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

SEAL BEACH MUTUAL SIXTEEN May 7, 2019

Meeting begins at 9:30 a.m. Administration Building, Conference Room A

(05-02-2019ck)

1. CALL TO ORDER/PLEDGE OF ALLEGIANCE 2. ROLL CALL 3. INTRODUCTION OF GRF REPRESENTATIVE, STAFF, AND GUESTS: Ms. Isom, GRF Representative Ms. Hopkins, Mutual Administration Director

Mr. Antisdel, Building Inspector Ms. Kemp, Recording Secretary 4. APPROVAL OF MINUTES:

Regular Meeting Minutes of April 2, 2019 5. BUILDING INSPECTOR’S REPORT Mr. Antisdel

Permit Activity; Escrow Activity; Contracts & Projects; Shareholder and Mutual Requests (handout)

6. GRF REPRESENTATIVE Ms. Isom 7. UNFINISHED BUSINESS There is no unfinished business to discuss. 8. NEW BUSINESS

a. Approval of Mutual Monthly Finances (p. 3) b. Discuss and vote to accept 2018 GRF excess income distribution (p. 4) c. Discuss laundry room landscaping d. Buying and Selling Handout (p. 5-14)

STAFF BREAK BY 11:00 a.m.

1

(05-02-2019ck)

9. SECRETARY / CORRESPONDENCE Mrs. Clawson 10. CHIEF FINANCIAL OFFICER’S REPORT Mr. Grenrock 11. MUTUAL ADMINISTRATION DIRECTOR Ms. Hopkins 12. ANNOUNCEMENTS a. ELECTION AND ANNUAL SHAREHOLDERS’ MEETING: Wednesday, May 22, 2019, at 2:00 p.m. Administration Building, Conference Room A b. NEXT REGULAR BOARD MEETING: Tuesday, July 2, 2019, at 9:30 a.m. Administration Building, Conference Room A 13. COMMITTEE REPORTS 14. DIRECTORS’ COMMENTS a. President’s Report b. Vice President/Grounds Report 15. SHAREHOLDERS’ COMMENTS (2-3 MINUTES) 16. ADJOURNMENT 17. EXECUTIVE SESSION

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

2

Mutual Corporation No. Sixteen

MEMO

TO: MUTUAL BOARD OF DIRECTORS

FROM: MUTUAL ADMINISTRATION

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

DATE: MAY 7, 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 March 2019.

3

Mutual Corporation No. Sixteen

MEMO

TO: MUTUAL BOARD OF DIRECTORS

FROM: MUTUAL ADMINISTRATION

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

DATE: MAY 7, 2019

CC: MUTUAL FILE

I move to accept the 2018 GRF excess income distribution of $373, and to transfer the

funds into the Roofing Reserves Fund.

4

Mutual Corporation No. Sixteen

MEMO

TO: MUTUAL BOARD OF DIRECTORS

FROM: MUTUAL ADMINISTRATION

SUBJECT: BUYING AND SELLING HANDOUT (NEW BUSINESS, ITEM D)

DATE: MAY 7, 2019

CC: MUTUAL FILE

I move to approve/deny that the Buying and Selling Handout, prepared and submitted by

GRF, be placed on the Seal Beach Leisure World Website, be submitted to all Real Estate

Agents, and be included in the new buyer packet.

5

va

•'

pa

^I

^^..«,J'^

A- 1 <»

Ea?

•cy-

1 Ite yr >&..s-•^

^-J:

e •w'<! *"

s 1 <<!

» »v

^^^

• ^L

rr

tKt •K

s1 ^ Atj^.

^ 4

GRF Js

SEAL BEACH LEISUREWORLDBUYING AND SELLINGHANDOUT

9^3^md a^ »fc•^a

&

^

i;

Golden Rain FoundationApril 10, 2019

134 1

6

1,''

(

INTRODUCTION

r^^^^ :«'-"r1S^*"^ye&-^ltI;»

^.^•-fe-?

•€^^/w:,^

? h•^1

^ ^.^ f-i' '-^

*N>

^

<v "b

^i-^t*.

I!T

(¥.•?

cm^:?: ^;-T;^ Si^^s&: C-1 ^^y^^ ^,y t.

-fe

^.J

as«:-

lf,

-wq

Seal Beach Leisure World

(SBLW) is a gated, active adultcommunity. Golden RainFoundation (GRF) is theManagement Services provider.The following are theprocedures and information youwill need to successfully list, sellor buy a unit in this community.

^:S^"^!'v'f^-y-^^''yv!?'-"K:.

^

y^e<8^ %({St%% m

m^

^:^^,-$•*•»•9S %SK^^Sat

?tf%^ M^.^.^^.^^dA

7

ri

8K^^*•-. ,.'^

LISTING b

lifaCEiEi i/• %

Frfk^ !» s^ !'

t,

t^uja^Ls"-

<-

*fe»T^ ^s;

^ .^ ,^ —

w

y^^eaj

ym

;

^" ^U ^m^^ SS»•s ;''?*•

't'^ s1^.Ih-f.

•^'•"M.

B^ •issift,'•".,t.-'

-».,;

"^t.

1. NOTICE OF INTENT TO WITHDRAW (N01):This notifies the Mutual Corporation 1-12 or 14-16 of the seller'sintent to sell the share of stock.

1.1. The N01 may be obtained from the escrow company. The N01 isvalid for 180 days.1.2. When the seller has signed the N01, the escrow company courierdelivers the signed form to the GRF Stock Transfer Office to be signedby the Mutual President. This may take approximately 10 working days.1.3. After the President signs, the signed N01 goes back to the escrowcompany. The escrow company sends the original N01 and the Pre-Listing Inspection (PLI) form to the GRF Physical Property Escrow clerk.A set of keys for all unit doors, patio and carport storage units arerequired to be submitted with the PLI Report Form.This authorizes the PLI.

1.4. Mutual 9 PLI process is different. Check with the Stock TransferOffice for details.1.5. Mutual 17 are condominiums and follow some common realestate processes but you must consult with Stock Transfer Officepersonnel.

^fS

.•^^^•^•yVi3»-i^y,';a-S!g»y-t

e

^m

?*»»m s<

iU .-*^'^^. ^^t-

(»>r^e i>is.-. :-«A

^

136

•.--'

3

8

m^ a^

§1631Iggag ag§(m ai a^

m a m

^KM5as m a^

m aIgSs

.*^ -1 eiei»I % e<s»%%" •••^

f^. rm *>••

.*'<ss ~.^^

»•»^. y. ,1

?-:f^

•ar*.»•^

2 PRE-LISTING INSPECTION (PLI)This process identifies repairs that the seller is responsible forcompleting prior to the close of Escrow.2.1. Pre-listing inspections differ from Mutual to Mutual.2.2. When the inspection is completed the PLI is sent to the escrowcompany for the signature of the seller.

3. LOCK BOX AND FOR SALE SIGNRealtor's lock box and for sale sign may not be installed before:3.1. N01 completed and signed by Mutual President3.2. The PLI is completed.

4 SHOWING PROPERTY4.1. No previewing4.2. Open Houses are NOT permitted4.3. Property may be shown only after N01 and PLI are completed.

137 4

9

MiSt

^

w,

^*'f,W^^^«.V~..ir.'E'WW-,-^\..-

%?'.':

1.ESCROW PROCESSy

^4- \ ii\t

^ sS

j 3 •«»^*w!r

WORE Ii^'*•

^

^»••->*^

^\is s

\.» ,«!ff—K'

»t ^

•V-

^,*>.

9. 1^1 feaieiSr?isiA s^w&*i?3

>(( )f

•^ •» t

fc^ •^»•.—s? •!.-t-'- .J.1

1.1. A final inspection is conducted 10 business days prior to the closeof escrow.

1.2. If the required work has not been completed by the seller, theinspector contracts and schedules the work to be completed prior to theclose of escrow. The seller can no longer do any repairs.1.3. The cost will be deducted from the seller's Repair Deposit (RD). TheRD amount varies from Mutual to Mutual.

2. CLOSE OF ESCROW:Seller's costs for required repairs are compiled and sent to the GoldenRain Foundation Finance Department to be paid from the seller's RD.The remaining balance is refunded to the seller generally within 45 to 60days after the close of escrow.

3. SALE BY TRUST OR ESTATE:Contact the Stock Transfer Office at 562-431-6586 ext. 347.

m138 5

B^;;'-

10

•.—

;^V/'lv:^l. .l\.^ .^-'^

<~.^. ^•.:1 v-<- ^-x-v—^—.^.^.i.^E -I^^^J

!r"1^-1ili!^j'"i^^-'r'^[iJJ-D.,%|^:"^' s

|M®^lffir I1^^^

f

?»

J

^ <•.'

M•»

y

"V,

a

i^^^^-\r

BUYER QUALIFICATIONS:1.1. 55 years of age or older (some exceptions)1.2. Meet financial requirements (these vary from Mutual to Mutual)1.3. Each person pays a one-time, non-refundable, Amenities fee to GoldenRain Foundation (GRF) for use of Trust property.Link to GRF Amenities Fee:

http ://www.lwsb.com/wD-content/uDloads/2015/07/5061-31-Fees.pdf1.4. For current eligibility requirements, fees and monthly assessments visitwww.lwsb.com website. Check under each Mutual for eligibilityrequirements. See Page 8.

UNITS IN MUTUALS 1-12 AND 14-16:2.1. Buyer is purchasing a share of stock in a Stock Cooperative with rights ofoccupancy in that unit. Buyer owns stock, not the unit.2.2. This purchase is cash only. No mortgage is permitted.2.3. Buyer becomes a stockholder, not an owner.

UNITS IN MUTUAL 17:3.1. Buyer is purchasing a condominium (Grant Deed).3.2. Mortgages are permitted.3.3. Buyer becomes the owner of the unit.

139 6

11

as aeaIgm M a^

i»

aoigam a H

g ^^ amgmIg a

^^wsm m a^

aagaggm §11 am mi a

FINANCIAL QUALIFICATION PROCESS:4.1. Mutual Boards have sole authority to set and change MutualFinancial Qualification Requirements.4.2. Mutual Financial Qualification Requirements Policy is located onIwsb.corn fPolicy 7510).4.3. Stock Transfer Office will verify financial qualifications packet forcompliance with Mutual Policy. The Stock Transfer Office has noauthority to approve aDplications that do not comply with MutualPolicy.

5 BUYER ORIENTATION MEETING:5.1. A Buyer Orientation is required at least 10 business days prior to theclose of Escrow.5.2. The meeting is generally conducted by the Mutual President and /or a Mutual Director with the buyer and Mutual Building Inspector inattendance.5.3. The meeting includes a review of the PL] report, Mutual rules andexpectations.5.4. The meeting will take approximately 1 to 2 hours.5.5. Mutual 6 requires check for orientation fee prior to the meeting.

6 COMPARISON CHART:See attached table for additional comparisons of Stock Cooperatives andCondominiums.

140 7

12

3 Ir^' i;

"s

l. iM ^TiVf 1WPIP1^ y^ 1<^»s t>t

<N ^^»,

^-^.^•r^.-^- ,fr t

?•'

7

j^aca—

..^^

<l

^ t®!R^. "S£^.,...^^^^^U*^--^MNi^-^i:"^?%R'"..^It..

t•«'

y^^^"Ss^^^

^l*.^~i

(s m ^-«^. .<'-

wi >»-•^ I*

^*-irnFy SJL~E (̂^?^ •t§^<„

i •?.

^v-.. •^^•-.is/. ..^^^s^.^

t;t

M^ .-f ft

0«• "> t.f.-«

^<\u•?V

*».^•y ^f ^^-^ \-^a,•¥

.•»•..»\.a<^<^,;^i'iieag

•*•

^aa^iIBS '*

MUTUAL ELIGIBILITY REQUIREMENTPOLICIES. WWW.LWSB.COM7510.01 Eiiqibilj^ Requirements MU 017510.02 Eiiaibiiitv Requirements MU 027510.03 Eiigibilitv Requirements MU 037510.04 EIiaibiiitv Requirements MU 04.7510.05 Eiigibiiity Requirements MU 057510.06 Eligibility Requirements MU 067510.07 Eligibility Requirements MU 07.7510.08 Eligibiiitv Requirements MU 087510.09 Eligibility Requirements MU 097510.10 Eligibility Requirements MU 107510.11 Eligibility Requirements, MUJj,7510.12 Eiiaibiiitv Requirements MU 127510.14 Eiigibilitv Requirements MU 147510.15 Eligibility Requirements MU 157510.16 Eliaibiiitv Requirements MU 167510.17 Eligibiiitv Requirements MUJZ

MONTHLY ASSESSMENTShttp://www.iwsb.com/weIcQme/monthlv-fees/

141 8

13

COMPARISON CHART

STOCK COOPERATIVES: MUTUALS 1-12 AND 14-16

DIFFERENCES

CONDOMINIUM: MUTUAL 17 ONLY

The Mutual owns the property which allows you tooccupy the unit. All improvements require Mutualapproval.

~aOccupancy Agreement

No MortgagePurchase price paid in full

No Reverse Mortgage

N.o lease or rental allowed

:;s';'.

s.

You own the Condominium (Grant Deed issued)

Covenants, Conditions, and Restrictions (CC&Rs)

Mortgage is possible

Reverse Mortgage possible on an approved building

ix 'I ; Lease is allowed with restrictions ^ ;-j

£.Btl

SIMILARITIES

's.

Each unit is all electric.

No gas is available.Visitor limited to maximum of 60 days, per 12 month period.

Mutual approval required for improvements.Must use GRF vetted contractors.

Permits required for most work.One-time, non-refundable amenities fee.

Pets allowed, with some restrictions.Co-Occupants must be approved by Mutual.

142 9

14