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ACC MEETING 
OCTOBER 20. 2014
WHY ARE OUR ASSESSMENTS 
SO HIGH?
WHY ARE OUR ASSESSMENTS 
SO HIGH? 
GRF share pmpm $176.69 $223.88 
UNITED* share 
pmpm $189.39 $329.08 $366 > $553 
THIRD share 
pmpm $198.33 $383.63 $375 > $608 
TOTAL Fifty 
pmpm $ 661.62 $1,687.73 $838 > $1912 
2002 2014
WHY ARE OUR ASSESSMENTS 
SO HIGH? 
• TOTAL ASSESSMENTS FOR ALL MUTUALS 
(GRF, UNITED, THIRD AND FIFTY) 
HAVE GROWN FROM: 
$69 MILLION ANNUALLY (IN 2002)
WHY ARE OUR ASSESSMENTS 
SO HIGH? 
• TOTAL ASSESSMENTS FOR ALL MUTUALS 
(GRF, UNITED, THIRD AND FIFTY) 
HAVE GROWN FROM: 
$69 MILLION ANNUALLY (in 2002) TO 
$101 MILLION ANNUALLY (in 2014)
WHY ARE OUR ASSESSMENTS 
SO HIGH? 
• WHY? 
PCM PAYROLL – 
2002 2014 
$26 million $50 million 
(about 30%) (about 50%)
WHY ARE OUR ASSESSMENTS 
SO HIGH? 
• WHY? 
• Facilities share of costs 
• MAINTENANCE AND 
CONSTRUCTION PROJECTS
MAINTENANCE AND CONSTRUCTION PROJECTS 
A lot of money has been spent 
without 
Community acknowledgement 
or agreement
MAINTENANCE AND CONSTRUCTION PROJECTS 
The $10 million loan (now cancelled) cost us 
interest paid = $ 146,943 (2013) 
interest paid = $ 172,064 (2014) 
loan fees/exp = $ 77,212 (2013) 
pre-pay penalty= $242,000 
This cost us $638,219 
(This is real money, out of your pocket 
..for nothing)
MAINTENANCE AND CONSTRUCTION PROJECTS 
The Specific Plan 
(now cancelled BUT STILL PAYING ON THIS) 
This cost us 
$1,298,937 + 
(This is real money, out of your pocket 
…to lose your open space)
MAINTENANCE AND CONSTRUCTION PROJECTS 
GATE HOUSE 1 (completed) cost us 
almost ONE MILLION DOLLARS! 
(This is real money, out of your pocket)
MAINTENANCE AND CONSTRUCTION PROJECTS 
GATE HOUSE 7 (completed) cost us 
THREE-QUARTERS OF A MILLION DOLLARS! 
(This is real money, out of your pocket)
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE BAR AT THE 19 HOLE (completed) cost us 
TWO HUNDRED THOUSAND DOLLARS! 
(This is real money, out of your pocket)
MAINTENANCE AND CONSTRUCTION PROJECTS 
OTHER PROJECTS THAT THE NEW GRF BOARD 
HAS EITHER CANCELLED OR CONTROLLED COSTS
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE POOL DECK AT CLUBHOUSE #2 
(Just resurfaced two years ago) 
APPROPRIATED $438,000 
TO RE-DO DECK AND LANDSCAPING
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE POOL DECK AT CLUBHOUSE #2 
(Just resurfaced two years ago) 
APPROPRIATED $438,000 
TO RE-DO DECK AND LANDSCAPING 
RESCINDED
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE IMPROVEMENT OF ONE HOLE OF THE GOLF 
COURSE 
APPROPRIATED $131,000 
(was whacked down from the 
original bid of more than $300,000+)
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE IMPROVEMENT OF ONE HOLE OF THE GOLF 
COURSE 
APPROPRIATED $131,000 
THE NEW GRF BOARD SAID… 
NO THANKS
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE CLUBHOUSE #2 RENNOVATION 
(Saved from Demolition) 
APPROPRIATED $6,000,000
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE CLUBHOUSE #2 RENNOVATION 
(Saved from Demolition) 
APPROPRIATED $6,000,000 
Now will not exceed 
$4 million
MAINTENANCE AND CONSTRUCTION PROJECTS 
GATE ACCESS SECURITY 
Original appropriation with conversion of gates 
$2,468,000
MAINTENANCE AND CONSTRUCTION PROJECTS 
GATE ACCESS SECURITY 
Original appropriation with conversion of gates 
$2,468,000 
Now a pilot for Gates 5 and 6 
Not to exceed 
$362,800
MAINTENANCE AND CONSTRUCTION PROJECTS 
WE ARE HAVING A 
PROBLEM WITH 
PLANNING AND 
PROCUREMENT
MAINTENANCE AND CONSTRUCTION PROJECTS 
• Subject reports with no 
financial back-ups 
• Numbers pulled from thin air 
with no fiscal back up data… 
• Listed as “placeholders” 
which morph into actual $$$
MAINTENANCE AND CONSTRUCTION PROJECTS 
THE KPMG REPORT ENTITLED… 
“OPERATIONAL REVIEW OF THE 
GOLDEN RAIN FOUNDATON OF 
LAGUNA WOODS PLANNING AND 
PROCUREMENT” 
–Sept 2013
Supplier Management and Contract Issues
Supplier Management and Contract Issues
Supplier Management and Contract Issues

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Supplier Management and Contract Issues

  • 2. WHY ARE OUR ASSESSMENTS SO HIGH?
  • 3. WHY ARE OUR ASSESSMENTS SO HIGH? GRF share pmpm $176.69 $223.88 UNITED* share pmpm $189.39 $329.08 $366 > $553 THIRD share pmpm $198.33 $383.63 $375 > $608 TOTAL Fifty pmpm $ 661.62 $1,687.73 $838 > $1912 2002 2014
  • 4. WHY ARE OUR ASSESSMENTS SO HIGH? • TOTAL ASSESSMENTS FOR ALL MUTUALS (GRF, UNITED, THIRD AND FIFTY) HAVE GROWN FROM: $69 MILLION ANNUALLY (IN 2002)
  • 5. WHY ARE OUR ASSESSMENTS SO HIGH? • TOTAL ASSESSMENTS FOR ALL MUTUALS (GRF, UNITED, THIRD AND FIFTY) HAVE GROWN FROM: $69 MILLION ANNUALLY (in 2002) TO $101 MILLION ANNUALLY (in 2014)
  • 6. WHY ARE OUR ASSESSMENTS SO HIGH? • WHY? PCM PAYROLL – 2002 2014 $26 million $50 million (about 30%) (about 50%)
  • 7. WHY ARE OUR ASSESSMENTS SO HIGH? • WHY? • Facilities share of costs • MAINTENANCE AND CONSTRUCTION PROJECTS
  • 8. MAINTENANCE AND CONSTRUCTION PROJECTS A lot of money has been spent without Community acknowledgement or agreement
  • 9. MAINTENANCE AND CONSTRUCTION PROJECTS The $10 million loan (now cancelled) cost us interest paid = $ 146,943 (2013) interest paid = $ 172,064 (2014) loan fees/exp = $ 77,212 (2013) pre-pay penalty= $242,000 This cost us $638,219 (This is real money, out of your pocket ..for nothing)
  • 10. MAINTENANCE AND CONSTRUCTION PROJECTS The Specific Plan (now cancelled BUT STILL PAYING ON THIS) This cost us $1,298,937 + (This is real money, out of your pocket …to lose your open space)
  • 11. MAINTENANCE AND CONSTRUCTION PROJECTS GATE HOUSE 1 (completed) cost us almost ONE MILLION DOLLARS! (This is real money, out of your pocket)
  • 12. MAINTENANCE AND CONSTRUCTION PROJECTS GATE HOUSE 7 (completed) cost us THREE-QUARTERS OF A MILLION DOLLARS! (This is real money, out of your pocket)
  • 13. MAINTENANCE AND CONSTRUCTION PROJECTS THE BAR AT THE 19 HOLE (completed) cost us TWO HUNDRED THOUSAND DOLLARS! (This is real money, out of your pocket)
  • 14. MAINTENANCE AND CONSTRUCTION PROJECTS OTHER PROJECTS THAT THE NEW GRF BOARD HAS EITHER CANCELLED OR CONTROLLED COSTS
  • 15. MAINTENANCE AND CONSTRUCTION PROJECTS THE POOL DECK AT CLUBHOUSE #2 (Just resurfaced two years ago) APPROPRIATED $438,000 TO RE-DO DECK AND LANDSCAPING
  • 16. MAINTENANCE AND CONSTRUCTION PROJECTS THE POOL DECK AT CLUBHOUSE #2 (Just resurfaced two years ago) APPROPRIATED $438,000 TO RE-DO DECK AND LANDSCAPING RESCINDED
  • 17. MAINTENANCE AND CONSTRUCTION PROJECTS THE IMPROVEMENT OF ONE HOLE OF THE GOLF COURSE APPROPRIATED $131,000 (was whacked down from the original bid of more than $300,000+)
  • 18. MAINTENANCE AND CONSTRUCTION PROJECTS THE IMPROVEMENT OF ONE HOLE OF THE GOLF COURSE APPROPRIATED $131,000 THE NEW GRF BOARD SAID… NO THANKS
  • 19. MAINTENANCE AND CONSTRUCTION PROJECTS THE CLUBHOUSE #2 RENNOVATION (Saved from Demolition) APPROPRIATED $6,000,000
  • 20. MAINTENANCE AND CONSTRUCTION PROJECTS THE CLUBHOUSE #2 RENNOVATION (Saved from Demolition) APPROPRIATED $6,000,000 Now will not exceed $4 million
  • 21. MAINTENANCE AND CONSTRUCTION PROJECTS GATE ACCESS SECURITY Original appropriation with conversion of gates $2,468,000
  • 22. MAINTENANCE AND CONSTRUCTION PROJECTS GATE ACCESS SECURITY Original appropriation with conversion of gates $2,468,000 Now a pilot for Gates 5 and 6 Not to exceed $362,800
  • 23. MAINTENANCE AND CONSTRUCTION PROJECTS WE ARE HAVING A PROBLEM WITH PLANNING AND PROCUREMENT
  • 24. MAINTENANCE AND CONSTRUCTION PROJECTS • Subject reports with no financial back-ups • Numbers pulled from thin air with no fiscal back up data… • Listed as “placeholders” which morph into actual $$$
  • 25. MAINTENANCE AND CONSTRUCTION PROJECTS THE KPMG REPORT ENTITLED… “OPERATIONAL REVIEW OF THE GOLDEN RAIN FOUNDATON OF LAGUNA WOODS PLANNING AND PROCUREMENT” –Sept 2013