Request for Information Master Board November 3, 2026

TO: Members Master Board of Directors  

CC: General Manager; HOA Attorney, Association Counsel; Delegate Assembly Chair

DATE: November 3, 2026

Dear Members of the Master Board:

At the October 29 meeting, Treasurer Howard Katz reported transfers totaling $1,443,000 from the Spectrum door-fee account to fund obligations associated with FSR’s departure. He also identified approximately $1.078 million potentially repayable to Spectrum upon early cancellation and indicated that replenishment might begin in December.

At the same meeting, Director Joe Ganino described an emergency Board meeting to establish a financial “lifeboat” during the transition to Troon, referenced a 30-day wait for funds from FSR, and stated that a repayment plan was being developed.

“We, the board had a mass emergency meeting last week and we created a lifeboat for the association to make sure we can continue to pay our bills for the first 60 days while we transition with Troon and we have to wait 30 days to get our money back from FSR. That's factual. So, we created a lifeboat. Along with that lifeboat, Howard is working on the payment plan to get this paid back into the account as soon as possible.”

These transfers have already occurred, while the public explanation leaves unresolved how they were authorized, how much cash remains available, and how replenishment will be funded.  Because this concerns SLCC’s ability to meet current obligations and any potential Spectrum refund obligation, clarification should not wait until a future Treasurer’s Report.

As an Association member, we request written answers and supporting records addressing:

1. Fund classification and restrictions. Were the Spectrum funds operating funds, designated reserves, or a separately restricted fund? Please provide the Spectrum agreement and Board resolutions establishing permitted uses, refund obligations, and any requirement to retain cash.

2. Prior authorization and emergency procedures. Please identify the prior written approvals and resolutions authorizing the October 26 transfer of $500,000 and October 28 transfer of $943,000. Provide the emergency meeting’s date, attendance, recorded vote, and available minutes, and explain what unforeseen circumstances justified emergency action under Civil Code §4923.

Please identify whether approval occurred in open or executive session and the basis for any executive-session treatment. If emergency action was taken by email, provide the directors’ written consents to conducting the emergency meeting electronically and the resulting authorization, subject to applicable lawful redactions. Civil Code §5502 requires prior written Board approval for transfers of this size from operating or reserve accounts.

3. Payments, remaining cash, and FSR-held funds. How much of the transferred money has actually been spent, for which obligations, and what remains? Please distinguish existing operating payables, accrued employee obligations, accelerated final payments, and additional transition costs.

What Association funds was FSR expected to release after 30 days, in what amount, and on what date? Have those funds been received, and how are they reflected in the replenishment forecast?

4. A definite replenishment plan. What amount will be restored, by what date, and from what net available cash? Please provide a monthly cash-flow forecast accounting for continuing operating expenses, required reserve contributions, and other obligations.

Gross monthly revenue alone does not demonstrate replenishment capacity. Please identify any contemplated assessment increases, special assessments, financing, or spending reductions needed to complete replenishment.

5. Reserve-transfer compliance, if applicable. If designated reserve funds were used, please provide the notice and written findings required by Civil Code §5515, including when and how repayment will occur and the applicable restoration deadline. If the Board considers §5515 inapplicable, please explain the basis for that conclusion.

6. Reconciliation and financial controls. Please reconcile the original $1,663,500 receipt, $225,000 distribution to sub-associations, approximately $1.49 million reported bank balance, $1.443 million transferred, and approximately $1.078 million potential Spectrum refund obligation, using consistent reporting dates.

Confirm that receiving accounts are held in the Association’s name and remain subject to Board oversight and appropriate financial controls.

7. Advance planning and disclosure. When did the Board first learn that the transition would require access to Spectrum funds, what amounts were anticipated, and what funding arrangements had been approved before the transition proceeded? If this need was known while the Board was explaining and defending its selection of Troon, why was it not disclosed to members at that time? If it became known later, what changed, and when?

Please provide the relevant approvals, financial statements, transfer records, and non-privileged supporting documents through the applicable member records-inspection process. Individual employee information may be appropriately redacted.

Paying valid Association obligations is necessary. Members also deserve documented authorization, an accurate accounting, and a credible explanation of how this action affects SLCC’s ability to meet future obligations. The public reports do not establish whether all required approvals and safeguards were in place.

Please acknowledge receipt within three business days and provide a substantive written response addressing each numbered item within ten business days.** Provide available responsive records as they become available rather than holding them until the entire response is complete. For any unanswered item or outstanding record, identify what remains pending and the expected completion date.

Please also identify the date of the next open Board meeting at which the funding arrangements and replenishment plan will be presented. These requested response periods do not replace any applicable statutory records-production deadlines.

Sincerely,  

Robert Hix

Ron Varner  

SLCC Members  

Sun Lakers for Accountability