A G E N D A REGULAR MONTHLY MEETING OF THE ... - Mutual 2 › wp-content › uploads › 2019 › 04 › April-201… · Special Meeting Minutes of March 19, 2019 (p.3) Special Meeting

A G E N D A REGULAR MONTHLY MEETING OF THE BOARD OF DIRECTORS

SEAL BEACH MUTUAL TWOApril 18, 2019

Meeting begins at 9:00 a.m. Administration Building Conference Room A

(4.11.2019cv)

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE

2. SHAREHOLDER COMMENTS (2-3 minutes per shareholder; agenda items only)

3. ROLL CALL

4. INTRODUCTION OF GRF REPRESENTATIVE, STAFF, AND GUEST(S):

Mr. Pratt, GRF Representative Ms. Snowden, GRF Representative Ms. Hopkins, Mutual Administration Director Mr. Jones, Building Inspector Mrs. Ramos, Recording Secretary

5. APPROVAL OF MINUTES: Regular Meeting Minutes of March 21, 2019 Special Meeting Minutes of March 19, 2019 (p.3)

Special Meeting Minutes of April 2, 2019 (p.4)

Special Meeting Minutes of April 8, 2019 (p.5)

6. CONSENT CALENDAR a. Discuss and vote to authorize the transfer of funds for Mutual Two (p.6)

7. BUILDING INSPECTOR’S REPORT Mr. JonesPermit Activity; Escrow Activity; Contracts & Projects; Shareholder and Mutual Requests (p.7-9)

8. GRF REPRESENTATIVE(S) Mr. Pratt & Ms. Snowden

9. UNFINISHED BUSINESS a. Discuss and vote to ratify the amended/posted Policy 7510.02 – Eligibility

Requirements (p.10-17)

10. NEW BUSINESS a. Discuss and vote to approve/deny the Financial Review for March 2019 (p.18)

b. Discuss and vote to approve/deny having an election incentive (p.19)

c. Discuss and vote to approve/deny accepting the proposal submitted by National Service Company for laundry services (p.20)

d. Discuss and vote to approve/deny the proposal submitted by J&J Landscaping to Install water valve covers (p.21-22)

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(4.11.2019cv)

NEW BUSINESS (continued)e. Discuss and vote to approve/deny the proposal submitted by J&J Landscaping for application of fertilizer (p.23-24)

f. Discuss and vote to have a Townhall Potluck “Meet the Directors” on May 30, 2019 (p.25)

g. Discuss and vote to approve/deny the proposal submitted by J&J Landscaping for landscaping at Carport 27 (p.26)

h. Discuss and vote to approve/deny the proposal submitted by MJ Jurado to replace asphalt at Carport 22 (p.27-28)

i. Discuss and vote to approve/deny that Physical Property prepare Specs and request Bids for the walkway replacement at Building 72 (p.29)

j. Discuss and vote to approve/deny Service Maintenance order walkway lights (p.30-31)

k. Discuss and vote to approve/deny setting Director expense limits for mutual projects (p.32)

l. Discuss Building Permit requirements for Directors and Shareholders (p.33)

m. Discuss and vote to approve/deny having a service charge for sandbags (p.34)

n. Discuss and vote to approve/deny Shareholder responsibility for skylight maintenance (p.35)

o. Discuss and vote to accept the 2018 GRF excess income distribution (p.36)

p. Shareholder Statement to Vote Cumulatively (p.37)

q. Appoint Observers for the 2019 Mutual Two Annual Election (p.38)

r. Discuss and vote to cancel the Regular Board Meeting of June 20, 2019 (p.39)

STAFF BREAK BY 11:00 a.m.

11. SECRETARY / CORRESPONDENCE Ms. Keller

12. CHIEF FINANCIAL OFFICER’S REPORT Ms. Jacquelin a. Discuss and vote to approve/deny the proposal submitted by Reserve Studies Inc. (p.40)

13. MUTUAL ADMINISTRATION DIRECTOR Ms. Hopkins

14. ANNOUNCEMENTS NEXT MEETING: Thursday, May 16, 2019 at 9:00 a.m.

Administration Building Conference Room A

15. COMMITTEE REPORTS (will discuss as time allows)

16. DIRECTORS’ COMMENTS

17. SHAREHOLDER(S)’ COMMENTS 2-3 MINUTES (time permitting)

18. ADJOURNMENT

19. EXECUTIVE SESSION

STAFF WILL LEAVE THE MEETING BY 12:00 p.m.

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MINUTES OF A SPECIAL MEETING OF THE

BOARD OF DIRECTORS

SEAL BEACH MUTUAL TWO

03 /19 /2019

In accordance with the Corporation Bylaws, and pursuant to posted due notice ofthe Shareholders, a special Meeting of the Board of Directors of Seal Beach wascalled to order by President Esslinger at 10:01 a.m., CH-5 Conference Room BMeeting Room.

Those Directors present were: President Esslinger, Vice President Nugent,CFOJacquelin, Secretary Ketler, and Directors Jacobus, MacLaren & Naret.Directors Kilian and Sporcich were absent. Shareholders present were: there wereno shareholders present.

The purpose of the meeting was to discuss Fire & Safety Inspection procedures fordirectors and building inspector to begin April 1st.

No votes were taken at the meeting.

Thfijiiêting was adjourned at 11:00 a.m.

LiAttest

Peggy Keller, SecretarySEAL BEACH MUTUAL TWO

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MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL TWO

April 2, 2019

A Special Meeting of the Board of Directors of Seal Beach Mutual Two was called to order by President Esslinger at 1:00 p.m. on Tuesday, April 2, 2019, in Clubhouse 5 Conference Room C.

Those members present were: President Esslinger, Vice President Nugent, Secretary Keller, Chief Financial Officer Jacquelin and Directors Naret, Jacobus and MacLaren. Those members absent were: Director Kilian, and Sporcich.

The purpose of the meeting was to discuss the proposed changes to Mutual Two bylaws prior to the Townhall meeting.

President Esslinger adjourned the meeting at 2:50 p.m.

__________________________________ Attest Peggy Keller, Secretary SEAL BEACH MUTUAL TWO cv:04/05/19

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MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL TWO

April 8, 2019

A Special Meeting of the Board of Directors of Seal Beach Mutual Two was called to order by President Esslinger at 1:30 p.m. on Monday, April 8, 2019, in Clubhouse 5 Conference Room B. Those members present were: President Esslinger, Vice President Nugent, Chief Financial Officer Jacquelin, Secretary Keller, and Directors Kilian and Jacobus. Those members absent were: Director Naret, Sporcich, and MacLaren. Also, present were three shareholders of Mutual Two. The purpose of this meeting was to prepare for the April 2019 Regular Monthly Meeting. President Esslinger adjourned the meeting at 2:45 p.m. __________________________________ Attest Peggy Keller, Secretary SEAL BEACH MUTUAL TWO cv:04/05/19

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Mutual Corporation No. Two MEMO

TO: MUTUAL BOARD OF DIRECTORS

FROM: MUTUAL ADMINISTRATION

SUBJECT: DISCUSS AND VOTE TO AUTHORIZE THE TRANSFER OF FUNDS FOR MUTUAL TWO (CONSENT CALENDAR ITEM A)

DATE: APRIL 18, 2019

CC: MUTUAL FILE

I move that the Board authorizes the following transfer of funds per detailed Resolutions:

Resolution Date

Transfer/ Invoice Date

Amount Originating/Destination Accounts or Payee

04/08/19 04/08/19 $127,477.89 US Bank Checking to US Bank Impound04/05/19 04/05/19 $347,246.43 ACH- Direct Debit to US Bank Checking04/02/19 04/05/19 $207,050.07 US Bank Checking to GRF US Bank Checking03/28/19 $11,000.00 Castlehead Inc. Escrow (sale of Unit 72J)03/28/19 03/26/19 $126,786.67 US Bank Checking to US Bank Money Market

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MUTUAL: (02) TWO

UNIT # DESCRIPTION OF WORKGRF/CITY

PERMITStart Date

COMP.

DATE

CHANGE

ORDERRECENT INSPECTION

8-I REMODEL BOTH 09/15/18 02/28/19 YES NONE GRECO DESIGN& DEVELOP.

8-I FOOTING BOTH 09/15/18 02/28/19 YES 10/26/18 GRECO DESIGN& DEVELOP.

8-I ROUGH PLUMBING BOTH 09/15/18 02/28/19 YES 11/28/18 GRECO DESIGN& DEVELOP.

8-I EX. SHEAR BOTH 09/15/18 02/28/19 YES 12/18/18 GRECO DESIGN& DEVELOP.

8-I FRAMING BOTH 09/15/18 02/28/19 YES 11/29/19 GRECO DESIGN& DEVELOP.

8-I ROUGH ELECTRICAL BOTH 09/15/18 02/28/19 YES 11/29/19 GRECO DESIGN& DEVELOP.

8-I EX. LATHING BOTH 09/15/18 02/28/19 YES 11/29/19 GRECO DESIGN& DEVELOP.

8-I INSULATION BOTH 09/15/18 02/28/19 YES 12/04/18 GRECO DESIGN& DEVELOP.

8-I SHEAR/HOT MOP BOTH 09/15/18 02/28/19 YES 12/05/18 GRECO DESIGN& DEVELOP.

8-I SCRATCH COAT BOTH 09/15/18 02/28/19 YES 12/13/18 GRECO DESIGN & DEVELOP.

8-I BROWN COAT BOTH 09/15/18 02/28/19 YES 12/19/18 GRECO DESIGN & DEVELOP.

8-I DRYWALL BOTH 09/15/18 02/28/19 YES 12/08/18 GRECO DESIGN 7 DEVELOP.

9-L REMODEL BOTH 08/01/18 08/01/19 NO 06/30/19 TRI-KROWN CONSTRUCTION

9-L FOOTING/PLUMBING BOTH 08/01/18 08/01/19 NO 11/05/18 TRI-KROWN CONSTRUCTION

9-L FOUNDATION BOTH 08/01/18 08/01/19 NO 08/01/19 TRI-KROWN CONSTRUCTION

9-L ROUGH FRAMING BOTH 08/01/18 08/01/19 NO 12/10/18 TRI-KROWN CONSTRUCTION

9-L ROUGH HVAC BOTH 08/01/18 08/01/19 NO 12/10/18 TRI-KROWN CONSTRUCTION

9-L ROUGH ELECT. BOTH 08/01/18 08/01/19 NO 12/10/18 TRI-KROWN CONSTRUCTION

9-L INSULATION BOTH 08/01/18 08/01/19 NO 12/17/18 TRI-KROWN CONSTRUCTION

9-L EXT. LATHE BOTH 08/01/18 08/01/19 NO 12/12/18 TRI-KROWN CONSTRUCTION

9-L ROUGH PLUMBING BOTH 08/01/18 08/01/19 NO 12/10/18 TRI-KROWN CONSTRUCTION

9-L DRYWALL/NAILING BOTH 08/01/18 08/01/19 N0 01/14/19 TRI-KROWN CONSTRUCTION

9-L A.C UNIT BOTH 11/27/18 06/30/19 NO 06/30/19 HEATWAVE AC & HEATING

12-J REMODEL BOTH 02/28/19 06/15/19 NO NONE LOS AL BUILD.

12-J UNDERGND PLUMBING BOTH 02/28/19 06/15/19 NO 03/21/19 LOS AL BUILD.

12-J FOOTING BOTH 02/28/19 06/15/19 NO 03/22/19 LOS AL BUILD.

15-I WASHER/DRYER BOTH 04/01/19 04/20/19 NO 04/04/19 NONE OGAN CONSTRUCTION

15-I FRAMING BOTH 04/01/19 04/20/19 NO 04/04/19 OGAN CONSTRUCTION

15-I ROUGH WIRING BOTH 04/01/19 04/20/19 NO 04/04/19 OGAN CONSTRUCTION

15-I GROUND WORK BOTH 04/01/19 04/20/19 NO 04/04/19 OGAN CONSTRUCTION

15-I ROUGH PLUMB. BOTH 04/01/19 04/20/19 NO 04/04/19 OGAN CONSTRUCTION

16-F WINDOWS BOTH 09/05/18 10/05/19 YES NONE RYDEN CONSTRUCTION

16-F ROUGH ELECT. BOTH 11/29/18 02/01/19 YES 12/14/18 CAL CUSTOM INTERIORS

16-F ROUGH PLUMB. BOTH 11/29/18 02/01/19 YES 12/14/19 CAL CUSTOM INTERIORS

22-I BATH ROOM REMODEL BOTH 12/27/18 02/18/19 NO 03/20/19 FINAL J.C. KRESS CONSTRUCTION

22-I UNDERG. PLUMBING BOTH 12/27/18 02/18/19 NO 01/07/19 JC KRESS CONSTRUCTION

22-I HEAT PUMP BOTH 02/28/19 03/01/19 YES 02//28/19 FINAL GREENWOOD HEATING & AIR

22-I PATIO DOOR BOTH 02/15/19 06/15/19 NO 03/18/19 FINAL BODIES GLASS SERVICE

22-I FLOORING GRF 01/21/19 01/31/19 NO 03/25/19 FINAL CARROLL'S FLOORING

23-B REMODEL BOTH 10/30/18 03/29/19 YES 01/15/19 FINAL ROBERTS CONSTRUCTION

23-B FRAMING BOTH 10/30/18 03/29/19 YES 01/23/19 ROBERTS CONSTRUCTION

23-B ROUGH WIRING BOTH 10/30/18 03/29/19 YES 01/23/19 ROBERTS CONSTRUCTION

23-B INSULATION BOTH 10/30/18 03/29/19 YES 01/24/18 ROBERTS CONSTRUCTION

23-B LATHING BOTH 10/30/18 03/29/19 YES 01/24/18 ROBERTS CONSTRUCTION

23-B DRYWALL BOTH 10/30/18 03/29/19 YES 01/25/18 ROBERTS CONSTRUCTION

23-B SCRATCH COAT BOTH 10/30/18 03/29/19 YES 02/05/19 ROBERTS CONSTRUCTION

23-B BROWN COAT BOTH 10/30/18 03/29/19 YES 02/15/19 ROBERTS CONSTRUCTION

30-F REMODEL BOTH 08/30/18 06/30/19 NO 06/30/19 NONE RS BUILT CONSTRUCTION

30-F UNDERGROUND PLUM. BOTH 08/30/18 06/30/19 NO 11/02/18 RS BUILT CONSTRUCTION

30-F ROUGH FRAMING BOTH 08/30/18 06/30/19 N0 11/21/18 RS BUILT CONSTRUCTION

30-F ROUGH ELECT. BOTH 08/30/18 06/30/19 NO 11/21/18 RS BUILT CONSTRUCTION

30-F ROUGH PLUMBING BOTH 08/30/18 06/30/19 NO 11/21/18 RS BUILT CONSTRUCTION

30-F WINDOWS BOTH 08/30/18 06/30/19 NO 11/21/18 RS BUILT CONSTRUCTION

30-F INSULATION BOTH 08/30/18 06/30/19 NO 11/30/18 RS BUILT CONSTRUCTION

INSPECTOR MONTHLY MUTUAL REPORT

INSPECTOR: RAY JONESMUTUAL BOARD MEETING

DATE: THURSDAY 04/18/19

PERMIT ACTIVITY

CONTRACTOR / COMMENTS

1 of 3Page 7

MUTUAL: (02) TWO




30-F CHANNEL BOTH 08/30/18 06/30/19 N0 12/10/18 RS BUILT CONSTRUCTION

30-F DRYWALL/VENT HOLES BOTH 12/19/18 12/20/19 NO 12/19/18 RS BUILT CONSTRUCTION

34-H FLOORING GRF 03/11/19 03/20/19 NO 4-1-19 FINAL FAMILY FLOORS

27-H REMODEL GRF 04/10/18 08/17/18 YES 08/17/18 FINAL J.M. BERGVIST

27-H FRAM/R-PLUMBING BOTH 07/16/18 08/17/18 YES 08/17/18 J.M. BERGVIST

63-C REMODEL BOTH 06/15/18 09/30/18 YES 09/13/18 NONE KONRAD CONSTUCTION

63-C GROUND WORK BOTH 06/15/18 09/30/18 YES 07/04/18 KONRAD CONSTUCTION

64-F SM. REMODELL BOTH 02/25/19 05/31/19 NO 05/31/19 NONE GRECO DESIGN DEV.

64-F GROUND WORK BOTH 02/25/19 05/31/19 NO 04/01/19 GRECO DESIGN DEV.

64-F ROUGH PLUMBING BOTH 02/25/19 05/31/19 NO 04/01/19 GRECO DESIGN DEV.

64-F INTERIOR LATHE BOTH 02/25/19 05/31/19 NO 04/10/19 GRECO DESIGN DEV.

64-J CART PAD GRF 04/03/19 05/05/19 NO 04/10/19 FINAL J&J CONSTRUCTION

64-K CART PAD GRF 04/03/19 05/05/19 NO 04/10/19 FINAL J&J CONSTRUCTION

68-A ELECTRICAL PANEL BOTH 03/01/19 03/20/19 NO 04/02/19 FINAL MP CONSTRUCTION

68-A WASHER/DRYER BOTH 03/04/19 04/30/19 NO 04/30/19 MP CONSTRUCTION

68-A GROUND WORK BOTH 03/04/19 04/30/19 NO 02/25/19 MP CONSTRUCTION

68-A ROUGH WIRING BOTH 03/04/19 04/30/19 NO 02/25/19 MP CONSTRUCTION

68-A DRYWALL BOTH 03/04/19 04/30/19 NO 02/25/19 MP CONSTRUCTION

68-A WASHER/DRYER BOTH 03/04/19 04/30/19 NO 04/30/19 MP CONSTRUCTION

71-L FRAMING BOTH 02/01/19 04/28/19 NO 1/28/2019 FINAL LOS AL BUILDERS

71-L PLUMBING BOTH 02/01/19 04/28/19 NO 01/28/19 LOA AL BUILDING

71-L HOT MOP BOTH 02/01/19 04/28/19 NO 01/30/19 LOA AL BUILDERS

71-L INTER. LATHE BOTH 02/01/19 04/28/19 NO 02/04/19 LOS AL BUILDERS

UNIT # NMI PLI NBO FI FCOEI ROF

3-k 01/29/19 03/29/19 04/08/19

4-I 03/15/19

6-H 03/15/19

6-K 08/07/19 03/01/19 03/05/19

7-J 10/29/18 02/20/19 02/20/19 03/06/19

10-I 01/07/19

11-G 03/07/19

12-G 02/05/19

13-L 02/08/18 03/12/19 03/18/19 03/28/19

15-F 11/28/18

16-F 08/07/18 11/02/18

21-K 11/08/18 11/08/18

22-J 07/18/18

23-L 02/04/19

24-E 06/28/18

24-L 06/28/18

25-J 10/04/18 01/14/19 01/18/19 02/04/19 02/21/19

26-I 10/19/18 04/08/19 04/08/19

27-K 06/26/18

30-B 01/10/19 01/10/19

34-B 01/11/19 02/11/19 02/19/19 03/06/19

34-H 4/5/2019

35-G 09/12/18 03/27/19 03/27/19

38-G 07/17/18

39-F 01/07/19 02/12/19 03/05/19

29-F 01/07/19

DOCUMENTS/COMMENTS

ESCROW ACTIVITY

2 of 3Page 8

MUTUAL: (02) TWO




40-A 07/26/18

40-C 02/08/19

41-L 07/03/18

44-J 08/15/18 02/28/19 03/08/19

43-E 02/06/19 02/11/19 03/22/19

48-I 03/11/19 03/11/19

49-F 08/17/18

53-B 08/30/18

55-G 07/16/18

56-E 10/29/18 02/08/19 02/14/19

57-C 03/25/19

58-B 06/13/18 11/08/18

60-B 06/28/18

62-A 03/22/18

63-L 09/21/18

67-A 10/19/18

68-A 07/17/18 02/22/19 02/22/19

68-H 12/27/118 02/22/19 03/06/19

69-A 09/05/18 10/05/18 03/11/19

69-I 06/13/18 04/04/19

72-J 01/31/19 03/13/19 03/13/19 03/27/19

PROJECT

BERGKVIST GOOD THROUGH 2020 TERMITE AND DRYROT REPAIRS

J&J LANDSCAPE GOOD THROUGH 2021

IMPIRE PIPE SEWER PIPE CLEANING THROUGH 2020

TERMITES, AND DRYROT REPAIRS

PROJECT

CALLS AND VISIT TO UNITS 58

CONTRACTOR

FENN CONTRACT GOOD THROUGH 2020 TERMITES, PEST, AND BAIT STATIONS

B&A CONSTRUCTION GOOD THRUGH 2020

SPECIAL PROJECTS

CONTRACTOR

CONTRACTS

NMI = New Member Inspection PLI = Pre-Listing Inspection NBO = New Buyer Orientation

FI = Final Inspection FCOEI = Final COE Inspection ROF = Release of Funds

3 of 3Page 9




SUBJECT: DISCUSS AND VOTE TO RATIFY AMENDED/POSTED POLICY 7510.02 – ELIGIBILITY REQUIREMENTS (UNFINISHED BUSINESS, ITEM A)


CC: MUTUAL FILE

At the February 21, 2019, Board Meeting, the Board of Directors amended Policy 7510.02 – Eligibility Requirements (attached).

The 28-day posting period has been completed and on April 18, 2019, the Board of Directors will vote to ratify the amended/posted Policy 7510.02 – Eligibility Requirements .

I move to ratify the amended/posted Policy 7510.02 – Eligibility Requirements.

Page 10

7510.02 MUTUAL OPERATIONS

AMEND RESIDENT REGULATIONS

Eligibility Requirements – Mutual Two Only

(draft created on 2-14-19cv) (draft further amended 2-21-19cv)

Page 1 of 7

All persons seeking approval of the Board of Directors of Seal Beach Mutual Two to purchase a share of stock in the Mutual, and to reside in the Mutual, shall meet the following eligibility criteria:

A. Apply for and be accepted as a member of the Golden Rain Foundation, Seal Beach, California.

B. Meet the Mutual eligibility criteria as follows:

1. Age

Minimum of 55 years, as confirmed by a government or hospital issued birth certificate or passport. A driver’s license is not acceptable as proof of age.

2. Financial Ability

a. Verified monthly income that is at least four (4) times or greater the monthly carrying charge (Regular Assessment plus Property Tax and Fees) at the time of application and have a combination of liquid assets of at least $25,000 and sufficient other assets equal to the purchase price of the Unit. Verified monthly income/assets may be in the form of the past two years of the information below:

3. INCOME REQUIREMENTS

a. Acceptable verification include, among others

1. The most recent Federal Tax returns; including but not limited to:

1. Tax returns; a2. 1099s for interest and dividends; b3. 1099-Rs for retirement income from qualified plans and annuities; c.4. SSA-1099 Social Security Benefit Statement; d. W-2 forms for paycheck stubs

2. 5. Brokerage statements and current interim statement. 3. 6. Six to twelve months of checking/savings account statements.

4. Current income: bank, credit union or brokerage statements 5. Letters from bankers

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Page 2 of 7

6. Notices of annuities7. Pensions8. Trust Income9. Disability Income10. Residential or commercial property rental income

11. Settlement Payments12. An owned business must include appropriate business tax schedules and a

profit and loss statement

b. Unacceptable income verifications include, among others,

1. Letters from employers, accountants, bookkeepers and attorneys 2. Income not reported on Federal Income Tax returns except as noted above in 3.a. 3. Funds held outside U.S borders except as noted above in 3.a.

4. ASSETS REQUIREMENT

a. Acceptable Assets will be those that are considered to be liquid, marketable or income producing. Acceptable assets include, among others:

1. Equity in U.S. residential property (i.e. a home or mobile home beingsold to pay for the unit being purchased in Mutual 5)

2. Savings accounts in U.S. financial institutions3. Cash Value in Life Insurance4. Certificates of Deposit or Money Market Accounts in U.S. financial

Institutions

b. Excluded from consideration are the following assets, among others: 1. Recreational vehicles, boats and trailers 2. Vacant land 3. Automobiles 4. Artwork, jewelry, furs and collections such as coins, dolls, stamps and

other similar items. 5. Term life insurance 6. Annuity funds, which cannot be withdrawn in lump sum. 7. Anticipated bequests or inheritances

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Page 3 of 7

8. Promissory Notes whose income is not reported on the prospective transferee tax return.

9. Community property

5. NET MONTHLY INCOME: The Net Monthly Income as used in Paragraph B.2.a. is the sum of:

a.b. Adjusted Gross Income from Federal Tax Forms per 1040, 1040A, or 1040EZ; plus that portion of Social Security, IRA distributions, and pensions and annuities not included in adjusted gross income; plus tax exempt interest; minus income tax, Social Security, Medicare, and self-employment taxes paid; and minus Medicare medical insurance and prescription drug premiums; all divided by twelve (12) will equal net monthly income to be used in Paragraph 2.a. above. and,

b. The sum of all Acceptable Assets from Paragraph B.4.a.., above, less theassets equal to the purchase price of the unit, divided by the difference between the Actuarial Life Expectancy 1 minus the actual age of each applicant2.

c. Projected assessments will be the previous current year’s assessment (total of carrying charge less any cable charge, less Orange County Property Taxes and Fees), and the addition of the new property tax at 1.2% of the sales price plus Orange County District fees divided by twelve (12) for the new projected monthly assessment. This new figure (Regular Assessment plus Orange County Property Taxes and District Fees) times four (4) will be the monthly income required. This These calculations will be verified by the escrow company and the Stock Transfer Office. Stock Transfer shall have the final say in establishing verifiable

1 The Actuarial Life Expectancy is obtained from the Social Security Retirement & Survivors Benefit: Life Expectancy Calculator, website https://www.ssa.gov/OACT/population/longevity.html

2 The difference between the Life Expectancy value from SSA Life Expectancy Calculator: 78.5 years and the buyer’s actual age: 70.3

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Page 4 of 7

income/assets, subject to Mutual 2 review of asked.

Verification shall be done by the Escrow Company and the Stock Transfer Office prior to the new buyer interview and prior to the close of escrow (the above verification will need not be done by the individual Mutual Directors; Directors will are not be required to study or understand the financial requirements).

d. Only the resident shareholder’s income shall be considered for qualifying. Where there is more than one prospective shareholder, income and assets shall be calculated collectively. Co-owners shall be calculated for their proportional share of the HOA payment. Either one half in the case of two co-owners or one third in the case of three co-owners. Married couple income shall be considered one income.

e. If moving within Leisure World, or if there are any additions/changes to the title Stock Certificate, the proposed shareholder(s) must meet these eligibility requirements.

f. If moving within Leisure World, or if there are any additions/changes to the Stock Certificate, the proposed shareholder(s) must meet these eligibility requirements.

6.3. Health

Have reasonably good health for a person of his/her age, as evidenced by a letter from his/her physician, so that shareholder can take care of normal living needs without calling on other members of the cooperative for an undue amount of assistance. Leisure World in not an assisted living or skilled nursing home facility.

4. Character

Have a reputation for good character in his/her present community.

7.C. Assume, in writing, the obligations of the “Occupancy Agreement” in use by the Mutual Corporation.

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Page 5 of 7

8.D. Credit Report

In addition to the above financial verification documents a recent credit report from one of the established credit reporting companies must be provided to the Stock Transfer Office by the prospective resident owner. The Stock Transfer Office must ensure that the following conditions are met and must include that information with the financial verification report:

A minimum FICO score of 650: A period of not less than 5 years must have elapsed since the prospective resident

owner was discharged or dismissed from a bankruptcy. The prospective resident owner must have no reported late payments of more than

30 days on a current mortgage in the previous 12 months.

Officers or Committees of the Board of Directors designated to approve new applicants are responsible that the eligibility criteria of this corporation is equitably applied to all applicants. Approval or disapproval of buyer(s) must be received by the Stock Transfer Office at least ten (10) working days prior to the close of escrow. The Board of Directors may appoint a review committee to hear disputed applications. The decision of the Board shall be final.

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Page 6 of 7

I have read and understood what is required for eligibility consideration in the above named Mutual, including necessary documentation.

____________________________ ______________________________ Prospective Buyer Date




MUTUAL ADOPTION AMENDMENT DATES

TWO 04-16-70 09-16-93, 08-21-08

EXAMPLE:

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Page 7 of 7

A buyer, single female, born July 1, 1948 has a portfolio of $500,000 and a fully-paid-for house she is selling for $600,000 and she is buying a unit in Mutual 2 for $350,000. She has a Social Security Income of $1,500 per month. Does she qualify in M-2?

Financial Ability Section B.2.a.: Verified Net Monthly Income states that is at least four (4) times or greater than the monthly carrying charge (Regular Assessment plus Property Tax and Fees) at the time of application; and, have a combination of liquid assets of at least $25,000 and sufficient other assets equal to the purchase price of the Unit.

Mutual 2 Regular Assessment for 2019 is $415.42 which includes M-2 monthly carrying charge, GRF monthly carrying charge and OC User Fee.

Projected Property Taxes according to Section B.6., is the amount $350,000 times 1.2% and is equal to $4,200 per year or $350 per month.

Therefore: The Regular Assessment plus Property Tax and Fees is $415.22 plus $350 or $756.22; and four (4) times that amount is $3024.88 which is the BENCHMARK required in Section B.2.a. Applicant’s Net Monthly Income must be higher than that amount.

Section B.5. defines NET MONTHLY INCOME. For this example it includes:

Social Security Income of: $1500 per month

Assets: $500,000 Portfolio Plus $600,000 Value of home Less $350,000 Price of M-5 Unit

= $750,000 Remaining Assets Divided by: 17.2 years (87.5 minus 70.3) 2

= $43,605 per year divided by 12: $3634 per month. Total Net Monthly Income: $5,134 per month

NET MONTHLY INCOME IS GREATER THAN BENCHMARK, THEREFORE APPLICANT IS QUALIFIED.

2 The difference between the Life Expectancy value from SSA Life Expectancy Calculator: 87.5 years and the buyer’s actual age: 70.3

Page 17




SUBJECT: DISCUSS AND VOTE TO APPROVE THE FINANCIAL REVIEW FOR MARCH 2019 (NEW BUSINESS ITEM A)


CC: MUTUAL FILE

I move to acknowledge, that per the requirements of Civil Code Section 5500(a)-(f), a review has been completed of the Mutual’s’ reconciliations of the operating and reserve accounts, operating revenues and expenses compared to the current year’s budget, statements prepared by the financial institutions where the Mutual has its operating and reserve accounts, income and expense statement for the Mutual’s operating and reserve accounts, the check registers, the monthly general ledger and delinquent assessment receivable reports, for the month of March 2019.

Page 18




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY HAVING AN ELECTION INCENTIVE (NEW BUSINESS ITEM B)


CC: MUTUAL FILE

I move to approve that Mutual Two will have an election incentive to encourage voter

participation cost not to exceed $1,000 funds to be taken from General Operating

Expenses. Drawing shall award four (4) winners, (1) $500, (1) $300 and (2) $100

Page 19




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY ACCEPTING THE PROPOSAL FOR LAUNDRY SERVICES SUBMITTED BY NATIONAL SERVICE COMPANY (NEW BUSINESS ITEM C)


CC: MUTUAL FILE

Mutual Two received a five-year proposal from National Service Company (NSC). NSC will install approximately seventy-two (72) commercial (large capacity) Speed Queen coin operated washer and dryers. The machines will be priced at $1.00 for a wash and .50 for a full (one hour) dry.

NSC agrees to purchase existing machines for approximately $60 per machine and to pay a commission of 40% for five-years effective June 1, 2019.

I move to approve/deny that Mutual Two accepts the proposal submitted by National

Service Company to provide Laundry Services effective June 1, 2019 and authorize the

President to sign the lease.

Page 20




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY ACCEPTING THE PROPOSAL FOR INSTALLATION OF WATER LINE VALVE COVERS SUBMITTED BY J&J LANDSCAPING (NEW BUSINESS ITEM D)


CC: MUTUAL FILE

I move to approve/deny accepting the proposal submitted by J&J Landscaping to install

five (5) water valve covers between buildings 1 and 2, 11 and 12, 21, and at Units 5G, and

53L cost not to exceed $2,080 authorize the President to sign the contract funds to be taken

from Landscape Maintenance Extras.

Page 21

Attention: Mutual No. 2 Golden Rain Foundation P.O. Box 2069 Seal Beach, CA 90740 Date: 4/8/19

Project Title: Mutual No. 2 Invoice Number: 108574

Thank you for choosing J & J Landscaping!

Description Quantity Unit Price Cost

4 covers for the valves. Between building 1&2, 11&12, in front of 5G, 53I and building 21

$ 2,080

Labor and materials Total $ 2,080

PROPOSAL (562) 650-1511 [email protected]

11535 Belcher St., Norwalk, CA 90650

Lic# 790032

Page 22




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY ACCEPTING THE PROPOSAL FOR RE-APPLICATION OF FERTILIZER SUBMITTED BY J&J LANDSCAPING (NEW BUSINESS ITEM E)


CC: MUTUAL FILE

I move to approve/deny accepting the proposal submitted by J&J Landscaping to apply

the third application of fertilizer in September 2019 cost not to exceed $2,400 authorize the

President to sign the contract funds to be taken from Landscape Maintenance Extras.

Page 23

Attention: Mutual No. 2 Golden Rain Foundation P.O. Box 2069 Seal Beach, CA 90740 Date: 4/8/19

Project Title: Mutual No. 2 Invoice Number: 1085729

Thank you for choosing J & J Landscaping!

Description Quantity Unit Price Cost

Fertilize the grass a third time. $ 2,400

Labor and materials Total $ 2,400

PROPOSAL (562) 650-1511 [email protected]

11535 Belcher St., Norwalk, CA 90650

Lic# 790032

Page 24




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY HAVING A TOWNHALL POTLUCK “MEET THE DIRECTORS” MAY 30, 2019 (NEW BUSINESS ITEM F)


CC: MUTUAL FILE

I move to approve/deny having a Townhall Potluck “Meet the Directors” on May 30, 2019,

cost not to exceed $500 funds to be taken from _______________________________.

Page 25




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY ACCEPTING THE PROPOSAL SUBMITTED BY J&J LANDSCAPING FOR LANDSCAPE AT CARPORT 27 (NEW BUSINESS ITEM G)


CC: MUTUAL FILE

I move to approve/deny accepting the proposal submitted by J&J Landscaping for re-

landscaping at Carport 27 to include removal of oleanders and replace with 6 – 15 gallon

podocarpus plants (3) agave plants donated by Rose Weldon, plant 4-5 gallon red flaxes,

plant 12-1gallon roses and add a drip system for each plant.

Page 26




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY ACCEPTING THE PROPOSAL SUBMITTED BY J&J LANDSCAPING FOR LANDSCAPE AT CARPORT 27 (NEW BUSINESS ITEM H)


CC: MUTUAL FILE

I move to approve/deny accepting the proposal submitted by MJ Jurado, Inc to replace

asphalt driveway and parking spaces with concrete at Carport 22, cost not to exceed

$144,204 and authorize the President to sign the contract. Funds to be taken from

Infrastructure Reserves.

Page 27

MjSBnBalBdneningCmbaitnr

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726 S. Sherrilt St, Anaheim, CA 92804Tel: 714-397-0143 • Fax: 714-827-2110

State Contractor's License #987670 -A

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Job #

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Item No Quantity Type or description Unit Price Total

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PRICES BASED ON SACK TYPE CONCRETE VALID TO

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Buyer

Date By

Page 28




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY THAT PHYSICAL PROPERTY COMMITTEE GO OUT TO BID FOR REPLACEMENT OF WALKWAYS (NEW BUSINESS ITEM I)


CC: MUTUAL FILE

I move to approve/deny that Physical Property Committee go out for bids for the walkway

replacement at Building 72, A – F side.

Page 29




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY THAT SERVICE MAINTENANCE ORDERS WALKWAY LIGHTS (NEW BUSINESS ITEM J)


CC: MUTUAL FILE

I move to approve/deny that Service Maintenance orders 50 (fifty) walkway lights from

Belami Inc. cost not to exceed $9,212.63 funds to be taken from Infrastructure Reserves

and authorize the President to sign for the order.

Page 30

Mutual 2-Transglobe - ID #131147Hi Julie, Click on link to see your quote. If you have any questions fed free to contact me at 916-374-7740 FREESHIPPING!!! Sandy Vogt

Prepared Fw

Julie Rodgers

Pn red By

Sandra Vogt

Business hitbmiatkin:Golden Rain FoundationT3531 St. Andrews DriveSeal Beach, CA [email protected]

iâ>» —wviNiuuna.

Betami Inc3321 Power Inn Road Suite#310Sacramento, CA [email protected]

Item DUWJ 4Nion

The Standwd -10.25" Pote - BlackCopper Rmsh - Btodi Copper Fhwshby Trans Globe Lighting4099 BC

YourPrice

YouSawe

t239.BO $118.00 $121.80 X50

Qty Ext Price

$5.900.00

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Watoed Whidows - One Ught OutdoorPost Momt - SweiBsh hxm Firidi withaained Sass - Swedfeh Iron Finish withStained Glassby Trans Globe Lighting4716 SWI

$107.80 $53.00 $54.80 x50

$2,650.00

Sub-Total:

Discounts:

Customer Quote Total:

Shipping to Seal Beach, CA:7.75 % Seal Beach Sales Tax:

RUMNING TOTALS

$17379.78$8,829.78$8,550.00

FREE

$662.63

Purchase This Quote

Page 31




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY SETTING DIRECTOR EXPENSE LIMITS FOR MUTUAL PROJECTS (NEW BUSINESS ITEM K)


CC: MUTUAL FILE

I move to approve/deny the expenditure limit for Directors when working on mutual

projects. Expense limit shall be $250 (per mutual project) if additional funds are needed

Directors shall request approval from Board President at a regular board meeting.

Page 32

Mutual Corporation No. Two

MEMO



SUBJECT: DISCUSS BUILDING PERMIT REQUIREMENTS FOR DIRECTORS AND SHAREHOLDERS (NEW BUSINESS ITEM L)


CC: MUTUAL FILE

Mutual Two reminds Directors and Shareholders that a building permit submitted to Physical Property must be signed and approved by the Mutual President or designated Director prior to work being started.

Page 33




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY HAVING A SERVICE CHARGE FOR SANDBAGS (NEW BUSINESS ITEM M)


CC: MUTUAL FILE

I move to approve/deny that Mutual Two charge shareholders for the delivery and removal of sandbags at their units during rainy season. The hourly charge by Service Maintenance is $42, billed in 15 minutes increments. Service Maintenance may change their fees at any time.

Page 34




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY SHAREHOLDER RESPONSIBILITY FOR SKYLIGHT MAINTENANCE (NEW BUSINESS ITEM N)


CC: MUTUAL FILE

I move to approve/deny that effective May 2019, Mutual Two shareholders will be responsible for all maintenance and care of skylights to include solar tunes, the Mutual will only be responsible for skylight re-flashing.

Page 35




SUBJECT: DISCUSS AND VOTE TO ACCEPT THE 2018 GRF EXCESS INCOME DISTRIBUTION (NEW BUSINESS ITEM O)


CC: MUTUAL FILE

I move to accept the 2018 Golden Rain Foundation excess income distribution of $ 5,363 and to deposit the funds into the Operating Fund.

Page 36




SUBJECT: SHAREHOLDER STATEMENT TO VOTE CUMULATIVELY (NEW BUSINESS ITEM P)


CC: MUTUAL FILE

Per the Mutuals’ Bylaws Article IV, Section 7, I _____________________________(please state your first and last name), shareholder of Mutual Two, intend to vote cumulatively for the election of Directors for the 2019-2020 term of office.

Page 37




SUBJECT: APPOINT OBSERVERS FOR THE 2019–2020 MUTUAL TWO ANNUAL ELECTION (NEW BUSINESS ITEM Q)


CC: MUTUAL FILE

In accordance with Policy 7210 Annual Elections (attached) , Item 4, subsection b, as follows

b. Observers of the Election Appointed By the Board of Directors

There shall be three (3) observers of the election appointed by the Mutual Board of Directors (90) days before the annual meeting day. The Board may also appoint alternative observers of the election. The observers of the election may appoint and oversee additional assistant observers of the election in any number deemed to be reasonable by the Mutual Board of Directors.

The Mutual Two Board of Directors appoints the following shareholders as observers of the 2019 – 2020 Annual Election

1. ___________________________________, Unit ________________________

2. ___________________________________, Unit ________________________

3. ___________________________________, Unit ________________________

Page 38




SUBJECT: DISCUSS AND VOTE TO CANCEL THE REGULAR MEETING OF JUNE 20, 2019 DUE TO ANNUAL SHAREHOLDERS MEETING (NEW BUSINESS ITEM R)


CC: MUTUAL FILE

On April 18, 2019, the Board of Directors will vote to cancel the June 20, 2019 Regular Meeting due to the Shareholders Annual Meeting.

I move to cancel the June 20, 2019 Regular Board Meeting due to the Shareholders Annual Meeting.

Page 39




SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY THE PROPOSAL SUBMITTED BY RESERVE STUDIES INC. (CHIEF FINANCIAL OFFICER REPORT ITEM A)


CC: MUTUAL FILE

On April 9, 2019, Reserve Studies Inc. submitted a proposal to complete an Update Reserve Study for 2020.

I move to approve/deny that Mutual Two accepts the proposal submitted by Reserve Studies Inc. to complete an Update Reserve study without a site visit for 2020 cost not to exceed $2,890 funds to be taken from Miscellaneous Expenses and authorize the President to sign the agreement 50% of fees prior to commencement and 50% upon delivery of final report.

Page 40

Documents

A G E N D A REGULAR MONTHLY MEETING OF THE ... - Mutual 2 › wp-content › uploads › 2019 › 04 › April-201… · Special Meeting Minutes of March 19, 2019 (p.3) Special Meeting