6/18/07                    Press Release

The Sundial Center Reconstruction Processs

The Recreation Centers of Sun City, Inc., wishes to respond to the concerns expressed by residents about the Sundial reconstruction. 

Immediately after the collapse in June 2006, RCSC filed a claim with the company’s insurance provider, The Cincinnati Insurance Companies. Cincinnati Insurance then began conducting their investigation and RCSC simultaneously began to work with engineers and architects to determine the extent of the damage and explore options for rebuilding. At that time the RCSC Board earmarked $2 million from the Capital Preservation Fund to begin the process for reconstruction. This amount was not an estimate for the cost of the entire project, however. 

Cincinnati Insurance continued to delay the decision on the claim and draw out their investigation, effectively preventing RCSC from moving forward with the planning and reconstruction since any construction at the facility would possibly negate any claim. The RCSC Board of Directors also sought legal advice regarding the next steps in the reconstruction process, as well as any possible claims the corporation could have against the insurance company.

“We have always understood the difficulty the lack of an indoor pool presents to our residents,” said RCSC Board President Denny Nichols. “But our cardholders also need to understand some of the legal reasons behind this perceived ‘delay.’ Our legal counsel advised us that there would be limitations on moving forward with the reconstruction before the insurance company’s investigation was completed.”

RCSC was still doing everything it could to move forward the reconstruction plan, RCSC Assistant General Manager Jim Wellman noted. In addition to the insurance company’s investigation, there were thorough structural inspections of the damaged areas as well as the entire Sundial facility. Site plans and architectural drawings had to be developed and engineers hired to complete the electrical, mechanical and structural engineering work so the architectural plans could move forward. Once the architectural plans were completed they were quickly submitted to Maricopa County Planning and Development for permit approval. 

“A lot of planning is going on behind the scenes for a project of this magnitude,” Mr. Wellman said. “There were many steps that had to be taken before we could apply for a permit and begin the actual reconstruction, and the insurance investigation certainly caused delays with that process.” 

Mr. Wellman also noted that the planning process has actually moved along very quickly considering the amount of planning required for a project of this size. RCSC has been planning the Sundial project for less than a year, in contrast to the three years of planning required for the recent Bell Recreation Center renovation. The Bell Center facilities, however, were able to remain open during the renovation, while unfortunately the Sundial facility must remain closed. 

In February 2007, RCSC learned that the insurance provider had denied the claim. An engineering firm hired by Cincinnati Insurance determined that “material defects in the composition of the support gluelam beam that spanned across the south end of the pool” caused the beam to fail and collapse the roof. Losses due to material defects in property are excluded from RCSC’s insurance policy.

Because RCSC had been working out the details of the reconstruction since immediately following the collapse, the corporation was able to proceed with the project even though the insurance claim had been denied. Drawings for the project were completed in January, so in mid-February RCSC filed a building permit request with Maricopa County and submitted building plans for approval by the county. The county returned those plans with some required changes in late March, a very fast turnaround time due to an appeal from RCSC to expedite the permitting process. RCSC resubmitted the plans to the county at the end of April. On May 23, the county came back with a few more required changes to the plans. The project architects made those corrections and the plans were resubmitted to the county on June 4. RCSC is now awaiting final approval for the building permit. 

The Weitz Company has been hired as the general contractor for the project. RCSC is currently finalizing a construction contract with Weitz and determining the project schedule. Once the permit has been received from Maricopa County, the construction can commence. 

Although final cost estimates for the Sundial project have not yet been determined, the RCSC Board recently agreed to put several planned capital projects on hold due to the cost of the Sundial reconstruction, reported President Nichols. The total of these budgeted projects is in excess of $1.2 million, according to Board officials.

Contact: Lindsay Frost, RCSC Communications Coordinator (623) 876-3060, ext. 3087; lfrost@sunaz.com.


Recreation Centers
 of Sun City, Inc.

10626 W. Thunderbird Blvd.
Sun City, AZ 85351
email
news@sunaz.com
 

Tel 623-561-4600
Fax 623-561-4601
 

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