ll join us!

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2. Rise and Shine Breakfast Series: We’re continuing this favorite into 2020. Join

us - beginning at 8:30 a.m. Omelets, bacon, sausage, home fried potatoes, fruit, coffee and juice – all for $10. Enjoy the harmonious melodies of the Petrichor Duo…Rise & Shine with your friends and neighbors, right here in Grand. We appreciate your participation and support of this Grand Event - get your tickets now!

• March 5 • April 7 • May 6

3. March’s Market is combined with our 6th Annual SCG Car Show – don’t miss

these two community favorites! And, make sure to visit us on Saturday, April 4, beginning at 9:00 a.m. in the Palm Center parking lot, as our Market season comes to a close. Additionally, SCG Chartered Art Clubs will be selling their artistic, unique creations located in their respective studios and in the Village Center. This annual community event series is the perfect opportunity for Grand residents to do some specialty shopping right in your own backyard. Come out and be a part of this special event and support your local farmers. Until next season, thank you for supporting this special event!

C. Grand Movie Series: It’s Grand Movie madness…enjoy a movie and popcorn! Seating is limited and on a first come - first served basis. Join us for an afternoon. Our residents have come to enjoy this popular community event, and we love hosting you. 1. Friday, March 20, our feature presentation is The Peanut Butter Falcon. 2. Friday, April 17, our feature presentation is Maleficent: Mistress of Evil. 3. Friday, May 15, the feature presentation is Ford vs Ferrari.

Look for additional information through email blasts and the Grand Lifestyles magazine.

D. Mark your calendars for additional upcoming events. We offer perfect opportunities to venture out. There is something for everyone, and it is all available for Sun City Grand residents to enjoy! We hope to see you at an upcoming event.

March 2-3 2020 GRAND SERIES: The Everly Brothers Experience

Featuring the Zmed Brothers 4 & 7p.m. SOLD OUT March 5 Rise and Shine Breakfast – 8:30 a.m. SP March 8 FanShield 500 NASCAR - 8:30 a.m. Bus Departs SP parking area March 9 2020 Grand Series: The Black Market Trust 4 & 7 p.m.

SOLD OUT March 11 2020 GRAND SERIES: The Black Market Trust - SOLD OUT March 10 The Wrigley Mansion Lunch & Tour – SOLD OUT March 12 - 15 Discover Navajo, Bus departs SP parking area March 14 37th Annual St. Patrick’s Day Faire, bus departs SPP March 15 Disney in Concert at Symphony Hall, 12:30 p.m Bus Departs

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SPP March 21 Luke Days 2020 – Day 1, bus departs SPP March 22 Luke Days 2020 – Day 2, bus departs SPP March 22 Renaissance Festival, 9:30 a.m. Bus Departs SPP March 24 Chicago the Musical at AZBT, 4:30 p.m. Bus Departs SPP March 25-27 Discover Hopi, Bus Departs SPP March 26 Arizona Diamondbacks Home Opener vs. Atlanta Braves March 26 Barleen’s Take a Trip Through the #1 Hits – SOLD OUT March 27-29 Chaco Culture National Historic Park March 28 SCG Spring Garage Sale, 7a.m., SPP April 1,8,15,22,29: Wine Down Wednesdays, 3 p.m. VC April 2 Dry Creek Scenic Byway & Up the Creek Bistro Wine Bar SPP April 2 SCG Trivia Night 6:00 p.m. SP SOLD OUT April 4 Market at Grand 9 a.m.-1:00 p.m. PCP & VC April 4 Rhythm Cat –Super Show Finale, Silver Star Theatre

4:00 p.m. SPP April 7 SCG and Taylor Marie Fashion Show, 12:30 p.m. SP April 7 Rise & Shine Breakfast 8:30 am SP April 11 Spring Fling, A Monthly Rock & Swing Dance 7 p.m. SP April 12 Easter Egg-Stravaganza at Goldwater Lake SPP April 13-16 Springtime in Southern California SPP April 16 Arizona Diamondbacks vs Pittsburg Pirates 11 a.m. SPP April 17 Grand Movie Series-Maleficent: Mistress of Evil 1 p.m. SP April 17 Rhythm Cats-Malt Shop Memories at the Silver Star

Theatre, 4 p.m. SPP April 18 Barleen’s Rockin’ & Rollin’ Through the Years 4 p.m.

SPP SOLD OUT April 19 Shopping Mesa Market Place 9 a.m. SPP April 23-24 The Wilcox Wine Trail & The Chiricahua National

Monument SPP April 24 Spring Shred Day 8:30 a.m. SPP April 25 Frank Lloyd Wright’s Taliesin West & Lunch SPP

Additional event details and information for all of our GRAND events can be found in the Grand Lifestyles magazine, online at suncitygrand.com, through community eblasts or stop in the Activities Office – we are here to assist you.

Creative Projects A. Grand TV

1. Content is continually being updated on Vimeo and Cox Cable Channel 1960 based on scheduled meetings and other shows.

2. GrandTV has been in discussion with Rev.com to implement closed captioning in Spring 2020.

B. Events 1. Afternoon Tea on February 27 from 3:00 – 5:00 p.m. in the Palm Center Lobby

was a sellout. Many residents were thrilled with the event and would like to see another Afternoon Tea scheduled.

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2. The Newcomer’s event will be scheduled after construction is complete on the Palm Center Patio.

3. For the first time ever, SCG presents a game show featuring music knowledge, talent and fun, fun, fun! March 23, at 6:30 p.m., for $3 per person you can join us for Let’s Make Music – The Game Show. Can you remember and identify the songs you grew up with? Do you know the artists that made those songs famous? Something magical happens when music and memories take you back to a defining moment in your life. Compete to win prizes or just enjoy the show. Want to be a contestant? Contact Adam Nunez for more information.

4. On March 19 at 3:00 p.m., Sun City Grand will come together to celebrate the 26th birthday of our beautiful community and all of its accomplishments. Join us as we reflect on the past, recognize the present, and get excited about the future. Hear from board members, experience creative elements, and share some refreshments with your family, friends, and neighbors. The Annual Meeting is a community-wide ceremony that you do not want to miss!

C. Directory

1. We finally received our first draft after our first editorial submissions were turned into Marcoa Media LLC on October 4 for review. Angelica Bland is working on submitting our second draft on March 6, 2020 to Marcoa Media LLC.

Finance A. The annual independent audit for 2019 will begin on March 16, 2020 and will

be reviewed by the FAC in May 2020.

B. The FAC will consider creating an Audit subcommittee and an Enterprise Risk subcommittee.

Fitness A. FREE Health Lecture Series February 4-thru-March 10

1. Tuesdays, 2:00-3:30 p.m. 2. See posters in fitness centers and email blasts each week for details 3. FREE

B. Skin Cancer Screenings

1. Tuesdays, March 3 and March 24 2. Agua Fria room at Cimarron 3. FREE to members 4. Sign up at Cimarron front desk

C. Spring Break Hours at Adobe Lagoon Pool

1. March 7 – April 19 2. Children’s Hours Pool 9 am – 4 pm Adobe Lagoon pool 3. Children not allowed at indoor pool during this time, weather permitting

D. Guest Approval Cards

1. Presented March 1 – April 19

Page 7 of 22

2. Replaces standard Guest Approval Form during this time 3. Frees up time to check in at Fitness center front desks 4. See suncitygrand.com/fitness/rules-regulations or fitness center front desks for

more information

E. 90-minute Grand Cycle Challenge 1. Saturday, March 21st, 1-3 pm 2. Cost $3 3. 15 spots available - Register at Cimarron

F. Free Training Workshops at Cimarron with Charles

1. Specific Topics Covered 2. See Dry Erase board at EXOS video towers for schedule 3. March features sport specific training

Golf A. Water Management

1. The courses are 34.1 acre/ft better than budget.

B. New Guest Policy 1. The new policy starts March 1. 2. Getting a lot of negative feedback about charging guests prior to play. 3. Residents are wanting the guests to pay their own fees.

C. Non-Overseeded Roughs

1. The roughs are already starting to green up. 2. Expecting to have very little transition issues in the roughs. 3. Staff is able to focus more time on other important projects such as bunkers

and raising valve boxes.

D. Course Maintenance 1. The greens have been getting top-dressed, rolled, verticut/groomed. 2. The courses have all been fertilized. 3. Starting to aerify the greens and other areas on the courses that need to be

opened up to prepare for summer transition.

E. Maintenance Open House 1. On March 24th from 11:30 –1:30 the Granite Falls Maintenance Yard will be

having an Open House. 2. This is a great way to see behind the scenes and talk with staff and some

equipment/fertilizer vendors. 3. The mechanics will be on hand showing how they keep the equipment running

efficiently. 4. There will be complimentary hot dogs/chips/drinks.

Information Technology A. No Project Work this month

Page 8 of 22

Maintenance Operations A. Adobe Fire alarm

1. The Fire alarm is officially completed with the City of Surprise as of Feb 20th. The alarm system should have a useful life of 20 years.

B. Palm Center Patio Shade and Landscape

1. The Shade cover and Landscape Design began on February 10th. The cover was installed in 5 days. The Landscaping started and will coincide with the second shade cover being installed March 2, 2020.

C. Otis Elevator

1. The Board approved the elevator modernization in December 2019. Otis was contacted. A survey of the parts needed was done on the elevator so the parts could be ordered. Anticipated time of work to be done is being scheduled for April, 2020 time frame. It will take 4 weeks to complete the project.

2. HVAC for the elevator was installed in January 2020. This is a mandatory requirement to meet code. There is now a dedicated air conditioner for the elevator equipment room. A hole was cut in the hallway walls to run electric, and piping were repaired and painted.

3. PDP–20-003 Request to have additional automatic door openers added to the Sonoran Plaza. Bids have been returned. Staff has taking this to the FAC and the BOD workshop in February and for approval by the BOD in March.

Page 9 of 22

2020 Projects Update – February Report

Capital Projects A. Maintained Properties

1. Project Owner: Ken Olson, Management Representative (MR) 2. Status: We have begun planting again in the Maintained Homes. We stopped

planting earlier due to the risk of frost. We lost some plants from frost and therefore held off moving forward with planting. The new irrigation system is completed at Tranquil Canyon and the Falls.

B. Turf Reduction – Granite Falls North & South Golf Courses 1. Project Owner: Jeff Hochman, Management Representative 2. Status: The purchase request was approved at a Special Board of Director’s

Meeting on January 30, 2020. 3. Work is scheduled as follows:

a. Weed/turf killer applied by staff starting in early May 2020 for approximately 8 weeks.

b. Contractor removes turf starting July 2020. c. Planting and decomposed granite applied Fall 2020.

C. Forward Tee Construction on Granite Falls North Golf Course

1. Project Owner: Jeff Hochman 2. Status: This project was approved at a Special Board meeting on January 30,

2020 and will be concurrent with the turf removal since material from the removal process will be used in the tee construction; starts July 2020.

D. Tree/Plant Replacement – Golf Courses

1. Project Owner: Jeff Hochman, Management Representative (MR) 2. Status: The planting of replacement trees will commence once the chance

of frost has passed; expect work to begin in March 2020.

E. Desert Springs Golf Course Pump Station 1. Project Owner: Jeff Hochman 2. Status: The purchase request was approved at a Special Board of Director’s

Meeting on January 30, 2020. 3. Installation work is scheduled to begin in May 2020.

F. Granite Falls North Golf Course Pump Station

1. Project Owner: Jeff Hochman 2. Status: The purchase request was approved at a Special Board of Director’s

Meeting on January 30, 2020. 3. Installation work is scheduled to begin in May 2020.

G. Desert Springs #6 - Lake Hard Edging (Labor)

1. Project Owner: Jeff Hochman 2. Status: The purchase request was approved by the Board in late 2020. 3. Work is scheduled to begin in April 2020 and should be completed in April.

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H. Granite Falls South GC Bunker Renovations 1. Project Owner: Jeff Hochman 2. Status: The project was approved at the Board at their February 13 Board

meeting. Bunker work will be on holes #1, #2 and #6. Renovations are planned to begin in June 2020.

I. Internal Audit

1. Project Owner: David Reber 2. Status: This project has been moved to the first quarter of 2020.

Care Projects A. Granite Falls/Cimarron Design

1. Project Owner: Large Scale Project Committee; Don Love, Chairperson 2. Status: Granite Falls

The Large-Scale Project Committee is prepared to give a recommendation to the FAC and the Board of the Design Build contractor for the exterior remodel of the building at Granite Falls. Additionally, the Builder will give a presentation to the Board at the March workshop. The next step for the project is to select a F&B partner, if that is the direction we go, who will then co-ordinate with the contractor the remodeling of the interior of the building.

Status: Cimarron This project is in the Scope of Work phase with certain background work being undertaken with the city and the various stakeholders. Progress will move slowly until we have an outcome of the selection of the F&B partner. Both projects are deeply dependent on the parameters of the outcome of the F and B vendor selection.

B. Village Center Design 1. Project Owner: Alan Meyer, Chairperson 2. Status: The Village Center committee, along with J2 Engineering, surveyed

the residents regarding their interest in the Village Center. 1057 residents responded to the survey. Results are being tabulated. The committee will meet on March 17th to review the survey results and to view a preliminary presentation from J2. Based on the committee’s response to J2’s presentation, J2 may revise its presentation. The presentation will be presented to a Town Hall on March 24th. Comments at the Town Hall will be considered, and final conceptual plans will be submitted by J2.

C. Palm Center Patio 1. Project Owner: Scott Phillips 2. Status: This project was approved by the Board in late 2019. Construction is

scheduled to begin February 10, 2020.

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D. Desert Springs Socialization Area

1. Project Owner: Terry Murphy, Chairperson 2. Status: The conceptual design will be presented by the committee to the

residents at a Town Hall Meeting to be scheduled the first quarter of 2020.

E. Desert Springs #6 - Lake Hard Edging (Material) 1. Project Owner: Jeff Hochman 2. Status: The purchase request was approved by the Board in late 2020. 3. Work is scheduled to begin in April 2020 and should be completed in April.

F. Aqua Gen – Adobe Outdoor Pools (Lagoon and Lap Pools)

1. Project Owner: Allison Adams 2. Status: This project is in the early stages and is expected to go before the

Board mid-year.

G. Adobe Outdoor Spa (Construction of new spa in new location) 1. Project Owner: Allison Adams 2. Status: This project was approved by the Board in July, 2019. The project

required permits, etc. and is scheduled for April 2020 which lessens the impact on residents.

End of Projects Update Report

Page 12 of 22

3/9/2020

Project Description Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec.Estimated Research Research

Maintained Properties Estmated Approval Approval

GC Turf Reduction Est. Implementation Implementation

Forward Tees - GFN Trees/Plants - Golf CourseDS Pump StationGFN Pump StationGFS Bunker RenovationsDS #6 Lake Hard Edging (Labor)Internal Audit

Granite Falls DesignCimarron Design Village Center DesignDS Socialization Area DesignDS #6 Lake Hard Edging (Material)Palm Center PatioAqua Gen - Adobe Outdoor PoolsAdobe Outdoor Spa

Notes:a. Estimated Categories are subject to change based on project scheduling.

2020 Projects

Project Key

Page 13 of 22

2020 February Report by Management Representative

Board of Directors

Sun City Grand Community Association, Inc.

March 9, 2020

Kenneth Olson CMCA, AMS General Manager This report covers the following items:

1. Resident Communication 2. Landscape Maintenance & Inspections 3. Common Area Water Management Report 4. Golf Course Water Management Report 5. MWD Golf Course Water Reconciliation Report 6. Special Projects:

a. Maintained Homes b. Granite Improvements (Trails) c. Report on Congressional Water Summit

RESIDENT COMMUNICATION CAM received 211 workorders in January. All workorders for irrigation leaks or fallen trees get immediate attention. The other work orders are prioritized and scheduled for completion. Our goal is to communicate with residents about their concerns and try to accommodate as many of their requests as possible. There are workorders that we cannot complete without Board approval and that is explained to the resident.

If a work order needs special attention, I will personally visit the resident at their home. In February, I visited 5 properties to speak directly with the resident about their concerns.

It is important that all residents be directed to the SCG website to fill out a work order and submit it from this portal. When a work order is submitted via the website, we can track it and make sure it gets done.

We received a complaint from a resident that a landscaper from Arizona Traditions was trimming trees in our common area. A resident from Arizona Traditions had his landscaper come into our common area and trim four trees that were dropping leaves on his property. If any resident sees someone other than Gothic trimming anything in our common areas, please contact CAM immediately.

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LANDSCAPE MAINTENANCE Gothic Landscape maintains over 550 acres of landscaping each month. The maintenance of Sun City Grand is divided into several categories. Each of these maintenance categories are then separated into 60 different geographical areas. Each month Gothic provides us a detailed spreadsheet of where their crews will be working.

WEEDS! The recent rains we received has saved the community $1,800 per day in water costs, but now there are an abundance of weeds covering the (569) acres of landscaping in the common areas and on the golf courses. Most of the work orders received in February were about weeds. Gothic has over (40) people working here full time. They normally have (3) fulltime licensed spray technicians just spraying for weeds. That number has been increased to (18).

Gothic had planned to spray a preemergent everywhere, but only got the Maintained Homes done when it began to rain again. Preemergent will stop weeds from growing but won’t kill the existing ones. Gothic will resume spraying the preemergent after they have treated the existing weeds. All the weeds should be treated by Wednesday March 11th, but now more rains are forecasted this week. After this next rain ends, Gothic will once again begin treating the new weeds that pop up and then begin spraying preemergent.

These Spray Techs are spraying the weed killer Diquat and the color of weed killer is blue.

Page 15 of 22

This Spray Tech below is spraying Preemergent. The color is brown.

Trimming: Trimming crews also removed dead shrubs. Gothic will try to revive a shrub using a product called “Superthrive”. If this doesn’t work within a few weeks they will remove the shrubs.

The Desert Spoon below didn’t make it and is being removed.

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The crew below is working on trimming the lantana.

There are many flower beds throughout the property, and these flowers need “dead-heading” or removal of the dead flowers every month.

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INSPECTIONS: Below are some pictures taken by our inspectors. We take over a hundred pictures a week and share them with Gothic Management. We also take videos of problems for future training purposes.

Below is an inspection photo showing “weeds” that need attention.

We send Gothic emails daily regarding issues that need their attention. We inspect the same areas again after Gothic has told us they have completed the work.

Below is a photo of an area that Gothic has completed.

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COMMON AREA WATER MANAGEMENT REPORT The water budget for February was (3) million gallons. The actual usage was (1.9) million gallons. We were (1.1) million gallons under budget for February.

The ADWR allotment through February was (8.5) million gallons. We are (4.7) million gallons under ADWR through February.

Spreadsheet of common area water usage:

GOLF COURSE WATER MANAGEMENT REPORT The usage for February was (50.28) acre ft. and we were under budget (14.72) acre ft. We are under budget YTD by (56.83) acre ft. and under our ADWR Allotment by (78.83). We must build up our bank of water in the winter months to offset the enormous amounts of water needed in the summer months.

SCG Common Area Water Usage 2020EPCOR

Reading (gal)

YTD Usage (gal) Date

EPCOR Reading

(gal)

YTD Usage (gal)

Monthly Budget

(gal)

Monthly Variance (gal)

YTD Budget (gal)

YTD Variance (gal)

ADWR Monthly

ALLOTMENTADWR YTD

ADWR Variance

2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020 2020

1,534,000 1,534,000 JAN 1,808,000 1,808,000 3,000,000 1,192,000 3,000,000 1,192,000 4,500,000 4,500,000 2,692,000

1,559,000 3,093,000 FEB 1,941,000 3,749,000 3,000,000 1,059,000 6,000,000 2,251,000 4,000,000 8,500,000 4,751,000

1,319,000 4,412,000 MAR 5,000,000 11,000,000 6,500,000 15,000,000

4,080,000 8,492,000 APR 7,000,000 18,000,000 8,500,000 23,500,000

6,616,000 15,108,000 MAY 11,000,000 29,000,000 19,000,000 42,500,000

12,256,000 27,364,000 JUN 17,000,000 46,000,000 25,500,000 68,000,000

15,234,000 42,598,000 JUL 17,000,000 63,000,000 26,000,000 94,000,000

15,074,000 57,672,000 AUG 15,000,000 78,000,000 20,000,000 114,000,000

13,587,000 71,259,000 SEP 13,000,000 91,000,000 16,000,000 130,000,000

4,805,000 76,064,000 OCT 9,000,000 100,000,000 13,000,000 143,000,000

7,274,000 83,338,000 NOV 7,000,000 107,000,000 9,000,000 152,000,000

1,745,000 85,083,000 DEC 3,000,000 110,000,000 4,000,000 156,000,000

Please note: Under budget numbers are highlighted in Green. Over budget numbers are highlighted in Red.

2020 Golf Course Water Usage Report (includes all courses). Monthly

Usage (acre-ft)

YTD Usage

(acre-ft)Date

Monthly Usage

(acre-ft)

YTD Usage

(acre-ft)

Monthly Budget (acre-ft)

Monthly Variance (acre-ft)

YTD Budget (acre-ft)

BUDGET YTD

Variance (acre-ft)

ADWR Allotment

YTD

ADWR Variance Acre Ft.

2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 202071.80 71.80 Jan 40.89 40.89 83.00 42.11 83.00 42.11 105.00 64.11 19.40 91.20 Feb 50.28 91.17 65.00 14.72 148.00 56.83 170.00 78.83 87.80 179.00 Mar 123.00 271.00 300.00

171.70 350.70 Apr 205.00 476.00 500.10 238.90 589.60 May 287.00 763.00 750.00 422.10 1,011.70 Jun 430.00 1,193.00 1,250.00 394.90 1,406.60 Jul 410.00 1,603.00 1,700.00 306.20 1,712.80 Aug 323.00 1,926.00 2,000.00 249.80 1,962.60 Sept 254.00 2,180.00 2,300.00 209.40 2,172.00 Oct 218.00 2,398.00 2,500.00 155.10 2,327.10 Nov 170.00 2,568.00 2,700.00

32.90 2,360.00 Dec 40.00 2,608.00 2,765.10

Areas highlighted in green are under budget and those highlighted in red are over budget

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GOLF COURSE WATER RECONCILIATION REPORT SCG receives its water from Maricopa Water District (MWD). Each month we compare the deliveries to the actual amounts pumped through the system and used for irrigation and filling the lakes. The purpose of this reconciliation is to make sure we received what we are paying for and what MWD reports to ADWR as our usage. February’s pump station readings were a little under the invoiced usage by MWD.

SPECIAL PROJECTS MAINTAINED HOMES: We have begun planting again in the Maintained Homes. We stopped due to the frost. We lost some plants from frost and therefore held off moving forward with planting. The new irrigation system is completed at Tranquil Canyon and the Falls. The pictures below show the trees being removed and stump grinded.

Aqua Trac 2020 Reconciliation of Golf Course Water Billing and Pump reading

MWD report Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec totals

GFNDelivery 12.23 13.26

Pump 6.80 12.71

GFS

Delivery 8.92 12.77

Pump 10.69 15.76

CIMDelivery 10.25 12.34

Pump 6.67 9.83

DS

Delivery 9.49 11.91

Pump 11.48 13.50

Delivery total 40.89 50.28

Pump total 35.64 51.80

Area highlighted in red shows our pump station readings were lower than MWD invoices. Area highlighted in green shows our pump station readings were higher than the MWD invoices

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GRANITE IMPROVEMENT FOR THE TRAILS: Beardsley Canal and El Capitan is finished. All the damaged concrete at El Capitan has been replaced.

They have almost completed McMicken Dam. And will be moving on to Calistoga Trail. Below is a picture of the completed installation of granite.

CONGRESSIONAL WATER SUMMIT: The 2020 Congressional Water Summit was sponsored by the Irrigation Association, the National Ground Water Association, and the Water Quality Association. The Irrigation Association was founded in 1949 and is a trade association of about 1800 companies in the agriculture and landscape industries. They have over 10,000 members. The National Ground Water Association, founded in 1948, is composed of United States and international groundwater professionals in four membership divisions: water well contractors, scientists and engineers, manufacturers, and suppliers. The Water Quality Association is the leading voice of the residential, commercial, industrial and small community water treatment industry, representing more than 2,500 manufacturers, suppliers and dealers worldwide. There were two representatives from Arizona, me and Paul Lierheimer, Director of Rain Bird Corporation. Paul and I were an effective team working on the “Hill” together.

The main issues discussed at the Summit were:

1. Aquifer Testing and Managed Recharge

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2. PFAS: New laboratory tests have for the first time found the toxic fluorinated chemicals known as PFAS in the drinking water of dozens of U.S. cities, including major metropolitan areas.

3. WATERSENSE. Funding for Watersense including rebates for the installation of “Smart” Irrigation Controllers.

I met with several members of congress to request they act on the above issues. I explained there are 28 States that use aquifers for their drinking water and only two States know for certain how much water is available in their aquifers. Arizona is not one of them. I emphasized the importance of Federal Testing and Recharging of these aquifers so that states can be assured of a future water supply. Now some of these aquifers have tested positive for toxic chemicals and will need Federal help to remove the toxins.

I told members of the house and senate that Arizona Department of Water Resources was under a mandate to reduce ground water and had already reduced the amount of water that could be used on golf course turf grass. I explained that these reductions were going to adversely harm several communities like Sun City Grand. I explained that Sun City Grand had invested over 1.5 million dollars in the last five years in irrigation technology to reduce their water consumption. Also, that SCG has taken the lead to conserve water, but now the ADWR is mandating more cutbacks that could severely hurt the 300+ golf courses and communities in Arizona. I asked them to come to SCG and see for themselves everything we are doing to conserve water.

Most of my time was spent with the staff of senators and representatives. My hope is that they would use me as a resource knowing I have the Irrigation Association, National Ground Water Association and the Water Quality Association behind me. I have received emails from both House and Senate staffers requesting, I meet with their people in Arizona about ADWR and other water issues.

Conclusion of Report

Jim Kauth CLWM, CLIA

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