The document is a meeting agenda for May 19, 2014 that includes several presentations and discussions. The agenda includes a welcome from 4:00-4:10pm, a presentation from 4:10-5:00pm on facts about the Recreation Master Plan and financial issues, a discussion from 5:00-5:30pm on efforts by the United Board to save the community from mismanagement, discussions from 5:30-5:45pm and 5:45-6:00pm on facility conditions and services and conclusion.

1. 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

2. 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.

3. 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.

4. Recreation Master Plan History
By Carol Moore

5. Which Would You Choose?
$25.00 $18.00 Do Nothing

6. How A Multi-Million Dollar Project was
Approved
and
Consultants Recommendations
Ignored

7. 2011
 September 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

8. 2012
 May 2nd – GRF Board approves CH #2
Renovation Ad-Hoc Committee 90-12-58
 July 11th – CH #2 Ad-Hoc Committee
Ewing Architects
 July - House and Harland Interior Design
Group
 August – Group performs Due Diligence
and uncover misrepresentation by H & H
 Committee Meetings cancelled, August 1
& September 5

9. 2012 ( cont.)
 September 12th – Doug Ewing presents
architectural conceptual design ideas
 October 3rd – meeting cancelled
 October 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

10. 2012 (cont.)
 November 14th – Lynne Dvorak elected
President of GRF
 November 14th – 2006 Tomko Woll
Report distributed to committee and
vote taken place project on hold
◦ TW Report lists renovation of CH #2 nearly
$6 million
 November 15th – GRF Special Meeting
held to approve GRF Committee
members

11. 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

12. 2013
 January 2nd – Committee meeting
cancelled
 January 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

13. 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

14. 2013 (cont.)
 April 3rd – Recreation Master Plan 4
Alternatives presented with Prices
 April 17th – Special Televised RMP
Committee meeting show Selecting and
Approving Alt. #3
 May 7th – GRF Board Resolution 90-13-51
Approves Alt. #3
 June 10th – GRF Board Special meeting in CH
#5. Meeting taped for later broadcast
 August 6th – Lynne Dvorak Announces
signing $10 million loan
o Pat English, President, United Mutual asks for
documents

15. 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

16. 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.

17. 2014
 January 7th – GRF Board attempts to
discipline Pat English

18. MYTH BUSTERS
By Mary Stone

19. 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

20. $18.7 Million for Alternative 3
MYTH

21. 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

22. These are the projects that were listed in
ALTERNATIVE 3:
Project Estimated Cost
Clubhouse 1 Table Tennis & Indoor Pickleball
Clubhouse 3 Improvements
Clubhouse 4 Arts & Crafts Expansion
Clubhouse 5 Drop-in Lounge
Clubhouse 6 Drop-in Lounge
Community Center 3rd floor Education Center
Fitness Trails
Garden Center 3
Garden Center 3 Passive Park
Gate 12 Main Lounge
Gate 12 Outdoor Events & Park Space
Gate 16 Community Green / Plaza
Gate 16 Fitness Center & Gymnasium
Paddle Tennis / Pickleball Relocation
Village Greens Golf Practice Area
210,000
1,241,200
1,342,900
133,400
96,000
1,400,000
289,000
1,300,000
856,000
3,150,000
389,000
550,000
6,905,000
650,000
205,000
15 Projects TOTAL $18,717,500

23. $10 Million Loan
MYTH

24. 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

25. 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 Fees
24,250 Legal Fees
9,387 Escrow Fees
$6,970,993 Actual Loan Proceeds
*$1,485,530 in the Existing Account

26. Recreation Master Plan will be
paid by New Buyers through the
Transfer Fee
MYTH

27. FACT: September 3, 2013
 The 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

28. Memo from Betty Parker 9/3/2013
“Consolidate” Recreation Master Plan Funding
Project – Design Reference Reserve Funding
Gate 12 Planning & Engineering
Paddle Tennis Court Resurfacing
Clubhouse 3 Renovation
Repurpose CH 1 Shuffle Board B
Clubhouse 2 Renovation
Clubhouse 2 Roof Replacement
Gate 16 Entrance
Paddle Tennis / Pickleball Relocation
Clubhouse 2 Furnishings
Gate 12 Outdoor Events & Park Space
Clubhouse 3 Improvements
Clubhouse 4 Arts & Crafts Expansion
P07023
P10030
P11012
P12023
P13020
P13021
S03065
S12045
2014 Reserves
2015 Reserves
2015 Reserves
2021 Reserves
420, 000
21,200
135,000
725,000
2,942,100
217,000
286,500
75,400
150,000
2,000,000
1,241,200
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

29. No increase in our
Assessments
(except for Cost of Living Increases)
MTYH

30. Quick Budget Lesson
Two Main Parts
 Operating – covers the ordinary day
to day expenses
 Reserves – for the repair and/or
replacement of major components

31. Operating Expenses
 Increase maintenance costs of the larger
Main Lounge & new facilities, fixtures,
equipment,
 Increase costs for staffing for new
buildings
 Increase cost of Security/cameras
 Increase cost of utilities, property taxes,
insurance
 Added cost to maintain two elevators
and indoor pool

32. Reserves
 Reserves 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

33. “Baby Boomers”
want
Resort Style Living
MYTH

34. What the facts say about where
Boomers are headed!
 Boomers will stay where they already are
 They will move to be near grandchildren
 They will relocate to areas with a lower
cost of living
 They will choose less congested areas
 There is a re-emerging trend toward
condos and smaller low maintenance
homes and developments that offer
special services for older people.

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

36. Current Status
Loan and Destructive Testing

37. LOAN
 GRF 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 Loan
 Interest Rate is 4.3% Fixed
 Loan 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 months
What Were They Thinking?

38.  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