MINUTES OF THE REGULAR MONTHLY MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL EIGHT November 26, 2018
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1 MINUTES OF THE REGULAR MONTHLY MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL EIGHT November 26, 2018 The Regular Meeting of the Board of Directors of Seal Beach Mutual Eight was called to order by President Thompson at 9:31 a.m. on Monday, November 26, 2018, in Building Five Conference Room B, following Shareholders Open Forum. ROLL CALL Present: Absent: GRF Representative: Guests: President Thompson, Vice President Berg, Chief Financial Officer Park, Secretary Dolch, and Advisory Director Kline Director Banfield Mrs. Fekjar Sixteen Mutual Eight Shareholders Staff: Ms. Hopkins, Mutual Administration Director Mr. Swordes, Building Inspector. Mrs. Aquino, Recording Secretary INTRODUCTION President Thompson welcomed staff and guests to the meeting. MINUTES The October 22, 2018 Regular Minutes were approved by general consent of the Board as corrected. EMERGENCY AGENDA ITEM(S) Following a discussion, and upon a MOTION duly made by President Thompson and seconded by Secretary Dolch, it was The MOTION passed. RESOLVED, To amend today s agenda of November 26, 2018, by adding transfer of funds to New Business Item e.
2 BOARD OF DIRECTORS November 26, 2018 MUTUAL EIGHT EMERGENCY AGENDA ITEM(S) (continued) Following a discussion, and upon a MOTION duly made by President Thompson and seconded by Secretary Dolch, it was The MOTION passed. RESOLVED, To amend today s agenda of November 26, 2018, by adding request Mutual Administration to create MEMO to Finance, Service Maintenance and Physical Property regarding nonstandard charge to New Business Item f. BUILDING INSPECTOR S REPORT Building Inspector Swordes updated the Board on Permit Activity; Escrow Activity; Contracts & Projects; Shareholder and Mutual Requests (attached). Following questions, Inspector Swordes left at 9:57 a.m. GRF Representative GRF Representative Mrs. Fekjar presented her report. Following questions, Mrs. Fekjar left the meeting at 10:09 a.m. UNFINISHED BUSINESS Following a discussion, and upon a MOTION duly made by Secretary Dolch and seconded by Vice President Berg, it was The MOTION passed. RESOLVED, To ratify the amended/posted Policy Building Permit Signatures. Following a discussion, and upon a MOTION duly made by President Thompson and seconded by Secretary Dolch, it was The MOTION passed. RESOLVED, To ratify adopted/posted Policy 7490.pb.09 Payment and Performance Bond. 2
3 BOARD OF DIRECTORS November 26, 2018 MUTUAL EIGHT UNFINISHED BUSINESS (continued) Following a discussion, and upon a MOTION duly made by Vice President Berg and seconded by Secretary Dolch, it was The MOTION passed RESOLVED, To ratify adopted/posted Policy Secondhand Smoke/Nuisance Policy. Following a discussion, and upon a MOTION duly made by Secretary Dolch and seconded by Vice President Berg, it was The MOTION passed. The MOTION passed. NEW BUSINESS RESOLVED, To ratify adopted/posted Policy 7541 Co- Occupants, Qualified Permanent Residents and Health Care Providers. RESOLVED, To ratify rescinded/posted Policy 7708 Listing Inspections and ratify adopted/posted Policy Listing Inspections. Following a discussion and upon a MOTION duly made by and seconded by, it was The MOTION passed. RESOLVED, To amend Policy Common Interest Development on a preliminary basis until the 30-day posting period is completed. Following a discussion and upon a MOTION duly made by Secretary Dolch and seconded by President Thompson, it was The MOTION passed. RESOLVED, To approve/deny the Landscape Budget for the scalping, pre-emergent and over seeding of all Mutual Eight turf, at a cost not to exceed $5,140, and authorize the President to sign the contract. Funds to be taken from Landscape Extras. 3
4 BOARD OF DIRECTORS November 26, 2018 MUTUAL EIGHT UNFINISHED BUSINESS (continued) Following a discussion, and upon a MOTION duly made by President Thompson and seconded by Secretary Dolch, it was RESOLVED, To accept the Special Membership Secret Ballot Vote on policy /7406(11/20/18), Common Areas for Exclusive Private Use of Shareholder, as not approving the Proposed Rule Reversal and to not support fees charged for encroachments into the common area. 119 voted no to not approve the Proposed Rule Reversal and 83 voted to support the former rule and charge fees for encroachments into the common area. The proposed Rule Reversal of fails, per AB 4365 implementation. No fees charged for encroachment into Common Area. The MOTION was withdrawn. Following a discussion, and upon a MOTION duly made by CFO Park and seconded by President Thompson, it was The MOTION passed. RESOLVED, To approve the transfer of funds from General/Non-Restricted Funds to the Emergency Reserves to bring the Emergency Fund total to $95,000, by November 30, Following a discussion, and upon a MOTION duly made by Secretary Dolch and seconded by President Thompson, it was The MOTION passed. RESOLVED, To authorize the President to request Mutual Administration to write a memo to Finance, Service Maintenance, Physical Property and others, to state that Mutual 8 will charge shareholders amounts that are actuals including amounts less than $20.00 if it is a nonstandard charge for a shareholder's unit and/or responsibility. CHIEF FINANCIAL OFFICER S REPORT Chief Financial Officer Park was absent. MUTUAL ADMINISTRATION Mutual Administration Director Hopkins submitted her report (attached). 4
5 BOARD OF DIRECTORS November 26, 2018 MUTUAL EIGHT ANNOUNCEMENTS NEXT MEETING: Monday, January 28, 2019, at 9:00 a.m. Building Five Conference Room B. COMMITTEE REPORTS There were no committee reports. DIRECTORS COMMENTS Several Directors made comments. SHAREHOLDER COMMENTS Several Shareholders made comments. ADJOURNMENT There being no further business to conduct, President Thompson adjourned the meeting at 10:57 a.m. and stated that an Executive Session would follow to discuss member issues. Attest, J. Dolch, Secretary SEAL BEACH MUTUAL EIGHT ka: 11/29/18 Attachments 5
6 BOARD OF DIRECTORS November 26, 2018 MUTUAL EIGHT RESOLUTIONS IN THE REGULAR MONTHLY MEETING NOVEMBER 26, /26/18 RESOLVED, To amend today s agenda of November 26, 2018, by adding transfer of funds to New Business Item e. RESOLVED, To amend today s agenda of November 26, 2018, by adding request Mutual Administration to create MEMO to Finance, Service Maintenance and Physical Property regarding nonstandard charge to New Business Item f. RESOLVED, To ratify the amended/posted Policy Building Permit Signatures. RESOLVED, To ratify adopted/posted Policy 7490.pb.09 Payment and Performance Bond. RESOLVED, To ratify adopted/posted Policy Secondhand Smoke/Nuisance Policy. RESOLVED, To ratify adopted/posted Policy 7541 Co-Occupants, Qualified Permanent Residents and Health Care Providers. RESOLVED, To ratify rescinded/posted Policy 7708 Listing Inspections and ratify adopted/posted Policy Listing Inspections. RESOLVED, To amend Policy Common Interest Development on a preliminary basis until the 30-day posting period is completed. RESOLVED, To approve/deny the Landscape Budget for the scalping, pre-emergent and over seeding of all Mutual Eight turf, at a cost not to exceed $5,140, and authorize the President to sign the contract. Funds to be taken from Landscape Extras. RESOLVED, To approve the transfer of funds from General/Non- Restricted Funds to the Emergency Reserves to bring the Emergency Fund total to $95,000, by November 30, RESOLVED, To authorize the President to request Mutual Administration to write a memo to Finance, Service Maintenance, Physical Property and others, to state that Mutual 8 will charge shareholders amounts that are actuals including amounts less than $20.00 if it is a nonstandard charge for a shareholder's unit and/or responsibility. 6
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15 Electricity expense and Laudry Coin Income for the last months per Laundry Room As of Nov. 21, 2018 Month Laundry Room LR 179 LR 182 LR 188 LR 191 LR 195 LR 196 LR 200 LR 204 Total May Electricity Expense $40.95 $40.74 $45.25 $38.95 $36.86 $41.66 $45.06 $37.98 $ Laundry Coin June Electricity Expense $46.88 $43.40 $50.22 $41.78 $40.78 $45.45 $53.41 $41.39 $ Laundry Coin $70.00 $72.50 $ $70.50 $70.25 $99.75 $90.00 $82.00 $ July Electricity Expense $43.13 $42.79 $48.25 $40.51 $40.42 $44.69 $50.84 $40.86 $ Laundry Coin $93.75 $85.75 $ $81.50 $ $ $93.25 $91.00 $ August Electricity Expense $40.55 $40.70 $47.65 $39.74 $37.87 $42.48 $48.23 $37.92 $ Laundry Coin $85.50 $73.25 $71.75 $40.75 $78.50 $ $97.50 $68.50 $ Sept. Electricity Expense $43.82 $42.92 $50.49 $40.49 $40.17 $43.83 $51.26 $41.36 $ Laundry Coin $98.50 $57.75 $ $54.75 $98.75 $ $ $97.00 $ October Electricity Expense $39.50 $38.09 $44.90 $35.95 $35.71 $40.80 $44.29 $37.78 $ Laundry Coin $76.50 $70.75 $82.00 $59.00 $69.25 $ $92.00 $88.00 $ Nov. Electricity Expense $39.36 $38.88 $44.61 $37.65 $36.30 $39.93 $45.16 $37.59 $ Laundry Coin $82.00 $56.25 $ $56.25 $69.00 $ $66.00 $64.00 $ Sub total Electricity Expense $ $ $ $ $ $ $ $ $2, Subtotal Laundry Coin $ $ $ $ $ $ $ $ $4, YTD Year to date charges $1, $1, $1, $1, $ $1, $1, $ $9, Total Electricity Expense $1, $1, $1, $1, $1, $1, $2, $1, $12, Note (5) Note (1): Electricity expense is paid monthly. Note (2): Laundry Coin is collected monthly. Note (3): Year-to-date charges are settled at the end of 12-month biliing period (on or about 04/1/2019) Note (4) Laundry Coin income for May is not available at this point. Note (5): The highest electricity expense laundry room is LR 200. Why?
16 CD Investment and Interest Income Summary As of November 16, 2018 Interest CUSIP Settlement Maturity Coupon Issue Description Principal Period Total income in ASSET date date Rate E2B2 FLAGSTAR BK FSB TROY MICH 100K 10/30/2018 1/30/ months 2.10% $100, $ RQY2 ESSA BK & TR STROUDSBURG PA 355K 10/30/2018 4/30/ months 2.25% $115, $1, PFA7 MERIDIAN BK PAOLI PA 10/30/2018 4/30/ months 2.25% $240, $2, SANTANDER BK NATL ASSN 80280JRW3 WILMINGTON DE 355K 10/31/ /31/ year 2.55% $240, $6, J4G1 MERRICK BK SOUTH JORDAN UT 10/30/ /30/ year 2.55% $115, $2, VV5 DISCOVER BK GREENWOOD DE 440K 11/1/ /2/ years 3.00% $240, $7, AKT8 IBERIABANK LAFAYETTE LA 10/31/ /30/ years 2.95% $200, $5, GFV0 ALLY BK SANDY UT 1,146K 11/1/ /1/ years 3.15% $245, $7, CITIBANK NATL ASSN SIOUX 17312QV71 FALL SD 11/9/ /9/ years 3.15% $245, $7, AL95 COMENITY CAP BK SALT LAKE CITY UT 10/30/ /1/ years 3.15% $245, $7, JFB1 UBS BK USA SALT LAKE CITY UT CD 10/30/ /28/ years 3.15% $245, $7, PZ59 Goldman Sachs Bank 11/7/ /8/ years 3.20% $166, $5, Total CDs: 12 2,396K $2,396, $62, Note (1): $100,000 of the 3 months CD will be reinvested at the maturity date unless we need the money. Note (2): If we reinvest the proceeds from the 3 months CD, the interest income will be four times a year. 1/1-2/28 3/1-4/30 5/1-6/30 7/1-8/31 9/1-10/31 11/1-12/31 budget 2019 Interest income for 2019 budget $7, $7, $7, $7, $7, $7, $45, Actual interest income $ $33, $0.00 $ $29, $0.00 $64, Variance -$6, $26, $7, $6, $22, $7, $19, Accumulation -$6, $19, $11, $4, $26, $19, Extra income
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20 COMPARATIVE MUTUAL BUDGETS FOR 2019 Per Apartment Per Month Monthly Operating Operating Net Op Reserve Total No. Of Expenses Income Cost Funding Mutual Trust Admin Monthly Budget Units Mutual ,726, Mutual ,307, Mutual ,877, Mutual ,750, Mutual ,131, Mutual ,570, Mutual ,854, Mutual ,461, Mutual ,719, Mutual ,270, Mutual ,438, Mutual ,117, Mutual ,490, Mutual ,286, Mutual , Mutual , Average H:\Budgets\Mutual\Mutual 2019\Comparatives\2019 Budget Comparatives By Mutual
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