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 5:30 - 5:45 J. Adler The Future of Our Village 5:45 - 6:00 Group What can we do & Our Next Steps
Transcript
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 5:30 - 5:45 J. Adler
The Future of Our Village 5:45 - 6:00 Group
What can we do & Our Next Steps
2013 Election Campaign FinanceContribution By Candidates:
Eva Lydick $ 500 Ming Lee Chang $ 500
Donations:Hsu $ 1,000 Hsu $ 1,000 Ku $ 500 Lee $ 500 Ma $ 100 Yeh $ 200
Surplus $ 1,502 (to be used for future ACC sponsoring)
RBF Recreation Master PlanPurposeA prioritized list of capital
improvements to be made over the next 10 years
The Master Plan is concerned with recreation needs that have “game-changing” implications for recreation facilities
RBF Recreation Master PlanProject Score
Priority Time Est. Cost Alt. 3
1 Clubhouse1/5 Health & Fitness Center 16.8 A Short $ 783,000 #132 Fitness Trails 16.6 A Short $ 289,000 #73 Garden Center 3 16.3 A Short $ 1,300,000 #84 Relocate Paddle Tennis 13.3 A Short $ 14,200 6500005 Gate 16 Community Green / Plaza 17.2 A Long $ 550,000 #126 Clubhouse 1 Gymnasium 16.8 A Long $ 6,170,000 7 Gate 16 Education Center 16.6 A Long $ 8,860,000 Gym8 Garden Center 3 Passive Park 15.5 B Short $ 856,000 #99 Clubhouse 5 New Drop-In Lounge 15.8 B Mid $ 133,400 #4
10 Clubhouse 6 New Drop-In Lounge 15.8 B Mid $ 96,000 #511 Clubhouse 3 Improvements 15.4 B Mid $ 1,241,200 #212 Clubhouse 4 Arts and Crafts Expansion 14.8 C Mid $ 1,342,900 #313 Clubhouse 2 Outdoor Event / Park Space 14.1 C Long $ 226,000 #1114 Village Greens Golf Practice Area 14.1 C Long $ 205,000 #15
TOTAL Short $ 3,242,200 Mid $ 2,813,500 Long $ 16,011,000
Not in Original PlanClubhouse 2 Renovation $ 2,942,100
6. Community Center 3rd Floor Education Center $ 1,400,000 $ 1,400,000 $ - 7. Fitness Trails $ 289,000 $ 289,000 $ - 8. & 9. Garden Center 3 & Passive Park $ 2,156,000 $ 2,156,000 $ - 10. Gate 12 Main Lounge $ 3,150,000 $ 6,558,910 $ 3,408,910 11. Gate 12 Outdoor Events & Park Space $ 389,000 $ 878,000 $ 489,000 12. Gate 16 Community Green / Plaza $ 550,000 $ 550,000 $ - 13. Gate 16 Fitness Center & Gymnasium $ 6,905,000 $ 1,299,690 $ 5,605,310 $ -
14. Paddle Tennis /Pickleball behind Lawn Bowling $ 650,000 $ 650,000 $ - 15. Village Greens Golf Practice Area $ 205,000 $ 205,000 $ - TOTAL $ 18,717,500 $ 8,736,600 $ 13,878,810 $ 3,897,910
RMP Recommendation Stop the funding approval of Gate 12
Projects & the Gate 16 Project Design (meeting tomorrow)
Revisit the RBF’s PlanPerform 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
$10 Million BOA LoanLoan Amount $10,000,000Contract Date & Interest Rate◦SWAP 7/5/13 2.67%◦Loan /Spread 8/21/131.6%
4.27%Term 15 years fixedLoan Fees & Expenses$43,587+
+ title insurance, escrow charges, attorneys’ fees
Full Month Payments Principle $55,556
1st month Interest $35,583
Interest Rate SWAPAn 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)
CollateralsCommunity 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 $2,961,782Cash Collateral Balance $1,485,531 (from existing cash balance)
Interest Payments and EarningsInterest Rate for Cash Collateral
0.4%◦Credit rate to offset bank fees
Cost of Idle Cash for 3 years◦Net of Interest expenses $1,04 mil
Prepayments
Loan Contract 8/21/13 1.6%May prepay at any time on an LIBOR
Rate Adjustment Date with NO penalty
SWAP Contract 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.
CovenantsUse 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
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
Mission Statement:
Encourage LWVR to be Active in the LWV community.
Help LWVR to be informed.
What we do NOT Want!!
Scar tacticsInnuendoHalf truthsVague statements
SUCH AS
How are we going to avoid :
Scar tacticsInnuendoHalf truthsVague statements?
Mission Statement, which guides all activities
Board: Who uses the mission statement and systems process
Systems Procedure: Integrates with the Board and Mission statement
