a g e n d a regular monthly meeting of the board of ... · 11/9/2019 · h. discuss and vote to...

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

SEAL BEACH MUTUAL NINENovember 18, 2019

Meeting begins at 9:00 a.m. Building 5, Conference Room B

(11-12-19 DS)

1. CALL TO ORDER / PLEDGE OF ALLEGIANCE

2. BOARD ROOM DECORUM

Shareholders and Directors:

As a courtesy, please silence all cell phones. Please step outside if needed.

Directors:

Please turn on your microphones and please wait to be recognized by the President.

3. ROLL CALL

4. SHAREHOLDERS’ COMMENTS (2-3 minutes per shareholder; agenda items only)

5. INTRODUCTION OF GRF REPRESENTATIVE, STAFF, AND GUEST(S):

Mr. T. Dodero, GRF Representative Ms. Hopkins, Mutual Administration Director Mr. Swordes, Building Inspector Ms. Senske, Recording Secretary

6. APPROVAL OF MINUTES a. Regular Meeting Minutes of October 14, 2019 b. Special Meeting Minutes of October 23, 2019 (pp.3-4)

7. BUILDING INSPECTOR’S REPORT Mr. Swordes Permit activity; escrow activity; contracts & projects; shareholder and mutual requests (pp. 5-8)

8. GRF REPRESENTATIVE Mr. A. Dodero

9. CONSENT CALENDAR a. Discuss and vote to authorize transfers of funds for Mutual Nine (p.9)

10. UNFINISHED BUSINESS There is no unfinished business to discuss.

STAFF BREAK BY 11:00 A.M

1

(11-12-19 DS)

11. NEW BUSINESSa. Approval of Mutual Monthly Finances (p.10)

b. Discuss and vote to adopt Policy 7574.09 – Antennas, Satellites, and DirecTV Dish Installation Television Transmitters (pp.11-15)

c. Discuss reducing any washers/dryers d. Discuss and vote to accept contract with National for five years (p.16)

e. Discuss and vote to approve laundry cost (p.17)

f. Discuss and vote to approve newsletter to shareholders regarding laundry service (p.18)

g. Discuss and vote not to exceed $3,000.00 for Holiday party (p.19)

h. Discuss and vote to approve $400.00 flat rate fee to Roseman Law per SB 323 (p.20)

i. Discuss and vote to amend Policy 7210.9 – Annual Elections (pp.21-39)

j. Discuss Pinnacle grass seeds k. Discuss carport inspection letter and policy to compel l. Discuss fire inspections and H06 Insurance m. Discuss President Council’s notes n. Discuss by-laws and rules and regulations o. Discuss GRF water damage procedures p. Discuss Fenn Mosquito Traps

12. SECRETARY / CORRESPONDENCE Mrs. M. Dodero

13. CHIEF FINANCIAL OFFICERS REPORT Ms. McFadden

14. MUTUAL ADMINISTRATION DIRECTOR Ms. Hopkins

15. ANNOUNCEMENTS a. NEXT REGULAR MEETING: Monday, December 9, 2019, 9:00 a.m.,

Administration Building, Conference Room A

16. COMMITTEE REPORTS a. Physical Property Committee b. Landscape Committee c. Budget Committee d. Bylaw Committee

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.

2

MINUTES OF THE SPECIAL MEETING OF THE BOARD OF DIRECTORS SEAL BEACH MUTUAL NINE

October 23, 2019

A Special Meeting of the Board of Directors of Seal Beach Mutual Nine was convened at 6:30 p.m. on Wednesday, October 23, 2019, in Clubhouse 3, Room 9. Those members present were: President Mayers, Vice President Walz, Secretary Dodero, Chief Financial Officer McFadden, Directors Turner, Croft, and Muller-Gray There were six shareholders present. The purpose of this meeting was to discuss rules and regulations, the holiday party, laundry contract, agenda items for November Board Meeting, approve contract with Arbor Pro, approve contract with Brightview, and approve contract with BA Construction. Following a discussion, and upon a MOTION duly made by President Mayer and seconded by Director Turner, it was

RESOLVED to accept the contract from Arbor Pro Urban Forest Management Plan at a cost not to exceed $3850.00 and authorize the President to sign the contract.

The MOTION passed with one “no” vote (Croft). Following a discussion, and upon a MOTION duly made by President Mayer and seconded by Director Turner, it was

RESOLVED to accept bid by Brightview for tree-trimming, at a cost not to exceed $4,930.00, funds to be taken from Tree Landscaping, and authorize the President to sign this contract.

The MOTION passed. Following a discussion, and upon a MOTION duly made by President Mayer and seconded by Secretary Dodero, it was

RESOLVED to accept bid by BA Construction for gutter cleaning, at a cost not to exceed $2,100.00, $7.00 per unit, funds to be taken from Infrastructure, and authorize the President to sign this contract.

The MOTION passed. Director McFadden exited the meeting at 7:15 p.m.

3

The meeting adjourned at 8:00 p.m. __________________________________ Attest Marjorie Dodero, Secretary SEAL BEACH MUTUAL NINE ds 10/29/19

4

MUTUAL: (09) NINE ROBERT SWORDES

UNIT # DESCRIPTION OF WORK

GRF/CIT

Y

PERMIT

PERMIT

ISSUE

COMP.

DATE

CHANGE

ORDER

RECENT

INSPECTIONCONTRACTOR / COMMENTS

207 A WASHER/DRYER/UPGRADE PANEL BOTH 02/18/19 03/01/19 2/25 FRAME 2/21/19 FR/EL/PL OGAN CONSTRUCTION

207 A 3/11/19 FINAL "

207 G SHOWER DEMO/INSTALL BOTH 05/15/19 07/15/19 NO 5/16/19 ROUGH LOS AL BUILDERS

207 G 6/14/19 FINAL "

208 F HEAT PUMPS OUTD 1/IND 3 BOTH 12/10/18 03/10/19 NO 1/28/19 FINAL GREENWOOD

208 G HEAT PUMPS OUTD 1/IND 3 BOTH 06/20/19 09/20/19 NO 7/3/19 FINAL GREENWOOD

208 G FLOORING THROUGHOUT GRF 06/20/19 07/20/19 NO 7/3/19 FINAL KARYS CARPETS

209 REROOF BOTH 04/29/19 12/31/19 NO ROOFING STANDARDS

209 i HEAT PUMP TRI ZONE/DETECTORS BOTH 02/25/19 05/25/19 NO 3/6/19 FINAL GREENWOOD

210 B VINYL FLOOR THROUGHOUT/ BASE GRF 10/30/19 11/30/19 NO KARYS CARPETS

210 H AC/ HEAT PUMP BOTH 08/12/19 11/12/19 NO 10/15/19 FINAL GREENWOOD

211 D EZ ACCESS SHOWER/GRAB BAR BOTH 04/29/19 05/29/19 NO 5/13/19 FINAL NUKOTE

211 E VINYL FLOORING AT BATHROOM GRF 03/25/19 05/25/19 NO 4/9/19 FINAL BIXBY PLAZA CARPETS

211 E BATHROOM AND PORCHLIGHT GRF 03/20/19 04/30/19 NO 4/8/19 FINAL BERGIN ELECTRIC

211 E AC/HEAT PUMP BOTH 04/08/19 07/08/19 NO 5/2/19 FINAL GREENWOOD

212 REROOF BOTH 04/29/19 12/31/19 NO 5/3/19 SHEATHING ROOFING STANDARDS

212 5/7/19 FINAL "


213 A SKYLIGHT/SOLATUBE BOTH 11/30/18 01/15/19 NO 1/9/19 FINAL LOS AL BUILDERS

213 B ENTRY DOOR BOTH 06/21/19 07/28/19 NO 9/9/19 FINAL SEARS

213 E FLAG POLE GRF 09/03/19 10/03/19 NO 9/23/19 FINAL JURADO

214 E TILE PATIO/AC/MOWSTRIP/STONE BOTH 05/01/19 07/01/19 08/30/19 8/12/19 FINAL LOS AL BUILDERS

214 G ENTRY/WALKWAY BOTH 02/01/19 03/15/19 APPROVED 4/17/19 ROUGH BJ&CO

214 G 5/16/19 DRY/LATH "

214 G 6/17/19 FINAL "


215 A REMODEL BOTH 08/10/19 02/10/20 NO LW DÉCOR

215 A PENETRATED ROOF WITH VENT "

215 A CEILING ABATEMENT GRF 07/05/19 07/05/19 NO 7/12/19 FINAL UNIVERSAL ABATEMENT SERVICES

215 D FLOORING/COUNTERS/MICRO/OUTLETS BOTH 06/20/19 10/20/19 NO 7/18/19 FINAL ALPHA MASTER BUILDERS

215 K TOILET EXTENSION AND BIDET GRF 07/11/19 07/12/19 NO 7/11/19 FINAL BA CONSTRUCTION

216 E VINYL FLOOR KIT/BATH/REINSTALL

TOILET AND 1 APPLIANCEGRF 11/04/19 11/07/19 NO CORNERSTONE FLOORS

217 A AC/HEAT PUMP BOTH 08/12/19 11/12/19 NO 8/28/19 FINAL GREENWOOD

217 C CARPORT CAB/SLDG DOOR BOTH 04/06/18 12/14/18 NO 1/25/19 FINAL BERGKVIST

217 C 3' LATTICE ON DECO BLCK GRF 12/12/18 01/18/19 NO DENIED BERGKVIST

217 C DROP SHADE AT PATIO GRF 03/10/19 03/10/19 NO 1/19/19 FINAL AAA AWNINGS

217 C PATIO DOOR WITH SCREENS GRF 02/25/19 04/12/19 NO BERGKVIST

217 D WASHER/DRYER IN KITCHEN BOTH 11/04/19 11/12/19 NO OGAN CONSTRUCTION

217 F EZ ACCESS SHOWER/GRAB BAR BOTH 10/15/19 11/15/19 NO 10/29/19 FINAL NUKOTE

218 REROOF BOTH 04/29/19 12/31/19 NO 5/15/19 SHEATH ROOFING STANDARDS

218 6/17/19 FINAL "

218 B WASHER/DRYER/UPGRADE PANEL BOTH 03/25/19 04/12/19 NO 3/27/19 FRAME OGAN CONSTRUCTION

218 B 3/27/19 ELECTRIC "

218 B 3/27/19 PLUMB "

218 B 4/24/19 FINAL "

218 B TWO WINDOWS BOTH 05/06/19 05/29/19 NO 5/29/19 FRAME OGAN CONSTRUCTION

218 B 5/29/19 ELECTRIC "

218 B 5/29/19 LATH "

218 B 5/29/19 INSULATE "

218 B 6/19/19 FINAL "

218 D PATIO REMODEL/KITCH COUNTERTOP BOTH 03/04/19 05/30/19 06/28/19 4/19/19 FOOTING LOS AL BUILDERS

218 D 6/26/19 FINAL "

219 F FLOORING THROUGHOUT/PATIO GRF 05/12/19 06/12/19 NO 5/2/19 FINAL KARYS CARPETS

219 H FLOORING THROUGHOUT GRF 04/20/19 05/20/19 NO 4/26/19 FINAL KARYS CARPETS

219 K MICROWAVE BOTH 05/30/19 11/20/19 NO 7/26/19 FINAL LW DÉCOR

219 L EZ ACCESS TUB/GRAB BAR BOTH 04/25/19 05/25/19 NO 5/13/19 FINAL NUKOTE


220 F SOLATUBE KITCHEN & BATH BOTH 03/27/19 05/27/19 NO 4/17/19 FINAL SOLATUBE HOME

220 G SLIDING DOOR/PORCH LIGHT/PAVERS BOTH 10/10/19 01/30/19 NO MAMUSCIA

221 F EZ ACCESS TUB/GRAB BAR BOTH 09/12/19 10/12/19 NO 10/21/19 FINAL NUKOTE

221 L BRICK VENEER/PAVERS/MOW EDGE GRF 07/15/19 10/15/19 NO 8/5/19 FINAL J.C. KRESS

221 L 2 AWNINGS GRF DENIED 10/14/19 AAA AWNINGS

222 E 5' x 11' CART PAD GRF 02/01/19 02/28/19 NO 2/15/19 FINAL ANGUIANO LAWN CARE

222 G 3 CEILING FANS BOTH 04/23/19 05/30/19 NO 5/20/19 FINAL OGAN CONSTRUCTION

222 L CARPET ENTIRE UNIT GRF 06/10/19 08/10/19 NO 7/11/19 FINAL BIXBY PLAZA CARPETS

INSPECTORS REPORT 2019

INSPECTOR:

MUTUAL BOARD MEETING DATE: NOVEMBER 18, 2019

PERMIT ACTIVITY

5

223 A AC/HEAT PUMP BOTH 03/25/19 06/30/19 NO 5/16/19 FINAL LOS AL BUILDERS

224 D CARPET AT BEDROOM GRF 05/06/19 06/01/19 NO 5/17/19 FINAL BIXBY PLAZA CARPETS

225 F REMODEL BOTH 07/01/19 01/31/20 NO 10/3/19 ROUGH KONRAD CONSTRUCTION

225 F 10/7/19 INSULAT "

225 F 10/15/19 DRYWALL "

226 D UNPERMITTED WORK CORRECTIONS BOTH 09/01/19 12/30/19 NO 10/4/19 FINAL MP CONSTRUCTION

226 F EZ ACCESS TUB/GRAB BAR BOTH 01/30/19 03/01/19 NO 2/28/19 FINAL NUKOTE

226 L STONE FAÇADE 74SQ FT GRF 12/18/18 12/19/18 APPROVED 1/28/19 FINAL KANGS CONSTRUCTION

227 REROOF BOTH 04/29/19 12/31/19 NO 10/10/19 SHEATH ROOFING STANDARDS

227 D HEAT PUMP/ CONCRETE BASE BOTH 06/12/19 09/12/19 NO 8/19/19 FINAL GREENWOOD

227 i 80 SQ. FT ADDITION/REMODEL BTH/KT BOTH 04/20/19 07/20/19 BONDED 6/14/19 FOOTING ANAYA BUILDERS GROUP

227 i stop work order posted for bad work NO POST 6/19/19 GROUND "

227 i met with phyprop and returned to work 10/15/19 6/19/19 ROUGH "

227 i 8/9/19 SHEAR "

227 i 8/9/19 ROOF "

227 i EXTENSION 10/31/19 9/25/19 DRYWALL "

227 i EXTENSION 11/08/19 "

228 C AC/HEAT PUMP BOTH 10/14/19 01/15/20 NO 10/25/19 FINAL GREENWOOD

228 i CARPORT CABINET CP 109 SP 21 GRF 05/10/19 10/10/19 NO 6/24/19 FINAL LW DÉCOR

228 J AC/HEAT PUMP BOTH 01/15/19 02/15/19 NO 2/7/19 FINAL ALPINE HEATING & AIR

228 L AC/HEAT PUMP BOTH 03/18/19 04/18/19 NO 3/25/19 FINAL ALPINE HEATING & AIR

229 H VINYL FLOORING AT LVG,KITCH,HALL GRF 02/15/19 03/15/19 NO 3/18/19 FINAL KARYS CARPETS

230 F TUB REMODEL BOTH 07/29/19 09/30/19 NO 8/7/19 ROUGH REBORN CABINETS

230 F 8/15/19 FINAL "

230 F FLOORING AT BATH GRF 09/20/19 10/20/19 NO 10/10/19 FINAL KARYS CARPETS

230 i EZ ACCESS TUB/GRAB BAR BOTH 03/13/19 04/13/19 NO 3/28/19 FINAL NUKOTE

231 E PATIO TILE GRF 06/30/19 11/30/19 NO 7/26/19 FINAL LW DÉCOR

231 J CAN LIGHTS BOTH 07/09/19 07/13/19 NO 7/24/19 FINAL OGAN CONSTRUCTION

231 J TV ANTENNA GRF 10/28/19 11/03/19 NO OGAN CONSTRUCTION

231 K RETROFIT WINDOWS BOTH 05/10/19 08/10/19 NO 5/1/19 FINAL ALPHA MASTER BUILDERS

232 G PATIO BOTH 01/30/19 03/01/19 03/25/19 2/25/19 FOOTING OGAN CONSTRUCTION

232 G 3/20/19 FINAL "

232 L FAÇADE VENEER GRF 01/20/19 03/01/19 NO 2/6/19 FINAL REAL McCOY BUILDERS

233 H DOOR W/SCREEN/CEILING BLEND/FRM BOTH 06/03/19 07/31/19 WINDOW 6/26/19 ROUGH CAL CUSTOM INTERIORS

233 H 6/28/19 DRYWALL "

233 H 7/29/19 FINAL "

234 A CEILING FAN PATIO BOTH 12/18/18 02/20/19 NO 1/11/19 FINAL LOS AL BUILDERS

234 D PATIO TILE BOTH 08/22/19 11/22/19 NO 9/10/19 FINAL WESTBY4HOMES

234 D AC/HEAT PUMP BOTH 04/08/19 05/08/19 NO 4/11/19 FINAL ALPINE HEATING&AIR

234 F MAYTAG CONDENSOR/FORCED AIR AC BOTH 03/07/19 04/07/19 NO 3/28/19 FINAL ALPINE HEATING&AIR

235 D EZ ACCESS TUB/ GRAB BAR BOTH 11/12/19 12/12/19 NO NUKOTE

235 G FLAIR SKYLIGHTS/4 LED KITCHEN BOTH 02/01/19 04/28/19 NO 3/1/19 FRAME LOS AL BUILDERS

235 G 3/6/19 DRYWALL "

235 G 3/22/19 FINAL "

235 G 2 HEAT PUMPS/PAD BOTH 06/20/19 09/20/19 NO 7/29/19 FINAL GREENWOOD

236 C FLOORING THROUGHOUT GRF 07/01/19 08/01/19 NO 7/16/19 FINAL KARYS CARPETS

236 D REMODEL/NEW PANEL BOTH 03/15/19 06/28/19 09/15/19 6/20/19 ROUGH REAL McCOY BUILDERS

236 D 6/26/19 DRYWALL "

236 D 6/26/19 ELECTRIC

236 D 6/27/19 HOTMOP "

236 D 7/11/19 DRYWALL "

236 D 10/11/19 FINAL "

236 D AC/ CONCRETE PAD BOTH 05/15/19 06/15/19 09/15/19 ALPINE HEATING & AIR

236 H REMODEL BOTH 12/10/18 06/30/19 04/22/19 1/28/19 SHEER LOS AL BUILDERS

236 H 2/13/19 FPEM "

236 H 2/19/19 FRAMING "

236 H 2/21/19 INSULATE "

236 H 2/25/19 FRAMING "

236 H 2/28/19 DRYWALL "

236 H 2/28/19 LATHE "

236 H 6/14/19 FINAL "

237 B CABINETS/KITCH/HALL GRF 01/02/19 03/31/19 NO 1/18/19 FINAL LOS AL BUILDERS

237 F KITCHEN AND BATH COUNTERTOPS BOTH 07/12/19 08/01/19 NO 8/15/19 FINAL LOS AL BUILDERS

237 G DECOBLOCK/REMOVE/CAP GRF 09/25/18 10/25/18 APPROVED 1/4/19 BROWN MAMUSCIA

237 G 1/4/19 FINAL "

237 i WASH/DRYER-4 LIGHTS- CEILING FAN BOTH 02/20/19 03/29/19 2/26 FLOOR 3/1/19 ROUGH REAL McCOY BUILDERS

237 i #2 4/17/19 FINAL "

237 K ENTRY DOOR/MAILSLOT/SCREEN BOTH 10/30/19 11/30/19 NO REAL McCOY BUILDERS

blue color indicates roofs that have been completed and to let contractors know that only Roofing Standards can penetrate the roof on any project

6

206 B 07/26/19 08/29/19 08/29/19 09/10/19 10/03/19

206 L 09/20/18

208 L 01/09/19

210 G 09/14/18 05/08/19 05/10/19 05/22/19 06/04/19

210 H 09/20/18 06/27/19 07/01/19 07/12/19 08/19/19

211 E 09/11/18 02/21/19 02/27/19 03/08/19 04/04/19

212 H 06/12/19

212 K 06/08/18

215 A 10/18/18 02/04/19 02/05/19

215 A " 04/26/19 04/29/19 05/10/19 05/16/19

215 D 12/26/18 05/09/19 05/10/19 05/23/19 06/06/19

215 L 03/06/19 03/25/19 03/26/19 04/08/19 06/17/19

216 B 06/21/18 11/20/18 11/23/18 12/05/18 01/09/19

216 E 6/21/2019

216 K 07/10/18 09/06/19 09/06/19 09/18/19 10/15/19

218 K 01/16/18

219 F 04/09/19 07/12/19 07/22/19 08/01/19 10/10/19

220 A 10/04/19

222 A 01/23/18

222 A 08/19/19

222 L 04/24/19

224 B 03/14/19 07/12/19 07/15/19 07/25/19 08/20/19

224 F 04/09/19 06/11/19 06/28/19 07/11/19 07/29/19

224 H 05/23/19 09/17/19 09/17/19 10/07/19 10/29/19

225 F 11/28/18 05/31/19 06/11/19 06/13/19 07/29/19

226 D 07/30/19 11/08/19

226 L 06/21/18

227 D 09/20/18 05/14/19 05/17/19 05/30/19 08/01/19

227 G 07/16/18 11/09/18 11/28/18 12/12/18 02/06/19

228 i 03/14/19 03/26/19 03/26/19 04/08/19 05/20/19

229 K 04/24/19 06/07/19 06/11/19 06/19/19 07/09/19

231 E 01/09/19 04/10/19 04/18/19 04/29/19 06/17/19

231 K 10/16/18 11/27/18 11/28/18 12/12/18 01/11/19

232 K

233 H 10/16/18 05/19/19 05/23/19 06/05/19 07/05/19

234 i 11/08/19

235 E 06/03/19 09/06/19 09/23/19

236 C 04/23/19 06/06/19 06/14/19 06/24/19 08/15/19

236 G 12/26/18 06/14/19 06/17/19 07/01/19 07/29/19

237 G 06/03/19 09/18/19 09/20/19 10/02/19 10/15/19

UNIT # NMI PLI NBO FI FCOEI ROF DOCUMENTS/COMMENTS

ESCROW ACTIVITY

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

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

7

EMPIRE NOVEMBER 8TH/2018-JANUARY 2019 THIS YEAR/AFTER 3YEARS

BRIGHTVIEW REMOVE 11 BOTTLEBRUSH TREES/ START-OCT. 21ST-COMP. JAN. 31, 2020

ROXYGEN PAINTING COMPANY JULY 21ST,2019 - DECEMBER 31ST,2019

UNIT NUMBER REASONS

SITE VISITS

OGAN CARPORT & LAUNDRY LIGHTS-START 3/18/19-COMPLETION 4/26/19

A-1 TOTAL SERVICE CONSTRUCTION BLDG 237 - APRIL 22ND START-COMPLETION 5/6/19

CONTRACTOR PROJECT

FENN PEST CONTROL APPROVED BY BOD 6/12/17

PINNACLE JULY 1ST 2018-JUNE 30TH 2021

CONTRACTS

ROOFING STANDARDS APRIL 29TH START 2019-COMPLETION 12/30/19

BA CONSTRUCTION APRIL 29TH START 2019-COMPLETION 10/22/19

911 SEWER SPECIALIST SEPTEMBER 9/17/19- 10/17/19

BA CONSTRUCTION 25 BUILDINGS FOR GUTTER CLEANING/ START OCT.21ST-COMP. JAN. 31 2020

ARBOR PRO COMPUTERIZED TREE INVENTORY/ START OCT.21ST- COMP. JAN. 31, 2020

PINNACLE TREE TRIMMING / TO BE COMPLETED BY DEC. 13, 2019

8

Mutual Corporation No. Nine MEMO

TO: MUTUAL BOARD OF DIRECTORS

FROM: MUTUAL ADMINISTRATION

SUBJECT: DISCUSS AND VOTE TO AUTHORIZE TRANSFERS OF FUNDS FOR MUTUAL NINE (CONSENT CALENDAR, ITEM A)

DATE: NOVEMBER 18, 2019

CC: MUTUAL FILE

I move that the Board authorizes the following transfers of funds, per detailed and dated

resolution, by consent calendar.

Transfer/ Invoice Date

Amount Originating/Destination Accounts or Payee

10-15-2019 $11,000.00 Citywide Escrow (Invoice sale of 224H)10-15-2019 $11,000.00 Castlehead Inc. Escrows (Invoice sale of 237G)10-21-2019 $10,762.00 JC Kress Construction (Invoice multiple)10-25-2019 $41,622.66 US Bank Checking to US Bank Restricted Money

Mkt. 11-05-2019 $151,534.07 ACH-Direct Debit from multiple shareholders to

US Bank Checking 11-05-2019 $95,301.94 US Bank Checking to GRF-US Bank Checking 11-06-2019 $57,291.47 US Bank Checking to US Bank Impound

9

Mutual Corporation No. Nine

MEMO



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


CC: MUTUAL FILE

I move to acknowledge that, per the requirements of Civil Code Section 5500(a)-(f), a

review has been completed of the Mutual’s 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, income and expense statement for the Mutual’s operating and

reserve accounts, the check registers, the monthly general ledger and delinquent

assessment receivable reports, for the month of October 2019.

10


MEMO



SUBJECT: DISCUSS AND VOTE TO ADOPT POLICY 7574.09 – ANTENNAS, SATELLITES, AND DIRECTV DISH INSTALLATION TELEVISION TRANSMITTERS (NEW BUSINESS ITEM B)


CC: MUTUAL FILE

On November 18, 2019, the Board of Directors will vote to adopt Policy 7574.09 – Antennas, Satellites, and DirecTV Dish Installation Television Transmitters (attached).

I move to adopt Policy 7574.09 – Antennas, Satellites, and DirecTV Dish Installation

Television Transmitters on a preliminary basis until the 28-day posting period is

completed.

11

1

MUTUAL NINE POLICY – 7574.09

Antennas, Satellite and DirecTV Dish Installation – Television transmitters

If a shareholder wishes to have an Antenna, TV Dish or DirecTV installed the following must be adhered too:

1. A permit to install an approved Antenna by an approved contractor, a Dish Network, Satellite Dish or DirecTV installed by the vendor must be obtained from the Physical Property Department of the Golden Rain Foundation prior to having a television transmitter.

2. The Mutual has the authority to remove any of the television transmitters at shareholder’s expense if a permit is not obtained from the Physical Property Department.

3. Any damage which may occur to the building or roof during installation, or during the operation of any television transmitters, is the responsibility of the shareholder and will be paid by the shareholder.

4. The transmitters must be maintained in good condition, both aesthetically and functionally, by the shareholder. If it is not maintained in good condition by the shareholder, any of the three transmitters will be removed at the shareholder’s expense.

5. Any of the devices must be removed upon the sale, lease or transfer of unit, at the shareholder’s expense, unless the buyer signs Regulation.

6. Installation and wiring is to be performed per Mutual Nine’s installation requirements and conditions.

Antenna Satellite Dish/DirecTV Installation – Exhibit A GENERAL INFORMATION

1. A GRF permit is required for all television transmitter devices installation. 2. Maximum size of satellite dish, DirecTV dish is not to exceed 36 inches. 3. Antenna not to exceed 15 lbs. (HD Digital that is not of the clothes line type due to

birds sitting as the droppings harm the roofs (Exhibit C) 4. The southern view must not be obstructed at any time. There can be no

obstructions, such as trees or structures, between the dish and the satellite. Seasonal foliage, future growth of existing trees, possible remodeling or additions to your unit or adjacent units and changes in landscaping must be considered when installing the satellite dish.

5. All television transmitters must be stable and secure. Even moderate winds can create several hundred pounds of force on the screws attaching the mounting base to the structure.

6. The installation of the television dish transmitters shall be in accordance with the current National electrical code, installed by a licensed television company that meet all Foundation and Mutual insurance requirements

MUTUAL OPERATIONS RESIDENT REGULATIONS television transmitter Installation – MOUNTING LOCATIONS

12

2

1. Installing directly on roof is not allowed due to the required roof penetration. 2. Roof vent pipe mount is allowed. When mounting a television transmitter to a roof

vent, the top of the dish shall not be higher than 4’ above the top of the roof line. Most satellite companies have approved brackets for roof vent installation (see Exhibit B).

3. DirecTV is to be installed at the end of the building and this will accommodate multiple units requesting DirecTV.

4. Antennas must be attached to the roof vent pipe and not on the roofing shingle.

CABLE ROUTINGS – Antennas, Dish, DirecTV

1. Routing must not break through any roofing or framing – vent pipe flashing only. 2. All entry points into the unit and any and all test holes must be sealed with approved

sealant to prevent water seeping into the units. 3. Fire Wall Penetration – Fire – Resistive Wall Partitions and Floors: Such

penetrations shall be completed per the current Uniform Building Code (UBC), Sections 709 and 710.

4. All openings made through a ceiling for penetrations such as cables, cable tracks, conduit, pipes or tubing shall be protected with approved through-penetration fire stops.

5. Vent mount installation require the cable and ground wire from the device to follow the vent pipe into the attic area. Approved tar sealant must be applied where cable enters vent pipe flashing. A half- inch slit at the top of the roof jack is allowed to feed the cable alongside of the vent pipe. Approved silicone sealant must be used around this area.

GROUNDING

1. Local electrical installation codes and the current National Electrical Code require the devices to be grounded.

2. Use ground wire to connect the devices to a metal cold water pipe using a grounding clamp and following the guidelines.

Shareholders violating this policy will be subject to Fine Policy 7585.09.

MUTUAL OPERATIONS RESIDENT REGULATIONS Antennas, Satellite and DirecTV Dish Installation – Television transmitters

MUTUAL ADOPTION

NINE: XX-XX-XX

(draft approved 11-18-2019)

13

3

EXHIBIT B

14

4

Exhibit C

Example: ClearStream MAX-V Indoor Outdoor HDTV Antenna

15




SUBJECT: DISCUSS AND VOTE TO ACCEPT CONTRACT WITH MATIONAL FOR FIVE YEARS (NEW BUSINESS ITEM D)


CC: MUTUAL FILE

I move to approve the five-year contract with National, as submitted and authorize the

President to sign the contract.

16




SUBJECT: DISCUSS AND VOTE TO APPROVE LAUNDRY COST (NEW BUSINESS, ITEM E)


CC: MUTUAL FILE

I move to approve the new cost of shareholder laundry use of $1.00 per wash and $.25

per thirty minute dry.

17


MEMO



SUBJECT: DISCUSS AND VOTE TO APPROVE NEWSLETTER TO SHAREHOLDERS REGARDING LAUNDRY SERVICE (NEW BUSINESS, ITEM F)


CC: MUTUAL FILE

I move to approve the newsletter to be sent to shareholders regarding new laundry

service.

18


MEMO



SUBJECT: DISCUSS AND VOTE NOT TO EXCEED $3,000.00 FOR HOLIDAY PARTY (NEW BUSINESS, ITEM G)


CC: MUTUAL FILE

I move that Mutual Nine approve the budget for the 2019 Holiday Party at a cost not to

exceed $3,000.00.

19




SUBJECT: DISCUSS AND VOTE TO APPROVE $400.00 FLAT RATE FEE TO ROSEMAN LAW PER SB 323 (NEW BUSINESS, ITEM H)


CC: MUTUAL FILE

I move to approve the flat fee of $400.00 from Roseman Law APC regarding the drafting

of a comprehensive set of Election Rules per SB 323.

20




SUBJECT: DISCUSS AND VOTE TO AMEND POLICY 7210.9– ANNUAL ELECTIONS (NEW BUSINESS, ITEM I)


CC: MUTUAL FILE

On March, 3, 2010, the Board of Directors voted to amend Policy 7210.9 – Annual Elections.

On November 18, 2019, the Board of Directors will vote to amend Policy 7210.9 – Annual Elections (attached).

I move to amend Policy 7210.9 – Annual Elections on a preliminary basis until

the 28-day posting period is completed.

21

7210.9 MUTUAL OPERATIONS

STOCKHOLDERS MEETINGS

Annual Elections - Mutual Nine

The following policy is established for the general election of directors to the Mutual Board of Directors.

1. Candidates

a. Candidate Eligibility

In accordance with the Mutual Bylaws, all members in good standing are eligible to run for election to the Mutual Board of Directors. “Good Standing” means that the member is not delinquent in the payment of monthly or special assessments in an amount equal to or greater than one month’s assessment for a period of time greater than 30 days.

b. Notification of Nominations for Election of Directors

The Mutual Board of Directors shall place a notice in the Golden Rain News and/or the Mutual laundry rooms not less than 90 days prior to the annual meeting that any member of the Mutual in good standing may place their name into nomination for the election of directors.

c. Self-Nomination by Shareholders

Mutual members who wish to nominate themselves as a candidate for election to the Mutual Board of Directors must do so in writing not more than 90 days or less than 60 days prior to the annual meeting date.

d. Nominations from the Floor

Candidates may be nominated from the floor during the annual meeting. There is no provision in the Mutual Bylaws allowing for write-in candidates.

e. Equal Access to Clubhouse Facilities

Equal access to clubhouses shall be provided at no cost to all candidates, including those who are not incumbents, and to all members advocating a point of view, including those who are not endorsed by the Mutual Board of Directors, for purposes reasonably related to the election. The clubhouses are subject to availability by reservation only on a first-come, first-serve basis.

f. Nominating Committee

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The Mutual Board of Directors may appoint a Nominating Committee. 2. Election Materials

The Golden Rain Foundation will provide a contracted vendor to assume all election services, including inspector(s) of election, who will be directed to conduct the election under current applicable codes.

3. Voting

a. Qualification for Voting

Votes may be cast by Mutual members in good standing. A member in good standing is defined as a shareholder who is no more than 30 days in arrears of their carrying charge.

b. Cumulative Voting

Since it is anticipated that one or more members will indicate their intent to cumulate their votes, every member entitled to vote may cumulate their votes for the election of directors.

c. Voting by Secret Ballot

All ballots shall be prepared in a manner consistent with providing and ensuring that the member’s vote will be by “secret ballot.”

4. Actions by Mutual Boards

a. The Mutual may appoint observer(s) who may make their observations to the Mutual Board.

b. The Mutual Board shall validate its own election.

MUTUAL ADOPTION AMENDED

NINE: 02-12-07 02-11-08, 03-08-10

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24

November 11, 2019 File No.: sea010818.081

VIA EMAIL [email protected] Board of Directors Seal Beach Mutual No. Nine c/o Jodi Hopkins Mutual Administration Director Golden Rain Foundation P.O. Box 2069 Seal Beach, CA 90740

Re: Seal Beach Mutual No. Nine // [Proposed] Election Rules // Notice of Proposed Rule Change Dear Board of Directors: Pursuant to your request, this office has reviewed your existing governing documents and drafted the enclosed [Proposed] Election and Voting Rules and Regulations (“Election Rules”) to comply with the provisions of your governing documents as well as changes to the Civil Code enacted by Senate Bill 323. Please note that we have included all four permissible discretionary qualifications for running for and serving on the Board in your new Election Rules. These discretionary qualifications, along with the mandatory requirement that directors be shareholders of the Mutual, are now the only qualifications that the Mutual can impose. Please note that under the new law, the Mutual cannot deny a ballot to a shareholder for any reason other than not being a shareholder as of the date the ballots are distributed. Accordingly, you can no longer suspend members’ voting rights. Additionally, your Bylaws do not require the Mutual to allow write-in candidates or nominations from the floor. We have drafted the Election Rules to prohibit write-ins and floor nominations. If the Mutual would like to allow for nominations from the floor and write-in candidates consistent with its existing Election Policy, please advise and we will revise the rules accordingly. Also enclosed is a draft Notice of Proposed Rule Change which the Board can use to give the statutorily required 28-day general notice of the proposed rule change to the shareholders. Please advise us of the estimated date of mailing/posting the notice and the cut-off date for receipt of comments. Upon receipt of this information we will provide the finalized notice to the Board.

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mailto:[email protected]

G:\Shared drives\Active Clients\Seal Beach Mutual No. Nine\sea010818.081 - Election Rules\BOD 11-11-19 Election Rules.docx Page 2 of 2

Please note that following adoption of the rule change at an open meeting, the Board must deliver general notice of the rule change to the shareholders within fifteen (15) days of the meeting. Finally, enclosed herewith please also find a general reference election timeline which the Association can utilize to ensure that it meets all required deadlines under SB 323 and the Civil Code. Should you have any questions concerning the foregoing, the enclosed Election Rules, or the process for adopting the Election Rules following 28-day notice to members, please do not hesitate to contact us.

Sincerely, ROSEMAN LAW, APC

JACQUELINE PAGANO, ESQ. JP/sb Enclosures

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November 11, 2019 File No.: sea010818.081

VIA GENERAL DELIVERY To: Shareholders of Seal Beach Mutual No. Nine Re: Notice of Proposed Rule Change – Election Rules

Dear Homeowner: This office represents Seal Beach Mutual No. Nine (“Mutual”). This notice of a proposed rule change (“Notice”) is provided on behalf of the Board of Directors (“Board”), as required by Civil Code §4360. A. Purpose and Effect of Proposed Rule The purpose and effect of the enclosed proposed Election Rules is to set certain procedural rules for the successful management of meetings of the Mutual’s shareholders and the implementation of the relevant provisions of California Law and the Mutual’s Bylaws concerning elections and voting. As you may be aware, on October 12, 2019, the Governor of California approved Senate Bill 323 which amended, inter alia, California Civil Code §§ 5100; 5105; 5110; 5115; 5125; and 5145 which govern member elections, and which take effect on January 1, 2020. The enclosed proposed Election Rules have been revised to incorporate those amendments. B. Comment Period Pursuant to California Civil Code §4360, the shareholders are entitled to a twenty-eight (28) day review and comment period. If you wish to comment on the proposed Election Rules, please mail your comments to the Seal Beach Mutual No. Nine c/o Jodi Hopkins, P.O. Box 3519, Seal Beach, CA 90740 OR via email to [email protected] so that they are received no later than close of business on ________________________________. You may also provide your comments to the Board at the Board meeting at which the Board will consider the shareholders’ comments before voting to adopt or not to adopt the proposed Election Rules.

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G:\Shared drives\Active Clients\Seal Beach Mutual No. Nine\sea010818.081 - Election Rules\Notice of Operating Rule Change-SB 323 Election Rules.docx Page 2 of 2

C. Conclusion

Thank you for taking the time to review the proposed Election Rules. If you have any questions, please direct them to your community manager at the above-referenced mailing address or via email. Nothing contained herein or omitted herefrom is intended, nor shall be construed, to operate as an admission, limitation, or waiver of any of the Association’s rights, remedies or defenses, at law and/or in equity, all of which are hereby expressly reserved.

Sincerely, ROSEMAN LAW, APC

JACQUELINE PAGANO, ESQ. Enclosure cc: Client

28

Seal Beach Mutual No. Nine Election and Voting Rules and Regulations

Page 1 of 10

SEAL BEACH MUTUAL NO. NINE

ELECTION AND VOTING RULES AND REGULATIONS

INTRODUCTION The Board of Directors (“Board”) of Seal Beach Mutual No. Nine (“Mutual”) has adopted

these Election and Voting Rules and Regulations (“Election Rules”), in accordance with Civil Code §5105, et seq., to establish certain procedural rules for the successful management of meetings of the Mutual’s shareholders (“Shareholders”) and the implementation of the relevant provisions of the Mutual’s Bylaws concerning elections and voting. These Election Rules are not intended to replace or supersede the provisions of the Mutual’s Bylaws. Notwithstanding the foregoing, these Election Rules were revised and adopted by the Board to comply with the changes to California Civil Code §§ 5100; 5105; 5110; 5115; 5125; and 5145 which take effect on January 1, 2020, pursuant to California Senate Bill 323. As such, any inconsistency between these Election Rules and the Bylaws shall be governed in accordance with the Civil Code.

These Election Rules shall not be amended less than ninety (90) days prior to an election. RULES AND REGULATIONS 1. Qualifications of Candidates and Directors/Elected Positions

a. Candidates for election to the Board shall be Shareholders of the Mutual, and the Board shall be composed of seven (7) persons who shall, at all times, be Shareholders of the Mutual.

b. In order to be a candidate for election for Director or any other elected position, such Shareholder, as of the date ballots are distributed: (a) must be current in the payment of Regular and Special assessments ; (b) must not have a joint ownership interest, either directly or indirectly, in the same separate interest as another candidate or incumbent Director; (c) must have been a Shareholder of the Mutual for not less than one (1) year; (d) must not have a past criminal conviction that, if elected, would either prevent the Mutual from purchasing the fidelity bond coverage required by Civil Code §5806, or terminate the Association’s existing fidelity bond coverage. If title to a separate interest is held by a legal entity that is not a natural person, the governing authority of that legal entity shall have the power to appoint a natural person to be a Shareholder for purposes of running for and serving on the Board. Notwithstanding the foregoing, the candidate shall not be disqualified for election for Director for failure to be current in payment of Regular and Special assessments if either of the following circumstances is true:

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Page 2 of 10

(i) The candidate has paid the Regular or Special assessment under protest pursuant to Civil Code §5658; (ii) The candidate has entered into a payment plan pursuant to Civil Code §5665.

Furthermore, the Mutual shall not disqualify the candidate pursuant to this Section 1(b) if he or she has not been provided the opportunity to engage in Internal Dispute Resolution pursuant to Civil Code §§5900-5920.

c. In order to remain qualified to serve on the Board, at all times during such

Shareholder’s term as a Director, the Shareholder must: (a) remain current in the payment of Regular and Special assessments; (b) not enter into a joint ownership interest, either directly or indirectly, in the same separate interest as another Director; (c) must remain a Shareholder of the Mutual; (d) must not be convicted of a crime that would either prevent the Mutual from purchasing the fidelity bond coverage required by Civil Code §5806 or terminate the Mutual’s existing fidelity bond coverage. Notwithstanding the foregoing, the Director shall not be disqualified for failure to be current in payment of Regular and Special assessments if either of the following circumstances is true:

(i) The Director has paid the Regular or Special assessment under protest pursuant to Civil Code §5658; (ii) The Directors has entered into a payment plan pursuant to Civil Code §5665.

Furthermore, the Mutual shall not disqualify the Director pursuant to this Section 1(c) if

he or she has not been provided the opportunity to engage in Internal Dispute Resolution pursuant to Civil Code §§5900-5920.

d. The Board may declare vacant the seat of any Director who ceases to meet the

qualifications for a Director set forth in this Section upon the occurrence of the non-qualifying event, and the Director’s seat shall then be deemed vacant in accordance with the Association’s Bylaws and/or the Corporations Code.

2. Nomination Procedures

a. The Association shall send to all Shareholders a request-for-candidates form, seeking nominations for candidates for the Board and providing general notice of the procedure and deadline for submitting a nomination for election to the Board at least thirty (30) days before any deadline for submitting a nomination. Individual notice shall be delivered pursuant to Civil Code §4040 if individual notice is requested by a Shareholder.

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b. Nominations will be valid so long as the nominee has either nominated himself or herself, or provides notice of acceptance of the nomination prior to the close of nominations.

c. If a person or entity nominated is not qualified to serve on the Board pursuant to

Section 1(b) of these Election Rules, and the candidate has been provided the opportunity to engage in Internal Dispute Resolution pursuant to Civil Code §§5900-5920, that candidate’s name shall not appear on the ballot and that person or entity will not be permitted to serve if elected. d. The Inspector shall retain, as Mutual election materials, both a candidate registration list and a voter list. The voter list shall include the name, voting power, and either the physical address of the Shareholder’s Unit, the parcel number, or both. The mailing address for the ballot shall be listed on the voter list if it differs from the physical address of the Shareholder’s Unit or if only the parcel number is used. The Mutual shall permit Shareholders to verify the accuracy of their individual information on both lists at least thirty (30) days before the ballots are distributed. The Mutual or Shareholder shall report any errors or omissions to either list to the Inspector or Inspectors who shall make the corrections within two (2) business days. 3. Voting Qualifications of Shareholders

a. All Shareholders shall be entitled to vote in any Shareholder vote. b. These Election Rules expressly:

(1) Prohibit the denial of a ballot to a Shareholder for any reason other than not being a Shareholder at the time when ballots are distributed; (2) Prohibit the denial of a ballot to a person with general power of attorney for a Shareholder; (3) Require the ballot of a person with general power of attorney for a Shareholder to be counted if returned in a timely manner; and, (4) Require the inspector or inspectors of elections to deliver, or cause to be delivered, at least thirty (30) days before an election, to each Shareholder both of the following documents: (A) The ballot or ballots;

(B) A copy of these Election Rules. Delivery of these Election Rules may be accomplished by either of the following methods:

(i) Posting these Election Rules to an internet website and including

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the corresponding internet website address on the ballot together with the phrase, in at least 12-point font: “The rules governing this election may be found here:”

(ii) Individual delivery.

c. Each Shareholder shall have one (1) vote per stock owned. In no event shall more than one (1) vote be cast with respect to any stock. When more than one (1) person holds a stock, all such persons shall be deemed Shareholders, provided however, that the vote for such stock shall be exercised as a unit, in accordance with the provisions of the Mutual’s governing documents. If two or more ballots are received for any one stock, the first ballot received shall be counted and the additional ballot(s) discarded. 4. Inspector of Election

a. At an open meeting, the Board shall appoint one (1) or three (3) persons to serve as independent Inspector(s) of Election (“Inspector(s)”).

b. The Inspector must be an independent third party who is not:

(i) Currently a member of the Board or a candidate for the Board; (ii) Related to a member of the Board or a candidate for the Board; or (iii) A person, business entity, or subdivision of a business entity who is

currently employed or under contract to the Mutual for any compensable services other than serving as an Inspector of Elections.

c. The Board may select as the Inspector(s), Mutual Shareholder(s), a volunteer poll

worker with the County registrar of voters, a licensee of the California Board of Accountancy, a notary public, or any other independent third-party authorized to serve as Inspector(s) under these Election Rules.

d. The Board, in its discretion, may remove and replace the Inspector(s) at any time

prior to the date of any election.

e. The Board may pay reasonable compensation to a non-Shareholder third-party Inspector. If the Board determines that it will appoint and pay non-Shareholder third-party Inspector, the following terms must be fulfilled:

(i) A formal written contract for the Inspector, stating that the Inspector is an

independent contractor;

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(ii) The Inspector will maintain insurance with at least $1 million CGL coverage, including completed operations coverage, and $1 million D&O/E&O (naming the Mutual and GRF as additional insureds on both policies); and

(iii) The contract shall require the Inspector to indemnify the Mutual for gross

negligence and willful and/or malicious misconduct.

f. If an Inspector is unwilling, unable, or does not perform his/her duties as stated in these rules or becomes ineligible to be an Inspector at any time after appointment, the Board may remove that Inspector without notice, and may appoint another Inspector in his or her place.

g. The Inspector shall perform his/her duties impartially, in good faith, to the best of his or her ability, and as expeditiously as is practical.

h. The Inspector shall have the duty to:

(i) Determine the number of Shareholders entitled to vote and the voting power of each;

(ii) Determine the authenticity, validity, and effect of proxies, if required by

statute;

(iii) Receive ballots; (iv) Verify the Shareholder’s information and the presence of a signature on

the outer envelope. For mailed ballots, the Inspector(s) may verify the Shareholder’s information and presence of a signature on the outer envelope prior to the election;

(v) Determine the existence of a quorum, if required by statute or the

governing documents. For the purposes of determining a quorum, each ballot received by the Inspector(s) shall be treated as a Shareholder present, except in the case of duplicate ballots or multiple ballots from the same stock;

(vi) Hear and determine all challenges and questions in any way arising out of

or in connection with the right to vote;

(vii) Count and tabulate all votes;

(viii) Determine when the polls shall close, consistent with the governing

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documents; (ix) Determine the tabulated results of the election; (x) Report the tabulated results of the election or balloting promptly to the

Board of Directors to ensure that the Board can publicize the results to the Shareholders within fifteen (15) days of the election; and

(xi) Perform any acts as may be proper to conduct the election with fairness to

all Shareholders in accordance with Civil Code section 5110, the Corporations Code, and all applicable rules of the Mutual.

i. The Inspector may meet and discuss election issues amongst themselves and/or

with Mutual counsel. j. If there are three (3) Inspectors, the decision or act of two (2) or more Inspectors

shall be effective in all respects as the decision or act of all.

k. The Inspector may appoint and oversee additional persons to verify Shareholders’ information and signatures and to count and tabulate votes as the Inspector deems appropriate.

l. The Inspector’s report of the election, once signed to certify the election, is prima facie evidence of the facts stated in the report. 5. Access to Association Media

a. No candidate or Shareholder shall be provided access to Mutual media, newsletters or internet web sites during the campaign except with the express consent of the Board, and solely for purposes that are reasonably related to that election. The Board’s consent may be withheld at its sole discretion and for any reason.

b. In the event access to Mutual media, newsletter or internet web sites is granted to any candidate or Shareholder advocating a point of view, during any campaign for purposes that are reasonably related to that election, then all candidates and Shareholders advocating a point of view, including those not endorsed by the Board, shall be provided equal access for purposes reasonably related to that election.

c. In the event access to Mutual media, newsletter or internet websites is granted, the Mutual shall not censor, edit or redact any content from the communications of the candidates and Shareholders advocating a point of view, but may include a statement specifying that the candidate or Shareholder, and not the Association, is responsible for the content of the message. The following statement may be published by the Mutual:

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“The views expressed are those of its author and do not reflect the view of the Mutual, its directors, managers, employees or agents. The author is solely responsible for its content. The Mutual was required by law to publish the communication as written, regardless of content.”

6. Access to Common Area Meeting Space

a. If any Common Area meeting space exists within the Mutual, access to such meeting space shall be made available at no cost to all candidates, including those who are not incumbents, and to all Shareholders advocating a point of view, including those not endorsed by the Board, for purposes reasonably related to the election or vote, upon reasonable request.

7. Mutual Funds

a. Mutual funds shall not be used for campaign purposes in connection with any election except to the extent necessary to comply with the duties of the Mutual imposed by law. 8. Proxies

The Mutual is not required to prepare and distribute proxies. All proxies shall be in writing, dated and filed with the Secretary before the appointed time of each meeting. Each proxy shall be revocable and shall automatically cease upon conveyance by the Shareholder of his or her stock, or upon receipt of notice by the Secretary or the Board of the death or judicially declared incompetence of a Shareholder, or upon the expiration of three (3) years from the date of the proxy. The authenticity, validity and effect of proxies submitted by Shareholders shall be determined by the Inspector(s), consistent with the Mutual’s Governing Documents and any statutory requirements. If a Shareholder submits both a proxy and a ballot to the Inspector(s), the ballot will supersede the proxy. Proxies may not be used in lieu of a ballot. Proxies may not be revoked once a proxyholder has submitted a ballot to the Inspector(s). Only a Shareholder may serve as a proxyholder. 9. Voting Period

a. The Board shall generally determine the dates upon which polls will open and close, consistent with the governing documents and applicable law.

b. The Mutual shall provide general notice of all of the following at least thirty (30)

days before the ballots are distributed:

(1) The date and time by which, and the physical address where, the ballots are to be returned by mail or handed to the Inspector or Inspectors of Elections;

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(2) The date, time, and location of the meeting at which ballots will be counted; (3) The list of all candidates’ names that will appear on the ballot;

(4) Individual notice of the above shall be delivered pursuant to Civil Code §4040 if individual notice is requested by a Shareholder.

c. All candidates shall have a reasonable opportunity to communicate their

qualifications to Shareholders and to solicit votes. 10. Secret Balloting Procedures

a. The Mutual shall utilize a secret ballot process pursuant to Civil Code section 5115 for the following matters:

(i) A vote of the Shareholders regarding assessments per Civil Code section 5605;

(ii) Election of members of the Board;

(iii) Amendments to the governing documents;

(iv) Grant of Exclusive Use Common Area pursuant to Civil Code section 4600; (v) Removal of Directors; and

(vi) Any other Shareholder vote which the law requires to be conducted via the

secret ballot process;

b. Notwithstanding Paragraph 10(a) herein, the Mutual may utilize a secret ballot process for any other Shareholder vote, if allowed by law or the governing documents.

c. A ballot and two pre-addressed envelopes (Envelopes # 1 and # 2) with

instructions on how to return the ballot shall be mailed by first-class mail or delivered by the Mutual to every Shareholder at least thirty (30) days prior to the deadline for voting.

d. The ballot shall contain the names of any candidates known to the Mutual at the

time the ballot is mailed. If no candidates are known or if there are fewer candidates than the number of Directors to be elected, the Mutual will send out a ballot which has the names of the known candidates.

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e. Cumulative voting is permitted in all elections. f. Write-in candidates and nominations from the floor shall not be permitted. g. A voter may not be identified by name, unit number, or address on the ballot.

h. The ballot itself is not signed by the Shareholder voting, but rather, is to be

inserted into Envelope # 1 that is sealed by the Shareholder. Envelope # 1 is then inserted into Envelope # 2, which is then sealed by the Shareholder.

i. Envelope # 2 is addressed to the Inspector(s). In the upper left-hand corner of Envelope # 2, the voter shall sign his or her name, print his or her name, and indicate the address or separate interest identifier that entitles him or her to vote.

j. Envelope # 2 may be mailed or delivered by hand to a location specified by the Inspector(s). The Shareholder may request a receipt for delivery.

k. Once a ballot has been cast, it cannot be revoked.

l. Only the Mutual’s ballots and envelopes which are sent out to the Shareholders by the Mutual or are provided by the Mutual at the membership meeting will be accepted by the Inspector(s). 11. Vote Tabulation

a. All votes shall be counted and tabulated by the Inspector(s), or the duly authorized persons appointed by the Inspector(s), in public at a properly noticed Shareholders meeting.

b. The ballots shall not be opened or otherwise reviewed prior to the time and place

which the ballots are counted and tabulated.

c. Any candidate or Shareholder may witness the counting and tabulation of the votes. Shareholders are prohibited from speaking to the Inspector(s) of Elections or their designee(s) during the tabulation process or from interrupting the tabulation process in any way.

d. The Inspector(s), or his or her designee, may verify the Shareholder’s information and signature on Envelope #2 prior to the meeting at which ballots are tabulated.

12. Election Results

a. The Inspector(s) shall promptly report the results of the election to the Board. The Board shall record the results of the election in the minutes of the next Board meeting and make them available to the Shareholders for review.

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b. Within fifteen (15) days of the election, the Board shall publicize the results of the

election in a communication directed to all Shareholders.

13. Custody, Storage and Retention of Ballots

a. The sealed ballots, signed voter envelopes, voter list, proxies, and candidate registration list (collectively referred to as “election materials”) shall, at all times be in the custody of the Inspector(s), or at a location designated by the Inspector(s), until after the tabulation of the vote, and until the time allowed by Civil Code §5145 for challenging the election has expired, at which time the ballots shall be transferred to the Mutual.

b. If there is a recount or other challenge to the election process, the Inspector(s)

shall, upon written request, make the ballots available for inspection and review by an Shareholder or his or her authorized representative. Any recount shall be conducted in a manner that preserves the confidentiality of the vote.

c. After the transfer of the ballots to the Mutual, the election materials shall be stored by the Mutual in a secure place for no less than three (3) years following the date of the election.

d. The Inspector shall retain, as Mutual election materials, both a candidate

registration list and a voter list. The voter list shall include the name, voting power, and either the physical address of the voter’s Unit, the parcel number, or both. The mailing address for the ballot shall be listed on the voter list if it differs from the physical address of the voter’s Unit or if only the parcel number is used.

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SB 323 GENERAL REFERENCE ELECTION TIMELINE 120 Days Prior Deadline for giving notice of any amendment to the Election Rules

requiring a 28-day comment period.

110 Days Prior Send out call for candidates and procedure for nominations by

general notice* (provide 30 days to return nominations).

90 Days Prior Cut-off for adopting amendment to Election Rules.

80 Days Prior Cut-off for receipt of nominations.

79 Days Prior Send out notice of disqualification to any nominees who are not

qualified to run, advising that nominee has 7 days from date of

notice to request IDR in writing, which, if requested, will be

completed within 15 days of the date of the notice of

disqualification.

64 Days Prior Deadline for completing IDR with disqualified candidates.

Candidate list finalized.

60 Days Prior • Provide general notice* containing all of the following:

o The date and time by which, and the physical address

where, ballots are to be returned by mail or handed to the

inspector;

o The date, time and location of the meeting at which

ballots will be counted; and

o The list of all candidates’ names that will appear on the

ballot.

• Deadline for members to verify the accuracy of their individual

information on the candidate registration list and voter list

upon request.

30 Days Prior • Ballots and double envelopes sent to members.

• Copy of election operating rules delivered to members by

either of the following methods:

o Posting the election operating rules to a website and

including the website address on the ballot together with

the phrase, in at least 12-point font: “The rules governing

the election may be found here;” or

o Individual delivery.

Day of Election Inspector opens and counts ballots at open meeting.

Within 15 days After Election Provide general notice* of election results to members.

*If a member has requested individual delivery of all Association notices, the Association will have to provide individual notice to any member so requesting.

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