NATIONAL CONTINUING CARE RESIDENTS ASSOCIATION (NaCCRA)Board of Directors

Draft Minutes

NaCCRA Board of Directors MeetingOctober 26, 2013

Present: Ruth Walsh, President, Walton T. Boyer, Jr., Jack Cumming, Ron Herring, RobertD. Nicholson, Charles Paulk (by telephone), Daniel A. Seeger, Marleen Varner, Joe Walton.

Regrets: Judy Moss.

Guests: Beth High, George High, Jack Schell, Kate Waterman, Jennifer J. Young.

President Ruth Walsh called the meeting to order at 7:40 p.m. She made an openingstatement noting the strides made by NaCCRA in recent times. Challenges have been metthrough intense dialogue. She encouraged everyone to address the business before the Boardwith the well-being of NaCCRA in view, and to leave other “baggage” at the door.

Minutes of Previous Meetings.

The minutes (second draft) of the August 22, 2013 teleconference meeting and the minutesof the October 8, 2013 teleconference meeting were approved as circulated.

Report from Committee Chairs.

These reports had been submitted, but they had not yet been circulated. They will beattached to these minutes.

Board Manual.

Members have received the newly produced NaCCRA Board Manual. It was edited by RonHerring. He observed that this is still a work in progress. The Manual has been mailed toall Board members. Board members were impressed and grateful for the resources that hadbeen gathered in the Manual. Ron Herring encouraged members to contribute their ownideas regarding how the Manual can be developed further.

Board members were also encouraged to submit the names of potential future Board membersto Ron Herring. Various skill sets which are needed were identified: accountancy, law, publicrelations, fund raising, and others.

Membership.

--1--

Bob Nicholson distributed a packet with materials to help Board members become recruitersof NaCCRA members.

Of special concern are 199 people who have been members and who have not renewed. Bobhas collected the names of these lapsed members so that Board members can reach out tothose in their general vicinity. He shared matrices for four different types of approacheswhich members can use, depending on circumstances and relations.

So far we have no official policy on when members who have not renewed should be dropped.

Regarding such lapsed members, Marlene Varner moved that if no response is received aftera second invoice has been sent, a red stamp will be put on the following issue of Lifelineindicating that this is the last issue the member will receive, after which a final letter urgingrenewal will be sent. If there is still no response the member will be dropped and no furtherLifelines will be sent. Bob Nicholson seconded the motion. The motion was passedunanimously.

It was emphasized that timely notice to us of people whose renewal is late is important sothat we can promptly follow up with personal outreach to them.

Minutes.

The second drafts of the minutes of the meetings of August 22, 2013 and October 8,2013,which incorporated suggestions made by Board members, were approved.

Report of Budget Subcommittee.

Members had received in advance a report with recommendations prepared by Joe Waltonon behalf of the Subcommittee, which was comprised of Ruth Walsh, Ron Herring, Joe Waltonand Dan Seeger.

After Joe gave a brief introduction, the Board decided to resume its discussion the followingevening at 7:00 p.m.

Financial Soundness Committee.

The report includes a list of CCRCs which are bankrupt or which are “financially troubled.” Some objections have been raised about institutions which are included in the list. Theproblem of reporting is made difficult by the complexities about where parent institutions areheadquartered legally and where they own and operate facilities, as well as by the verycomplex financial relationships which can exist between different corporate entities and levelswithin the same an overarching provider organization.

--2--

Relationship Between NaCCRA and Leading Age.

NaCCRA submitted a draft Memorandum of Understanding to LeadingAge in response totheir initiative to us. They have responded with a counter proposal which closely resemblesthe relationships they have with affiliated state organizations, which would make NaCCRAa subsidiary rather than a partner. Their message to us did not comment at all about ourproposal to them.

It was suggested that at this point it might be useful simply to affirm that the cordialrelationship LeadingAge and NaCCRA have enjoyed in recent years has been productive andshould continue.

(NaCCRA allows us to have a booth at its annual conference and has made a banner for usat no cost. They also reserve one slot in the LeadingAge annual meeting program for aneducational session developed by NaCCRA.)

Walton Boyer testified to the excellent cooperative relationship between LeadingAge of NorthCarolina and the North Carolina Continuing Care Residents Association. He suggested thatwe show our own draft Memorandum of Understanding to the executive of North Carolina’sLeading Age affiliate (Tom Aiken) to see if he has any comment. The Board approved thisinitiative.

There was further testimony from Board members that the tone of the relationship betweenstate affiliates of NaCCRA and corresponding state affiliates of LeadingAge was often moreresilient and mutually reinforcing than appears to be the case at the national level. In theperspective of some Board members, LeadingAge personalities at the state level seem muchmore attuned to residents and their needs than is the case at the LeadingAge national level. Experience in other states is more mixed, with state LeadingAge affiliates more reflective ofthe national LeadingAge style.

One Board member suggested that, having given the idea of affiliation with LeadingAge ourbest effort, the time has come to acknowledge LeadingAge’s disinterest and to place ourenergies elsewhere. But no formal action was taken in the meeting, and the tenor of thediscussion assumed that we are firmly in mid-air, and that the possibility of a more formalrelationship between NaCCRA and LeadingAge remained open.

President Ruth Walsh adjourned the meeting at 9:05 p.m.

Respectfully submitted,Daniel A. Seeger, Secretary

--3--

L0/261L3

INTERIM REPORT

The NaCCRA CCRC Financial soundness committee has been relatively inactive

over the surruner due in part to the presumption that the National Association of

Insurance Commissio.,"r, (NAIC) ii preoccupied with the U' S' Affordable Care Act'

and also to the pruo..rputtr", of it'," "fruitpurro.,

with tax presentatig* by the North

carolina state Generar Assembry and negttiations between NaCCRA and LeadingAge'

Contacts with state officials advocating the Model Laws have been pursued in

California, Colorado, North Carolina, and Virginia' To date' no substantive responses

have been received.

A list of financially troubled facilities (CCRCs andl/Lfacilities undergoing

bankruptcy, restructuring, or buyout during the recent recession) has been started' The

list includes Devonshire, and Glenmoor in Florida; Fairview viliage, The Clare at Water

Tower, and Clare oaks in Illinois; Cottage Grove P1* in Iowa; The Groves in

Massachusetts; Erickson Retirement Coirmunities in Maryland; First Community

Village, South Franklin Circle, and St. Mary of the Woods in Ohio; and The Glebe' and

windsor Meade in virginia. Predominantly, the issue apPears to be reduced income

stemming from low occupancy rates and lack of sufficient revenues' The troubled

housing market and inadlity ;f prospective applicants to sell their homes to finance

entry fees is frequently cited u, u.u*riutive faciir. This list may not be complete' and it

is believed likely ihat *ur,y other facilities have experienced similar financial

difficulties short of bankruptcy due to the weak housing market'

The summary presentation on the proposed Model Laws given last April in

Lakeland, FL, was'repeated the followingweek at a NCCCRA meeting in Charlotte'

NC, and will be pr"ri"t"a to VaCCRA il Williamsburg, VA, in November'

RespectfullY submitted",

Walton T. BoYer, Jr.

Page 1 of I

Subj: LifelLine RePortoiii, 1ot1:7t2o1s 3:16:46 A'M' Eastern Davlight Time

From: naccrplifeline@aol,comTo: rLwdvb@aol'com

Contributions are invited with special interest in local CCRC news and activities'

please note next deadline is December 2. lt is very helpful to. have submissions in

niiiiizpt singte rpr."o Special thanks to previous contributors. New contributors

are inviteo to sulniiipllotoiwhich we someiimes can use to illustrate our authors

and make readership a bit more eye appealing. suggestions for topics and authors

are also aPPreciated.

Marleen A. Varner, Editor

Submitted from Bernkastel Germany

Deadline for the '"1'next issue of LIFELINE is December 2,2013. Please submit in

Arial 12 pt.

Marleen A. Varner, EditorNational Continuing Care Residents Association LifeLine

16 Salisbury Dr., APt. 7205Asheville NC 28803828-274-4267naccra.comnaccrau.com

Friday, October 18,2013 AOL: RHWDVB

NATIONAL CONTII{UING CARE RESIDEI\TS ASSOCIATION (NACCRA)

Board of Directors

Report of the Bill of Rishts Committee

The Committee to develop a Bill of Rights for CCRC residents was established three months

ago at the July 23,Z}LINaCCRA Board meeting, at which Dan Seeger was appointed chair'

since that time Al LeBlang and Jack cumming have joined the committee, and outreach

is planned to at least two more people who have been suggested but who have not yet been

approached. When the Committee was established the Board anticipated a reportback with

a proposed Bill of Rights in April, 2074'

Since the Committee was established there has been a iively e-mail correspondence about

residents rights and related issues among the three Committee members and other

interested persons. Bitls of Rights incorporated into state legislation in California and

Massachusetts, and the rights irr.orpo"uted into the 0BRA-8? nursing home regulations'

have been gathered so thai what they contain can be compared with and can supplement

or replace the Draft Bill of rights developed in Bucks county, Pennsylvania' The Bucks

Courriy draft has been the starting point of the Committee's work'

In addition to building the membership of the Committee, it is the NaCCRA Board's hope

that Professor Katherine Pearson will be drawn into the work of refining the draft Bill of

Rights since she has special interest and expertise in the freld'

Since the Committee was established three months ago much energy has been devoted to

the fiscal crisis in NaCCRA. It is anticipated that the committee's work will accelerate

immediately after the Dallas meetings'

people interestedin helping the committee should refer to it statements of CCRC residents'

rights which may be contained in state legislation, in resident contracts, or from other

sources. Ideas *rri.r, shourd be incruded in a statement of rights should be sent to the

Committee, c/o Dan Seeger at dseeeet8000@gmail'cqm, Anyone interested in joining the

Committeeshou1d1etDank,,o*mperSonSwhomightbeeffectiveCommittee members should also let Dan know'

Respectfully sub mitted,Daniel A. Seeger, ChairBill of Rights CommitteeOctober 14, 2013

To the Board of NaCCRA Re: Membership Report as of Oct 2,2A13

October26.20l3rHotelLawrencerDallasrTexas

To the best of my knowledge and with the valuable help of will Lessley, Partners Membership

Program Manager, here are the facts and the POLICY DECISiONS TO BE MADEI' Total

number of Active Members as of Jan 1' 2013

a) Paid Individuals: 686

b) Lifetime:206c) State Associations: 9

d) CommunitY Associations: 35

e) Unpaid Individuals: 111

SUMMARY: Paid Members (936) + Unpaid Members (111) : 1,047 Active Members as of Jan l'2013

II. Total Number of Active Members as of sept.30r 2013

a) Paid Individuals: 870

b)Lifetime:240c)State Associations: 9

d)CommunitY Associations: 43

e)Unpaid Individuals: I 99

suMMARy: paid Members (r,162)+ Unpaid Members (1gg): 1,361 Active Members as of sept 30' 2013

III'ALERT;NEEDFoLLowBYB0ARI}MEMBERSREACHINGoUTToNoNRENWALS

a) As of Sept 30, 2013 we have 199 Individual members whose paid membership has expired but who have

not been dropped. This 1gg total includes the 111 unpaid members from2ol2 and the 88 unpaid members from

zlfi, SEE SPECIAL SECTION ON FOLLOW UP PROPOSALS IN YOUR PACKET

b) we lost 42lndividual members so far in 2013 to members who Moved, Passed Away, or who have chosen

to not renew their membershiP,

c)We lost 6 Lifetime members so far in 2013'

d) We gained 225 new members so far in 2013'

IV. POLICY DECISION NEEDED ON TINPAID'NON RENEWING MEMBERS

a) FYI: we have never drOpped a member who hasn't paid unless the member was reported as Moved'

Deceased, or indicated they did not wish to renew. This means that all of the unpaid members are still o'active"

members - they receive the Lifeline and continue to show up on lists of "active" members even though they

have not paid.

b) sET pOLICy: A policy needs to be discussed and created to outline how members who don't pay their

dues are to be treated.

c) yHAT Is D0NE Now: Each member is to receive 2 invoices which are set to mail directly to the

individual's home address . The member receives their first invoice approximately 15 days before

their expiration date. The member receives their second invoice approximately 15 days after their

expiration date,

d) ouESTtON: how to proceed when the member has passed their expiration date without

paying for the foilowing year. RECoMMENDATTON: rf a member has not paid by 3 months

after their expiration date, we drop the member. They are marked as Inactive in the database

- this will stop them from receiving the Lifeline newsletter which is currently the only tangible

member benefit with a direct cosiattached to it. EMMPLE: someone who expired on sept 1

2013, for instance, would be dropped if they hadn't paid by Dec 1 2013'

e) DOWNSIDE: The problem with this solution is that NACCRA be losing about 200

members right now and, if we keep to our immediate history, we'll lose about 100 members

per year without hearing from them at all'

0 ySLU/NTEER LEADERSHTe NEEDED To MEET CHALLENGE: making efforts to call,

e-mail, or othenruise reach out to the individual or to community leaders at the member's

CCRC to find out: did this person move? Did they pass away? Did they decide they didn't

want to be a part of NaCCRA anymore? Then, relay that information to Partners so it can

record and capture it in each person's membership record so we will have a complete

snapshot of their involvement with NaCCRA'

V. AN IMMEDIATE PLAN TO REACH OUT TO NON RENEWING MEMBERS

a) ln your packet you will find: i) a list with names, addresses and elephone numbers and

date the membership expired of NaccRA members in your area ii) one example of outreach

to more than a dozen Mirabena seatfle non renewing members ilr) a general letter to non

renewars for your reference, use, adaptation. This wil be maired to those non renewals in

areas where we have no board members to follow up with contacts'

Butlget Subcommiffee RePort

Introduction

NaccRA,s budget subcommittee has determined a plan for the tiscal year beginning January

2014. Menrbers of this group include, President Ruth \&'alsfi' President-elect Ron Herring'

Secretary Dan Seeger, iruu.u.*. Joe Walton and Bennett Napier' Partners in Association

Managetlent.

subjea to Board approval of an increase in membership dues, the comrnittee believes

NacCRA's fiscal hcalth can bc zustained tlroughthe end of 2014 Tlre dues increasc is a short-

tenn solution. Further solutions rentaitt to be taikled- Initiati'es to achieve a higher level of

membership growth and delennine viable means Ibr reducing operaling expenses are anlong

them. This subject is on the agenda for the Board meeting in Dallas'

The following Ieport consist of sir sectiotts. (1) Current and Ptoje'cted Rcvenue and Expenses'

(2) proposed lvlernbers$ Dues, (3) Pilot Membership Program' (4) Strategies for Reducing

5d*6g Cost and (5i SLategies for Long lerm N{emberslup Cron'th

Current and Projeeted Revenue & Expenses

A by-line display of NaCCRA'S revenue, expenses, net assets and an active membership account

is at the encl of this ,d;;. 1n drffers lrom prior repofts in that is provides greater transparency by

,,rUi*tting income lor future obligations frorn a,nual gross itrcotne'

iF6r 201 3 , Ihrough rhe end of September, gross rev-enue frorn all 'sources is M 1 '000 ' After

trarsfer to reserves the unearned income for Lifetime dues and restricted donations, operating

revenue is $20,000. Total operating expenses are $33"900. producing an operatiilg Ioss of

$13.800.

Year-end estimaled €iross revenue is $41,750. Projected net operating income is $28'000' After

expenses, 347.000. an operating loss of $18,800 is anticipated'

Gross income in 2013 includes a restricted donation for $15.000- use of this donation is limited

to reimbursing occupants ofthe officc olPresiclent and President-elect for neccssarv

administrarive and trai'el expenses, in the current year and in the future' Qualifying 201 3

expenses for this grant are estimaled to be $2'000'

In the past- dues tl-onr Lit'etime members was fully booked as operating inconte in the year

.*oivof deginnings in 201i ner.r,&ccounting srandards.appll' Liftriare rlrernbership dues are

booked as deferred revenue and amortized as operating income over a ten-year period

The 2014 budget proposed by this sommiitee foresees $44,000 in operating revenue and s46'000

oferpe*ses fbr a netjoss or$z,ooo. The budget plan anticipates Board approval ofa dues

increase.

Proposed NtembershiP Dues

our committee proposes a dues increase of 33% or,erall to produce $10.000 of additional

revenue.

]t{ Number Current Dues lncome Dues Income$4,-500 1

$.9000 ;

l

--*$2orooo

State

CommunttY

lrditid;at-

Lif"tirrre --

q $400 $3,600 $500

45 $1 50 $6,750 $200

1000 $15 $15,000 $20

40 s1 50 s6000 $200 $8.000

--$ti,ioo

$10,1-50132%

] _t,

E-qtrl ;

.1I

I .-s l3-350 I

l-

Ir:nre-lse

Change

NaCCRA,sscheduleofmembershipdueshasnotchangedltcel\e'timeofinception'Caicutated on the uuri, *iirr. U.S. tumula,it"'tui" oi iiflation' $ I 5 Individual dues in 2000 rise

to $20.3?, a 135.ot', increase'

Pilot MembershiP Program

The Board approved a pilot program to increase NaCCRA membership through a promodon of

the chapter concepr, "i;p; frlm loa*masrers and employed successfully in Florida ro

strengthe, CCRC ,".lJ"r,r orgrnizations. Creation of a ihapter occurs rvhen a single or small

gro*p of community *"*t ".", recruit u, t"urtli6acCRA members r.uho pay annual NaccRA

membership ao", togah;' witir the dues for a Community nrembership'

DevelopmentandimplementaticrnofthepilotisinthehandsofPartnersinAssociationManagement. rne goarts iote is oversight led by Rev'Nichoiso,' The pilol' scheduled to run

for one ,vear. is targ"tfintended for statei where NaCCRA is not strongly organized'

performance metrics, ,Jr,** ".ti*ates

and implementation costs are established' The pilot's

budget is revenue neutral. costs associated rvith printing materials, postagc' web based

marketing and travel equal anticipated revenue' bur 20-1a budget proposal includes the pilot

membershiP Program

To allorv NaCCRA's constiluents time to understand the program and marshai support for it'

rhe nrembership pilot ffiilil pianned fo, a SeptemUei t. 1or: start-up is now scheduled to

begin January 1.2014

Strategies for Reducing Operating Costs

T6e conrmittee brieflv considered measures tcr recluce operating costs' chiefly encling selected

out-sourcing *,rrug**Jii;;;tilt ad^ministratiue funcrions to return thent ttr uncclmpensated

volunteers and reducinf tr," rr*u", of face-to-face Board meetings. The formsr seems

inconsistent with our objective to grolv 5*Cin6 io the next level and maintain qualiry se^'ice

to NaCCR-\'s rnembers. lncreasing dependence on older people tunctioning as unpaid volunteers

is probierlaric.

Given NaclcRA's current stage of development and the compelling need to create and oversee

impiementation of comprehensive strategic pi*t-," achieve growth' the committee believes it is

imprudent to reduce the number meetings o, un"nJ"'"e by B*oard mentbers' The consensus is

SupportforagreatercffirrttomaliebetteruseoftimewhentheBoardmembcrsgather.especiall--v meetings ur*oriut"A with Leadingal tonotntions' such as the upcoming meeti,g in

Dallas.

Lowering the levelof reimbursement for qualifieci travei expenses, e.g., 50% to 807o is a

porential option. rrr" ,jrt, io, unassaiiablst"uionu a Board member- sought after tbr skills he or

'rt',. b;ngt io the table, may opt to sta-v home'

Strategies for Long Term Mernbership Crowth

The rrational life care market. 1.750 Continuing Care Retirement Communities sen'ing 800'000

resirlents. is rapiilly gt;*''g'X'CCRA's p'*'Jn"" in ttr;11a,rie.js diminishing' not

withstanding un in"rJur" inlnembership since the start of 201 I and the prospects for gaining

more membe* t6org[1],. p;rot ..r"ruoship plan for the creation of NaccRA Chapters'

The cornmittee recommencis that riie Boarii address this issue Currently NaCCRA's resources to

penetrate the ,ationai ln*t *, *r" limitecl. This situation is apt to retnain for an extenclecl time

u.hile the life care market continues to gro''l'' A potential-so-lution is to collaborate with one or

more well established organizations that share l'ijacC&A's mission and vision alld capable of

ln.t"u.lng tangible bcnefits tbr NaCCRA membcrs'

A}ongthelinesoftheAARPbusinetsnrodel,iltherecentP}st,ychinitiativeswereinformallyerpiored ,uitr, cigna-Co.porotion a major treatttr insurer' tn the absence of encouragement by

NaccRA,s Board. ir,i, *ho" was clisclnt'rnued. The potential to ren€nr it may exist'

Opporrunitie, fo, JiuUo'atjon w'ith othe'r organizariom may a1-so exjst. The Natjonal Consutner

Voice fbr eualitv Care and A,rerican lvlurualHealth Insurattce ma-v be among them'

Respectivelv subrnitted b-v Joe Waton

Chairmarr. NaCCLA Budget Subcommittee

October 25- 2013

l**" a e.p"n;"1: J1n'zolz !1rogglt De20l4-- .

rini.pzolr ;vi.rnozot3 i 2014

n4rmuer Uues Receyea in 201 3 S1 5,40s.00 |

alions

Generaln estrrcl4 1

e4s,1 PL-€ :E!99t

Reslricted [Olherl -

- '- , fsz.ooo

iravel sriv'*'- -- - sro,ooooo s;,goo

pres.r pres.--clectExpenses - -] Sr.ooo.oq- S-tm oc

orrerdffrcerrravel - So.6a6-ssl - Ss.1tttt1 -$950099i

$10.0000cpnntrno - -." r. r dqr - ii'sz:.is ss.eoo 00; s3,600'fi.q$s:-

-_lr.,fiF.l_- g.?11:1J*g*00i s3'60000

no*i;i;i"t.i S"-pprrt-- o^.E aor - '*r6.66,t -Srsotol SisQ-qi,.--.:--. _: ^T $150.00 _$151-r,,$925.89 | bu.w .

ii#.[- - st zsz rs; s,, 237 ,s, -3s3!eoolll1lq*rry- -- , '-uffi;:l-

-r29tr5r -sr.3orrq,-,qg?9

VeOsite UpOates 53 75O O

I""iil,+i, n.t*ticn 8 Recruitrnenl- I s1,5o3 0ri;o"irnjp na*ricn 8 Recrurt'nent- I sLsoc

rq_lre-qq{stlelrolgelExpenses - .- - -$..mi - s+r.+2 '-_, ryfl$i-9,?qr_ereplgne - - sriz=iol sr.+2.11 --$1 50Q:00i $1.500qrrnnlres ;;^*i?n -

- qzeqd' $739'0oi s1 500:s- sr gs2'50'g Expens9q _ -- qrrE nl

'aaz.:a, -$1.S0000i

$1's0o (}

lzss.d $739,l]0i s1.s00 0

MiscellaneousI ax f(etul I E I

$r?'sss'ie-- sr'szoglr i47'64i'15 $46'050'00

$8'543'27 -

^lar lncrease L

-ll

- Assets - q18 7?8 93: -sg ?1a47

sun-Trust rrloney lrtarlet Accounls -

-ill1J"j=- _ .qru.*q *- - I _"

n""r*t9qO"1qtion Fund j-

'otalCunentAssets - - - | I

- --.-:;--'^!r^ $1'16001

tnEvidual Membe'! IPaEinclrvrdGl-Memuers-[tJnPaid]

-

- Jooi I

24n l_--r