1. Nov. 4, 2013 Meeting Agenda
Recap of ACC Progress to-date
4:30 - 4:45 E. Tao
Membership, Campaign Finance, Election Results
Status for GRF Board Election
4:45 - 4:55 E. Tao
Is the Sky Really Falling? How & Why?
GRF RMP & $10 Million Loan
4:55 - 5:15 W. Tao
What is the Real Scoop & Why?
Key Focus 2014 – Organization 5:15 – 5:30 S. Dickens
Advisory Group, Goal Based Committees, Process Oriented
GRF’s Latest Club Insurance
The Future of Our Village
What can we do & Our Next Steps
5:30 - 5:45 J. Adler
5:45 - 6:00 Group
2. 2013 Election Campaign Finance
Contribution By Candidates:
Eva Lydick
Ming Lee Chang
Donations:
Hsu
Hsu
Ku
Lee
Ma
Yeh
$
$
500
500
$
$
$
$
$
$
1,000
1,000
500
500
100
200
Total Contribution Received
$
4,300
Expenses:
Flyers
Room rental
Supply
Globe Advertisement
$
$
$
$
719
32
38
897
Total Expenses
$
1,686
Surplus
(to be used for future ACC sponsoring)
$
2,614
3. 2013 Election Campaign Finance
Contribution By Candidates:
Rosemarie diLorenzo Dickins
Wei-Ming Tao
Donations:
Chao
Chow
anonymous
Judkins
anonymous
Klein
Ku
Lee
Ma
Moore
Shen
Strom
$
$
500
500
$
$
$
$
$
$
$
$
$
$
$
$
100
200
500
100
200
150
500
500
100
500
120
200
Total Contribution Received
$
4,170
Expenses:
Postage
Labels & Envelopes
Letter - Printing & Folding
Tri-folded Flyers
One sided Flyers
Globe Advertise
$
$
$
$
$
$
874
56
114
665
61
897
Total Expenses
$
2,668
Surplus
(to be used for future ACC sponsoring)
$
1,502
4. RBF Recreation Master Plan
Purpose
A prioritized list of capital
improvements to be made over the
next 10 years
The Master Plan is concerned with
recreation needs that have “gamechanging” implications for recreation
facilities
5. RBF Recreation Master Plan
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Project
Clubhouse1/5 Health & Fitness Center
Fitness Trails
Garden Center 3
Relocate Paddle Tennis
Gate 16 Community Green / Plaza
Clubhouse 1 Gymnasium
Gate 16 Education Center
Garden Center 3 Passive Park
Clubhouse 5 New Drop-In Lounge
Clubhouse 6 New Drop-In Lounge
Clubhouse 3 Improvements
Clubhouse 4 Arts and Crafts Expansion
Clubhouse 2 Outdoor Event / Park Space
Village Greens Golf Practice Area
TOTAL
Not in Original Plan
Clubhouse 2 Renovation
Priorit
Score
y
16.8
A
16.6
A
16.3
A
13.3
A
17.2
A
16.8
A
16.6
A
15.5
B
15.8
B
15.8
B
15.4
B
14.8
C
14.1
C
14.1
C
Time
Short
Short
Short
Short
Long
Long
Long
Short
Mid
Mid
Mid
Mid
Long
Long
Short
Mid
Long
Est. Cost
$
783,000
$
289,000
$ 1,300,000
$
14,200
$
550,000
$ 6,170,000
$ 8,860,000
$
856,000
$
133,400
$
96,000
$ 1,241,200
$ 1,342,900
$
226,000
$
205,000
$ 3,242,200
$ 2,813,500
$ 16,011,000
$ 2,942,100
Alt. 3
#13
#7
#8
650000
#12
Gym
#9
#4
#5
#2
#3
#11
#15
6. Recreation Master Plan Update
Project
10/16/13 Ad
5/7/13 Est.
Hoc approved Funding Needed Over/(Under)
Approved Costs
Funding
for completion
Spent
1. Clubhouse 1 Table Tennis & Indoor
Pickleball
2. Clubhouse 3 Improvements
3. Clubhouse 4 Arts and Crafts Expansion
4. Clubhouse 5 Drop-in Lounge
5. Clubhouse 6 Drop-in Lounge
$
$
$
$
$
210,000
1,241,200
1,342,900
133,400
96,000
$
$
$
$
$
210,000
1,241,200
1,342,900
133,400
96,000
6. Community Center 3rd Floor Education
Center
7. Fitness Trails
8. & 9. Garden Center 3 & Passive Park
10. Gate 12 Main Lounge
11. Gate 12 Outdoor Events & Park Space
12. Gate 16 Community Green / Plaza
13. Gate 16 Fitness Center & Gymnasium
$
$
$
$
$
$
$
1,400,000
289,000
2,156,000
3,150,000 $
389,000 $
550,000
6,905,000 $
$
$
$
$
1,299,690 $
1,400,000 $
289,000 $
2,156,000 $
$
$
550,000 $
5,605,310 $
$
$
650,000 $
205,000 $
8,736,600 $
13,878,810 $
14. Paddle Tennis /Pickleball behind Lawn
Bowling
$
15. Village Greens Golf Practice Area
$
TOTAL
$
650,000
205,000
18,717,500 $
6,558,910
878,000
$
$
$
$
$
3,408,910
489,000
-
3,897,910
7. RMP Recommendation
Stop the funding approval of Gate 12
Projects & the Gate 16 Project Design
(meeting tomorrow)
Revisit the RBF’s Plan
Perform thorough Analysis and plan RMP
by year with both operating and capital
expense forecast, including underline
assumptions
Perform a separate detail Analysis on
CH#2 Renovation vs. New
8. $10 Million BOA Loan
Loan Amount
$10,000,000
Contract Date & Interest Rate
◦ SWAP
7/5/13 2.67%
◦ Loan /Spread
8/21/13 1.6%
4.27%
Term
15 years fixed
Loan Fees & Expenses $43,587+
+ title insurance, escrow charges, attorneys’ fees
Full Month Payments
Principle
1st month Interest
$55,556
$35,583
9. Interest Rate SWAP
An agreement between two parties
where one stream of future interest
payments is exchanged for another
based on a specified principal amount.
Interest rate swaps often exchange a
fixed payment (GRF) for a floating
payment (BOA).
Trade on OTC, they are just contracts set
up between two parties (GRF & BOA)
10. Collaterals
Community Center Real Property
◦ Current Loan Matures in 11/2017
◦ Current Loan Balance $3.1 mil
Cash Collateral Account $4,447, 313
Loan Used for Collateral $2,961,782
Cash Collateral Balance
$1,485,531
(from existing cash balance)
11. Interest Payments and Earnings
Interest Rate for Cash Collateral
◦ Credit rate to offset bank fees
0.4%
Cost of Idle Cash for 3 years
◦ Net of Interest expenses
$1,04 mil
12. Prepayments
Loan Contract
May prepay at any time on an LIBOR
Rate Adjustment Date with NO penalty
SWAP Contract
8/21/13 1.6%
7/5/13 2.67%
The price of the contact fluctuates with
the market, pending on the interest
rate. Price goes up when interest rate
goes up.
13. Covenants
Use of Proceeds
◦ To use the Loan proceeds only for payment
of costs and expenses incurred in
connection with CAPITAL IMPROVEMENTS
to the Property and/or other real property
owned by Borrow and/or Guarantor.
Not to Liquidate or dissolve the
Borrower’s business
14. Transfer fee is to maintain &
Improve
“To the extent that facility fees are collected and placed in reserve
funds for maintenance, it reduces the need for reserves to be
funded entirely from assessments. Consequently the monthly
assessment would be reduced."
08/15/2011 by GRF board
"As you may recall, GRF implemented a $1,500 facilities fee for new
buyers effective January 2012. These payments are placed in a Trust
Facilities Fee Fund and are to be used for maintaining our
amenities. It is anticipated this fund will have $924,000 by the end of
2012.
GRF has voted to begin using monies in the new Trust Facilities Fee
Fund for some of the major renovations and repairs planned for
2013. This action reduced the monthly assessment for GRF’s
Facilities Replacement Reserves by $4.00.“
by Mary Robertson on July 23, 2012 about "Boards Plan 2013 Assessments“
The trust facilities fee fund was established to maintain and
improve that recreational and amenities available to all residents
within the Laguna Woods Village.
4/15/13, 2012 Notes to Audited GRF Financial Statements
20.
How are we going to avoid :
Scar tactics
Innuendo
Half truths
Vague statements?
21. Mission Statement, which guides all
activities
Board: Who uses the mission statement
and systems process
Systems Procedure: Integrates with the
Board and Mission statement
23.
President
1st Vice President
2nd Vice President
Membership
Fund Raising
Publicity
◦ Current
◦ Historical
I.T. (internet
Technology)
◦ Data base
◦ Web Site
◦ Works with all Board
Members
26. Process
1. Who:
2. What:
What can have many items. This now goes to
secondary level and becomes procedure.
3. How: all necessary items to
complete “what”
4. When: time line
27. Process for each “What” in Procedure
1. Who
2. What
3. How
4. When
28. 1.
2.
3.
4.
System for grocery shopping
Process
Who: me
What: eggs, tomatoes, milk, bagels,
burritos
How: drive or take bus or cab
When: can I get all items at one
store?
29. Procedure for Milk and Eggs
1.
2.
3.
4.
Who: me
What: eggs and milk
How: my car
When: tomorrow
