Green Valley Recreation 2016 Annual Meeting

Green Valley Recreation 2016 Annual Meeting


– I’d like to call order
the annual meeting of GVR. Couple of changes on the agenda that those of you who had picked it up. Item number two, the 2016
Election Quorum Report, I’m moving it down right with item five since they both deal with the election. And in the financial report
area, we’re gonna have Skip Breither from
Edward Jones talk first. He’s got another meeting at La Pasada. I guess today is older members’ day. So it’s just those two changes. The first item of business
for the board is to approve our 2015 annual meeting minutes. – These were posted. – Yeah. And they were posted, so do
I have a motion to approve? Second. All in favor? It passes. I’d like to begin the meeting
with some prepared remarks. And before I do that, we have some great volunteer
leaders with us today, your board of directors. I’d like to introduce them if I could in no particular order. John Hadley, who is our Treasurer, raise your hand so everybody
knows your pretty face. Good. He’s Chair of the Physical
Affairs Committee. Next we have Tony Zabicki, Tony Z. Tony is the Vice President, also Chair of the Board Affairs Committee. We have Barbara Mouser, Secretary, and she does a lot of other things. Vicky Mournian, she is
the Assistant Treasurer. She’s Assistant at the
Financial Affairs Committee and also a hard worker. John Arnold. Gunner Bonthraun. Ron Sills is not here today. Cathy Palisi. Lesley Shipley. One of the things Leslie
is doing us for this year and start out is she’s
chairing a security committee to look at all of our security
for GVR facilities et cetera to make sure we’re in good shape. Richard Kidwell. Is Richard here today or is he on a boat going somewhere again? He travels a lot. And Jim Nelson. To include myself as
President of the Board, we are your directors. Okay, some prepared remarks. I can report to you that the state of GVR is financially sound and continuing to provide the
needed programs and facilities that make GVR a super
retirement community. This past year, we have
accomplished some major goals. Here are some. One, we passed a Boundary
Expansion Referendum which has resulted in eight
families to date joining GVR. Two, we debated and
passed the construction of the Abrego North Pool. Three, we engaged a contract through WSM to do a complete top-to-bottom assessment of our GVR facilities and programs and you’ll get an update
from WSM later in the period. Four, we engaged a firm to
complete a reserve study. Five, we engaged the
services of a financial firm to provide much-needed investment advice, and you’ll also hear from
Skip later on some results that we can share with you. And many more accomplishments. Your board, committees, and
countless other volunteers together with staff have been
very busy this past year. We also have begun a series
of articles in GVR Now keeping you up to date with
respect to GVR’s finances and other important
matters of the corporation. These coupled with frequent e-blasts are intended to keep you
informed of the goings-on in the volunteer leadership
roles and the GVR staff. Thank you Kent Blumenthal
and your professional staff for helping to guide
GVR to be all it can be. Unfortunately, some disagree
with much of the work of your volunteers and staff. I would like to make some observations. Within the last couple of weeks, two of our members wrote op-ed pieces in the Green Valley News. One entitled, quote, in
my view, is Green Valley a premier retirement community,
by member, Steve Alt. Steve, again, challenges
the vision to make GVR a retirement destination of choice. Three of GVR’s 23,000 plus members agreed with Steve and letters to the
editor and among other things, said, quote, the majority of GVR members do not want GVR to be progressive. Those are my words. A second piece entitled,
quote, GVR isn’t broke but it could be broken, by
another member, Richard Ulander. Once again calls into question
GVR’s financial stewardship. Our auditor, Chair of
the Financial Committee and CFO will talk to you in a few minutes about the good state of
GVR’s financial position. I will address the few
would-be GVR-funded issues with respect to future growth in GVR. Regarding the majority
of members’ comment, the truth is much different. We are encouraged by a
recent Boundary Expansion Referendum which resulted in
the majority of GVR members agreeing to expand our boundary. Additionally, WSM architects
studying our facilities and programs have conducted
many town hall meetings with members of GVR where at least 1,000 plus GVR members have spoken up and provided
input to the changes and enhancements they want to see in GVR. The comments WSM received
overwhelmingly support growing to meet the demands of retirees. And again, WSM will give
us an update later on. The mission of GVR is written on the back of your GVR member card. Those of you who haven’t
had a chance to look at it, look at it sometime. It says, quote, to provide recreational, social, and leisure
education opportunities that enhance the quality
of our members’ lives. The mission taken in concert
with the board-endorsed vision statement to, quote,
make Green Valley a destination of choice for active adults
and retirees, close quote, provides the board and staff
with the map to the future. We are unique and we have a mission. Our vision reminds us that future retirees may want something different in retirement and surely, will want up-to-date
facilities and programs. After all, today and tomorrow’s
adults and baby boomers will have different needs and desires as they go into retirement. According to the Pew Research Center, 10,000 Americans will turn 65 years old every day for the next 13 years. We need to recognize that
and plan accordingly. In his editorial, Steve said with respect to Boundary Expansion, quote,
we were lead to believe that Boundary Expansion
would eliminate the need for big dues increases, close quote. And quote, are you happy
with the 5.5% dues increase, cloes quote. No one in the GVR leadership
position ever promised not to have a dues increase,
just the opposite is true. Your board recognized
that a slight increase would still be necessary
to keep up with inflation and to fund our reserves as needed. We still are waiting the
results of our reserve study to determine if we are on the right track to fund our reserves. By the way, as promised,
the money was brought into the account by the
families that came into GVR as a result of the Expansion Referendum, funded our capital
replacement’s reserve account. And as I said previously,
to date, we have had eight rooftops come to
GVR as we predicted. And given survey date at the time of the 2015 Boundary Expansion, the GVR expects 16 additional families, or I should say member rooftops, from the Boundary Expansion
areas between now and 2018. Yes, we’re planning for the future. Number one, after results
of the reserve account study and the facility assessment is reported, we will engage in
developing a 10-year plan that will help chart the
course for the future. Two, we will then engage
in discussions with members of our community and what changes, if any, to our facilities and
programs should be made as we develop that plan. Three, we are engaging in
discussions to recognize the rapid aging of some of our members and any program facilities that they require and we
need to adjust accordingly. In somewhere not looking
to the future blindly as we focus on today’s and
tomorrow’s younger retirees but also recognizing that older members have different needs. These are some of the
challenges that lie ahead of us if we are to be the community of choice that provides active adults and retirees with a preferred option to
other planned adult communities that exist that we find
ourself in competition with. Your board of directors, committees, CEO, and staff are
working together to ensure that we advance our mission
for today and tomorrow. One last thought. I’ve asked the board to await development of our communication policy that is being developed before
answering opinions pieces in the Green Valley News. Personally, I’ve asked
the board not to conduct corporate business in newspapers. After all, opinions are
just that, opinions. They are not accessible
until they are challenged and discussed in committee
and the board process. And until then, they remain only opinions. I encourage members who
are interested in charting GVR’s future to join a committee and our stand for election
to a director’s position. We don’t get paid a lot. Actually, we get paid nothing but derive some level
of personal satisfaction for our engagement in
GVR leadership position. Your 12 directors and
countless other volunteers work very hard to ensure that Green Valley and Green Valley Recreation continue to be the destination of choice for active adults and retirees. If we have any volunteers in the audience, would you stand up so
everybody can see you and we can appreciate you? (members applauding) Thank you, that concludes
my prepared remarks. So next thing that’s
hopefully on your agenda, it’s on my agenda, is some service awards. Kent, would you come up here and help me? We’ll start off with John Hadley. These folks that are being recognized are going off your board this year and we’re bringing on
new members after them. So let me read this. John, if you’d go up in front there. Sincere appreciation
for outstanding service to the corporation is
extended to John Hadley, member of the Board of
Directors, 2013 to 2016. Presented at the Annual
Meeting of the Corporation GVR West Center, Green Valley, Arizona. March 29, 2016. (members applauding) Gunner. Come on down. Sincere appreciation
for outstanding service to the corporation is
extended to Gunner Bonthraun, member of the Board of
Directors 2013, 2016. While Gunner presents a good opinion on the board, he has no problem in discussing it and getting right involved with it so we really appreciate
all the work Gunner’s done. (members applauding) – Good morning, everyone. I’m Kent Blumenthal, GVR CEO, and it would be simply ridiculous if President Gunton presented
his recognition award to himself so I’m gonna do that. So Joe, come on down. (members laughing) (members applauding) – So next on the agenda
is the CEO’s report. – Again, good morning. It’s always nice to hear when
a few people are still awake. (members laughing) It’s common practise at an annual meeting of a corporation to give the 35,000-foot view of GVR. What I’d like to share in my report is a bit about the wheels and the gears that keep our corporation
moving in the right direction. During this past year, GVR has placed a major
focus on staff development and evaluating and reinvesting
in our GVR facilities as is being demonstrated
through the 10-year Strategic Master Planning Initiative led by our WSM Architects of Tucson. Investing in both our
people and facilities will continue to be a major focus of your GVR leadership team. Your GVR staff is an invaluable asset to carrying out GVR’s mission, quote, to provide recreational, social, leisure education
opportunities that enhance the quality of our members’ lives. I wanna thank my fellow
employees for their support and for serving our membership so well. To an individual, they are outstanding. During this past year, a number
of GVR staff participated in professional training and
conferences, trade shows, and a number of other
learning opportunities. These included events such as, in the area of keeping our
swimming pools and spas healthy and clean and clear, the aquatic facility operators courses and the certified pool operators courses. Some of us attended
employment law classes. Others have attended
foundation fundraising classes. Several of our maintenance supervisors attended a maintenance
and tool national expo. Others have attended state and national recreation and leisure
service conferences. Yet others attended
accounting for non-profits and still others participated in performing arts training and expos. Several staff received
national certifications such as our Senior Supervisor, Julie Vance, who completed a Certified Performing Arts
Executive Certification. This is a national credential. Our Senior Supervisor, Maureen McCarthy, completed a certification
in volunteer administration which was actually an
international certification. And your CEO was recently re-credentialed as a Certified Association Executive by the American Society of Association Executives. I’d like to call out. Is Maureen here and Julie Vance here? Where’s Maureen? Maureen’s here, let’s give her an applause and Julie in the back. (clapping)
Thank you. (members applauding) I now carry a water bottle with a lid because the last two board meetings, I’ve knocked my water over on the table. In any event, this was the first full year that we had a customer
surface supervisor position and a result of having
a supervisor position with the main focus on customer service, we were able to take our
overall customer service to a higher level of service. Our member programs and
services continue to grow and improve in areas of leisure
classes, performing arts, Southern Arizona Senior
Games, and special events. Overall usage of our GVR
facilities has increased and during peak season, we
are busting at the seams. We have to limit the
number of classes we offer and meetings we hold due
to space limitations. You may have noticed
that for several months, we’ve been working to reconstruct the GVR Member Services Center lobby which will allow us, once completed, to add a few additional workstations. Last year, we moved our
Information Technology Unit to Desert Hills Center in
order to free up some space at the Member Services Center. We’ve also offloaded
membership transactions to the box office here at West Center to better distribute the overall workload. It is interesting that in January 2016, Pima County Administor, Chuck Huckleberry, invited GVR to enter a
conversation with the county about how GVR might contribute to maximizing use and operation of the county’s community performing arts and Pima Community College facilities located here in Green Valley not more than a mile and
a half from where we are. This conversation is still in play whereby GVR may be afforded access to much-needed meeting space at times the under-utilized Pima Community College and Performing Arts facilites. GVR has continued to improve
and enhance our facilities. This was best demonstrated by
the good work that GVR staff did with our club member leadership and leadership with the
whole through our HOAs in GVR and the planning construction
of the new Pickleball courts at East Center, installation of an
additional volleyball court which is on Grass at Abrego South Center, and as we’re all aware of the Abrego North
Pool and Spa where work will begin in earnest
within the next month or so to reconstruct that enhanced pool. During this past year, GVR staff worked over a six-month period evaluating
state-of-the-art software that is needed to replace a soon-to-be defunct database system. Mind you, in our database system, 100% of all of our membership records, committee work, payments, that’s where it’s all housed. And at the end of this year,
the system we’re using, which is somewhere
around 14, 15 years old, will be discontinued by the provider. So, I’m pleased to report that after much deliberation, your team selected perfect mind. Perfect mind will allow
us to take virtually all member financial transactions online. The implementation process
for this new system will be implemented in earnest this May. Our goal is to bring the system online by the end of the year. The new GVR Foundation
is finding its sealakes and for that, thanks goes
to President Anne Weisman, Vice President Brad Stillen, and to the GVR Foundation’s staff liaison Kate McCormick. The foundation is partnered
with Cassick Community Services to introduce Project
Engage through a grant from the Freeport-McMoRan Foundation. Project Engage provides social
and recreational activities, and also a hot lunch
program for GVR members who may have aged out of traditional GVR programs and services. The GVR Foundation is
now the title sponsor of the Southern Arizona Senior Games, a major economic driver in our community. We have nearly 1,000
participants in the 2016 games from more than 35 U.S. states and Canada. The foundation reached its
fundraising goal for 2016 with the Member Assistance
Program known as MAP and it provided needed financial support for some 44 individual GVR members. Project Engage demonstrates that through the synergy of collaboration, GVR can do more and be
more for its members that it could independently. I am pleased to report
that GVR’s involvement and corporation with
the Green Valley Council known as GVC, the Green Valley Community
Complex Association of which we’re a part with
Continental Shopping Center and 11 other businesses, and the Green Valley Community Foundation that has proved rewarding and helpful to our members in the community. It was the Green Valley
Council’s Executive Committee and last week assembly who endorsed unanimously HB 2592, a bill that in the
Arizona State Legislature that was initiated by GVR and sponsored by
Representative Chris Ackerley and Representative Thorpe, that if passed and signed by the governor, would permit electronic voting
by Arizona’s non-profits including GVR, thereby saving GVR members somewhere between $15,000
and $20,000 a year. I’m pleased to report that yesterday, the Arizona Senate Rules Committee approved HB 2592. Today, it’s to go to
a caucus in the Senate and since it’s already passed
the House of Representatives, it need only be approved
by the full State Senate before going to Governor for signature. It was the Community Complex Association that ultimately approved
installation of the cell tower pretty much disguised as a palm tree (members laughing) whereby GVR receives non-dues revenue to the tune of $24,500 a year for at least the next 20 years. These are the kinds of things
that we like to look into. It’s also… I wanna comment that conversations with the Osher Lifelong
Learning Institute known as OLLI in town that’s associated and affiliated with the University of Arizona, we’ve been in conversation
with the leadership and the president of OLLI
who’s a past president of GVR, to see what we can do
to collaborate to offer OLLI services to GVR members at a discount. Now, in that regard, our first foray into
collaborating with OLLI, we’ve agreed at the Pima
Community College campus here in Green Valley to
have an outdoor concert next September that’ll be
cosponsored between OLLI and GVR. But back to collaboration with others, it was the Green Valley
Community Foundation who provided a small grant
to the GVR Foundation to undertake its first strategic plan. And as result of that plan, we were able to launch
a number of programs which I alluded to earlier. Continued efforts on all
of the aforementioned items will help keep the corporation
vibrant and attractive and as President Gunton said, a destination of choice for the some 10,000 Americans per day who will be turning 65 years
of age over the next 13 years. Thank you very much and I’m honored that I’m here with you. Thank you. (members applauding) This isn’t necessarily a
horror movie but he’s back. Here we go. We were asked at our most recent meeting of the Board of Directors to provide information
at the annual meeting about two new GVR clubs. They are the GVR Metal and Crafts Club and the GVR Hunting and Fishing Club. Now, know this. Both of these clubs will have to provide bylaws that meet GVR requirements and in the case of the
Hunting and Fishing Club, though it may sound a little bit strange, no firearms will be
allowed on GVR premises or on any GVR club outings or any activities regardless
of where they are. So you may ask, “How’s that gonna happen?” I didn’t hear it but
I’m kind of hearing it through osmosis here. It’s going to happen because the focus of the Hunting and Fishing
Club is educational. So, they’ll be able to tell stories about where they hunt and who knows how large the fish will be in the stories about the fishing outings. That’s how we’re going to work with that. So congratulations and
I thank those members that came together to meet
the GVR requirements for that. Next, I’d like to… No, we’re not gonna skip it
because it’s part of my… It says right here,
it’s part of my report. There was a Resolution of Commendation. It was adopted at GVR’s
most recent board meeting just a week ago today and as part of the
resolution that was presented by Director Barb Mouser,
our Corporate Secretary, the resolution said that once adopted, the resolution would be read
and presented formally here at the annual business meeting. So I’d like to call Barb Mouser up please so she can present this
Resolution of Commendation. – Okay, Joe. Please stand, I’d like to read the Resolution of Commendation. Whereas Joe Gunton chose
to stand for election to the Board of Directors of
Green Valley Recreation in 2013 during a time of uncertainty
and transition in GVR and was elected to the
board for a three-year term. Whereas the GVR Board of
Directors elected Joe Gunton as its President for the
2015, 2016 governance year due to his proven leadership
abilities and steadfast belief in the envision compelling future for GVR. Whereas under thoughtful
and steady leadership of President Joe Gunton, GVR has prospered and he has helped to lead
the corporation on the path to recognition as the
destination of choice for active adults and retirees. Now therefore, is hereby resolved that the GVR Board of Directors adopts this Resolution of Commendation
for President Joe Gunton to acknowledge his selfless
and unsurpassed commitment to a vibrant and meaningful GVR community for the following reasons. Number one. Leadership in convening purposeful GVR board deliberations and activities. Number two. Demonstrating undaunted courage
and thoughtful leadership in addressing often-complex issues in a positive and confident manner. Number three. Guidance in structuring
thoughtful financial guidelines in reserve funding. Four. Structuring a fact and
data-driven member outreach involving the 2015 Boundary
Expansion Referendum. Five. Traveling to Green Valley
from his summer residence in Colorado at his own expense to organize and facilitate
GVR member forums involving the 2015 Boundary
Expansion Referendum. Six. Writing and coauthoring
articles in the local press and in GVR communication
outlets that explain the importance of maintaining
a vibrant and attractive GVR while continuing to
provide quality programs and services to members. Number seven. Consistently illuminating the virtues of GVR’s Strategic Master
Planning Initiative for a vibrant and compelling
future for the corporation. And it is further resolved
that GVR’s Board of Directors ask that this Resolution of Commendation for President Joe Gunton be formally presented
to him and read aloud at the 2016 annual
meeting of the corporation on March 29th, 2016. Joe, thank you for all your hard work. (clapping)
(members applauding) – I wanna thank the board for
this unexpected resolution. I guess this is why we volunteer when we have such nice words said by such professional people. Thank you, Board. Very nice. Okay, so next, we have 2016 election results. Victor… Sorry, Vicky. I’m still thinking about… Vicky Mournian, who is the Chair of
Nominations Election Committee, is gonna give us a report on the quorum that was developed as a
result of the balloting and the election results. Vicky. – Good morning. First of all, the ballots mailed out to all members were 13,052. Quorum needed to validate the ballot is 1,305. Total ballots cast was 4,097. We did make a quorum. There was a 31% return for this particular vote
and I have to tell you, I am very, very surprised at the low voter turnout. Yes, I realize that it was
only for board members. However, it is still a vote. It’s like voting for
your state representative or the president of the United States. It’s still a vote. For the referendum, everyone complained that
this was done in the summer, no one was here, and nobody would vote. Well, the referendum got a 60% vote. Doesn’t that tell you something? Really and truly? A 31% vote for your annual? That, I’m sorry, does
disappoint me greatly. Of the ballots cast of 4,097, valid ballots were 4,084. There were 13 invalid ballots and this was due to various problems of the ballot being torn right at the scannable portion which validates your ballot. It was also done by people writing through that
portion of the ballot. When you get your ballots again, please, please, please, do not mark through the barcode. That is what allows you to vote. So please remember in the future. Don’t mark through that. Don’t disfigure it. You’re voiding your ballot. Please. Okay, to the results. Bob Allen, 3,850. Don Lathrop, 3,837. Pat Lynch, 3,807. Joe Gunton, 3,728. Please congratulate the winners. (members applauding) And I would like to add one more thing. My Nominations and Elections Committee worked very, very hard this year. We were presented with a number of things that none of us were expecting and I would like to thank Tony Zabicki, Marilyn Luhrmann, and Roy Cozad. Thank you. (members applauding) – Thanks, Vicky. We have our new directors. Would you like to see their pretty face? Stand up and let
everybody see who you are. (members applauding) Of interest, those that wanna
stay after our annual meeting is over, we’re gonna have a board meeting to elect the new officers
for the next year. And these guys will be seated at that time and they’ll get a chance
for their first vote. So thanks for running, guys. I don’t know, I kind of get the feeling that the four of us made it. I was worried about it last
night but it worked alright. (laughs gently) Okay, so next is our financial reports. I’d like our Treasure, John, if he’d come up and orchestrate
the three presenters. – Thank you, Joe. There will be three areas
that we’re gonna touch on. We’re gonna start first with Skip who is our Investment Advisor. Then we’ll follow that with Rich Hill, our Inside Auditor. Incidentally, when Rich makes his presentation, please be aware that he’s not a GVR employee, he’s not a board member,
he’s a member at large. I just want you to be aware of that. And then the third area, our Chief Financial Officer will address the so-called surplus with explanations with that. So without any delay,
Skip, I know you’re here. – Thank you, everyone. Thanks for the opportunity to speak today at the GVR’s annual meeting. It’s my pleasure to be here. My name is Skip Breither. I’m a financial advisor with Edward Jones. My office is located at
560 East Continental Road, right across from La Pasada. I’ve been in the community for 16 years helping to serve the needs of my clients. After a rather arduous selection process conducted by your Investment Committee, John Hadley, Vicky, Stan, Roger, and Cheryl Moose, Edward Jones was selected
as your investment advisor. Nancy Jones and myself are very pleased to be serving you. Nancy has been with me
for 15 years as well. And we’re gonna do everything that we can to exceed your expectations. After our selection, the
hard work really started. First thing that we
approached was the development and construction of the
Investment Policy Statement. This is the document that’s gonna define the general investment
goals and objectives of GVR. We studied risk tolerance,
asset allocation, and liquidity concerns, which were all determined and incorporated into the final document. The Investment Statement Policy follows the Prudent Man Rule which states that the fiduciary is
required to invest assets as a prudent man would
invest his own property. In GVR’s case, that is the
preservation of capital and the increase of income. The ISP was presented to your board and was approved within the last 60 days. We have invested some of the GVR’s funds in accordance with the
Investment Policy Statement so let’s kind of review that. Looking at the current statement, we use safety as a standard. All fixed income investments must be rated at least A- or higher
by Standard and Poor’s which is an independent rating company. Starting with CDs, they are all FDIC insured. That makes up 26% of
the current portfolio. They range from being a
few months in maturity all the way out to
approximately five years. Each issuer is limited
to $249,000 in value. This is to make sure that there is no loss of principle or interest. Money market comprises 35%
of the present portfolio. 21% of the portfolio is invested in GSE, those are government-sponsored
enterprises. The names that would be very common to you are Fannie Mae, the Federal Homeloan Mortgage Corp, the Federal Homeloan Banking, those types of organizations. All current assets are rated at least A+ by Standard and Poor’s. We’ve also capped the
amount of the per issuance. Corporate bonds comprised 14% of the total invested portfolio. We used issuers such as Apple, Microsoft, and Boeing to name a few. Currently, the lowest
rated bond in the portfolio will be A-. That is a Boeing bond. Taxable municipal bonds
also account for about 4% of the portfolio. The lowest rated bond,
currently, is rate AA-. These are all highly-invested, highly-rated bonds. Yields range from anywhere
from 0.01% on money market all the way to a longterm bond
that currently yields 3.81%. Maturities range anywhere from
zero years to 16 years plus. Once again, the CDs are anywhere
from zero to five years. They comprise about 47% of the portfolio, about $3.2 million in value. The maturities that
range in six to 15 years comprise 47% of the portfolio, a little over $3.2
million of invested money. And those that are 16 years and over comprise 7% of the portfolio, right around $491,000 of value. So certainly, you can
see in our construction, what we look for was asset
allocation, liquidity, the ability to have monies
available with laddering. I think we did a very good job. My congratulations goes out
to the Investment Committee. It was a blast to work with them. I learned a lot about GVR and the beast being in the belly
working with these people. Nancy and I will look
forward to continuing to work with you all in the future. (members applauding) – Okay, Rich Hill had been doing the
audits for the past year. – There’s no remote control. I’ll get one. Good morning. There we go, thank you. Hi, Margaret. Oh, thank you very much. This is the Audit Committee Report. The audit of the 2015 financial statements. It includes Green Valley
Recreation and the GVR Foundation. The Audit Committee
consists of two members. Me, I’m Rich Hill, I’m Chair. I am not the internal auditor. I’m the Chair of the Audit Committee and I’m a retired Chief
Financial Officer and a CPA. And David Fink was the other
member of the Audit Committee. He’s a retired businessman
with a lot of common sense and no fear to ask difficult questions. We are both GVR members and neither of us are
officers or employees of Green Valley Recreation. Our assignment per the
Corporate Policy Manual was to select a CPA, to review the terms of
engagement with that CPA, the audit results and opinion, and any qualifications, the management letter and
the management’s response, issues and or disputes between the CPA and management, and to review the adequacy
of internal controls. We held pre-audit meetings with the CPA to discuss the audit plan and the engagement proposal. We met with staff to discuss
Green Valley Recreation’s finances, controls,
procedures, and so forth. And then after the audit,
we met with the CPA, the two of us as the
committee, the CFO and the CEO. We reviewed the audit report
including the statements and the notes to financial statements. And we reviewed the letters the CPA wrote, one with comments and one
is a required communication. And then, finally, we
had separate sessions, one with the CPA without staff present and one with just the CFO. The auditor wasn’t there nor was the CEO. Our accomplishments. We accomplished selecting Scott R. Meyer as the CPA. He’s done the audit for
several previous years. We reviewed and determined that he is highly qualified. He keeps current. He does all of the
continuing education required for the position and all of his materials
were right up to date. We reviewed the terms of engagement which included both the organizations. This was the first year
to have GVR Foundation but at the same fee and that he would apply generally accepted auditing standards in doing his work. The audit that we received
was an unqualified opinion, however there was a note that
reserve study information was expected to be part of the report although it’s not required
for him expressing an opinion. He didn’t note that it
would be needed to have it in the statements. And then he issued a management
letter with two comments, both relatively minor and they were both resolved by management. Issues, disputes, there were none. And internal controls were
determined to be adequate considering the staffing. His charge was to express an opinion on the financial statements, not to do a detailed
study of internal controls but to express an opinion
on financial statements. Professionally, they required to evaluate internal controls in the
context of expressing an opinion on financial statements. So they didn’t test everything but he satisfied himself that
the controls were adequate, that the financial statements
would fairly present the financial position
and results of operation. So the audit report, the audit results and opinion. This was the audit report that he produced and you see in the
lower right-hand corner, the date, February 5th. That’s like 36 days after
the end of the year. I think that’s a very good commentary on hard the staff worked
to make the materials ready so that he could complete his
audit by the 5th of February. The statements including the notes were, in his opinion, presented fairly and it presented fairly
the financial position at December 31st, 2015, and the results of operations
for the period then ending. Those statements included statement of financial position. By another name, it’s
called a balance sheet. Statement of activities which is an income and expense statement. Cash flows is as it says, where did the money come
from and where did it go. And then changes in net
assets is a new statement. And the last would be the
notes to financial statements. New features in the 2015 report. A report on financial position, the new feature was that
board-designated investments are shown separately as separate items. The statement of changes in
net assets is a new statement and it presents reserve components. In addition, the audit
report this year included combining statements since
there were two organizations. There are statements that
show the financial position for each organization
and the total of the two. Statement of activities, the income and expense the same way. And cash flows. Oh, my goodness. That’s Microsoft Powerpoint for you. So, the first report is the Green Valley
Recreation and GVR Foundation. It’s a combined statement
of financial position and it’s as of December
31st, 2015 and 2014. Total assets are shown to be $28,789,000 and last year’s number
is there in comparison. Liabilities of $5 million. And when you subtract the
liabilities from the assets, you have net assets. That’s 23,741,000 and it includes four
categories of net assets. The top line is unrestricted net assets. The next one is designated
by the board for operations. The second is for capital replacement. And the last is the
board-designated for initiatives. That’s a total of 23,741,000 when you add the liabilities to that. You get the same total as
the total assets above. And accountants say that
the debits have to equal the credits and it does. So let’s look at the assets. We have total assets of 28,789,000. Longterm assets, which is
property and equipment, is a big number, 16,260,000. That’s a net of accumulated depreciation. Total current assets of $12,500,000. And the key items in that are the cash and cash equivalents followed by the same category but they are designated by the board to support the board-designated reserves. And then certificates of deposit. The top line, the cash
and cash equivalents that are board-designated, there wasn’t a category of that last year and the reason for this is
that the staff and management were moving money from the
certificates of deposit to get it ready to be deployed
as Skip has just explained, it was being deployed so it
needed to be put into a forum that could be moved and invested. So that’s why that was up. So let’s look at those. We have 3.5 million in
cash and equivalents. I just actually said that
before I got to the slide. I should’ve waited. The certificates of deposit, 3,982,000. And when they’re put together, $7,487,500 are investment instruments and they’re designated by the
board for their investments. That’s an increase of
$3,487,000 from last year. So, we’ll move to the next
statement which, again, includes both organizations. It’s the combined statement of activities and changes in net assets. It’s for the two years, 2015 and 2014. Total revenues of $9,144,000 and that includes $75,000 which was an insurance settlement related to the Abrego North Pool. And then total expenses of 8 million. When you put the two together, the income is higher than the expense. We have a net positive
change in net assets of $1,066,000. When added to the balance of net assets at the beginning of the year, we end up with 23,741,000
in the net assets. Now this is the new statement. It’s also for the two organizations. It’s a combined statement of net assets. And here we have a column
that’s unrestricted and then reserve for operations, a column for capital replacements, a column for the initiatives, and when you add them all together, you get the total column. We began 2014, this is two years, so we began 2014 with opening balance of
reserves of 21,863,000 and they were allocated as
those numbers are showing. But in 2014, we had a positive increase in net assets of $811,000 which was part of the
unrestricted reserve. The board in the course of 2014 set aside 1.5 million and put it in to the reserve for initiatives. So at the end of 2014, we had a total of 22,674,000 which was allocated as you see here, that’s just arithmetic. The net change for this year is 1,066,573. It’s part of the unrestricted fund. Then during the course of the year, the board allocated $3,412,000 to the three reserves, 250,000 for the operations, 2,006,000 for the capital replacements, and 561,000 for the initiatives. In addition, that $75,000 that was in that 1,066,000, wow, I went too fast. It got there anyway. You see, it went in to
the capital replacement. And then our total is 23,741,000 with the dollar amount
shown for each of them. So the last statement here, again, the two organizations but that’s a combining
statement of financial position and that says 2015. Here we have a column for
the Green Valley Recreation, a column for the Foundation, and the last arithmetic
total, combined totals. And here, again, you see
there’s the total assets of 28,007,000 with the 16,000 in the Foundation. When they’re put together,
they’re the 28,789,000. Similarly, with liabilities, reserves and again, there’s
the three categories of board-designated reserves, total net assets and then the total
liabilities which, again, equals the total there. The auditor identified some other matter. GVR has not yet presented the remaining facilities useful lives or future replacement costs which is required by
the AICPA to supplement but not to be part of
the financial statements. And that information is used for planning, funding, and reserve decisions. The expectation is that
the current reserve study will overcome this issue. Communications from the CPA. We received the required
communication from him outlining management and
auditor responsibilities. We received the letter of comments. There were two issues of office procedures affected by limited staffing and that was resolved by management reshuffling some assignments. In conclusion, the CPA was well-qualified
to conduct the audit. The audit was conducted in compliance with auditing standards. Management cooperated fully, There were no disagreements regarding accounting policies or findings. And internal controls are acceptable considering the staffing. So on March 22, 2016, at the recommendation
of the Audit Committee, the GVR Board voted to accept the December 31, 2015 and 2014 Audit Report completed and
provided by Scott R. Meyer, CPA. Thank you. (members applauding) – Thank you. Before Cheryl speaks, I’d just like to make
a couple of comments. I guess I’d be sharing information. What is fiscal affairs? I just wanna address that for a moment. Who are they? This year, we had 15 members. There are 15 people on the committee. Eight were members at large, two were GVR employees, and five were board members. So you had one more member at large than GVR and the board combined. We felt that was a
very, very nice balance. I will share with you that when you look at the backgrounds and the working tenure of all 15 of those individuals, they come from an accounting background, they own companies, they had strong academics, they had financial backgrounds, had served on other financial ocmmittees, and we really thought
we had a strong board. And again, eight from the membership at large and we’ll certainly see what happens with those individuals
re-upping for next year. And I wanna thank those. Are there any members at large that are here, that are on a committee, that were on a committee? Okay. Alright, but anyway, thank you so much on behalf of the board
for what we accomplished. Okay, Cheryl who needs no introduction. – And just because he said that, I am Cheryl Moose and I am the CFO. (chuckles) And I really appreciate this opportunity to be able to give you
some accurate information as opposed to what’s been in the paper and in certain newsletters. I’ve heard a few different times about during the Boundary
Expansion, it was promised there wouldn’t be any dues
increases if it passed. That was never said. And we did really emphasize this year that we would be doing
increases on annual basis so that we didn’t have to hit all at once with a big huge increase. The other thing that I keep
hearing is that the board may decide to do a special
assessment for things. A special assessment has to be approved by the majority of voting members. So the board is not gonna
do any special assessments. If there were to be one, it would have to be approved by you. One of the other things that is out there is that some people don’t care about reserves. Other people think it’s
a really good thing that we have taken so much of an interest in funding our reserves but they don’t understand why there needs to be a dues increase. If anybody has better
ideas of how we can fund those reserves, be sure and send them in because we haven’t found anything better. So again, there will be consistent, regular, small dues increases and one of the main reasons
is to fund those reserves and get those up to where they need to be. One of the articles ended
with we need to bring GVR back on mission, fulfill its oversight responsibilities and put GVR’s financial house in order. Our mission, as just stated earlier, is to bring recreational,
social, and leisure educational opportunities that enhance
our members’ lives. We have done that. We have brought all types of
opportunities to our members. We have offered in 2015
almost 1,000 classes. We have over 60 clubs. We have 13 activity centers and a full arts and entertainment program. The board is constantly
informed and involved in all major decisions even more than what is required. A lot of times there are decisions that the CEO and the staff have the authority to make but we always go to
the board nevertheless. Another thing that was
in one of the articles was that there was a
boneheaded decision made because we already pay
a CFO and an accountant to hire an investment advisor and you heard from Skip earlier. My answer to that would be, if you had a broken leg, would
you go to a cardiologist? Probably not. Or I would hope you wouldn’t. My background is in non-profits
and governmental accounting. I am not an investment advisor. So, to look for me to take on that kind of duties, it wouldn’t make any sense. And I can tell you, already this year between January and February, we have doubled the
interest income that we made in the entire year last year by going with an investment advisor. So I believe it was the right thing to do. (members applauding) The last thing I’m going to address is all this crazy spending, in quotes. (chuckles) And they refer to a
$300,000 reserve study. That would be crazy spending. The reserve study that we have hired a professional company to do will be $300,000 in the first year and under $65,000 for the
entire four-year program. So if we would’ve spent 300,000,
that would’ve been crazy. But we didn’t and it’s not. So, again, I appreciate the opportunity to just kind of get some
accurate information out there. Thank you all. (members applauding) – Next we have on the agenda is an interim report on our strategic master plan
update from WSM Architects. Let me remind you (mumbles), I can’t talk, my prepared remarks, I did mention that we’re
waiting for the reserve study that’s gonna occur. Hopefully, it’ll be delivered this summer. I’d like to hear from WSM when
they think they can deliver their study but the two of
them are gonna marry together and that’s gonna be one of
the biggest things we have facing us this coming year, is to marry those two items together to produce a good 10-year plan. Cheryl mentioned that we’re constantly looking to make sure that our reserve accounts are up to date and I know the small increase
in dues that occurred this past year or into this year, partly, was a result to make sure we have sufficient reserve dollars. Someone’s gonna say, how do you know? You don’t have the report. That’s a fair question. But we do know by looking
at the 2009 report that we are barely making 2009 level, so we know it’s gonna be bigger. We just don’t know how much. So as we get this report out and we look at what the architects tell us that the members want, and then we get back with the members and we put that 10-year
plan together this year, we will know where we’re
going and how we get there. Who was it that once said
that if you don’t know where you’re going, any
road will get you there? So we’d like to solve that. And another great guy, Yogi, when you reach your fork
in a road, what do you do? You take it. Okay, with no further delay, Paul and Kristen are here. And I’ve got in my thing
that Kristen’s last name is pronounced DiBona. Did I get it right this time? Good. Thank you. So, no further ado, Paul and Kristen. – Good morning. As Joe had mentioned, my
name is Paul Mickleburgh. I’m Principle at WSM Architects. With me this morning, is Kristen DiBone, our Project Manager for your project. What we’re gonna share
with you this morning is what our charge has
been since we were hired, what we’ve been doing since then, and where we’re headed from now. Oh, thank you. (mumbles) There we go. So that’s us. As I look out over the crowd, I recognize a lot of faces
from the people that we’ve met and we’ve probably seen us
lurking about the campus here over the last five months. It began last summer,
essentially, after we were hired to begin kind of the main process of what we were tasked to do. With the 10-year master
plan and strategic plan, there are a couple of
key components to that. Number one was do a facilities assessment of all your campuses. Number two, there were a
couple of specific projects that were identified for us to address and one of those was the Abrego Pool, which was a high-priority project, and we’ll talk about
that a little bit later. The other component was
the community engagement so we looked at your
buildings and your facilities, the $16 million worth of property
and equipment essentially that was mentioned earlier
in the audit report, and evaluated those things and I’ll talk about that in a bit. Then we were tasked to
meet with the members. We did that in a number of ways and Kristen will address that. Then using that information
to kind of listen, hear your concerns, hear
your thoughts, suggestions, and believe me there were a lot of them. We’ve got from the various
meetings that we’ve had, we’ve got piles of paper
this thick to go through to identify what are the issues that are most important to you as members and where you see the club going and the GVR going in the future. From that information, we would take that and
begin developing master plan alternatives, options for
each of the various campuses. There are some things that are identified. A lot of what we found
was that your facilities are well-maintained, the maintenance program
is actually very good, they’re on top of it, they’ve
got a spreadsheet that goes through all the different
preventive maintenance issues for each of the facilities, the equipment. But there are some age issues, there are some updating required in terms of keeping up with the… Some things are tired. They wear out, you need to replace them, and so some of those things
are part of the identification and part of what we’ll be talking about. Then lastly, is the master plan options, is are there some big moves, some changes. Pickleball, for example,
has been discussed. Performing arts, pools, how those things all work together, how you can maximize the
benefit within the membership of GVR is one of the things
that we’ll be looking at and as you can imagine, it’s a
fairly complicated issue. One of the things that we did look at is the fact that most of your uses, you can imagine, is during
the winter months essentially from late fall to early or late spring. That’s when the peak of the
use is so summer months, obviously there’s a lot of parking, there’s a lot of empty courts partly because your membership
declines in location quite a bit and so what we’re
really focusing on to maximize the benefit of the membership
is really the activities that are occurring during the peak season. So you could stretch it
out over the entire year, that’d be great, but that’s
really not the nature of this community. That was one thing that
we looked at to make sure that the benefits are there
for the maximum amount of membership that is here at that time. That was one of the overriding constraints that we looked at. On the building assessment reports, we visited every site and
besides Kristen and myself, we have a number of engineers and landscape architects
that also participated in each of the site assessments. We have a civil engineer
who reviewed the site, drainage, parking lot, condition, requirements, circulation. American Disabilities Act
was one thing that we looked at as an overview of all the sites. It’s critical making sure
that it’s accessible. Mechanical engineers looking
at the building systems. Any potential thoughts regarding lifespan and we also did meet with
the reserve study consultant to discuss with them what
our master plan is covering versus what they’re covering to make sure that there is an alignment and that we’re working
together on that to accommodate what is required for your overall financial management. So this is an example, you can see up here an example of a report here
for one of the facilities. Over here, we’re looking
at existing conditions with the restrooms, shower
requirements per ADA. There are some things, for the most part, they’re all maintained well
but codes change over time and so making sure that
we identify those things. You don’t have to bring all those things up into compliance immediately but the plan really needs
to address those issues. So mechanical engineer,
electrical engineer, structural engineer, are there
any structural deficiencies, any things that look like
they’re falling down, didn’t find any. And then the landscape architect
reviewed the play surfaces, the outdoor courts,
whether it’s Pickleball, tennis, abachi, those kinds of things, a review of those activities as well. In addition, then we were out
walking around on the roughs looking at the building itself, identifying signage concerns, where upgrades are needed
relative to finishes, the esthetics of the
facilities and that was one of the things that we had heard from the membership at large was things were kind of dated, they could use some upgrading, and less institutional feel, for example. So what this assessment will
do relative to the buildings, we will outline for each of the campuses the different issues that we’ve seen and then make recommendations on that and prioritize those recommendations based on life safety
first and accessibility, then the secondarily would be items that, let’s say there’s a problem
with roof ponding, for example, fixing that because any
of those kinds of things can diminish your value of
the overall building asset as it stands overall. Then lastly, looking at
those esthetic upgrades, those finishes, improvements
and layout concerns, those kinds of things
on the assessment side. Energy efficiency upgrades is one thing that we also looked at. So in a nutshell, that kind
of covers the assessments and that’s pretty much to the 90% level. Then with that, there will
be estimates associated with each of those little tasks. Then from there, the
board and the leadership will be able to decide this
is what we’re going to do, when, and at what time, and
there’s kind of a timeline associated with some of
those things as well. We did not see any glaring, gotta fix it now. If we had, we would’ve identified
those things immediately. There are things that need to be addressed and that’s part of the
reason that we’re hired. The next step was the specific projects. Abrego North Pool is an update on that. We’ve completed our
conversations with the county. The land for the parking
lot to the north side, the conveyance of the
property is under way. We’re getting to the point
where the construction documents are under way nearing completion. We’re looking at inviting
selected contractors for bid with the idea that
we’d have two separate projects or separate contracts. One for the pool itself
and a pool contractor specifically to do the
work involved in that area and then another contractor
to perform the parking lot component for the site. So we’re under way. We’ve kind of negotiated the
requirements of the county, met with the homeowners, had several meetings regarding the pool, and I think short of it’s not done yet. Everyone is satisfied with the
progress that is being made and the approach that’s been taken in making it as transparent as possible. Some of the other projects
that we’re asked to look at is the Canoa Hills. There are some HVAC concerns in the pool area and we’ve
been out looking at that. The next step is to get a
test and balance contractor out to verify if the
system is really performing as it was originally
intended in the design. The design looks good. Often times over time, things get changed, get tweaked, and it’s
not necessarily running the way it was intended to
run and looking at solving that issue in addition to the covering over the deck around the
pool area is delaminating, multiple issues with
that and fundamentally, it’s a moisture coming up from below with a sealed membrane and typically if you can avoid that, that’d be ideal. So we’re working on
some solutions for that and this summer, it’s anticipated that we’ll
do some test areas to verify the best way to fix that
problem when it’s not impactful to the most active use of the pool. The other components that we’re
looking at that we’re asked to look at specifically
for the master plan are Pickleball Center, the
Member Services Center, and the Performing Arts Center. Kristen will talk a little bit
more about what we’ve learned from our meetings with the clubs and with the organizers of the activities, give you an input on that. I guess with that, I’ll
just let you jump in here. (Kristen and Paul talking
low among themselves) – Caught up with me. Alright. I’m gonna speak about the
community engagement process that we kicked off in December. We conducted two types of meetings as we had stated in our contract. We wanted to do formal listening sessions that in which the format is similar to the way that we’re set up now. Paul and I would sit at
the front of the room, we attended all of the major centers, and then addressed the satellite centers at each of those meetings. And Kent Blumenthal and Jim Conroy were also in attendance at those meetings. So we could conduct a
discussion, an open discussion. We had no agenda, we were there to listen. We also did informal meetings. Paul attended the annual Fall Craft Fair and I attended Fit N Fun Day. We also had booths at the outdoor concert at Canoa Hills. In addition, at Christmas time, I came to the TSO performance here at West Center and we had our booth set up and we were able to talk
to people one on one. This was a great format to learn about the members and the different roles that people take on here at GVR. Sometimes people would
speak as a club member or perhaps a club officer. I spoke with many volunteers. Some folks were instructors for classes. I really came away from these
meetings feeling inspired. This is a vibrant community and I was able to speak with people about the activities that they enjoy. And they spoke very highly of GVR. Generally, there are some frustrations and people would make suggestions and I recorded all of these things. There’s no idea in our process that’s too big or too small and sometimes, the big
ideas might seem outlandish but we’re visioning for the future here so no idea is too big and then with the smaller
ideas, those were things, Jim would call them
the low-hanging fruits. If we became aware of a
problem that GVR could solve immediately, then they were gonna do that. We were discussing
everything from hand dryers to visions for Pickleball Centers. The final public meetings, we’ll wrap up next month. We’re gonna do sort of a
last call meeting in case folks were not able to attend
any of the other dates. – Next Tuesday at 1 o’clock, I believe. – Is that… – [Voiceover] That’s correct. – Okay, Tuesday 1 o’clock at– – The location, Jim? – [Voiceover] Las Campanas.
– Las Campanas. – So if anyone has any
comments, feel free to come. We’ve got to assemble all this data after we’ve collected that information but we would love to see and
hear from people at that. That’s kind of the last
opportunity to really gather input. (member speaking distantly) It’s next Tuesday at 1
o’clock at Las Campanas. – [Voiceover] April what? – April 5th. – So all of that information was recorded and will be reflected in our report. We also met with representatives from all of GVR’s 60 plus clubs and even some clubs, we
hadn’t even been programming for some clubs that are just
forming like the metal working club that President Gunton spoke about earlier. We met generally with club
officers and those officers represented about 11,000
club members total. Many of these clubs have dedicated spaces and we toured them together with them. We wanted to learn about their activity, what do you do, and I was always interested to know why do you enjoy it so much. And I’ll tell you, I think
I’m coming away from this with a desire to learn many new hobbies. In fact, whichever club I
was meeting with that day, I would often be inspired to take that up. The reason we want to learn
why do you do your activity, why do you enjoy it so much, it will help us in the
space needs programming. Sometimes, you’re doing
an activity a certain way because you’re limited
by your existing space. But we wanted to know how would you like to do your activity, what would be the ideal
situation to do your activity, and what are your challenges
for your existing space. For example, many clubs
have storage as a great need the same way it is in all of our homes. Storage is always an issue. It’s an issue here at GVR. Some other examples would be flooring. Paul and I were finding that
many physical activities are being done on flooring
that may not be appropriate, kind of hard on your knees, dancing on a floor such as this
that’s not resilient at all. That was a common thing
that we’re hearing. So we’re able to take
all of this information and put it into spreadsheets and determine the existing space need for a club based on their future growth and the deficiencies for that space. We will come up with areas that we’ll program in the master plan. – We also met with clubs that
didn’t have dedicated spaces. With an understanding of
their shared meeting rooms, their moving around potentially, I see the table tennis in the corner, that’s a club that seems
like it moved around on an annual basis. And in looking for spots for places, does that make sense, does
it not make sense for them, each group was unique and there were a lot of different things that
we learned and we’ll apply those things in terms of
coming up to the best solution. Our goal here is to not negatively impact any club or any group or any activity but to improve the experience for all. Obviously, that’s a challenge. Changes will potentially be
required to make that happen but we have no preconception about what the answers are going to be, so at this point, and even
like next week’s meeting, we’re still learning. But just wanna make sure that
it wasn’t just the dedicated space clubs that we talked to. It was fundamentally every single club in addition to teachers,
instructors for the classes so that we have an understanding
of what’s going on. It was mentioned earlier,
over 1,000 classes were taught last year. That’s a big component in
addition to just the club membership which
constitutes 11,000 people. As you can imagine, there’s
a lot of things going on, a lot of moving parts, and like Kristen, I’ve
been very impressed. You do a lot with what you’ve got. The work that you do, the art
in the clubs is exceptional. We’ve heard numerous times people are here because
of those kinds of things. But anyway, I just wanted to address that. – That’s a good segway. So what did we hear? What are we hearing? GVR is a good value. We chose Green Valley for GVR. We even met some people
who actually moved away to a community in Florida and came back to Green Valley for GVR and the activities and
opportunities GVR provides. We did hear a lot about
the facilities are dated or the facilities don’t
have the right feel. By that, we’re hearing that some of the facilities, you have a lot of facilities
so it doesn’t apply across the board but
some of the facilities have too much of an institutional feel. We need coffee shops or
casual gathering spaces. I’m sorry, I skipped the night time. GVR needs more night time activities. More classes, different types of classes and more of the classes
that you have right now. We should have more activities
for the baby boomers or the younger seniors. For example, yoga, spinning, but we should also address
older seniors’ needs. More community partnerships. You heard your CEO speak
about that earlier. These are things, they’re themes that kept coming up over and over as
we would speak to members. (mumbles) Here we go. These are some of our initial findings. It’s a taste of what’s to come. We’re finding that there are unmet needs. Introductory courses and
the quantity of people that you can have at them and
the duration and the frequency that they can meet limits the clubs because if you can’t take
the introductory course, you cannot take the subsequent courses, for example, in lapidary or woodworking. – [Paul] And that’s specifically
based on lack of facility, lack of space to teach those classes. So there’s the person outside
of it which is important but we’re primarily focused
on the facility side. And with that, there’s essentially, if I can’t get in to get
the introductory class, I can’t take that activity. So people are waiting a year or more to try and get in to some of
those classes or activities that they’re interested in participating. – [Kristen] Inadequate or inappropriate spaces for activities. As I mentioned before,
I mentioned for example, dancing on a floor that’s
not made for dancing that’s hard on your knees. Same with aerobics. Performing arts, they’re limited by their existing space size. West Center here where we’re
sitting is the same place that you would have the TSO perform. There’s a lack of fixed seating here and it’s not tiered seating. The acoustics of this space, they’re okay for a
presentation such as this but they’re not designed to enhance music. This space doesn’t really have
the right character or feel that an auditorium would. We should mention that
as part of our contract, we’re benchmarking GVR
against the competition. For example, we wanna know where are you
based against your competition and you’re standing up quite well but there are some areas where, for example, the villages in Florida, they might have many
community gathering areas, that’s the next one here, and GVR does not have as many. What else was it? The performing arts, GVR does not have an auditorium. GVR also does not have a gymnasium. As we know, it can get quite cold here and obviously quite hot. And a gymnasium could potentially
help you bridge that gap. There are many activities
that you could do inside for indoor athletics. – [Paul] And along with that,
currently this space here is kind of the gymnasium
for lack of a better word or a cafetorium or– – [Kristen] Multipurpose room. – [Paul] Essentially at some point, multipurpose rooms are great but they don’t do everything well. Your performing arts component
has got a strong following, a great program, it’s well-respected
within the arts community, and one of the challenges is
really the facilities here to support that. When you have the TSO performing one day or the Nelson Brothers, for example, and the next morning, you’re
setting up for table tennis or some other lunch activity, they’re not necessarily compatible. You’re doing a great job with
what you’ve got right now but this facility relative
to performing arts is probably a challenge. You could remodel it but the expense of that
relative to what you have, structurally that you’re working with here becomes kind of questionable. Those are some of the things
that we’ll be looking at in greater detail. But often times, spaces that do a lot of different things, and we’ve seen that around the campuses, that facilities where you use one room for five different functions and dance is a good one, where you have dancing occurred or aerobics or any of those
kind of group fitness activities on hard concrete floors
is not a good thing. It’s bad for your joints
whereas card playing, bridge, large groups, they don’t need those kinds of floors. They need a space to organize their tables and be there for three, four hours. They need more comfortable chairs. That was another one of the comments, was it’s hard to sit here
for that amount of time and be comfortable. So those are some of the
things that we’ve learned and are looking at and a
lot of it may just become moving people around and
moving organizations around within the campuses to make those things
more effective for you. – And repurposing existing spaces. – Yes. – I’ll breeze through number three here. Desire for more community gathering areas. Formal and informal gathering areas, for example, spaces for outdoor concerts but just places for
people to come together. Comfortable spaces in which to socialize. Coffee shop feel. Spaces for parties. Just a different feel than some like Paul mentioned,
the multipurpose rooms that are occurring at GVR right now. These are some of our observations. GVR is a thriving community
and like we mentioned, we’ve been very inspired and we hope that our
master plan will continue to help GVR thrive in the future. We want some of those 10,000
people who are retiring every day to choose GVR
because it’s world-class. (mumbles) Here we go. Paul will discuss our
schedule, the next steps. – The next steps here
as we move to completion is as I mentioned, we’re getting
the last of the input here next week and from that, we’ll be assembling and
corelating the information and doing what we call
programming where we identify for each of the different
groups, each of the different spaces and activities that are going on, how much square footage is
needed and then comparing that to the existing spaces that they’re in. The schedules have a big part of this because everything doesn’t
occur all day long. Spaces need to function in different ways but you wanna make sure that
they’re done appropriately. So we’ll be looking at that. Completing that Abrego
Pool as we mentioned. We’ll be beginning construction here soon. In May, complete that and then we’ll start looking
now that we’ve got the data, we can’t really do the master
plans or make solutions until we understand what are
the nature of the problems, how big they are, what
are the needs, et cetera, and begin factoring that in. So that would be the next step. June, we’ll complete the
schematics for special projects. Pickleball Center, for
example, how big is that, how much land, potentially, is required, how much parking, what kind of infrastructure
is needed for that facility, can it be located on any of the campuses. Likewise, with the
performing arts conversation that we’re having… Excuse me, the member services option, what happens with that facility. The expansion the staff needs
and the maintenance area of that is really challenged right now, to provide the maintenance and upkeep that is needed for the facilities. They’re doing a terrific job but there are opportunities
for improvement and especially looking at
this entire West Campus here, what is the best way to utilize the land that you’ve got here. Some of the other
conversations that we’ve had related to parking,
there are some concerns about too much parking in one spot, not enough in the other or it’s unused because there’s not an accessible ramp. How do I get my art project
from my car to the classroom is something that’s brought up. So we would look at those
kinds of things as well. Assign cost to those from
a budgetary standpoint, not detailed X number of
square feet of linoleum tile or any of that kind of stuff. It’s a more general
cost-per-square-foot kind of budgeting. Then with that, we would meet, have draft recommendations
to the Board of Directors, make sure that we’re all on the same page, then ultimately, package
up the master plan for use moving forward in the 10 years
as a tool to set priorities for this year, we’re going to
work on this, this, and this, next year, it’s gonna
be this, this, and this, and so on and so forth. With that, we’ve really enjoyed our experiences with the GVR membership to date and thank you for the opportunity. Look forward to seeing
most of you, hopefully, all over again. Thank you. (members applauding) – Thanks, Paul and Kristen. Before we get to member comments, there’s a couple of
slides that I was asked by our Fiscal Affairs
Chairman if he could bring up so he could talk about it. This has to do with
this past year’s surplus and how we got to that surplus. John and Cheryl will both
talk us through this. Thanks. – [Cheryl] We wanted to
give you one more piece of information and that was
about how we ended up 2015. Rich took you through the
audit report which showed that we had a surplus of $1,490,000. And I wanted to let you know what comprised that
and then where it went. The way to read this is of the 1,049,000, 25% of that was due to wages and benefits being under budget. Utilities were 15% under budget. Facility repair and maintenance was 10%. Then the non-dues member fees that was guest card fees and tenant fees made up 15% of the surplus. The classes made up 5% and 30% were new member capital fees. So that was from a lot more home sales than we had been anticipating. Now we know what made
it up, where did it go? According to our reserve system policy, any draws that were taken out of reserves get replaced first so that we’ve got our
reserves funded again. And then, the remainder goes into capital replacement reserves so that every penny of
it went to reserves. – [John] Thank you, Cheryl. I’ll just make one comment. Basically, just let me hit one area. New member capital fees were $180,000, basically, more than budget. The questions being asked is
why can’t you get closer, John. When we do the budget, it’s developed over three months. To put a positive spin on this, when we look at that number, we had input from an organization here in town that is buyers only, they’re not realtors. They only represent buyers. Got their historical data. We talked to realtors. We look at the sales
for the past three years et cetera and we take that and we do the best possible job we can in estimating for the budget how many houses are gonna be sold. This year, a lot more were sold. And again, we use all the data that’s available but if somebody has got an
idea how we can get closer, we’ll certainly listen to it. But that’s the type of
thing that we run into. Incidentally, the budget was developed over three and a half months, I think. So we just wanted to show you where it comes from, give you one example of the 180,000 surplus, how that happens, but what we do to estimate it and if you
wanna meet us afterwards, we’d be happy to share
more detailed information. – Thanks, and one thing
John didn’t mention but we talked about it. The staff this past year has got a lot more efficient and
economical in contracts that we let and things that we do. So we saved a lot of
money on the expense side. We’re doing it better
and more efficiently. As John has talked to us and the board, the baseline that we
created is it gives us an absolutely great starting point for developing next year’s budget. And of course, as we learned
about our reserve study and everything this year,
that’ll all go into it. We will do a better job
in the budget next year. Gurantee it. That ends our annual
meeting with exception of member comments. We have a microphone set up
in the middle of the room. If someone would check to
make sure it’s turned on. If those of you that would
like to make some comments, either line up or get ready to line up. I don’t wanna make this too formal. And please use your two minutes wisely. That’s two minutes you have and I’ll try and be as kind as possible as we move to the next person. If you tell us your name and your GVR number if you have it, if you don’t, that you’re GVR
member, we’d appreciate it. Go ahead, sir. – My name is David Flat. I’m a GVR member. I’m a member of Green Valley Squares. I’m also the class
coordinator for that club. We are a smaller club in
Green Valley Recreation. I don’t wanna speak to the
finances or to capital structure. I wanna talk about being
inviting, friendly, and less restrictive about our policies towards non-members and guests that come to our clubs,
particularly our dance clubs. Recently, I’ve had some communication with Doctor Blumenthal,
Kent, regarding this. I appreciate your response. He’s forwarded that communication
to you board members and to Tony Zabicki. By the way, thank you
all for your hard work. And what I wanna say very briefly here is that recently, the staff of GVR has gotten after our club because we’ve had frequent visitors from Tucson and other places. And we’ve had to actually disinvite people from coming to our club. Now, Green Valley Squares
belongs to an organization called Southern Arizona Round Dance and Square Dance Association. Around the world and in
SARDASA, this organization, we are welcome to go there
and dance at any time. We sometimes pay a little
extra, a dollar or two more than the membership
of that club to dance. Now Green Valley Square
has gotten the reputation of being an uninviting
place for other people. So what I’m here to say is I think that the incremental cost to GVR of having another dancer
or two or three or four on the floor is very little and the good will to be
obtained by a more friendly, more inviting policy towards non-members and guests can only help us all. Thank you. – Thank you for your comments. We did receive your emails. Tony as the current Chairman
of the Board Affairs has got it. He’ll probably not be the
Board Affairs Chairman next term, he may or may not be but that’s gonna be one of our issues we’re gonna talk about
in Board Affairs to see what we can do within the bylaws and the CPM to accommodate that. Thank you for bringing that up. I’m sure it affects other programs, too. Thank you. – Hi, my name is Annie Baker. I’m a baby boomer. My husband and I moved here
full-time two years ago and we absolutely love it. We think Green Valley is heaven on earth. But one of the things that
appeals to us so much, we come from St. Louis,
Missouri which is a very large, very highly-trafficked city, and we love the smallness of Green Valley. We love the lack of
traffic even in the winter. Part of the appeal is
the small feel of it. So when you’re planning on enlarging and increasing the
population of Green Valley, I’d like to ask that please
think about what are we going to do with the increased
number of automobiles and the traffic because
that really adds stress and strain to our lives. And this is the place we want to live and have a lovely, peaceful retirement. That’s what I wanted to add. – I wanna thank you for your comments. Those comments are
foremost when we discuss about where we’re going into the future. I think when we talk about the growth and where we’re going to the
future as Paul mentioned, is to make our programs
better, our facilities better to meet the needs of our population. But we also know that
there will be new members coming in to Green Valley
so we need to make sure that the services we have and programs meet their needs. So it may not mean a
net increase in people but it certainly should be a net increase in facility and programs to meet the needs of the new folks. We would have to see that
but we agree with you. I’ve tried to get to a Safeway
at the Continental Mall in the middle of whatever and you know the problems we have. This is foremost in
our minds but thank you for bringing it up and
sharing your comments with us. And welcome to Green Valley. Are the Cardinals gonna do this year? Don’t know. Okay. Yes, sir. – Hi, I’m Bob Stans. I wanna thank all the board for all the time that you guys spend. I know, I’ve been on a board
for four years, Fairways. And when new members come on, we say congratulations or,
most times, condolences. (Joe chuckles) Great 10-year master plan. Paul, Kent, Joe. Wonderful job. What I didn’t hear anything about was, can we improve our buildings energy-wise? Have we checked the windows,
the installation in the roof? And we have all these pools we’re heating. How much gas are we
spending on these pools? Can we do a better job? If you talk to pool people, they’ll say we should have solar water
heaters 10 years ago. My concern is here. Yes, we’re increasing revenue. Fantastic. But can we decrease our expenses? I don’t think that there’s
any reason why we can’t. Do we have a committee
on energy efficiency or looking into hot water
solar heaters for our pools? – Thanks for the comments. Can I ask Paul to respond? – Yes, absolutely. – Thank you, and great questions. I did briefly touch, maybe not adequate, regarding the energy
efficiency of the buildings. That was one of the
components of what we’re doing on the needs assessment or the facilities assessment
for each of those. For example, you have
a lot of steel windows with single-pane glass. Those are challenges environmentally. So air conditions or
any mechanical systems, they get upgraded to make
sure that we’re using the most efficient system possible. Regarding the solar hot water,
we have talked about that. Specifically, Dave Acklin from
Aqua Designs International who is a consultant that’s working for us, we’ve had conversations with
him regarding the solar. The challenge with solar
in a commercial application becomes a little bit different than it is for your residential application. So there are some more
challenges but that’s something that we are actively exploring
as part of our study as well. I think your comments are well-founded. As we move forward, the
photovoltaic, for example, you’re seeing it get built
in a lot of the schools, some of those areas. There are programs out there though. They’re not as strong as they used to be. The Arizona Corporate
Commission kind of changed a lot of the language relative to rebates that businesses, organizations much like GVR can get relative to that to
make solar photovoltaic, the solar panels, more cost effective. But those are technologies
that are out there. Arizona is a great location for that. Our firm in particular, we’ve done a number of LEED projects, if any of you are familiar with that, it’s Leadership in Environmental
and Energy-efficient Design for facilites that bring
their cost of energy use down either through daylighting. A lot of our projects, we’ve
reduced the electrical bill by more than 10% just by
providing appropriate daylighting. Becomes a little more challenging on a lot of existing buildings. New facilities are easier
to incorporate that. But it’s absolutely something
that we’re looking at and any upgrades as the
facilities get moved forward relative to image, remodelings, the first thing to look at
would be the energy efficiency. Kent had asked the question, will the final report include
that component to that, and I would say, yes, but it’ll be part of each of the assessments
for the different facilites because not all of them
suffer from the same problem. – [Bob] The new pool that’s being built in Canoa Ranch, is it? – Abrego North. – [Bob] No, the new one
that’s been approved for Sahuarita somewhere. – Oh, I’m not familiar with that. – Wasn’t there something in there that we’re going to add another pool? Not the North Abrego. Okay, I was wondering
if they were going to. Okay, I got that wrong. – Thank you, can we have the next member? – Yeah. – Gail Alt, 101229. First, I wanted to thank
the board for their work and I think we’ve made
some great improvements in the last year and a half
as far as communications. I talked to the Foundation President and she said that they’re
focusing on non-users and the aging community. And I know that GVR
staff is doing that also because Marine is involved
in the partnership with Casa and I think that’s wonderful. Back in August of last year, I sent an email to the architects giving them some brainstorming
ideas of how they could get some input from more members in GVR and part of that was the inactive stakeholders and I’m still very concerned about that. I’ve been to two stakeholder meetings and I don’t know what WSM is
doing to try to get a hold of these 36%, I think, the
Green Valley News said, of the people that wanted to opt out and how they’re getting
some input from them and some of the older members regarding what they
want to see out of GVR. – Thank you. Next. – Alan Lowe. Number 200967. Been a member for 17 years. Basically came here because I
thought GVR was pretty unique and very attractive. I think GVR is good and my objective is to
help make it better. And it’s kind of a personal
goal I have that I can come to future meetings and
not have anything to say. (Joe chuckles)
But I have some comments. My background’s heavily in
finance so I’m gonna really go into financial areas. In the past, I’ve been very critical of
the board for not following a reserve study that they had made in 2009 and past boards had ignored that study. They paid big dollars to
have it and they ignored it. But the board needs to be congratulated. The last two years, they
paid attention to it. Even the CPA paid attention to it. And the board has done a
great job and any money they can come up with is
putting it to the reserves that are badly needed
to repair and replace the many facilities we have. So I wanna thank the board for that. The studies, reserve study in progress and this last study that
we heard about is great. You can’t reach your goals
unless you have goals and I’m really looking
forward to those results. The external audit, I’m happy that you shared that
with us before the meeting. It was very informative. And I’d just like to suggest possibly looking into
the internal controls ’cause it was suggested
that maybe it’s good based on the limited staff we have. It leaves me kind of concerned
’cause we have $12 million in high liquid assets
and we have to make sure the internal controls are very adequate, that their separation of duties and our people are properly
insured and bonded. On the internal audit, I’m
real pleased with the report. Rich, I’m real happy
with your presentation. We did not have an internal
audit committee for a year, now we have one. I’d like the board to
consider expanding the role where we do some internal auditing. And lastly, on WSM, I think that studies
can be very meaningful. I just hope that we can
look at it in an ideal way. If we win the lottery, what
can we do with all the money? But if we had a plan B considering
what can we afford to do in a reasonable basis with no assessments and maybe limit to a 2%
increase in dues per year. I think that would be a
nice fallback position. And on the budgeting, I’ve
been a real critic of that. Management cannot lead
and react and redirect without good financial statements. The reporting of our actual
expenses, I have no problem with but the budget has been way out of sync and I hope it’s improved
in the future, thank you. – Thank you for your comments, Alan. – Don’t know if I dare touch it. I’m Jerry Seawick and I’ve been in Green
Valley for 30 years. I’ve been in real estate as a
real estate broker down here for 21 years. I would like to address
your major fundraising item of $2,550 for every new property that we sell over and over and over. It has affected our real estate values. Our values now have dropped about 45% since 2008. Almost every single one of you will have lost a great deal of money. Number one, I’d like to
see copies of the minutes, budget, and financial statements at the handouts at the meeting. I think it would eliminate
a lot of the rumors that go around. People don’t have anything
concrete in their hands and most of us can’t
memorize the slides up there. They’re fast. The other thing is as much as we have a rather large reserve and the services, we have
aged out, at least I have. And how about lowering the dues for people who have paid them
for at least 20 or 25 years. Wouldn’t hurt, we don’t get raises in our social security anymore. So I think that would help a great deal. I think we have to look at
finances a lot more closely because we just can’t
afford to keep going up. Thank you. – Thank you for your comments. Two things that you said. (members applauding) The financial slides and other information that we share here are
available on the internet. – [Voiceover] Not everybody has it. – Okay. They are linked, I’m just telling you where you can find them. We’ll look into having those
available at the meetings but we wanna keep from
killing too many trees. I know you don’t wanna
hear that as a report but that’s a lot of papers. So let us look into it. Maybe we can do a better job and at least give some
summary information next time. But thank you for your comments. And one about the aging, I tried to mention that in my remarks. That’s one of the things we’re looking at is how do we accommodate
that within the law. We have bylaws and we have deed restricted property that tell us that we have to do things. How do we overcome that and that’s something that’s
gonna be discussed this year with the board, so we’re on track… We can’t do these overnight unfortunately but we are in discussion about that. But thank you for your comments, ma’am. – Good morning, my name’s Anne Herse, and I wanna thank the board and thank the wonderful GVR staff who’s really just helped
me so tremendously listening to one member. There will be a new
sculpture park starting right across the courtyard
in the smaller courtyard and I wanna invite all the
membership on April 1st, this Friday from 3:30 to 5:00. It’s an opening reception. There are 16 artists represented. They’ve done a yeoman’s
job cleaning up that and putting new benches out. WSM said they’ve asked
for new gathering places. Well, now you’ll have one
for the whole month of April. There will be a new sculpture park so I hope you can come and enjoy it. Thank you. – Thank you, Anne. (members applauding) – Yes, sir. – Hi, my name is Jean Casper and I wanna first really
congratulate this board for the tremendous progress they made. I agree with Alan that
the reserves and the way you’re doing the accounting, it seems like you’re really running GVR on a very business-like
basis at this point. I also wanna thank the staff. They’re an exceptional staff. I have just completed a tour unfortunately but I did it. I went to Florida and I’d gone back and I’d been in Phoenix and around. And I could hardly wait to
get back to Green Valley. I was on Sanibel Island, for example, and this is a very nice
retirement community. At a friend’s condo, nice condo. It had gone from 500,000, he figured, to 650,000 a share. Now this is a nice community. They had a $45,000 assessment. They’re paying over $750 in dues. Now, to say that a $2,500 fee
every time you sell the house is keeping our housing
prices down is an absurdity. If we want a demand, we get a demand. If we wanna take care of the older people, which I’m becoming, and take care them, then keep their house prices up. Now we’d had a tremendous assessment and I really appreciate
it by the architects and other people but to me, you’re inside looking
out and you need that. But you also need to ask
the people who go to Naples, who go to Sanibel, who go to
Phoenix, go to Apache Junction, who goes through the Robinson communities, why they chose that
instead of Green Valley. My personal experience,
which is very limited, is they’ll say they didn’t
even know we existed. So you need the market in my mind. We gotta look at that and I thank you. I used up my two minutes. I want you to know how much we deeply, deeply appreciate the staff and the board. – Thank you very much. (members applauding) – Hi, my name is Howlen Swift. I have one quick question. Cheryl’s report showed a surplus of over $150,000 in dues this year and yet the board is
talking about raising dues. I’m stumped. – About the budget, I just
wondered if it was possible to see better breakdown on operations and assessments. I think it might clear up a few questions that some of us have. – Okay, we’ll look into that, how we can reconfigure it next year. By the way, there’s been a lot of questions
about the fiscal affairs in our budget and everything. There are committee meetings that discuss all these issues we’re talking about. I know, I’ve been to several
meetings this past year and the number of outside
folks who come to the meeting are maybe one or two every now and then. That would be a great grassroots
place for those of you that really have the time
and the inclination to come and visit with the committee,
engage in the conversation, and learn a little bit more about it. That would also be helpful ’cause we get feedback that way. These guys are all
volunteers just like I am and I’d like all of you to be so that we can take
care of our corporation. Yes, ma’am. – Mine’s a silly little housekeeping item and it really has to do with housekeeping. I’ve noticed that my facility, which is Ranches, may be
not as clean as it should be and when I try to ask for specific action, it doesn’t seem to have a response. It used to, only three years ago, and something happened
between now and then. I’m thinking that maybe it
might be the stratification of the management layer in
the maintenance department. It appears that we’ve
added a few layers in there and it’s been my experience that when you add layers then what you do is you put responsibility one step up and then you add another
layer and you put it another step up and then finally, it’s beyond the step of
where they feel it’s really their responsibility or you
can’t do anything about it. So I’m thinking that
maybe we might wanna look into a suggestion box or a destratification to make sure that our base layer people
are actual maintenance people, have got the ability to
meet their clients’ needs. I think that’ll help. – Thank you for your comments. The facility you’re talking
about was Canoa Ranch? Okay. Thank you very much for your comments and we got the right people
that just heard you, right? We got Jim, we got Kent, we got Cheryl, we got the staff
here that heard you, right? And you come back and tell us later on if they didn’t listen well, okay? Alright. (member talking distantly) Those of you who do have internet, there is a hotline email address. If you don’t feel like
the person you’re talking to is listening or they’re
going by, put it on the hotline. You did that. Good. Okay. I hope it’ll work better next time. We’re gonna do our best. Thank you all for attending
our annual meeting. Those of you that wanna stick around, we’re gonna have a board
meeting to elect officers. But thank you again. (members applauding)

Leave a Reply

Your email address will not be published. Required fields are marked *