GRF Board's 2009 operating budget meeting is an endurance contest

In the longest GRF Board meeting on record - some 7-1/2 hours - held Sept. 25, directors closed the day by approving the operating budget for 2009, with adjustments.

The adjustments created protracted wrangling, with votes often close enough to require a count. In the end, the Board only adhered to some of the Finance Committee's recommendations.

The bottom line when the dust settled is a 2009 coupon increase, for the GRF portion only, of $7.68 per manor per month, a total of $175.47 per manor, per month. This does not include the Mutual portion, which will vary from Mutual to Mutual, or the cable TV portion, which is set per the Comcast contract at $3.08 per manor per month.

Those decisions that squeaked by with five-to-four votes most often were divided by consistent voting blocs. The votes of the relative newcomers, President Fred Barnes, Secretary Chris Folger, John Turnier, Phoebe Cortessis and Jane Carmichael generally opposed the votes struck by longtime Board members, Vice President David Smith, Treasurer Paul Rosenzweig, Ron Moschel and Sheldon Solloway.

The votes reflected different priorities: The newer directors sought to keep coupon costs down for the immediate future, often deferring items, while longer-term fiduciary considerations carried more weight for members who had served longer terms.

Much of the time was devoted to protocol and process, with an hour at the front end spent determining exactly how to decide on the operating budget and motions and amended motions often needing clarification.

New programs

Of the new programs suggested by staff, only the long-range plan was recommended for this year's budget by the Finance Committee. Looking into creating a habitat mitigation bank, developing a marketing program and considering a Mutual Operations Division (MOD) strategic plan were all recommended for deferment.

The Board chose to defer, as suggested, the habitat mitigation and marketing programs, as well as the MOD strategic plan.

However, Moschel tried to convince the Board to allocate $80,000 toward long-range planning.

Every successful organization has a long-range plan, Moschel said. Rossmoor's current plan is 11 years old. “Rossmoor needs to do this to be successful in the future,” he said.

“We have a fiduciary obligation to plan for tomorrow,” Smith said. Every city, in fact, is required by law to have a long-range plan, he said.

“We can't afford it,” Cortessis said.

Moschel's motion was defeated five to four, with Solloway, Smith and Rosenzweig the only Board members siding with him.

Trust Administration

Because GRF General Counsel Shannon Walpole advised that certain costs, e.g. capital expenditures, currently being borne by the Trust Fund and paid by transfer fees, should legally, according to the Trust Agreement, be borne by the operating budget, the coupon would have increased by $19.35 following the Finance Committee's recommendations.

However, Walpole also allowed that some costs borne by the coupon could be allocated to the Trust Fund, thereby defraying some of the operational expenses.

These included a portion of staff salaries attributed to hours working on Trust administration, as well as certain “personal property” acquisitions, such as computers and equipment for Channel 28 and the Fitness Center.

The Finance Committee, however, voted not to endorse this apportionment.

Five members of the Board disagreed with the committee and, seeking to relieve the coupon, voted to allow the transference of salary and personal property costs from the operational budget into the Trust Fund.

Solloway said he thought the percentages of the staff salary allocations to the Trust Fund were “arbitrary.”

Smith contended that the Board should follow the recommendations of the Finance Committee. Since the committee believes the re-allocation is “either illegal or improper,” Smith said, as do two accountants on the Board (Solloway and Rosenzweig), and he, an attorney, agrees, it is possible GRF could be subject to liability in making these changes.

“I think we have an obligation to take the conservative path,” Smith said.

But Barnes asked CFO Rick Chakoff about Walpole's stand, and as Chakoff said Walpole is “comfortable with it,” Barnes, Folger, Cortessis, Turnier and Carmichael voted to re-allocate the costs.

The vote was also split over moving the acquisition of personal property to the Trust.

“I'm really disturbed by this trend,” Solloway said. The “expediencies of the moment lead executives to play games with the bottom line,” he said, which is a “shell game.”

But, “somewhere down the line, there always comes a day of reckoning,” he said.

Cortessis took offense. “I am certainly not the participant in a shell game,” she said.

Solloway said the Trust had once been used for infrastructure and only infrastructure. Then vehicles were added to it and then capital expenditures were included. The policy, he said, hasn't been changed, as such, but it has been a “gradual erosion,” and this vote would put the “final nail” in the change of policy.

Barnes, Folger, Turnier, Cortessis and Carmichael voted for the re-allocation.

Trust facilities and maintenance

In accordance with the Finance Committee's recommendation, Moschel moved to approve the expenditure of $888,680 for various Trust property projects and acquisitions.

The committee had recommended that some items listed as discretionary become necessary, including the door hardware for Hillside Clubhouse, a study on the golf cart bridges to determine their stability, and a replacement of the stepping-stones path at Dollar Clubhouse. These items totaled $56,000, and all were considered to be safety issues, according to staff.

Solloway pointed out that all these costs arise from staff recommendations and, if there is no strong reason to object, should be accepted, he said.

But some Board members took issue with some of the costs in the program. Carmichael did not see the need to allocate money to repaint the exterior of Peacock Hall at this time and wished to defer it, but she didn't get any other takers. She also didn't think the Hillside hardware was a necessity, and in this, Barnes, Folger and Turnier agreed, but they were not in the majority.

Turnier objected to the $550,000 to be used for street repair and maintenance and suggested deferring it to 2010. Rosenzweig said this didn't make sense, because “if you don't do it now, it will compound.”

Smith added that saving money isn't accomplished by deferring what needs to be done. In fact, he said, you may actually be adding costs and reducing safety at the same time. “It is imprudent,” he said.

Folger proposed allocating $300,000 for road repair this year and deferring the other $250,000 to 2010. Once again, the voting followed the blocs, with Folger, Carmichael, Cortessis, Turnier and Barnes following Folger's lead.

However, Turnier and Cortessis voted with Smith, Rosenzweig, Solloway and Moschel to take the Finance Committee's recommendation to move $8,000 for repairing the Dollar pathway into the “necessary” column, citing safety issues.

Revenue enhancements, cost recovery

The Board came together to approve staff's recommendation for three new revenue enhancements (Handyman Service, management of the Pro Shop and a vending machine contract) and to give staff the go-ahead to pursue six other options to increase revenue.

There were no requests for program modifications or adjustments to levels of service. Cortessis did ask that staff look at the feasibility of curtailing the hours of operation for facilities such as the pools and Fitness Center when attendance is low.

The Board also gave a unanimous go-ahead for the plan to recover some $92,000 through various golf fees and asked staff to look at some other cost-recovery options. Those options would include administrative fees for Excursions; raising fees for room rentals and setups; adding lawn bowling greens maintenance fees for users; and taking a closer look at instructor fees and donation boxes.

To reserve or not to reserve

The definition of a “reserve” proved to be the stickler as Board members discussed the option of creating one.

In the current program, GRF carries a working capital cash balance of $1.5 million, CEO Warren Salmons said. At the beginning of each year, Chakoff may use this balance toward paying budgeted operating expenses while revenue from January's coupon payment is coming in.

This working capital is, “in a sense a reserve,” Salmons said.

It is anticipated that at the end of 2008, there will be more than that amount in the coffers thanks to the receipt of more revenue and fewer expenses than anticipated. The amount could exceed $200,000.

Because the Trust Agreement mentions a “reasonable contingency reserve,” but does not define such a reserve, it is open for interpretation.

The $1.5 million is not, in effect, a reserve, Solloway said, it is just available monies to pay for unexpected operating costs. Any money over and above the $1.5 million could be used to reduce the coupon the following year.

If the $1.5 million is put in an actual reserve that requires Board action for utilization, then it is not available to cover costs, and those costs would be borne by the coupon, he said.

Folger, Cortessis, Barnes and Carmichael voted to create a reserve from those funds, but they were overruled by the remainder of the Board members.

Residents Forum and golf

The Fireside Room brimmed with residents at the onset of the meeting, but the crowd thinned significantly after the lunch break and by the end of the day, there was but a handful remaining.

Many of the attendees wore golf shirts and a majority of the 14 speakers at the Residents Forum spoke in favor of Creekside improvements and building both of the first two phases simultaneously.

Laurie McCurdy warned that not taking care of Rossmoor's infrastructure would make Rossmoor less competitive than other retirement communities. She also addressed the lack of ADA-compliance at Creekside.

Agnes Moore was also concerned about safety. She said she had seen people having difficulty at the restaurant and on the patio. “We want our facilities to be fully handicap available,” she said.

Pat Baker said the community should work together to build what is wanted and also to help those in need manage to afford it. She recommended doing both phases north of Stanley Dollar Drive at once. “It makes fiscal sense to do this now,” she said.

Michael Fleck said building both phases concurrently would help restore Rossmoor's reputation for quality facilities.

Rose Michaels and Florence Kleinfeld took the opposing view, however, urging fiscal “prudence” and warning of the “suspect” estimates given by the project manager for the cost of postponing phase two.

Most of the golfers had left by the time the Board got around to its final considerations regarding tournaments and guest play. Because of a recent Board decision to change the policy that formerly allowed the Board's liaison to the Golf Advisory Committee to approve the list of tournaments and fees, staff now must bring these requests before the Board as a whole.

Golf Director Mark Heptig presented a complete list of tournaments and explained their financial impact. The Board unanimously accepted his schedule of 2009 events and his requests for fee waivers, adjustments, special events and gift certificates.

GRF Board's 2009 operating budget meeting is an endurance contest

In the longest GRF Board meeting on record - some 7-1/2 hours - held Sept. 25, directors closed the day by approving the operating budget for 2009, with adjustments.

GRF Finance Committee reviews 2009 budget, makes recommendations

The GRF Finance Committee reviewed the 2009 GRF budget at its Sept. 23 meeting and made the following recommendations to the GRF Board on several of the proposals in the budget.

Board Actions

Following are the actions taken by the GRF Board on Sept. 25:

Come sing along with Jack next week at Gateway

The Jack Is Back sing-along program with Jack Larmour at the piano will meet Thursday, Oct. 9, at 4 p.m. in the Oak Room at Gateway.

Community Club will hear about HIV care in Africa

Oakland's Dr. Robert Scott, an indefatigable provider of HIV care who travels to Africa on a regular basis, will be the Community Club's guest speaker on Tuesday, Oct. 14, at 3 p.m. in the Fireside Room. A social hour will follow his talk.

Dollar Ranch Golf Course closed to walkers Mondays in October

The Dollar Ranch Course will be closed to walkers on the following Mondays due to tournaments. If the tournament starts at noon, walkers can still use the course until noon. Walkers can still use the Creekside nine-hole course on these tournament days.

Emergency Preparedness group meets Monday

Rossmoor Resident Emergency Preparedness Organization (RREPO) will meet on Monday, Oct. 6, to plan further for major emergencies in Rossmoor.

Free e-waste event in Pleasant Hill this weekend

A free e-waste recycling event will be held in the Diablo Valley College overflow parking on Friday, Saturday and Sunday, Oct. 3, 4 and 5. Drop-off will take place on Friday from noon to 5 p.m. and Saturday and Sunday from 9 a.m. to 3 p.m.

Health and Information Fair will focus on gender-specific health issues

Rossmoor Counseling Services is sponsoring a Health and Information Fair on Wednesday, Oct. 15, from 10 a.m. to 1 p.m. in the Fireside Room at Gateway.

Kaiser will give flu shots at Hillside

Kaiser will be giving flu shots to its members on Saturday, Oct. 18, from 9 a.m. to 3 p.m. in the Diablo Room of Hillside Clubhouse.

Lakeshire holds annual meeting

The annual meeting of members of Walnut Creek Mutual 56 (Lakeshire) will be Wednesday, Oct. 15, at 9:30 a.m. in the Vista Room at Hillside Clubhouse.

League of Women Voters debates the ballot initiatives

The League of Women Voters will debate the ballot initiatives on Thursday, Oct. 16, at 7 p.m. in the Vista Room at Hillside Clubhouse.

Lions Club's annual pancake breakfast returns in October

All Rossmoor residents are requested to reserve Saturday morning, Oct. 4, to attend the annual Lions Club pancake breakfast.

Lions Club Sight Seminar set for Oct. 12

Rossmoor Lions Club will hold its annual sight seminar on Sunday, Oct. 12, at 2 p.m. in the Sierra Room at Del Valle Clubhouse. The featured speaker will be Nikolas London, M.D., who is the administrative assistant at the Lions Eye Foundation.

Make plans now for Rossmoor's Fall Bazaar

The Fall Bazaar, which is co-sponsored by the Activities Council and the Recreation Department, will be held on Saturday, Nov. 1, in the Fireside Room, Oak Room and arts and crafts studios from 9 a.m. to 2 p.m.

Mature driver education course offered

In an effort to improve driver safety, a mature driver education course is being offered by the AARP and the Recreation Department on Tuesdays, Oct. 14 and 21, in Multipurpose Room 3 at Gateway Clubhouse.

Meeting dates

All Golden Rain Foundation, Mutual and committee meetings listed here are open to Rossmoor residents. Meeting times and locations are subject to change. For information in GRF Board meetings, call Senior Manager of Executive Services Paulette Jones at 988-7711; for information on Third Mutual meetings, call Mary Burr at 988-7718; and for information on all other Mutual meetings, call Dyann Paradise at 988-7775.

Mutual 59, Pinnacle Ridge, to hold annual meeting

The board of directors of Walnut Creek Mutual 59 (Pinnacle Ridge) will hold its annual meeting of members on Monday, Nov. 3, at 9:30 a.m. in the Vista Room at Hillside Clubhouse.

National magazine names Walnut Creek - and Rossmoor - the best places to retire

“People here can do everything or nothing,” declared Barbara Brooks.

Pacific National Bank is held up by armed robbers

Armed robbers held up the Pacific National Bank at 1910 Tice Valley Blvd. in the Rossmoor Shopping Center on Sept. 23, at 9:30 a.m.

President's Corner

Just the facts Š about Creekside

Republican Club will host vice chairman of California Republican party

As a means of strengthening the ties between the Rossmoor Republican Club and the California Republican Party, the program committee has secured the services of Thomas Del Beccaro, vice chairman of the California Republican Party, to speak at the Wednesday, Oct. 8, club dinner meeting in the Fireside Room at Gateway Clubhouse.

Residents asked to donate to Blue Star Moms for annual Treats for Troops drive

The annual “Treats for the Troops” drive in Rossmoor will begin on Thursday, Oct. 2, and run through Wednesday, Oct. 8. The effort is sponsored by Blue Star Moms.

RRA will hear about predicting earthquakes

The Rossmoor Residents Association (RRA) will hear about earthquake predictions at next month's meeting on Tuesday, Oct. 14, at 10 a.m., at Peacock Hall.

Security Reports

The following incidents were reported to Securitas, Rossmoor's security service provider. They appear here as they were initially reported to Securitas. After investigation, details of a case may indicate a lesser or different incident description. If the incident warrants it, the News will have a follow-up report.

Sign up now to be in Rossmoor's 2009 phone directory

It's time to sign up to be listed in the 2009 Rossmoor private telephone directory. The United Yellow Pages yellow card was inserted in the Sept. 17 News.

Towering eucalyptus to be cut down

A giant eucalyptus tree that grows just outside of Rossmoor's front gate will be cut down - before it falls down.

Treasurer's report: August shows a favorable variance

The GRF Statement of Operations for the month of August 2008 shows a favorable variance to budget of $33,000, before depreciation. Revenues were over budget by $10,000, expenses were under budget by $23,000.

Walnut Creek City Council race comes to Rossmoor with candidates' forum

The four Walnut Creek Council candidates weighed in on the issues that affect Rossmoor residents and the rest of the city during a Rossmoor forum last Tuesday afternoon.