a letter from Corky and Noni Eley

January 4, 2010

Janet Price, Finance Director
Milt Johns, General Manager
All LWV Board of Directors
LWV Homeowners

Re: No response to letters written regarding Leisure Worlds
Original Trust and amendments and Leisure Worlds/
Laguna Woods Village Management Contracts.

Happy New Year!! We certainly hope this New Year will
bring some drastic changes to Leisure World/Laguna Woods
Village. It is time the governing documents (Trust, Articles of
Incorporation, CC&R's and the By-Laws) are enforced and new
management contracts written. The homeowners of this
community deserve better management and advice than
they have been getting in the past.

Leisure Worlds Original Trust and the amendments to the
Trust have been violated by GRF and PCM by not delivering to
each homeowner a copy of the Operating Budget each year, as per
the amendment to the Trust dated April 6, 1964. The Trust must be
acknowledged and honored by GRF and PCM. The homeowners have
been kept in the dark as to how their money, land and assets
are being distributed. This is Senior Abuse at its worst and must
stop.

The thirty eight (38) board members of the four corporations
(GRF, United, Third and Fifty) at the beginning of each year are
given a copy of the Red Book. The Red Book contains the Operating
Budget, the Business Plan for each of the four corporations and the
Business Plan for each Division (Broadband Services, General
Management, Community Relations, Financial Services, Security,
Landscape, Recreation, Human Resources and Maintenance). Included
in the Red Book is the Golden Rain Foundation Trust Capital Reserve
Expenditures for equipment and facilities. The Capital Reserve
Expenditures reported in the 2010 Red Book for equipment and
facilities was reported as $8,931,350; however this amount is closer to
$10,000,000, as the Golf Starter Building cost of $4,886,300 was changed
in the December finance committee meeting to $5,500,000 and will
probably change again when construction begins. Remember Clubhouse 7?

The Management Contracts between PCM and the four corporations
should have been re-negotiated many years ago, as per
Article 5 (b). Article 5 has been written in each contract since 1996 and
the CPI has exceeded eight percent (8%) on GRF's operating budget for
several years with NO re-negotiations of the contracts. Why not?

Listed below is Article 5 of the above mentioned contracts. This
article has been included in each Management Contract since 1996.
The article number may be different on each contract but the statement
on Fee's is the same.

ARTICLE 5. Fee. Agent shall be paid, as its sole compensation for all services
performed hereunder, a fee payable in advance on the first day of each month in an
amount, exclusive of all surcharges, determined on the basis of the total number of
dwelling units in Owner under management by Agent as of the last day of the
preceding month as follows:
(a) Said fee shall consist of a monthly charge in the amount of ________, per
dwelling unit.
(b) Said fee shall be adjusted annually for each succeeding year by the
same percentage as the All Urban Consumer Price Index (CPI) of the United
States Bureau of Labor Statistics for the Los Angeles-Riverside, Orange County
Metropolitan Area. Such annual re-computation shall be based on the July to
June CPI increase or decrease, but not to exceed eight percent (8%). Should
the variation in the CPI exceed eight percent (8%), the fee set herein shall be
reopened automatically and subiect to re-negotiation. Such fee adjustments
shall be budgeted and become effective as of January 1 of the succeeding year.

Wake Up!! Every homeowner should purchase a bound
Red Book for $10.00 from the print shop on the first floor of the
Community Center Administration Building if they are interested in
knowing how the Operating Budget for 2010 of $94,970,566 is being
spent. This is your home and you must get informed and participate
before it's to late. The Red Book and the Management Contracts are
good starting points.


Sincerely yours,


Noni and Corkey Eley