A G E N D A REGULAR MONTHLY MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL FIVE March 20, 2019 Meeting begins at 9:00 a.m. Building Five, Confere
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1 A G E N D A REGULAR MONTHLY MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL FIVE March 20, 2019 Meeting begins at 9:00 a.m. Building Five, Conference Room B 1. CALL TO ORDER/PLEDGE OF ALLEGIANCE 2. SHAREHOLDERS COMMENTS (2-3 minutes per shareholder; agenda items only) 3. ROLL CALL 4. INTRODUCTION OF GRF REPRESENTATIVE, STAFF, AND GUEST(S): Mr. Gould, GRF Representative Ms. Miller, Director of Finance Ms. Hopkins, Mutual Administration Director Mr. Meza, Building Inspector Ms. Kemp, Recording Secretary 5. APPROVAL OF MINUTES: Regular Meeting Minutes of February 20, 2019 Special Meeting Minutes of February 25, 2019 (p. 3) 6. BUILDING INSPECTOR S REPORT Mr. Meza Permit Activity; Escrow Activity; Contracts & Projects; Shareholder and Mutual Requests (p. 4-5) 7. GUEST SPEAKER Ms. Miller a. Review & Acceptance of the Draft 2018 Audited Financial Statements (p. 6) 8. GRF REPRESENTATIVE Mr. Gould 9. UNFINISHED BUSINESS There is no unfinished business to discuss. 10. NEW BUSINESS a. Appointment of Officers b. Approval of Mutual Monthly Finances (p. 7) c. Discuss and vote to approve/deny a work order for sidewalk repair at Building 72 (p. 8-11) d. Discuss and vote to approve/deny additional costs for rafter tails and dry rot/termite repair (p ) e. Discuss tree trimming proposals f. Discuss and vote to permit tax accountant to speak with Mutual Five attorney (p. 16) ( ck) 1
2 STAFF BREAK BY 11:00 a.m. 11. SECRETARY / CORRESPONDENCE Ms. Boryta 12. CHIEF FINANCIAL OFFICER S REPORT Ms. Tran 13. PRESIDENT S REPORT Dr. Coven 14. MUTUAL ADMINISTRATION DIRECTOR Ms. Hopkins 15. ANNOUNCEMENTS NEXT MEETING: April 17, 2019, at 9:00 a.m. Building Five, Conference Room B 16. COMMITTEE REPORTS 17. DIRECTORS COMMENTS 18. SHAREHOLDERS COMMENTS (2-3 minutes per shareholder) 19. ADJOURNMENT 20. EXECUTIVE SESSION STAFF WILL LEAVE THE MEETING BY 12:00 p.m. ( ck) 2
3 MINUTES OF A SPECIAL MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL FIVE FEBRUARY 25, 2019 In accordance with the Corporation Bylaws, and pursuant to due notice to the Directors, a Special Meeting of the Board of Directors of Seal Beach Mutual Five was called to order by Vice President Van Wyk on February 25, 2019, at 2:30 p.m., in the Physical Property Conference Room, 2 nd Floor. Those Directors present were: Vice President Van Wyk, CFO Tran, Secretary Boryta, and Director Deady. Directors Cude and Powell were absent. The purpose of this meeting was to appoint a new Director. Following a discussion, and upon a MOTION duly made by Director Deady and seconded by CFO Tran, it was The MOTION passed. RESOLVED, That the Mutual Board of Directors accepts, with regret, the resignation of President Coven. Following a discussion, and upon a MOTION duly made by Secretary Boryta and seconded by CFO Tran, it was The MOTION passed. RESOLVED, That the Mutual Board of Directors appoints Linda DeRungs to the Mutual Five Board of Directors for the remaining term of office. Vice President Van Wyk adjourned the meeting at 2:55 p.m. Attest, Joan Boryta, Secretary SEAL BEACH MUTUAL FIVE ck: 03/04/2019 3
4 INSPECTOR MONTHLY MUTUAL REPORT MUTUAL: (05) FIVE INSPECTOR: MUTUAL BOARD MEETING DATE: March, 2019 PERMIT ACTIVITY Mike Meza UNIT # DESCRIPTION OF WORK GRF/CITY PERMIT PERMIT ISSUE COMP. DATE Improvment Values RECENT INSPECTION CONTRACTOR 113-C UNIT REMODEL BOTH 12/01/18 05/01/19 $32,000 TELEMACHUS FABRICATION 71-L DISHWASHER BOTH 12/07/18 01/04/19 $925 FINAL 12/27/18 BERGKVIST 71-L DECO BLOCK WALL GRF 12/10/18 01/11/19 $2,025 Final 02/08/19 BERGKVIST 98-H FLOORING GRF 12/15/18 01/20/19 $1,200 FINAL 01/02/19 KARY'S CARPETS 95-H UNIT REMODEL BOTH 12/17/18 03/08/19 FRAM,ELEC,PLUM 01/10/19 BERGKVIST 95-H UNIT REMODEL BOTH 12/17/18 03/08/19 $103,020 CHANGE ORDER 04/08/19 BERGKVIST 124-L FLOORING GRF 12/20/18 01/20/19 $2,393 FINAL 01/08/19 KARY'S CARPETS 107-B KIT/REMODEL WINDOWS BOTH 12/26/18 06/26/19 $31,000 NATIONWIDE PAINTING 71-L SOLATUBE BOTH 01/01/19 01/31/19 $3,117 FINAL 01/08/19 SOLATUBE HOME 114-L FLOORING GRF 01/15/19 03/15/19 $375 KARY'S CARPETS 109-G HEAT PUMP BOTH 01/17/19 04/30/19 $3,200 FINAL 01/25/19 GREENWOOD 112-E HEAT PUMP BOTH 01/24/19 02/24/19 $10,500 FINAL 01/25/19 ALPINE 124-B HEAT PUMP BOTH 01/28/19 03/01/19 $3,500 FINAL 02/05/19 ALPINE 117-A WINDOW/DOOR BOTH 02/04/19 03/29/19 $7,500 FINAL 03/01/19 MP CONSTRUCTION 93-E ELECTRICAL PANEL BOTH 02/06/19 04/06/19 $1,800 FINAL 02/28/19 MP CONSTRUCTION 124-B ELECTRICAL PANEL BOTH 02/06/19 04/06/19 $1,800 FINAL 02/28/19 MP CONSTRUCTION 108-K PATIO WORK BOTH 02/18/19 04/18/19 $5,120 AC&R CONSTRUCTION 123-I EZ ACCESS TUB BOTH 02/19/19 03/19/19 $1,600 FINAL 02/28/19 NUKOTE 113-E HEAT PUMP BOTH 03/12/19 04/12/19 $6,500 FINAL 04/13/19 ALPINE 111-E HEAT PUMP BOTH 03/18/19 04/30/19 $3,200 HEATWAVE A/C 121-I EZ ACCESS TUB BOTH 03/28/19 04/28/19 $1,610 NUKOTE 94-D WINDOWS BOTH 04/01/19 04/01/19 $4,957 LAKEWOOD GLASS ESCROW ACTIVITY Unit # NMI PLI NBO FI FCOEI ROF ACTIVE, CLOSING, CLOSED 69-A 09/04/ J 07/19/18 72-D 07/10/17 90-G 02/09/18 06/05/18 06/05/18 06/15/18 92-H 02/06/19 93-E 02/06/19 95-H 03/29/18 09/25/18 09/26/18 10/08/18 96-G 11/08/18 98-H 01/31/19 99-J 12/20/18 01/29/ A 11/08/ K 12/05/ F 11/08/ D 05/18/ B 06/07/18 04/11/ F 09/04/18 02/14/19 02/15/ A 01/31/19 02/22/19 02/25/ L 03/13/ C 01/31/ B 05/18/ H 09/04/ E 12/05/18 04/12/ B 02/06/ C 07/19/18 SHADED AREAS HAVE BEEN SIGNED OFF 4 1 of 2
5 INSPECTOR MONTHLY MUTUAL REPORT MUTUAL: (05) FIVE INSPECTOR: MUTUAL BOARD MEETING DATE: March, 2019 NMI = New Member Inspection PLI = Pre-Listing Inspection NBO = New Buyer Orientation FI = Final Inspection FCOEI = Final COE Inspection ROF = Release of Funds CONTRACTS CONTRACTOR PROJECT BRIGHT VIEW 2020 Landscaping EMPIRE PIPE 2020 FENN 2020Insect, and Pest Control Mike Meza ERC INC. August 2018 Currently on Building 96 CALFORNIA RE-PIPE SPECIALIST August 2018 Currently on Building 96 ROXYGEN PAINTING August 2018 Currently on Building 96 ROOFING STANDARDS JULY 2019 BLDG 115, 116, 119 ROOFING STANDARDS Drafting contract to Re-roof carport 61 MJ JURADO BA CONSTRUCTION Replace concrete near 5-71-A and 5-72-L, Apon board approval. End Beam, Dry Rot, & Termite Repair, Apon board approval. Contractor BA CONSTRUCTION SERVICE MAINTENAMCE CALIFORNIA REPIPE SPECIALIST SPECIAL PROJECTS Discription of Work FIRE INSPECTION WORK ORDERS. BATH FANS. CUT END BEAMS PATCH & PRIMER. DRYROT/TERMITE REPAIR TOUCH UP PAINT END BEAMS, DRYROT/TERMITE REPAIRS, & DOWNSPOUTS Calls and Visits to Units of 2
6 Mutual Corporation No. Five MEMO TO: FROM: SUBJECT: MUTUAL BOARD OF DIRECTORS MUTUAL ADMINISTRATION REVIEW & ACCEPTANCE OF THE DRAFT 2018 AUDITED FINANCIAL STATEMENTS (GUEST SPEAKER, ITEM A) DATE: MARCH 20, 2019 CC: MUTUAL FILE On March 20, 2019, Ms. Miller, Director of Finance, will review the Financial Statements, as of the year ending December 31, 2018, by the Independent Accountant s Report as submitted by CliftonLarsonAllen (CLA). I move to accept that the Board of Directors of Seal Beach Mutual Five, upon a presentation of the Financial Statements as of December 31, 2018, for the year then ended, and the proposed Accountant s Report as submitted by CliftonLarsonAllen (CLA), hereby accepts the above-mentioned Financial Statements and reports therein, and authorize the President to sign the Management Representation Letter. 6
7 Mutual Corporation No. Five MEMO TO: MUTUAL BOARD OF DIRECTORS FROM: MUTUAL ADMINISTRATION SUBJECT: APPROVAL OF MUTUAL MONTHLY FINANCES (NEW BUSINESS, ITEM B) DATE: MARCH 20, 2019 CC: MUTUAL FILE I move to acknowledge, per the requirements of the Civil Code Section 5500(a)-(f), a review of the 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, an income and expense statement for the Mutual s operating and reserve accounts, the check registers, monthly general ledger and delinquent assessment receivable reports for the month of February
8 Mutual Corporation No. Five MEMO TO: FROM: SUBJECT: MUTUAL BOARD OF DIRECTORS MUTUAL ADMINISTRATION DISCUSS AND VOTE TO APPROVE/DENY A WORK ORDER FOR SIDEWALK REPAIR AT BUILDING 72 (NEW BUSINESS, ITEM C) DATE: MARCH 20, 2019 CC: MUTUAL FILE I move to approve/deny a work order for sidewalk repair at Building 72, at a cost not to exceed $6,921.50, and authorize the Building Inspector to create a work order. 8
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12 Mutual Corporation No. Five MEMO TO: FROM: SUBJECT: MUTUAL BOARD OF DIRECTORS MUTUAL ADMINISTRATION DISCUSS AND VOTE TO APPROVE/DENY ADDITIONAL COSTS FOR RAFTER TAILS AND DRY ROT/TERMITE REPAIR (NEW BUSINESS, ITEM D) DATE: MARCH 20, 2019 CC: MUTUAL FILE At the January 16, 2019, Board Meeting, the Board of Directors approved termite damage repair and end beams repair as noted in the FENN Report, to be completed by Service Maintenance, at a cost not to exceed $194 per building, and authorized the President to sign the contract. On February 20, 2019, the Board of Directors will vote to amend the resolution dated January 16, 2019, to state as follows: RESOLVED, To approve the removal and repair of rafter tails, work to be completed by Service Maintenance, at a cost of $194 per building which may increase due to unforeseen conditions, dry rot/termite repair to be completed by Service Maintenance at an hourly rate ($42 per hour). Repair list to be made by the Mutual Building Inspector and authorized by the President. On March 20, 2019, the Board of Directors will vote to approve/deny a proposal from Bruno H. Alvarez for additional costs for (1) removal and repair of rafter tails, at a cost of $200 per building, and (2) dry rot/termite repair, at an hourly rate of $42 per hour. I move to approve/deny a proposal from Bruno H. Alvarez for additional costs for (1) removal and repair of rafter tails, at a cost of $200 per building, and (2) dry rot/termite repair, at an hourly rate of $42 per hour, and authorize the President to sign the contract. 12
13 BRUNO H. ALVAREZ GENERAL CONTRACTOR STATE LIC. # Temple avenue, Long Beach,CA Tel. (562) DATE : 03/13/18 PROPOSAL #: TO: Mr. Mike Mesa Building Inspector ADDRESS: Mutual 5 I, Bruno H. Alvarez, propose to furnish all materials and perform all labor and obtain all permits necessary to complete the following: Cut all beams (12), Fascia (4) and Rain gutter ends add end-cap sill with rain buster as needed, caulk, patch, prime. $ per Building. Plus material provide by the mutual sawzall blade, rain buster and sand paper, rain gutter end caps, wood filler. Note: 2 sawzall blade per building approx. Respectfully submitted by: Bruno H. Alvarez. Date: 13
14 BRUNO H. ALVAREZ GENERAL CONTRACTOR STATE LIC. # Temple avenue, Long Beach,CA Tel. (562) PROPOSAL TERMITE REPAIRED PROJECT 2019 DATE : 03/13/19 TO: Mutual 5 BUILDING INSPECTOR: Michael Meza I, Bruno H. Alvarez, propose to furnish all materials and perform all labor to complete the following: To perform all labor necessary to complete in a workmanlike manner according to Golden Rain Foundation Leisure World and Mutual 5 specification the dry rot, termite, in same manner as said work has been performed by contractor in the past. This proposal is to repair or replace all framing members affected for termites or dry rot. To perform work and bill on an hourly basis at rate of $42 per hour (equivalent to Service Maintenances rate). All the materials will be provide by the mutual from purchasing located at Service Maintenance Yard, other materials such as primer, reciprocating saw blade, circular saw blade, caulking, wood filler, paint, nails, screws, etc., will be bill separately. Any additional repairs will be consult to the Mutual Inspector for the approval of the work to be completed. Respectfully submitted by: 14
15 Bruno H. Alvarez. Date: ACCEPTANCE OF CONTRACT Bruno H. Alvarez is hereby authorized to furnish all materials and labor required to complete the above reference for for which I/we agree to pay the amount mentioned in said proposal, and according to the terms thereof. Accepted by:. Signature:. Date:. 15
16 Mutual Corporation No. Five MEMO TO: FROM: SUBJECT: MUTUAL BOARD OF DIRECTORS MUTUAL ADMINISTRATION DISCUSS AND VOTE TO PERMIT TAX ACCOUNTANT TO SPEAK WITH MUTUAL FIVE ATTORNEY (NEW BUSINESS, ITEM F) DATE: MARCH 20, 2019 CC: MUTUAL FILE I move to permit tax accountant at CliftonLarsonAllen (CLA) to speak with Mutual Five attorney at Kaiser & Swindells, not to exceed 15 minutes, at the regular billing rate. 16
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