minutes of the special meeting of the board of … · 2019-03-03 · introduction of grf...

A G E N D A

REGULAR MONTHLY MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL TWELVE

March 14, 2019 Meeting Begins at 9:00 a.m.

Building Five, Conference Room B

(03-07-19 ck)

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE 2. SHAREHOLDERS’ COMMENTS (2-3 minutes per shareholder)

3. ROLL CALL 4. INTRODUCTION OF GRF REPRESENTATIVE, STAFF, AND GUESTS: Ms. Findlay, GRF Representative Ms. Miller, Director of Finance Ms. Hopkins, Mutual Administration Director Mr. Antisdel, Building Inspector Ms. Kemp, Recording Secretary 5. APPROVAL OF MINUTES:

a. Regular Meeting Minutes of February 14, 2019 b. Special Emergency Meeting of March 1, 2019 (p. 3)

c. Special Emergency Meeting of March 6, 2019 6. GUEST SPEAKER Ms. Miller

a. Review & Acceptance of the Draft 2018 Audited Financial Statements (p. 4)

7. BUILDING INSPECTOR’S REPORT Mr. Antisdel

Permit Activity; Escrow Activity; Contracts & Projects; Shareholder and Mutual Requests (p. 5-6) a. Discuss and vote to approve/deny proposal for carport asphalt repair

(p. 7-10) b. Discuss bids for sewer repairs on three buildings (p. 11-12) c. Update on status of dry rot/termite repairs d. Update on progress of roofing project e. Update on FENN Report on bait stations f. Discuss Rodent Report (p. 13-14)

8. GRF REPRESENTATIVE Ms. Findlay 9. UNFINISHED BUSINESS There is no unfinished business to discuss.

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(03-07-19 ck)

10. NEW BUSINESS

a. Discuss Special Emergency Meetings regarding building 71 sewer pipe and plumbing

b. Approval of Mutual Monthly Finances (p. 15) c. Appointment of Financial Statement Review Committee (p. 16) d. Discuss and vote to amend Policy 7610.12 – General Operating

Procedures (p. 17-19) e. Discuss and vote to give the President, or a designee, authorization to

approve emergency repairs (p. 20) f. Discuss borders around cleanouts in turf g. Discuss screens for rain gutters

STAFF BREAK BY 11:00 a.m. 11. SECRETARY / CORRESPONDENCE Ms. Sprague 12. CHIEF FINANCIAL OFFICER’S REPORT Ms. Ferraro 13. MUTUAL ADMINISTRATION DIRECTOR Ms. Hopkins 14. ANNOUNCEMENTS:

a. NEXT MEETING: Thursday, April 11, 2019, 9:00 a.m., Building Five, Conference Room B

b. Mutual Election period begins March 15, 2019; Candidate Applications are available at the Stock Transfer Office

15. COMMITTEE REPORTS 16. DIRECTORS’ COMMENTS 17. SHAREHOLDERS’ COMMENTS (2-3 minutes) 18. ADJOURNMENT 19. EXECUTIVE SESSION

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

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MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL NO. TWELVE

MARCH 1, 2019 CALL TO ORDER: The Special Emergency Meeting of Seal Beach Mutual No. Twelve was called to order by President Carson at 11:15 a.m. on Friday, March 1, 2019, in Unit 71-L. ROLL CALL: Those members present were: President Carson, Vice President Anderson, Secretary Sprague, and Director Milek Absent: CFO Ferraro and Director Mortesen Also present: Inspector Antisdel and Shareholder of Unit 71-L, Jane Brittingham The purpose of the meeting was to discuss emergency building repair issue. Following a discussion and upon a MOTION duly made by President Carson, and seconded by Secretary Sprague, it was

RESOLVED, To authorize the emergency repair to the sewer line at 71-L by A-1 Total Service in the amount of $6,500, and authorize the President to sign the proposal. If additional work is needed to reline the building, the cost is not to exceed $45,000.

The MOTION passed. ADJOURNMENT: President Carson adjourned the meeting at 11:35 a.m. _____________________________________ Attest: Rose Marie Sprague, Secretary SEAL BEACH MUTUAL NO. TWELVE /RMS (These are tentative minutes subject to approval by the Board of Directors at the next Regular Board of Directors Meeting.)

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Mutual Corporation No. Twelve

MEMO

TO: MUTUAL BOARD OF DIRECTORS

FROM: MUTUAL ADMINISTRATION

SUBJECT: REVIEW & ACCEPTANCE OF THE DRAFT 2018 AUDITED FINANCIAL STATEMENTS (GUEST SPEAKER, ITEM A)

DATE: MARCH 14, 2019

CC: MUTUAL FILE

On March 14, 2019, Ms. Miller, Director of Finance, will review the Financial Statements, as of the year ending December 31, 2018, by the Accountant’s Report as submitted by CliftonLarsonAllen (CLA). I move to accept that the Board of Directors of Seal Beach Mutual Twelve, 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.

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1

3

4

5

6

174

175

178

211

256

261

262

286

289

296

297

324

390

391

419

420

421

424

425

426

427

431

447

448

451

456

458

459

A B C D E F G H I

MUTUAL: (12) TWELVE)

UNIT # DESCRIPTION OF WORKGRF/CITY

PERMIT

START

DATE

COMP.

DATE

CHANGE

ORDERFINAL INSPECTION

9-L HEAT PUMP BOTH 02/14/19 03/14/19 NO NONE ALPINE

11-K KITCHEN REMODEL BOTH 01/02/19 03/31/19 NO NONE LOS AL BUILDERS

36-C LIGHTS GRF 12/15/18 03/25/19 NO NONE LW DÉCOR

43-G COUNTERS/LIGHTS BOTH 02/19/19 03/29/19 NO 02/21/19 PLUM/FRA BERGKVIST

43-G COUNTERS/ LIGHTS BOTH 02/19/19 03/29/19 NO 02/27/19 LATH/MOP BERGKVIST

62-J REMODEL BOTH 11/06/18 01/31/19 YES NONE JSB HOME IMPROVEMENTS

62-J ABATEMENT BOTH 01/14/19 01/22/19 YES NONE J&J ENVIRONMENTAL

67-I FLOORING GRF 03/15/19 07/10/19 NO NONE LW DÉCOR

74-D REMODEL BOTH 12/21/18 04/05/19 NO 02/07/19 PLUMBING JC KRESS CONSTRUCTION

74-D REMODEL BOTH 12/21/19 04/05/19 NO 02/11/19 FOOTING JC KRESS CONSTRUCTION

76-D ROOM ADDITION BOTH 01/20/19 03/15/19 NO 02/13/19 FOOTING HADI CONSTRUCTION

GREY AREAS HAVE BEEN SIGNED OFF

NMI PLI NBO FI COE DATE ROF

6-E 08/02/18

6-G 10/17/18 02/26/19 03/05/19 03/18/19

9-F 06/21/18 02/12/19 02/26/19 03/12/19

10-I 02/25/19

35-B 10/16/18 02/01/19 02/01/19 02/15/19

36-C 01/29/19

37-H 06/25/18

43-A 10/31/18

55-C 07/17/18

55-G 04/04/18

64-A 11/02/18

69-J 12/04/18

70-A 09/21/19 01/31/19 02/01/19 02/15/19 03/01/19

73-F 03/28/18

INSPECTOR MONTHLY MUTUAL REPORT

JERRY ANTISDEL

MUTUAL BOARD MEETING DATE: MARCH 14TH 2019

PERMIT ACTIVITY

CONTRACTOR / COMMENTS

INSPECTOR:

3/6/2019Print Date:

Escrow Activity

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1

3

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A B C D E F G H I

MUTUAL: (12) TWELVE)

INSPECTOR MONTHLY MUTUAL REPORT

JERRY ANTISDEL

MUTUAL BOARD MEETING DATE: MARCH 14TH 2019

INSPECTOR:

3/6/2019Print Date:

460

462

463

464

480

481

482

505

718

719

720

721

762

767

768

769

770

771

772

780

804

805

73-H 12/04/18

76-H 08/30/18

78-L 02/27/19

GREY AREAS HAVE BEEN SIGNED OFF

Contract Services Project DescriptionFENN TERMITE AND PEST CONTROL CONTRACT GOOD UNTIL 2020

FENN BAIT STATION REPORT

EMPIRE PIPE CLEANING CONTRACT GOOD UNTIL 2020

PINNACLE LANDSCAPE MONTH TO MONTH

BUILDING 71 RELINE SEWER A-1 TOTAL SERVICE FOR A PRICE OF $36.600.00 CONTRACT IS IN DRAFT

ASPHALT REPAIRS AT CARPORTS MJ JURADO COST OF $94,946.15 BLACK ROCK CONSTRUCTION COST OF $106,964.00

COST TO REPLACE ASPHALT WITH CONCRETE AT CARPORTS 145 &146 MJ JUARADO $202,770.00

ASPHALT REPAIRS MINUS 145 &146 $77,487.15 MJ JURADO BLACK ROCK CPRICE IS $87,295.65

LEAFPROOF SCREEN ON GUTTERS AT BUILDINGS 62 A-F AND 72 G-L SCREEN COST ONLY NOT TO EXCEED $500.00

DRY ROT / TERMITE REPAIRS ALL DONE EXCEPT BUILDINGS THAT ARE GETTING A NEW ROOF

ROOFING IS DELAYED FOR 2 TO 3 WEEKS

Site Visits49

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

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

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MEMO



SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY PROPOSAL FOR CARPORT ASPHALT REPAIR (BUILDING INSPECTOR’S REPORT, ITEM A)


CC: MUTUAL FILE

I move to approve/deny the proposal from for 2-inch grind and

overlay at carports 134, 135, 136, 137, 141, 142, 143, 144, 145 and 146, at a cost not to

exceed $ , and authorize the President to sign the contract.

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MEMO



SUBJECT: DISCUSS AND VOTE TO APPROVE/DENY SEWER REPAIRS AT THREE BUILDINGS (BUILDING INSPECTOR’S REPORT, ITEM B)


CC: MUTUAL FILE

I move to approve/deny sewer repairs at three buildings, to be completed by ,

at a cost not to exceed $ , and authorize the President to sign the contract.

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MEMO



SUBJECT: APPROVAL OF MUTUAL MONTHLY FINANCES (NEW BUSINESS, ITEM B)


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 2019.

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MEMO



SUBJECT: APPOINTMENT OF FINANCIAL STATEMENT REVIEW COMMITTEE (NEW BUSINESS, ITEM C)


CC: MUTUAL FILE

I appoint ___________________________ (Chair), _______________________________,

and __________________________ to the Financial Statement Review Committee.

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MEMO



SUBJECT: DISCUSS AND VOTE TO AMEND POLICY 7610.12 – GENERAL OPERATING PROCEDURES (NEW BUSINESS, ITEM D)


CC: MUTUAL FILE

At the July 11, 2002, Board Meeting, the Board of Directors adopted Policy 7610.12 – General

Operating Procedures.

At the April 10, 2003, and March 10, 2016, Board Meetings, the Board of Directors amended

Policy 7610.12 – General Operating Procedures.

On March 14, 2019, the Board of Directors will vote to amend Policy 7610.12 – General Operating

Procedures.

I move to amend Policy 7610.12 – General Operating Procedures on a preliminary basis

until the 28-day posting period has been completed.

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7610.12

MUTUAL OPERATIONS AMEND

MUTUAL ACCOUNTS AND RESERVES

General Operating Procedures – Mutual Twelve, Effective __________

(draft created on 03-04-2019 ck/sf) Page 1 of 2

As the association is obligated under Civil Code Section 5510(b) to repair, restore, replace, or maintain major components for which the reserve fund was established, Mutual No. Twelve hereby adopts the following general operating procedures in relation to the restricted and non-restricted funds.

Restricted Reserve Funds

A RESOLUTION of Mutual Twelve’s Board of Directors is necessary to authorize a contract or a transfer from or between any of these five funds. The President of the Mutual shall sign all contracts when funds are utilized from any of these five funds. Each of these funds to be maintained in accounts in keeping with Policy 7306.12 – Banking Resolution and Civil Code

Sections 5502 and 5515(c).

1. Appliance Replacement Reserve Fund

The Appliance Replacement Reserve Fund is designated for repairs, restoration, replacement or maintenance of Mutual property and fixtures within the interior of the separate unit as defined in Policy 7622.12. Expenditures that exceed $1,000 require Mutual Board authorization before the Service Maintenance Department may proceed with the repair/replacement order.

2. Infrastructure Reserve Fund

The Infrastructure Reserve Fund is designated for major projects which may require an outside contractor, such as, but not limited to, carport flooring, driveways, run-offs (swales), landscape irrigation systems, water distribution, plumbing, sewers, and other major projects. Following Board authorization, the GRF Supervisor of Physical Property or Supervisor of Service Maintenance is required to prepare Request for Bid specifications approved by the Mutual Twelve Physical Property Committee and initialed by the Mutual Twelve President before submitting to qualified contractors for these projects in accordance with Policy 7621.12.

3. Painting Reserve Fund

The Painting Reserve Fund is designated for painting of the exterior of all Mutual apartment buildings, carports exterior and interior, and laundry rooms exterior and interior, and any related expenses including wood repair. Following Board authorization, the GRF Physical Property Department is required to prepare Request for Bid specifications for painting projects in accordance with Policy 7621.12.

4. Roofing Reserve Fund

The Roofing Reserve Fund is designated for major roofing projects and related components which may require outside contractor bids. Following Board authorization, the GRF

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7610.12

MUTUAL OPERATIONS AMEND

MUTUAL ACCOUNTS AND RESERVES

General Operating Procedures – Mutual Twelve, Effective __________

(draft created on 03-04-2019 ck/sf) Page 2 of 2

Supervisor of the Physical Property Department is required to prepare Request for Bid.

5. Emergency Contingency Reserve Fund

The Emergency Contingency Reserve Fund is designated for the unexpected occurrence, or chance happening or concurrence of events requiring urgent immediate action. Use of funds requires Board authorization on a case-by-case basis and in accordance with Policy 7621.12.

Non-Restricted Funds

1. Operation Fund

The Operation Fund shall be used to accumulate funding to supply cash to the general checking account to make payments for billings not covered by the above defined Restricted Reserve Funds. This fund shall also be:

a) An interest-bearing money market account. b) Used for transferring money into the general checking account for billings with the

concurrence of the Chief Financial Officer. c) Used to receive moneys from the carrying charge account and the general checking

account when that account has a balance in excess of $25,000.

2. Impound Fund

The Impound Fund shall be used to accumulate funds, as required and as determined by the GRF Controller, for the payment of real property taxes on individual shareholder separate interest as assessed by Orange County Property Tax. This fund shall also be:

a) An interest-bearing money market account.

3. Repair and Tax Deposit Fund

When a Transfer of Membership is initiated, the Repair and Tax Deposit Fund is for the purpose of managing seller repair and tax deposits held until the unit is sold and the tax liability is relieved. This fund shall also be:

a) An interest bearing money market account.

MUTUAL ADOPTION AMENDMENTS

TWELVE: 07-11-02 04-10-03, 03-10-16

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MEMO



SUBJECT: DISCUSS AND VOTE TO GIVE THE PRESIDENT, OR A DESIGNEE, AUTHORIZATION TO APPROVE EMERGENCY REPAIRS (NEW BUSINESS, ITEM E)


CC: MUTUAL FILE

I move to give the President of Mutual Twelve, or a designee, authorization to approve

emergency repairs not to exceed $ .

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minutes of the special meeting of the board of … · 2019-03-03 · introduction of grf...

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