May 19, 2014 Meeting Agenda Welcome, 4:00 – 4:10 PM

4:10 - 5:00 pm –Facts about R. Master Plan & financial scam◦ RMP History◦ RMP current Update and Operating Costs/Assessment Impact◦ Facts about $10 Million Loan and Transfer Fee◦ Update - the facts of $175K Village Green Bar gift

(30 minutes presentation, plus 20 min Q & A)

5:00 pm - 5:30 pm – The United Board is working hard to save our community from mismanagement and financial ruin◦ The Truth About the United Mutual Lawsuit Against GRF◦ Insuring that all of us have a say in our governance◦ Require GRF to be fiscally responsible with our money in upgrading

and maintaining our facilities

5:30 pm - 5:45 pm – Conditions of our facilities and services 5:45 pm - 6:00 pm – Conclusion

Keep Our Eyes on the Real Issue - Money

The real Issue is how do we get the most from our budget and how do we get the most from our project?

The “GRF 6,” a bare majority of the GRF Board, are determined to spend millions of our money whether we like it or not, to further their country club vision for our community, causing increases in our fees.

Keep Our Eyes on the Real Issue - Money

Who wants to recall the entire United Board? ◦A small group of united homeowners,

supported mainly by people outside of United.Why do they want to get rid of our Board?◦Because the United Board is trying to stop the

runaway train of GRF spending.We need to get involved in choosing how our

money is spent and how All of our Board Members are elected!◦We need Volunteers and Contributions for

Globe ads & flyers etc.

Recreation Master Plan History

By Carol Moore

Which Would You Choose?

$25.00 $18.00 Do Nothing

How A Multi-Million Dollar Project was Approved

and Consultants Recommendations

Ignored

2011September 6th - GRF Board approves

Facilities Fee Fund with 90-11-87◦$1,500 fee to maintain and improve

November 1st – GRF Board approves Consultant 90-11-126

December 19th –GRF M & C Committee approves Renovation of Club House #2

2012May 2nd – GRF Board approves CH #2

Renovation Ad-Hoc Committee 90-12-58July 11th – CH #2 Ad-Hoc Committee

Ewing Architects July - House and Harland Interior Design

GroupAugust – Group performs Due Diligence

and uncover misrepresentation by H & HCommittee Meetings cancelled, August 1

& September 5

2012 ( cont.)September 12th – Doug Ewing presents

architectural conceptual design ideasOctober 3rd – meeting cancelledOctober 12th – meeting cancelled and

Lynne demands removal of director who reported bogus references

November 7th – Architectural concepts presented by Ewing. Lynne demands removal of United Director who questions design, but United Board refuses support

2012 (cont.)November 14th – Lynne Dvorak elected

President of GRFNovember 14th – 2006 Tomko Woll

Report distributed to committee and vote taken place project on hold◦TW Report lists renovation of CH #2 nearly

$6 millionNovember 15th – GRF Special Meeting

held to approve GRF Committee members

2012 (cont.)December 4th – GRF Resolution requires

Mutual Presidents prior to committee meetings if an alternate is designated temporarily

December 5th – Committee discussed 2006 study using summary prepared by staff.◦Tomko Woll estimated renovation cost of

nearly $6 million

2013January 2nd – Committee meeting

cancelledJanuary 4th – GRF Board Resolution 90-

13-09 changes Facilities Fee “maintain” to “enhance”

January 21st – RBF Plan presented to Community Activities Committee

February 6th – CH #2 Renovation Ad-Hoc Committee votes to expand charter and change name to Master Plan Committee

2013 (cont.)March 5th – ◦GRF Board Resolution 90-13-25 Recreation

Master Plan as prepared by RBF◦GRF Board Resolution 90-13-27 Recreation

Master Plan AD-Hoc Committee expands the CH #2 Renovation AD-Hoc Committee Charter to review the whole community before proceeding; Renovation Committee was cancelled

March 6th – Staff presents 4 alternatives to Recreation Master Plan Ad-Hoc Committee◦Committee directs staff for more information

2013 (cont.)April 3rd – Recreation Master Plan 4

Alternatives presented with PricesApril 17th – Special Televised RMP Committee

meeting show Selecting and Approving Alt. #3May 7th – GRF Board Resolution 90-13-51

Approves Alt. #3June 10th – GRF Board Special meeting in CH

#5. Meeting taped for later broadcastAugust 6th – Lynne Dvorak Announces signing

$10 million loano Pat English, President, United Mutual asks for

documents

2013 (cont.)September 3rd – GRF Board reports on RMP and

in Executive session voted to discipline Pat English for speaking on TV6 in opposition of the plan and the loan

September 23rd – Pat English finally receives Loan Documents

November 5th – GRF Resolution 90-13-98 approves Gate 16 Fitness Center design/site development/preparation of construction documents

November 13th – GRF election and 4 individuals elected who opposed spending

2013 (cont.)November 27th – GRF Agenda Meeting,

Six Majority refuse to allow items about MRP to be placed on agenda—so no discussion

December 3rd – GRF Six majority conceal purpose of agenda item to discuss Trust Facilities Fee. There was no Resolution, fee increased to $2,500 without notice to community.

2014January 7th – GRF Board attempts to

discipline Pat English

MYTH BUSTERS

By Mary Stone

MYTHS• $18.7 Million for Recreation Master

Plan “Alternative 3”• $10 Million Loan• Recreation Master Plan will be paid

by New Buyers through the Transfer Fee

• No Increase in our Assessments• “Baby Boomers” want Resort Style

Living

$18.7 Million for Alternative 3MYTH

FACT:May 7, 2013, the GRF Board of Directors

approves Alternative 3, for the implementation of the

LAGUNA WOODS VILLAGE RECREATION MASTER PLAN

at a projected cost of $18,717,500

RESOLUTION 90-13-51

These are the projects that were listed in ALTERNATIVE 3:

Project Estimated Cost

Clubhouse 1 Table Tennis & Indoor PickleballClubhouse 3 ImprovementsClubhouse 4 Arts & Crafts ExpansionClubhouse 5 Drop-in LoungeClubhouse 6 Drop-in LoungeCommunity Center 3rd floor Education CenterFitness TrailsGarden Center 3Garden Center 3 Passive ParkGate 12 Main LoungeGate 12 Outdoor Events & Park SpaceGate 16 Community Green / PlazaGate 16 Fitness Center & GymnasiumPaddle Tennis / Pickleball RelocationVillage Greens Golf Practice Area

210,0001,241,2001,342,900 133,400 96,0001,400,000 289,0001,300,000 856,0003,150,000 389,000 550,0006,905,000 650,000 205,000

15 Projects TOTAL $18,717,500

$10 Million LoanMYTH

FACT: September 3, 2013 The GRF Board of Directors ratifies the agreements between GRF and Bank of America, dated July 10, 2013 (interest rate lock) and August 21, 2013 for a real estate loan in the amount of $10,000,000

Resolution 90-13-79

The DEBT was for $10 Million

$10,000,000 Loan Amount Collateral: Community Center and

$2,961,782 Added to an Existing Account

  To total $4,447,312* for Cash Collateral

43,587 Bank Fees24,250 Legal Fees

9,387 Escrow Fees

$6,970,993 Actual Loan Proceeds

*$1,485,530 in the Existing Account

Recreation Master Plan will be paid by New Buyers

through the Transfer Fee

MYTH

FACT: September 3, 2013The GRF Board of Directors rescinds

capital plan expenditures P07023, P10030, P11012, P12023, P13020, P13021, and supplemental appropriation items S03065 and S12045; and

appropriates $18,717,500 for the Recreation Master Plan, to be funded from the Facilities Fund;

Resolution 90-13-79

Memo from Betty Parker 9/3/2013“Consolidate” Recreation Master Plan Funding

Project – Design Reference Reserve Funding

Gate 12 Planning & EngineeringPaddle Tennis Court ResurfacingClubhouse 3 RenovationRepurpose CH 1 Shuffle Board BClubhouse 2 RenovationClubhouse 2 Roof ReplacementGate 16 EntrancePaddle Tennis / Pickleball RelocationClubhouse 2 FurnishingsGate 12 Outdoor Events & Park SpaceClubhouse 3 Improvements Clubhouse 4 Arts & Crafts Expansion

P07023P10030P11012P12023P13020P13021S03065S12045

2014 Reserves2015 Reserves2015 Reserves2021 Reserves

420, 000 21,200 135,000 725,0002,942,100 217,000 286,500 75,400 150,0002,000,0001,241,200 650,000

Planned/Supplemental / & Reserves Rescinded /Consolidated

$8,863,400

Additional Funding Required Bank Loan $9,854,100

Recreation Master Plan Projected Cost $18,717,500

No increase in our Assessments

(except for Cost of Living Increases)

MTYH

Quick Budget Lesson

Two Main Parts

Operating – covers the ordinary day to day expenses

Reserves – for the repair and/or replacement of major components

Operating ExpensesIncrease maintenance costs of the larger

Main Lounge & new facilities, fixtures, equipment,

Increase costs for staffing for new buildings Increase cost of Security/camerasIncrease cost of utilities, property taxes,

insuranceAdded cost to maintain two elevators and

indoor pool

ReservesReserves appropriated in prior years were

taken to pay for the Recreation Master Plan. Supplemental appropriations will be

needed for items overlooked in the original planning and design of the new buildings

Need Reserves for major repairs of new Facilities and Equipment

Additional reserves must be budgeted for eventual replacement of the new buildings

“Baby Boomers” want

Resort Style Living

MYTH

What the facts say about where Boomers are headed!

Boomers will stay where they already are

They will move to be near grandchildrenThey will relocate to areas with a lower

cost of livingThey will choose less congested areasThere is a re-emerging trend toward

condos and smaller low maintenance homes and developments that offer special services for older people.

A MYTH is a widely held but false belief or idea.

Current Status

Loan and Destructive Testing

LOANGRF Board borrows $10 million from Bank Of

America pledging GRF Trust Assets, GRF Assets and the Housing Mutuals are listed as Guarantors

Loan is not a Construction LoanInterest Rate is 4.3% FixedLoan Funded in August 2013◦ First principal & Interest payment was August 1st

◦ Approximately $55,000 principal monthly

◦ Approximately $35,000 interest monthly

◦ $350,000 interest paid in past 10 monthsWhat Were They Thinking?

GRF after Much Community Pressure◦ Destructive Testing of CH #2 Completed

◦ Results No Dry Rot or Termites

Stucco in Good Condition

Foundation Needs to be Strengthened

Building Structurally Sound, Ceiling Beams Need Maintenance and Roof Repaired

Needs HVAC, Plumbing and Electrical Systems Upgraded

Needs insulation in walls and ceiling

◦ Current Estimate to Renovate, $4.5 to $5.0 million vs. New Main Lounge $7.3 million

Unfortunately, this should have been done last year

Ware Malcomb Engineering