MINUTES OF THE REGULAR MONTHLY MEETING OF THEBOARD OF DIRECTORS

SEAL BEACH MUTUAL THREEAugusts, 2019

The regular monthly meeting of the board of directors of Seal Beach Mutual Three wascalled to order by President Ginthner at 9:06 a.m. on Friday, August 9, 2019, in theAdministration Building, Conference Room A, followed by the Pledge of Allegiance.

ROLL CALL

Present:

GRF Representative

Guests:

Staff:

President Ginthner, Vice President Turis, Chief FinancialOfficer Ledbetter, Secretary Hart, Directors Campbell, Harrisand Tye

Ms. Stone

Four Mutual Three shareholders

Ms. hlopkins, Mutual Administration DirectorMr. Van Horn, Building InspectorMs. Crow, Recording Secretary

SHAREHOLDERS' COMMENTS

No shareholder comments were made.

MINUTES

The regular meeting minutes of July 12, 2019 were approved by general consent of theboard as written.

The special meeting minutes of July 30, 2019 were approved by general consent of theboard as written.

BUILDING INSPECTOR'S REPORT

Inspector Van Horn presented his report (attached).

Following questions, Inspector Van hlorn left the meeting at 9:13 a.m.

RF REPRESENTATIVE

Representative Stone presented her report and left at 9:25 a.m.

BOARD OF DIRECTORSMUTUAL THREE August9, 2019

CONSENT CALENDAR

Following a discussion and upon a MOTION duly made by President Ginthner andseconded by Vice President Turis, it was

RESOLVED that the board of directors authorizes the followingtransfers of funds per detailed resolutions.

•NINBUhSB

Sill g|||g9|70®Mi|||||| lElaBi06/04/2019 $17,595.00 Mr. Gutter, Inc. (invoice 5486)07/23/2019 $17,595.00 US Bank Restricted MM to US Bank Non-Restricted MM07/24/2019 $42,000.00 US Bank Non-Restricted MM to US Bank Checking

07/25/2019 $37,626.25 US Bank Checking to US Bank Restricted MM07/25/2019 $11,760,00 US Bank Checking to US Bank Non-Restricted MM

08/05/2019 $155,914.62 ACH-Direct Debit from multiple shareholders to USBank Checking

08/05/2019 $97,200.34 US Bank Checking to GRF-US Bank Checking08/06/2019 $58,968.01 US Bank Checking to US Bank Impound

$13,000.00 Payer: Castlehead Escrows (sale of 14C; $1 Ok repair +$3k deposits)

The MOTION passed.

UNFINISHED BUSINESS

Following a discussion and upon a MOTION duly made by Vice President Turis andseconded by Secretary Hart, it was

RESOLVED to approve a proposal from MJ Jurado to paint red stripes atall mutual parking areas that are in front of walkways between buildingsand also at the ends of carports, at a cost not to exceed $1,600.00, andauthorize the President to sign the contract.

The MOTION passed.

2

BOARD OF DIRECTORSMUTUAL THREENEW BUSINESS

Augusts, 2019

Following a discussion and upon a MOTION duly made by Chief Financial OfficerLedbetter and seconded by Director Campbell it was

RESOLVED to acknowledge, per the requirements of the Civil CodeSection (a)-(f), a review of the reconciliations of the operating and reserveaccounts, operating revenues and expenses compared to the currentyear's budget, statements prepared by the financial institutions where themutual has its operating and reserve accounts, an income and expensestatement for the mutual's operating and reserve accounts, the checkregisters, monthly general ledger and delinquent assessment receivablereports for the month of July 2019.

The MOTION passed.

Following a discussion and upon a MOTION duly made by Chief Financial OfficerLedbetter and seconded by Vice President Turis, it was

RESOLVED to approve the ratification of the ExecutiveCommittee for the purpose of creating the budget for 2020.

The MOTION passed.

Following a discussion and upon a MOTION duly made by President Ginthner andseconded by Vice President Turis, it was

RESOLVED to approve a proposal from JC KressConstruction to paint the patio area at 31-J to match buildingcolor, one time only; either before or after planned remodel,but not both; at a cost not to exceed $1 ,400.00, andauthorize the Building Inspector to create the work order.

The MOTION passed.

Following a discussion and agreed upon by a general consent of the board it wasagreed that all current committee chairs will remain for the 2019-2020 year.

Director Jim Campbell - LandscapeDirector Stephen Harris - Service MaintenanceChief Financial Officer Jan Ledbetter - FinancesVice President Mike Turis - Physical PropertySecretary Dianne Hart - Laundry RoomsDirector Nancy Tye - Emergency Information

3

BOARD OF DIRECTORSMUTUAL THREE

New Business (Continued)

August 9,2019

Following a discussion and upon a MOTION duly made by Vice President Turis andseconded by Director Campbell, it was

RESOLVED to approve breaker inspections andrepairs/replacement to be done by Service Maintenance atthe time of any remodel requiring a permit, not including thecost.

The MOTION passed.

Following a discussion and upon a MOTION duly made by Vice President Turis andseconded by Chief Financial Officer Ledbetter, it was

RESOLVED to approve breaker inspections andrepairs/replacement to be done by Service Maintenance atthe time of any prelisting inspection.

The MOTION passed.

Following a discussion and upon a MOTION duly made by Vice President Turis andseconded by Director Tye, it was

RESOLVED to approve Laundry room breaker and main building breakerinspections and repair or replacement at Building Three.

The MOTION passed.

Following a discussion and upon a MOTION duly made by Chief Financial OfficerLedbetterand seconded by Director Campbell, it was

RESOLVED to approve a transfer of funds in the amount ofapproximately $312,250.00 from First Foundation BusinessMaximizer Money Market account, and to close this account,to equivalent US Bank accounts.

The MOTION passed.

SECRETARY / CORRESPONDENCE

Secretary Hart received no correspondence.

CHIEF FINANCIAL OFFICER'S REPORT

Chief Financial Officer Ledbetter presented her report (attached).

4

BOARD OF DIRECTORSMUTUAL THREE August 9, 201 9

MUTUAL ADMINISTRATION DIRECTOR

Mutual Administration Director Hopkins presented her report.

ANNOUNCEMENTS

AGENDA MEETING: Tuesday, September 3, 2019, 11:00 a.m., Physical PropertyConference Room (2nd floor)

NEXT REGULAR MEETING: Friday, September 13, 2019, 9:00 a.m., AdministrationBuilding, Conference Room A

COMMITTEE REPORTS

Ememency Information

Director Tye provided an update.

Laundry Rooms

Secretary Hart provided an update.

Service Maintenance

Director Harris_provided an update.

Landscape

Director Campbell provided an update.

Physical Property

Vice President Turis gave an update.

DIRECTORS' COMMENTS

Several directors made comments.

SHAREHOLDERS' COMMENTS

Several shareholders made comments.

5

BOARD OF DIRECTORSMUTUAL THREE Augusts, 2019

ADJOURNMENT

There being no further business to conduct, President Ginthner adjourned the meetingat 10:29 a.m. and announced that there would be an executive session following todiscuss member issues.

7 7^y^Attest, Dianne Hart, SecretarySEAL BEACH MUTUAL THREEkc 8-20-2019Attachments

6

MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORSSEAL BEACH MUTUAL THREE

Septembers, 2019

A special meeting of the board of directors of Seal Beach Mutual Three was called toorder by President Ginthner at 11:09 a.m. on Tuesday, September 3,2019, in the PhysicalProperty Conference Room, 2nd floor.

Those members present were: President Ginthner, Vice President Turis, CFO Ledbetter,Secretary Hart, and Directors Campbell, Harris, and Tye.

The purpose of the meeting was to establish the September board of directors regularmeeting agenda.

President Ginthner adjourned the meeting at 11:43 a.m.

'^ \.Attest, Dianne Harf, SecretarySEAL BEACH MUTUAL THREEkc:09-06-2019

August, 2019 CFO Report

By Jan Led better

As many of you know, our new by-laws did not pass. The old by-laws are not in compliant withthe law so we still have to produce and pass new ones. Each time we have questions, we willhave to obtain a legal opinion to make sure we are complying with the law. If you have anyquestions, please ask a director or come to our monthly meetings. As CFO, I will bring to yourattention the cost of this project.

Past Costs: We were fortunate that the attorney divided his costs among the 10 mutuals thatwere rewriting by-laws.

Attorney fees $2,200.00Bylaws Printing & distribution 5,730.80

For ballot measure

New Costs:

Copying charges 6.75Attorney fees: 7 hours @ $260 $1,820.00*

*We again are fortunate because the attorney has waived these charges.We cannot continue to expect this.

Financial Status as ofJuly 31, 2019

YTD Income:

Variance: ($723)Actual =$1,131,674

YTD Expenses: Actual =$1,1 42,298Variance: ($9,908)

Budget =$1,132,397

Budget =$1,132,390

$6,390 was placed in our Operating Expense Painting but will be transferred to the appropriateReserve accounts. That makes a variance of $3,518. We are under budget this month onService M:aintenance and Water but overbudget in Landscaping and Miscellaneous Services(by-laws/election costs)

P.O. Box 2069local Beach CA 90--&5

1003 Seal Beach Mutual No. ThreeFinandal Statement Recap

07/31/2019

Page: 1

Jtf.tessl

Jul_Budget_

2619Y-T-DActual

2019Y-T-D_BydgeL

-srm^<s..5^

t5£.47S

107,08449.386

156,470

Carrying ChargesReserve Funding

Total Regular Assessments

749,589345,704

1,095,292

749,588345.702

1,095,290

1.402-.212

750.

3,375

159,845

1,8321,1192,350

5,301

161,771

Service IncomeFinancial IncomeOther Income

Total Other Income

Total Mutual Income

12,9588.630

14.794

36,382

1,131,674

12,8247,833

16.450

37,107

1,132,397

68,34211,6431,258

031,60010,83649,386

173,066

(13.221)

(123)

(13,098)

68,34213,2101,866

2619,8389,102

49,386

161,770

1

0

1

GRF Trust Maintenance FeeUtilitiesProfessional FeesOfRce SuppliesOutside ServicesTaxes & InsuranceContributions to Reserves

Total Expenses Before Off-Budget

Excess lnc/(Exp) Before Off-Budget

Depreciation Expense

Excess lnc/(Exp) After Off-Budget 7

475,71275,14017,992

56153.11474,580

345,704

1,142,298

(10,623)

49,592

(60,216)

478,39492,47013,062

182138,86663,714

345,702

1,132,390

7

0

7

3,8173,7503,748

15,770864

17,673

45,623

000000

0

Restricted ReservesAppliance Reserve EquityPainting ReserveContingency Operating EquityRoofing ReserveEmergency Reserve EquityInfrastructure Reserve

Total Restricted Reserves

42.329268,247182,912528,67124,133

101,555

1,147,846

000000

0

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