finance committee agenda administration conference …sep 16, 2019 · i. sandblasting machine for...

FINANCE COMMITTEE

Agenda Administration Conference Room

Monday, September 16, 2019 9:00 a.m.

1. Call to Order/Pledge of Allegiance

2. Roll Call/Notice of Quorum

3. Chairs Announcements

a. Introduction of Guests and Staff

Linda Stone, GRF President

Randy Ankeny, Executive Director

Carolyn Miller, Director of Finance

Julie Rodgers, Purchasing Manager

Corina Mancilla, Recording Secretary b. Rules of Order

c. Chairs Report

4. Shareholder/Member Comments (Limited to 3 minutes per person)

5. Approval of Minutes

a. Minutes of Regular Meeting, August 19, 2019 (pp. 1-7)

6. Correspondence (N/A)

7. Staff Reports

a. Purchasing Manager (pp. 8-10)

b. Finance Director (pp. 11-16)

c. Executive Director

8. Subcommittee Reports (N/A)

9. President’s Comments

10. Financials

a. Accept Month of August 2019 Financial Statements for Audit (pp. 17-22)

11. Unfinished Business

a. Selection of Audit Firm – 2020 Financial & 401(k) Audits and Tax Preparation (p. 23)b. GRF Board Goals – Discussion Only (pp. 24-25)

c. Resales Office Contract – Discussion Only

12. New Business

a. Investment Ladder

i. Reserve Funds Transfer & Investments (pp. 26-27)

ii. Capital Funds Investments (pp. 28-29)

b. Future Vision (p. 30)

c. Request for Fee Waiver (pp. 31-32)

d. Capital Funding Request

i. Sandblasting Machine for Service Maintenance (pp. 33-36)

ii. Radia Paint Shaker for Service Maintenance (pp. 37-39)

iii. Barreto Mini Trencher for Service Maintenance (pp. 40-43)

e. Reserve Funding Request

i. Replacement of Roofs and HVAC Unit (pp. 44-46)

13. Governing Documents

a. Adoptb. Amend

i. 40-5115-3, Finance Committee Charter (pp. 47-49)ii. 40-5528-1, Refund of Excess Income (pp. 50-52)iii. 40-5540-1, Contingency Operating Fund (pp. 53-54)

c. Rescindd. Review

i. 40-5061-2, Fees (pp. 55-59)ii. 40-5516-3, Committee Non-Budgeted Expenses (p. 60)

14. Future agenda items

15. Next Meeting

Monday, October 21, 2019 – 9:00 a.m.

Administration Conference Room

16. Adjournment

d

FINANCE COMMITTEE MINUTES

August 19, 2019

The meeting of the Finance Committee was held on Monday, August 19, 2019 and was called to order at 9:00 a.m. by Chair Winkler, in the Administration Conference Room, followed by the Pledge of Allegiance. ROLL CALL

Present: Ms. R. Winkler, Chair Mr. P. Friedman, Vice Chair Mr. T. Dodero Mr. B. Lukoff

Mr. N. Massetti Mr. P. Pratt Ms. K. Rapp Ms. L. Stone, Ex-Officio

Absent:

Staff and Guests: Mr. R. Ankeny, Executive Director

Ms. C. Miller, Director of Finance Ms. J. Rodgers, Purchasing Manager Mark Weaver, Facilities Director Kathy Thayer, Assistant Recreation Manager Mrs. C. Mancilla, Recording Secretary Mrs. L. Perrotti, GRF Representative, Mutual One Ms. J. St. Aubin, GRF Representative, Mutual One Ms. P. Snowden, GRF Representative, Mutual Two Ms. S. Hopewell, GRF Representative, Mutual Six Ms. S. Fekjar, GRF Representative, Mutual Eight Ms. J. Isom, GRF Representative, Mutual Sixteen

Ten Shareholders/Members

Chair Winkler greeted and welcomed everyone to the Finance Committee meeting and introduced Foundation members, guests and staff.

By unanimous consent, the Chair declared the reading of the quorum notification be dispensed with.

In accordance with California Civil Code Section 4090, please be advised that a quorum of the GRF Board of Directors is present at today’s posted meeting. The business of the Finance Committee will be conducted in accordance with the agenda. As a quorum of the Board is present, this meeting will be conducted as a committee meeting and a Board meeting. The agenda actions of the committee will be limited only to the members of the committee and will only constitute such actions in accordance with stated committee policy and/or provide recommendations to the GRF Board of Directors at its regular Board meeting on the 4th Tuesday of the month. GRF Board members who are not committee members will be allowed to comment when recognized by the Chair and only during the

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FINANCE COMMITTEE MINUTES – 08/19/19 Page 2 of 7

proscribed Foundation member/shareholder comment period, not to exceed three minutes, as set forth in Policy 5610, Participation by Foundation Members/Shareholders. The minutes of today’s Committee Board meeting will be presented to the Board for approval following the approval of the committee meeting minutes in October 2019. CHAIR’S ANNOUNCEMENTS Chair Winkler welcomed the Committee members, guests and staff, including GRF President Linda Stone; Executive Director Randy Ankeny; Director of Finance Carolyn Miller; Purchasing Manager Julie Rodgers; Mark Weaver, Facilities Director; Kathy Thayer, Assistant Recreation Manager and Recording Secretary Corina Mancilla. Peter F. Alliegro, CFA, Financial Advisor with The Shadden group (Morgan Stanley) presented information at the time of the meeting. SHAREHOLDER COMMENTS Three Shareholders/Members spoke at the time of the meeting.

APPROVAL OF MINUTES

The minutes of the July 15, 2019, regular meeting were accepted, as presented.

CORRESPONDENCE

There was no correspondence at the time of the meeting. STAFF REPORTS Purchasing Manager The Purchasing Manager provided the monthly report, as presented in the agenda packet. It was a Consensus of the Committee to return Cintas uniforms with names attached to the uniforms, to staff. Finance Director The Finance Director provided her monthly financial reports, as presented in the agenda packet. Executive Director The Executive Director provided information and updates throughout the meeting.

SUBCOMMITTEE REPORTS (N/A)

2


PRESIDENT’S COMMENTS

The President commented on the items pertaining to the Committee’s area of purview

throughout the meeting.

FINANCIALS The Finance Director reviewed the Financials for the month of July. After a brief

discussion, Ms. Rapp MOTIONED, seconded by Mr. Friedman and carried unanimously

by the Committee members–

TO accept for audit and forward to the GRF Board, the financial statements for period ending July 2019, as presented by the Director of Finance and as reviewed by the Finance Committee.

UNFINISHED BUSINESS Request for Proposal - 2020 Financial & 401(k) Audits and Tax Preparation – Discussion

Only

The Committee discussed the requests for proposals. No action was taken.

GRF Goals The Committee discussed the GRF Goals. No action was taken.

2020 Budget Assumptions (CC431, CC432, CC439, CC460 & CC465) The Finance Director and Staff members reviewed and discussed the draft of 2020 Budget Assumptions, for Cost Centers 431, 432, 439, 460 & 465, and reviewed and discussed with the Committee members. Resales Office Contract

The Committee discussed the resales office contract. No action was taken. NEW BUSINESS

Investments Ladder

i. Funds Transfer – Reserve

After a brief discussion, Mr. Friedman MOTIONED, seconded by Mr. Lukoff and carried unanimously by the Committee member–

TO recommend the GRF Board to transfer the balance of the

money market account (Reserve funds) at First Foundation

3


Bank to Morgan Stanley to close the account at First

Foundation Bank and to invest with Morgan Stanley and to

transfer 1.6 million of Reserve funds from US Bank to Morgan

Stanley for the purpose of investing in brokered CDs.

ii. CD Purchase – Reserve

After a brief discussion, Mr. Friedman MOTIONED, seconded by Mr. Dodero and carried unanimously by the Committee member–

TO recommend the GRF Board, the purchase of brokered CDs from Morgan Stanley totaling $ 1.6 million plus balance of the First Foundation Bank money market account, reserve funds, with terms ranging from twelve (12) months to eighteen (18) months, at the prevailing interest rates at the time of purchase.

After further discussion, Mr. Pratt MOTIONED, seconded by Mr. Dodero and carried unanimously by the Committee member–

TO amend the terms of the purchase of brokered CDs from Morgan Stanley to range from six (6) months to twelve (12) months.

i. CD Purchase – Capital

After a brief discussion, Mr. Massetti MOTIONED, seconded by Mr. Dodero and carried unanimously by the Committee member–

TO recommend the GRF Board, upon maturity of a CD in September, the purchase of brokered CDs from US Bancorp totaling $247,000 of Capital improvement funds from the US Bank Money Market account, with 6-month to 12-month terms, at the prevailing interest rates at the time of purchase.

Chair Winkler called in for a fifteen-minute break at 10:20 a.m.

Membership Fees

It was the consensus of the Committee to address this agenda item at the next scheduled meeting under governing documents, 40-5061-2, Fees. Lockbox Services: ClickPay Proposal

After a brief discussion, Mr. Lukoff MOTIONED, seconded by Mr. Massetti and carried unanimously by the Committee member–

TO recommend the GRF Board accept the proposal submitted by ClickPay.

4


Locker Use Agreement

After a brief discussion, Mr. Dodero MOTIONED, seconded by Ms. Rapp and carried unanimously by the Committee member–

TO deny the Locker Use Agreement, as presented and send back to the Recreation, for further review.

Locker Agreement/Invoicing Cycle

It was Consensus of the Committee to send the locker agreement/invoicing cycle back to Recreation for further review. California Lottery – Self-Serve Lottery Ticket Machine, Bldg. Five

After a brief discussion, Ms. Rapp MOTIONED, seconded by Mr. Dodero–

TO recommend the GRF Board, the installation of a California

Lottery, self-serve lottery ticket machine, in the lobby of

building.

The motion was carried with one no vote (Lukoff).

Capital Funding Request – Shade Cover for Veteran’s Plaza

After a brief discussion, Mr. Friedman MOTIONED, seconded by Mr. Dodero and carried unanimously by the Committee member–

TO recommend the GRF Board allocate Capital funding, for

Veterans Plaza Shade Structure, in an amount not to exceed

$29,986.

Capital and Reserve Funding Request – Pool Complex Replacement and Renovations

After a brief discussion, Mr. Pratt MOTIONED, seconded by Mr. Friedman and carried unanimously by the Committee member–

TO recommend the GRF Board allocate Capital and Reserve

funding, for the pool complex replacement and renovations,

not to exceed a combine total amount of $750,000 (Capital

funding $194,935 and Reserve funding $555,065).

Reserve Funding Request – Replacement of Parking Stall Street Markings

After a brief discussion, Mr. Massetti MOTIONED, seconded by Ms. Rapp and carried unanimously by the Committee member–

5


TO recommend the GRF Board allocate Reserve funding, for

the marking of all Trust Property parking spots adjacent to

curbs with T’s and L’s, in an amount not to exceed $18,270.

Reserve Funding Request – Replacement of Interior Components of Clubhouse Six

Leased Space (Apartment)

After a brief discussion, Mr. Lukoff MOTIONED, seconded by Ms. Rapp and carried unanimously by the Committee member–


the installation of new blinds, paint and to replace the flooring

in the Ambulance Room at CH6, in an amount not to exceed

$5,968.

Reserve Funding Request – Golf T-Box Replacement

After a brief discussion, Mr. Dodero MOTIONED, seconded by Ms. Rapp–


the Golf Course T- Box Replacement, in an amount not to

exceed $70,923.

The motion was carried with one no vote (Massetti) and one abstention (Pratt).

RV Lot Use Fees

After a brief discussion, Ms. Rapp MOTIONED, seconded by Mr. Dodero and carried unanimously by the Committee member–

TO recommend the GRF Board amend 70-1487.01-2, Recreational Vehicle Lot (RVL) – Schedule of fees and monetary fines, as presented.

Membership Fee

After a brief discussion, Ms. Winkler MOTIONED, seconded by Mr. Friedman and carried unanimously by the Committee member–

TO refund the membership fee, in the amount of $3,797 to Nonresident Co-Owner.

Draft 2020 Budget

After a brief discussion, Ms. Rapp MOTIONED, seconded by Mr. Friedman and carried unanimously by the Committee member–

6


TO recommend the GRF Board approve the 2020 budget, as

presented.

The motion carried with one no abstention (Pratt).

GOVERNING DOCUMENTS

Amend 40-5516-3, Committee Non-Budgeted Expenses

It was consensus of the Committee to bring back 40-5516-3, Committee Non-Budgeted

Expenses, to the next scheduled meeting for review.

Rescind 30-5519-3, Committee Budgeted Expenses

After a brief discussion, Ms. Rapp MOTIONED, seconded by Mr. Dodero and carried unanimously by the Committee member–

TO recommend the GRF BOD rescind 30-5519-3, Committee

Budgeted Expenses, as presented.

FUTURE AGENDA ITEMS

The Committee concurred to add as future agenda items:

1. Resales Contract

2. Governing Documents:

• 40-5061-2, Fees

• 5115, Finance Committee Charter

• 40-5516-3, Committee Non-Budgeted Expenses

ADJOURNMENT Chair Winkler adjourned the meeting at 12:00 p.m. ________________________________ Ronde Winkler, Chair FINANCE COMMITTEE cm 08.19.19

7

Golden Rain Foundation September 16, 2019 Meeting of the Finance Committee

Purchasing Manager’s Report Budget Variance Report:

8


Purchasing Manager’s Report

Cost center 432 is favorable to budget a total of $34,519 YTD. Notable variances are:

9


Purchasing Manager’s Report Purchasing Services Report, month ending August 31, 2019:

Month/Month inventory changes:

Total inventory by location, rolling 6 months:

Surplus Equipment: Nothing new to report.

10


Director of Finance Report

Page 1

11



Page 2

For Cost Center 431 – Finance Department, as of August 31, 2019, there was an overall favorable variance of $73,113. The major variance is the following:

Budget Timeline

12



Page 3

Café Commission Report

Aged Receivables as of 8/31/2019

13



Page 4

SRO Aging Recap:

Contract Renewal Report (See attached)

14

Contract Contract Contract

Committee Vendor Name Amount Start Date End Date*

Finance CLIF01 CliftonLarsonAllen LLP 144,000 1/1/2015 12/31/2019

Finance SUPE04 Superwire Telecom, Inc. PBX Agreement 59,544 ** 2/18/2004 Mo to Mo

Finance DLDI01 DLD Insurance Brokers 439,443 12/1/2018 12/1/2019

Finance ASSO02 Association Reserves 9,500 3/29/2017 3/29/2020

Finance KYOC01 Kyocera Maintenance based on usage 3/28/2019 6/30/2024

Finance KYOC01 Kyocera Lease 21,960 3/28/2019 6/30/2024

Finance UNIF01 UniFirst Uniform Company based on usage 1/8/2019 1/8/2024

Finance CORO01 Corodata Records Management based on usage * 9/26/2014 12/31/9999

* Expiration date of 12/31/9999 signifies a self-renewing contract after initial term.

** Estimated annual expense

Golden Rain Foundation

Operating Expense Contracts - Finance Committee

As of 08/31/19

15

Committee Client Name Revenue Contract Expiration Date*

Finance 3RVCLUB RV Club 1 Ground Lease 1 year 7/31/2019

Finance 3FRIENDSLIB Friends of the Library 1 Ground Lease 6 Month 12/31/2019

Finance 3GAF Golden Age Foundation 1 Ground Lease 6 Month 12/31/2019

Finance 3GENE01 Genealogy Club 1 Ground Lease 6 Month 12/31/2019

Finance 3HIST01 Historical Society 1 Ground Lease 6 Month 12/31/2019

Finance 3RADI01 Radio Club 1 Ground Lease 6 Month 12/31/2019

Finance 3THEA01 Theater Club 1 Ground Lease 6 Month 12/31/2019

Finance 3VIDEO01 Video Producers Club 1 Ground Lease 6 Month 12/31/2019

Finance 1008 Seal Beach Mutual No. Eight - *** Lease 1/23/17 - 12/31/19 12/31/2019

Finance 3CHARLES Charles Briskey Real Estate Inc. 120,000 ** Ground & Service Lease 1 yrs 12/31/2019

Finance CARE 36,000 Ground & Service Lease 2 yrs 5/31/2020

Finance 1014 Seal Beach Mutual No. Fourteen 1 *** Lease 7/27/2018 - 7/26/2021 7/26/2021

Finance 3SUPERWIRE Superwire Telecom, Inc. 18,000 Ground Lease 4 years 6/30/2022

Finance Superwire Telecom, Inc. Telecommunication Services 3.5 yrs 6/30/2022

Finance 3NUVISION NuVision Federal Credit Union 18,000 Ground & Service Lease 5 yrs 11/7/2022

Finance Optum Care 660,000 Ground & Service Lease 5 yrs 9/30/2023

Finance SCE Payment Processing 2,600 * Revenue Lease- Updated 4/7/17 12/31/9999

* Expiration date of 12/31/9999 signifies a self-renewing contract after initial term.

** Estimated annual revenue

*** Upon expiration of these contracts, GRF will quit claim these properties to the respective Mutual


Revenue Contracts - Finance Committee

As of 08/31/19

16

Golden Rain Foundation Leisure World, Seal Beach

COMMITTEE ACTION REQUEST

TO: FINANCE COMMITTEE

FROM: DIRECTOR OF FINANCE (CM)

SUBJECT: ACCEPTANCE OF THE AUGUST 2019 FINANCIAL STATEMENTS

DATE: SEPTEMBER 16, 2019

CC: FILE

Following a review of the financial statements, in accordance with Policy 40-5115-3 and all applicable sections of the civil code 5500,

Committee Action Recommended: To accept for audit and forward to the GRF Board the financial statements for period ending

August 2019, as presented by the Director of Finance and as reviewed by the Finance

Committee.

17

Financial Recap – August 2019

Page 3

As of the eight-month period ended August 2019, the draft financial reports indicate that GRF is in a favorable financial position with a surplus of $438,826. Major variances are: Wages, Taxes & Benefits 404,303 Favorable: Wages $161K; P/R Taxes $23K; Workers’

Comp $31K; Group Ins $172K; 401(k) Match $17K Temporary Agency Fees (142,204) Unfavorable: Temporary help for key positions. Supplies 41,120 Favorable: Low requisitions YTD Professional Fees (42,947) Unfavorable: Litigation Facilities Rentals & Maintenance 105,105 Favorable: Landscaping $75K; Repairs & Maintenance

$14K; Service Contracts $16K Property & Liability Ins Prem 26,084 Favorable: Projected YE budget variance $34K Rental Income (48,674) Unfavorable: Lower unit sales than planned Interest Income 104,681 Favorable: Actual yields > planned News Advertising (129,728) Unfavorable: Budget planned more aggressive sales Other Income 71,236 Favorable: Purchasing Processing Recovery $35K;

Lost Member ID Card $11K; Fees $23K Reserve Funds

Fund

Balance

Allocated For Current

Projects

Allocated For Future

Projects

For details, see page

Repairs & Replacements $10,017,499 $1,810,457 $8,207,042 7 Capital Funds

Fund Balance

Allocated Funds

Unallocated Funds

For details, see page

Capital Improvements $2,087,909 $282,651 $1,805,258 8

Total year-to-date approved unbudgeted operating expenses are $27,770.

18

Cost Center Amount Comments

236 - News (36,353) Advertising income

320 - Human Resources (26,073) Vacation Accruals - company wide unfav.; Recruitment & agency fees unfav.

439 - Onsite Sales Office (56,443) Low sales volumes but recovering652 - Clubhouse Two (8,255) Building repairs

745 - Amphitheater (960) Added police for shows; Spotlight ad income

749 - Janitorial (9,490) Contract renewal with increase847 - 5.5 Acre Storage Area (8,444) Lease revenue less than budgeted

934 - Info Technology (3,983) FFT invoice from 2018; Axxerion license renewal not budgeted $6,500.

Total Unfavorable Variances (150,001) of Total Company Variance $438,826

Golden Rain FoundationAugust 31, 2019

Cost Centers with Unfavorable Budget Variances

19

Contingency Capital

Operating Reserve Improvement Nonrestricted

Fund Fund Fund Funds Total

Balance 12/31/2018 550,000 9,732,925 1,643,004.70 25,545 11,951,475

Funded: Assessments 833,335 833,335

Funded: Amenities Fees collected (384) 715,650 715,650 1,431,300

Funded: M17 Lease Fees collected (25) 5,821 5,821 11,641

Funded: Interest on Funds 69,097 4,265 73,362

Progress Payments on CIP -

Expenditures (1,079,154) (280,831) (1,359,986)

Commitments (260,174) (260,174)

Transfers to/from Funds 150,000 (150,000) -

Interest Income Allocation -

Net Monthly Activity 125,358 125,358

Balance 08/31/2019 700,000 10,017,499 2,087,909 903 12,806,311

Net Activity 150,000 284,574 444,904 (24,642) 854,836


Cash Flow Activity - All Reserves

For the Period Ended August 31, 2019

Page 4a 20

Contingency Capital

Operating Reserve Improvement Nonrestricted

Fund Fund Fund Funds Total

Balance 7/31/2019 700,000 9,809,230 1,955,643 86,603 12,551,477

Funded: Assessments 104,167 104,167

Funded: Amenities Fees collected (73) 138,591 138,591 277,181

Funded: M17 Lease Fees collected - - - -

Funded: Interest on Funds 8,168 1,003 9,171

Progress Payments on CIP -

Expenditures (42,657) (7,328) (49,985)

Commitments - -

Replenish funds for Donated Assets -

Transfers between funds - -

Interest Income Allocation -

Net Monthly Activity (85,700) (85,700)

Balance 8/31/2019 700,000 10,017,499 2,087,909 903 12,806,311

Net Activity - 208,269 132,266 (85,700) 254,835


Cash Flow Activity - All Reserves

For the Month of August 2019

Page 4b 21

2019 Capital PlanCost 2019 Total TTD Allocated

Center Proj # Description Unapproved Projects Expenditures Funds

236 904-19 Automatic Swing Door Opener (Horton 4000 LE) 3,150 3,150 - 460 888-18 Medical Building Improvements- Concrete Replacement & Roof Installation 20,756 20,756 - 460 889-18 Medical Building Landscape Improvements 10,429 10,429 - 574 896-19 Service Maintenance Improvements to Break room, Locker room, and Restroom 73,624 68,181 5,442 629 894-19 Administration Conference Room A Upgrades 10,083 10,083 - 652 Five EV Charging Stations 10,000 - 10,000 654 906-19 Clubhouse Four - Phase 1-3 (Hallway two side doors and lockers / display cabinets) 20,850 18,601 2,249 654 880-18 Murals at Clubhouse Four 5,000 2,955 2,045 655 905-19 Building Five Reconfiguration- 1st floor (Security Offices/Copy Center Improvements) 17,223 17,051 172 679 1.8 Acres Upgrades- Electrical Service Installation 50,000 - - - 679 885-18 Bus Stop Signage at ten locations 6,500 6,500 - 679 Café Patio- Purchase Four Standard Patio Furniture Sets 8,089 8,089 - 679 738-15 Compliance with California Manual on Uniformed Traffic Control Devices (CAMUTCD) 12,590 12,590 - 679 884-18 Consulting Services for the roofs at Administration and Amphitheater Building 7,500 7,500 - 679 877-18 Crosswalk Modification from Medical Center to Clubhouse Six- ADA Plus Plan 6,300 6,300 - 679 886-18 Iron fence/gates at Mission Park 7,520 7,520 - 679 Learning Center 75,000 - - - 679 Main Gate Delineators (Permanent Hold) - - - 679 Marquee Monument 25,000 - - - 679 820-17 Pedestrian Gate at Northwood Road 26,242 26,242 - 679 897-19 Seating at Mission Park 3,000 3,000 - 679 Veterans Plaza Shade/Solar 70,014 29,986 - 29,986 735 Patio Game Tables 3,340 3,340 - 746 907-19 Golf Course Fountains 5,297 5,297 - 748 850-17 Pool Area Planning- replace/enhance or modify 30,065 25,000 8,575 16,425 748 Pool Renovations 194,935 - 194,935 837 Access Control 250,000 - - - 837 Security Office and Lobby 50,000 - - - 934 5002-18D Dynamics GP 2018 183,148 161,751 21,398

- - Total Planned Capital Acquisitions 550,079 690,562 407,911 282,651

Fund Balance 2,087,909 2019 Unapproved 550,079

Total Approved Projects 690,562 Total To-Date Expenditures (407,911)

Surplus 1,255,179

Page 8 22





SUBJECT: SELECTION OF AUDIT FIRM


CC: FILE

Proposals received from four independent audit firms were distributed to the members of the

Finance Committee at its regularly scheduled meeting on August 19, 2019. Today, the Comittee

members discussed the proposals and made the decision to accept the proposal from

CliftonLarsonAllen (CLA), for audit and tax services for the 2020 through 2022 fiscal years.

Committee Action Recommended: I move to accept the proposal from CliftonLarsonAllen (CLA), for audit and tax services for the

2020 through 2022 fiscal years.

23




FROM: RANDY ANKENY, EXECUTIVE DIRECTOR

SUBJECT: 2019/2020 GOALS, RECAP


CC: FILE

At the June 21, 2019 Board retreat, general goals and projects originating from 2018/2019 Committee term were presented to the 2019/2020 term Board. This exercise was to seek unofficial direction on priority setting. Of the eleven (11) general project/goals presented falling under the general oversite of the Finance Committee, the following listed in order of ranking:

Actions as of August 22, 2019 on the above projects/goals listed in order of ranking

• Finalization of Microsoft Dynamics

o Project Completed

24

2

• Elevation of GRF Entry Wage to $15

o Approved, August 2019 and incorporated as part of the 2020 Operational

Budget

• Finalization of Member Code of Conduct

o In Executive Committee

• Evaluation of Exclusive Use of Trust Property

o Presentation at October FC, RC, FAR

• 401K benefit Review

o Under Executive Committee Review

• 2020 Reserve Study

o Pending actions/recommendations from:

▪ FAR

▪ RC Subcommittee on Restaurant and Bar

▪ SPAH

• CLA Financial Control Audit

o Upon review of proposal , no actions were taken – Re-evaluate?

• Finalize/Establish Policies re: Governing Document Control

o In Governing Document Committee

• Review/Finalize 2020/Reserve and Capital Fund Projects

▪ FAR

▪ RC Subcommittee on Restaurant and Bar

▪ SPAH

• Recommendation to BOD re: Function of SPAH

o Under SPAH review

Actions Requested:

1. Review of the listed projects/goals.

2. Make additions/deletion and or amendment of the projects/goals.

3. Formulate priority of the projects/goals for the 2019/2020 Committee term.

4. Make Committee recommendation to the Board to approve the 2019/2020 term.

5. Provide final approval to close all projects listed as complete.

25





SUBJECT: RESERVE FUNDS TRANSFER & INVESTMENTS


CC: FILE

Investment Activity – September

Based on the information above, the amount of liquid reserve funds is sufficient to support current

commitments, and therefore it is not necessary to transfer funds nor to purchase additional

investments for the month of September.

Committee Action Recommended: None

26

Reserve Funds Investment Ladder as September 16, 2019

Maturity InvestmentTerm Month Amount Rate Loc

0 Sep-19 244,000 2.45% U1 Oct-19 244,000 2.45% U2 Nov-19 245,000 2.65% U3 Dec-19 243,000 2.65% U4 Jan-20 343,000 2.70% U/M8 Feb-20 1,000,000 2.50% U6 Mar-20 1,035,000 1.90% U/M7 Apr-20 246,000 2.65% U8 May-20 500,000 2.40% M9 Jun-20 245,000 2.85% U

10 Jul-20 778,000 2.75% U/M11 Aug-20 735,000 1.95% M12 Sep-20 490,000 1.70% M13 Oct-20 246,000 2.85% U14 Nov-20 490,000 2.35% M15 Dec-20 738,935 3.10% U/M16 Jan-21 245,000 2.75% U17 Feb-21 245,000 1.76% M18 Mar-21 - 19 Apr-21 245,000 3.05% U20 May-21 245,000 3.15% U21 Jun-21 - 22 Jul-21 245,000 2.75% U23 Aug-21 - 24 Sep-21 - 25 Oct-21 245,000 3.15% U26 Nov-21 - 27 Dec-21 - 28 Jan-22 - 29 Feb-22 - 30 Mar-22 - 31 Apr-22 - 32 May-22 - 33 Jun-22 - 34 Jul-22 - 35 Aug-22 - 36 Sep-22 -

27





SUBJECT: CAPITAL FUNDS INVESTMENTS


CC: FILE

Investment Activity – September

Based on the information above, the amount of liquid capital funds is sufficient to support current

commitments, and therefore it is not necessary to transfer funds nor to purchase additional

investments for the month of September.

Committee Action Recommended:

None

28

Capital Funds Investment Ladder as of September 16, 2019

Maturity InvestmentTerm Month Amount Rate

0 Sep-19 247,000 2.35%1 Oct-192 Nov-193 Dec-194 Jan-208 Feb-206 Mar-20 253,000 2.45%7 Apr-20 250,000 2.35%8 May-209 Jun-20

10 Jul-2011 Aug-2012 Sep-2013 Oct-20 250,000 2.40%14 Nov-2015 Dec-2016 Jan-2117 Feb-2118 Mar-2119 Apr-2120 May-2121 Jun-2122 Jul-2123 Aug-2124 Sep-2125 Oct-2126 Nov-2127 Dec-2128 Jan-2229 Feb-2230 Mar-2231 Apr-2232 May-2233 Jun-2234 Jul-2235 Aug-2236 Sep-22

29



TO: GRF STANDING COMMITTEES

FROM: STRATEGIC PLANNING AD HOC COMMITTEE

SUBJECT: FUTURE VISION

DATE: AUGUST 21, 2019

CC: FILE

At the Strategic Planning Ad hoc Committee (SPAH) meeting on August 21, 2019, the Committee determined that additional input is required from all GRF standing Committees, to formulate a vision of Trust Property for the next 25 to 50 years, supporting the mission of the Golden Rain Foundation of Seal Beach:

The Golden Rain Foundation provides an enhanced quality of life for our active adult community of Seal Beach Leisure World.

SPAH is requesting each standing Committee to set an agenda item titled – Vision. Under this agenda item, the Committee should discuss the future vision of Trust Property under the Committee’s general scope of purview and provide to SPAH any recommendations which would mutually benefit the majority of the Shareholders in the enhancement of quality of life, as well as, protecting and enhancing property values.

A vision can be defined as an outline of where GRF is headed as an organization and as Trustee of Trust Property, focusing on the future and what is/may be required to maintain the mission of GRF in a rapidly changing social, economic and demographical environment. This vision should represent our mission and core values while guiding GRF into our journey into the future.

Your Committee’s vision responses would be appreciated by October 1, 2019

30

Request to Waive Lost GRF ID Card Non-Surrender FeePolicy 1201-33

Today's Date ^/^//^fResident's Mutual Apt.# Addres ^21 ^,^n;^cW^ .P^rrl •*t

M

Your request to waive the $500 fee incurred for a lost GRF ID Card will be reviewed at thenext regularly scheduled Finance Committee (3rd Monday of the month).

Reason fee should be waived: ple^t^ S^e^ aA

Signature of Requester.

FOR OFFICE USE ONLY:

Date of Finance Committee Review:

Approved Waiver of Fee

Stock Transfer Notification Date:

Finance Department Notification Date:

Denied Waiver of Fee

CURRENT CONTACT INFORMATION:

Mailing Address:

Phone Number:

Request to Waive GRF ID Card Surrender Fee 6/26/18 njr

31

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32




FROM: MUTUAL ADMINISTRATION COMMITTEE

SUBJECT: CAPITAL FUNDING REQUEST - SAND BLASTING MACHINE


At its regularly meeting on September 9, 2019, the Mutual Administration Committee moved to request the Finance Committee review and determine if Capital funds are available for the purchase of a sand blasting machine for the Service Maintenance Department, for a cost not to exceed $7,500.

I move to allocate Capital funding, for the purchase of a sand blasting machine for the

Service Maintenance Department, for a cost not to exceed $7,500, and forward this

request to the GRF Board of Directors, after Finance approval.

.

33





SUBJECT: CAPITAL FUNDING REQUEST – RADIA PAINT SHAKER


At its regularly meeting on September 9, 2019, the Mutual Administration Committee moved to request the Finance Committee review and determine if Capital funds are available for the purchase of a paint shaker machine for the Service Maintenance Department, for a cost not to exceed $8,500.

I move to allocate Capital funding, for the purchase of the Radia Paint Shaker for the

Service Maintenance Department, for a cost not to exceed $8,500, and forward this

request to the GRF Board of Directors, after Finance approval.

37





SUBJECT: CAPITAL FUNDING REQUEST – BARRETO MINI TRENCHER


At its regularly meeting on September 9, 2019, the Mutual Administration Committee moved to request the Finance Committee review and determine if Capital funds are available for the purchase of a mini trencher for the Service Maintenance Department, for a cost not to exceed $11,557.

I move to allocate Capital funding, for the purchase of a mini trencher, for the Service

Maintenance Department, for a cost not to exceed $11,557, and forward this request to

the GRF Board of Directors, after Finance approval.

40


FUNDING ACTION REQUEST


FROM: PHYSICAL PROPERTY COMMITTEE (MW)

SUBJECT: RESERVE FUNDING REQUEST - REPLACEMENT OF ROOFS AND HVAC UNIT


CC: FILE

At its regularly scheduled meeting on September 4, 2019, the Physical Property Committee (PPC) duly moved and approved to recommend the GRF Board of Directors, approve the roof replacement at the Administration and Amphitheater buildings and for the removal and re-installation/replacement of HVAC equipment on these roofs, after review by the Finance Committee for funding. The Physical Property Committee seeks Finance Committee review and consideration to determine if sufficient Reserve funds, not to exceed $500,000, are available for the Administration and Amphitheater buildings roofs. NOTE: Attached exhibit A of the Reserve Study.

I move to allocate Reserve funding, for the Administration and Amphitheater buildings roofs, in an

amount not to exceed $500,000, and forward this request to the GRF Board of Directors, after

Finance approval.

.

44

EXHIBIT A

# ComponentUseful Life (yrs)

Rem. UsefulLife (yrs)

Current AverageCost

1800 Elevator - Modernize

1802 Elevator Cab - Remodel

25

20

6

10

$100,000

$8,250

Amphitheater

317 Sewage Ejection Pump - Replace317 Sewage Pumps - Replace317 Storm Pumps - Replace

361 Large Pole Lights - Replace505 Brown 3' Iron Railing - Replace505 Brown Single Iron Railing - Replace505 White 3' Iron Railing - Replace505 White Single Pipe Railing - Replace601 Carpet - Replace603 Vinyl Squares Floor - Replace608 Hardwood Stage Floor - Replace610 Hardwood Floor - Refurbish

814 Blast Doors - Replace910 News Room - Remodel

916 Amateur Radio Equipment916 Amateur Radio Room Furnishings918 Emergency Operations Center920 Theater Bleachers - Replace920 Theater Club Furnishings - Replace920 Theater Drapery - Replace920 Theater Lighting - Replace920 Theater Rigging - Replace920 Theater Sound - Replace921 Ad/Productian Room Facility

922 Amphitheater Office Furnishings925 Projector/DVD Player-Replace926 Main Server - Replace

933 Pianos - Replace951 Bathrooms - Major Refurbish

970 Camera System - Replace1101 Doors - Repaint

1110 Interior Surfaces - Repaint1113 Metal Surfaces - Repaint1115 Exterior Flatuvoik - Repaint1116 Wood Surfaces - Repaint

1302 Cap Sheet Roof - Re-coat1302 Cap Sheet Roof-Replace

15

15

10

18

25

25

25

25

8

30

30

10

25

12

10

15

15

30

15

10

30

30

20

15

15

10

7

30

30

12

5

10

5

10

5

10

20

2

9

2

11

9

9

9

1

0

26

6

1

7

1

1

1

19

1

9

1

26

19

11

5

7

6

11

3

11

4

5

5

5

5

0

10

$7,650

$7,500

$5,050

$5,100

$12,000

$3,600

(13,000

$20,000

$6,700

$14,000

$58.000

114,000

$100,000

$12,000

$7,650

$2,750

$6,000

$460,000

$5,600

{37,700$74,000

$27,500

$120,000S47.500

$11,000

$10,900

$100,000

$27,000

$110,000

$15,500

$2,600

$15,000

$4,100

$18,000

$8.800

$15,000

$125.000

Library

601 Carpet - Replace

605 Tile Floor - Replace

924 Patron Management System951 Bathrooms - Major Refurbish951 Friends of Library Bathrm - Refurb960 Library Furnishings - Replace

1110 Interior Surfaces - Repaint

1115 Stucco - Repaint

8

30

10

20

20

15

10

10

2

16

5

6

6

13

1

9

$22,000

$4,350

$6,850

$14,000

$2,800

5120,000

$2,000

$7,500

Association Reserves, 26608-1 5 10/8/2018

45

Executive Summary26608-1

# ComponentUseful Ufe (yrs)

Rem. UsefulLife (yrs)

Current AverageCost

Administration Building601 Carpet - ReplaceS05 Tile Floor-Replace924 Sans Audit Equipment924 Sans Audit Equipment Wi-Fi926 Back-up Server - Replace951 Bathrooms - Major Refurbish960 2nd Floor Remodel Projects960 Accounting/Admin Furnishings - Repl960 Conference Room960 GRF Board Room - Remodel960 Stock Trans & Finance Work Stations960 Stock Transfer Kitchenette1110 Interior Surfaces - Repaint1115 Stucco - Repaint1116 Wood Surfaces - Repaint1302 Cap Sheet Roof - Re-coat1302 Cap Sheet Root-Replace1800 Elevator - Modernize1802 Elevator Cab - Remodel

8

30

8

8

7

20

15

15

15

15

25

15

10

10

5

10

20

25

12

6

12

5

5

0

1

10

12

4

4

23

11

8

9

4

0

24

11

$22,000

$5,150$34,000$61,000

$50,000$75,000!43,000

(75.000

$14,000

$5,350

$31,000

$8,250

$20.000$6,500

$4,900

$10,000

$19,500

$80,600

$12,000

Clubhouse #1

303 Space Heater - Replace361 Pole Lights - Replace370 Lg Interior Lights - Replace601 Carpet - Replace603 Vinyl Flooring - Replace901 Kitchen Appliances - Replace920 Ballroom Furnishings - Replace920 Historical Society Furniture - Repl920 Lobby Furnishings - Replace927 Billiard Rooms - Remodel927 Billiard Tables - Replace930 Woodshop Equipment - Replace933 Piano - Replace951 Bathrooms - Remodel1110 Interior Surfaces - Repaint1115 Stucco - Repaint1116 Wood Surfaces - Repaint1121 Wood Siding - Replace1308 Asphalt Shingle Roof-Replace1330 Gutter System - Replace1350 Skylights - Replace1821 Shuffleboard Equipment - Replace

24

20

20

10

20

20

15

15

15

15

15

10

30

20

10

10

5

30

25

25

25

15

17

019

2

2

6

11

4

11

4

6

0

29

9

8

2

2

9

21

6

6

4

$2,600$9,850

$12,000$13.500$45,000$67,000$31,000$14,000516,500t5,700

$15,500$40,000$5,000

$46,500

$26,000

510,700

(10,350

$60,500

5120,000$6,800

$9,500

$16,500

Clubhouse #2

316 Sewer Election System - Replace361 Pole Lights - Replace

Association Reserves, 26608-1

15

20

120

2

$145,000

$4,600

10/8/2018

46

40-5115-3 FINANCE

Committee Charter

(Jul Sep 19) GOLDEN RAIN FOUNDATION Seal Beach, California

Page 1 of 3

1

Pursuant to state statute (Corp. Code §7210; Corp. Code §7212(c)) and Article VIII of the 2

Bylaws of the Golden Rain Foundation (GRF), the Board of Directors (BOD) hereby establishes 3

the Finance Committee (FC) and grants to the Committee authority specifically stated within 4

the GRF governing documents. 5

6

In accordance with Article VII Section I of the Bylaws, the committee chair and members shall 7

be appointed by the GRF President and approved by action of the BOD. 8

9

1. GOALS: 10

11

1.1. Increase organizational effectiveness and efficiency 12

1.2. Protect, Protect, preserve, and improve our assets 13

14

2. PURPOSE: 15 16

Oversee all matters pertaining to: Finance; Purchasing; Insurance (Excluding Workers 17

Compensation); Investments; Reserve Study; Capital; Income Producing Leases; Fees and 18

Management Agreements. 19

20

3. COMPOSITION: 21 22

If the Chair of Physical Properties isn’t appointed by the GRF President to this Committee, the 23

Chair can be seated as an advisory Director to the Finance Committee if they so choose. 24

25

4. DUTIES: 26 27

4.1. Publish an agenda four (4) days in advance of the Committee meeting; 28

4.2. Elect a Vice-Chair at the first meeting; 29

4.3. Review monthly staff report formats to be included in the monthly agenda; 30

4.4. Meet with the Finance Department (FD) staff at least monthly or whenever such 31

meetings are deemed necessary, unless cancelled by the chair; 32

4.5. Ensure that the financial reporting, procedures and practices of the FD are 33

acceptable from an ethical and professional viewpoint and that they conform to 34

all existing standards of generally accepted accounting principles (GAAP); 35

4.6. Review on a monthly basis all financial information as required under applicable 36

sections of the Civil code. Such review shall include but not be limited to: 37 38 4.6.1. Current reconciliation of operating accounts. 39

4.6.2. Current reconciliation of reserve accounts. 40

4.6.3. Actual operating revenues and expenses compared to current year’s 41

47

http://www.davis-stirling.com/DavisStirlingAct/CorporationsCode7210/tabid/1043/Default.aspx#_blank

http://www.davis-stirling.com/DavisStirlingAct/CorporationsCode7212/tabid/1045/Default.aspx#_blank

40-5115-3 FINANCE

Committee Charter


Page 2 of 3

budget. 42

4.6.4. Accounts statements prepared by the financial institutions where the 43

association has its operating and reserve accounts. 44

4.6.5. Income and expense statement for the association’s operating and 45

reserve accounts. 46

4.6.6. Check register, monthly general ledger and delinquent assessment 47

receivable reports. 48

4.7. Develop and control all cost centers and general ledger account numbers as 49

necessitated in the accounting operations of GRF; 50

4.7.1. Originate, research, evaluate and develop plans, ideas and programs 51

pertinent to FD; 52

4.8. Receive and analyze requests from the BOD, Standing Committees, Mutual 53

Boards and Administrative Staff; 54

4.9. Keep the Board regularly informed of existing or prospective needs or 55

procedures affecting finance; 56

4.10. Cooperate with the Director of Finance and Executive Director (ED) in the 57

ongoing accounting matters in conjunction with the Mutual Corporations; 58

4.11. Review the draft consolidated budget and make recommendations to the BOD; 59

4.12. Make recommendations to the BOD concerning the master insurance policy; 60

4.13. Review and make recommendations to the BOD concerning all income 61

producing leases and management agreements; 62

4.14. Recommend an auditing firm to the BOD for approval; 63

4.15. Assist the BOD in understanding the compliance with any contracts relating to 64

Finance. 65

4.16. Provide an initial approval of the annual budget for cost centers 431 (Finance), 66

432 (Purchasing), 439 (Resales Office), 460 (Health Care Center), and 465 67

(Reserve Funding), including Capital requests and upcoming Reserve 68

replacements; 69

4.17. Review monthly budget comparisons for cost centers 431(Finance), 432 70

(Purchasing), 439 (Resales Office), 460 (Health Care Center), and 465 (Reserve 71

Funding); 72

4.18. Review the annual audit and draft financial statement and make 73

recommendations to the BOD; 74

4.19. Review policies for cost centers 431(Finance), 432 (Purchasing), 439 (Resales 75

Office), 460 (Health Care Center, and 465 (Reserve Funding) yearly and send 76

recommended changes to the BOD for approval; and 77

48

40-5115-3 FINANCE

Committee Charter


Page 3 of 3

4.20. Furnish a report at the GRF Annual meeting. 78

79

80

81

5. LIMITATIONS: 82 83

It is to be recognized that the function of the Committee is to act in an advisory and consulting 84

capacity. 85

86

Regulatory or supervisory activities affecting employed personnel are functions of Management 87

and not to be encroached upon by any Committee Chairperson or member, either individually or 88

collectively. 89

90

The Committee does not have the authority to enter into written contracts or oral agreements 91

with any third parties on behalf of the GRF BOD. Authority to authorize contracts and/or 92

expenses rests solely with the BOD. 93

94

95

Document History

Adopted: 11 Jul 69 Revised: 15 Dec 76 Revised: 19 Nov 85

Revised: 19 Mar 96 Revised: 21 Jun 16 Revised: 27 Sep 16 Amended: 28 Mar 17 Reviewed: 17 May 18 Amended: 26 Feb 19 Amended: 23 Jul 19 Keywords:

96

49




FROM: RANDY ANKENY. EXECUTIVE DIRECTOR

SUBJECT: AMEND, 40-5528-1, REFUND OF EXCESS INCOME AND 40-5540-1, CONTINGENCY OPERATING FUND.


CC: FILE

The issue of risk and liability is complex. The Golden Rain Foundation, Seal Beach (GRF) should establish itself as a business with a limited liability structure to protect Trust assets and funds as well as limit exposure to unforeseen expenses associated with being an employer and GRF’s diverse business functions. Modern management concepts place great emphasis on an orderly approach to the future. In 2018, the Board took action to eliminate the insurance and liability fund. This action was solely based upon known business conditions at the time. Ever changing California Laws and the increasing burden of litigation is creating higher risk of liability as a Corporation and employer. California has produced more new employment-related laws than anywhere else in the country. These ever-increasing legislative actions impose additional burdens on GRF as an employer and a Corporation through the trend of expanding employee rights and increasing the risks of corporate liability. Based upon a trend of ongoing threats of litigation, there is a clear and present need to re-establish comprehensive measures to protect GRF and its Shareholder/Members, by the amendment of 40-5528-1, Refund of Excess Income and 40-5540-1, *Contingency Operating Fund. The proposed revisions and amendments to the documents will help support the establishment of our business operations with a limited financial liability structure resulting from risk including, but not limited to:

o Natural Disasters

o Lawsuits Regarding

▪ Misinterpretation of contracts

▪ Lawsuits regarding customer, employee, or third-party injury

o Fines enacted by the state or federal government for failure to meet regulations

o Liabilities incurred as an employer

50

2

*Policy 40-5540-1, Contingency Operating Fund, this contingency fund is cash reserved to address unforeseen circumstances or losses in a business. The role of the contingency fund is to improve a company's financial stability by developing a safety net that, through approved action of the GRF Board, can be used to fill cash flow situations where cash levels from the general operating fund become insufficient to cover operating expense through acts of nature and liability as a corporation and employer. This contingency fund allows GRF to react to emergency funding needs while continuing with at least some normal operations and greatly reduces the possibility of special assessment. The contingency fund gives GRF the flexibility to address emergencies and unexpected expenses, through acts of litigations, that require large cash outlays with little to no disruption of its ability to pay routine expenses.

It is inherent in GRF planning function that there should be moments at regular intervals when, as a business, GRF pauses and thinks about the uncertainties of the future. As part of the proposed amendment to the 40-5540-1, Contingency Operating Fund, no less than annually during the drafting of the operational budget, shall conscious decision be held to ensure limits of the policy are reasonable with general industry trends in the areas of risk and liability.

I move to recommend the Board amend 40-5540-1, Contingency Operating Fund and

40-5528-1, Refund of Excess Income as presented.

51

Finance 40-5528-1 REFUND OF EXCESS INCOME

(Jul 19) GOLDEN RAIN FOUNDATION Seal Beach, California

Page 1 of 1

1

2

The Golden Rain Foundation (GRF) shall eliminate its excess fiscal year, operations budget 3

income by one of the following methods: 4

5

1. Funding requirements under Policy 40-5540-1, Contingency Operating Fund; or 6

1.2. Refund the entire amount to the Mutual Corporations; or 7

8

2.3. Retain an amount for future unbudgeted expenses Transfer to Reserves; or 9

10

3.4. A combination of Options 1, 2 and 32. 11

12

Should the GRF elect to retain an amount for future unbudgeted expenditures, the total 13

accumulated amount so retained shall not exceed the limit authorized by the Board per Policy 14

40-5540-1 5540-31, Contingency Operating Fund. 15

16

17

Document History

Adopted: 01 Sep 76 Amended: 09 Feb 82 Revised: 13 Aug 85

Effective: 31 Dec 85 Amended: 23 Feb 88 Amended: 19 May 98 Amended: 16 Mar 99 Rewritten: 20 Aug 02 Amended: 28 Oct 14 Amended: 23 Oct 18 Amended: 23 Jul 19 Keywords:

18

52

Finance 40-5540-1 CONTINGENCY OPERATING FUND


Page 1 of 2

1

The Contingency Operating Fund (the Fund), although an extension of the general operating 2

fund, is maintained as a separate fund. Its sole purpose is to cover cash flow situations where 3

cash levels from the general operating fund become insufficient to cover operating expenses. 4

5

Contingency Operating Fund, this contingency fund is cash reserved to address 6

unforeseen circumstances or losses in a business. The role of the contingency fund is to 7

improve a company's financial stability by developing a safety net that though approved 8

action of the GRF Board, can be used to fill cash flow situations where cash levels from the 9

general operating fund become insufficient to cover operating expense through acts of 10

nature and liability as a corporation and employer. 11

12

This contingency fund allows GRF react to emergency funding needs while continuing with 13

at least some normal operations and greatly reduces the possibility of special assessment. 14

The contingency fund gives GRF the flexibility to address emergencies and unexpected 15

16

1. AUTHORIZED USES OF THE FUND 17

18

1.1. Due to a timing issue, a significantly large budgeted expenditure is required to 19

be paid before enough funds have been collected through monthly 20

assessments; 21

1.2. Due to a timing issue, a significantly large prepaid expense, such as the annual 22

insurance renewal, is required to be paid when cash demands exceed cash 23

supply. 24

1.3. In the unlikelihood of unanticipated significantly large unbudgeted expenses 25

causing the operating fund to be depleted, such as an insurance claim 26

deductible, Lawsuits, Fines enacted by the state or federal government, and 27

liabilities incurred as an employer, the Fund can be used to continue paying 28

normal operating expenses. 29

30

2. THE FUND WILL BE REGULATED AS FOLLOWS: 31

32

2.1. The fund shall maintain a maximum balance of $700,000 $1,000,000. 33

34

2.2. The amount in the fund will be reviewed annually during budget study by the 35

GRF Finance Committee with a conscious recommendation to the Board to 36

determine if maximum balance under section 2.1 is reasonable with general 37

industry treans in the areas of risk and liability further payments into the fund 38

will be needed for the following fiscal year. 39

40

2.2.1. The Finance Committee will provide recommendation to the Board for 41 additional funding based upon preexisting and potential risk assessments. 42

43

2.3. Necessary draws from this fund will be determined by the Director of Finance 44

solely to meet with provisions under 1.1 and 1.2 of this policy . 45

53

Finance 40-5540-1 CONTINGENCY OPERATING FUND


Page 2 of 2

2.3.2.4. Necessary draws from this fund under section 1.3, shall requires the approval 46

of the Board of Directors 47

48

2.5. The Fund shall be replenished using: 49

2.5.1. Ggeneral operating funds when the general operating fund has enough funds to 50

do so without creating a low cash flow situation as determined by the Director of 51

Finance 52

2.5.2. Under policy 40-5528-1, Refund of Excess income. 53

2.4.2.5.3. Capital Funds upon approval of the Board of Directors 54

55

2.5.2.6. The Director of Finance will report the status of this fund monthly as part of the 56

financial report delivered to the members of the Finance Committee. 57

58 Document History

Adopted: 23 Oct 18 Amended: 23 Jul 19 Keywords:

59

54

Finance 40-5061-2 FEES


Page 1 of 5

1

The following schedule of fees is established by the Golden Rain Foundation (GRF). 2

3

1. FACILITIES AND AMENITIES (AMENITIES) FEE: 4 5

1.1. Each owner, co-owner, co-occupant non-owner, or qualified permanent 6

resident is required to pay a one-time, non-refundable Amenities fee. 7

1.2. The Amenities fee for an owner, co-owner, co-occupant non-owner or qualified 8

permanent resident represents a use fee for access and use of the Trust 9

facilities, amenities, and participation in GRF activities. 10

1.3. Non-resident co-owners do not pay an Amenities fee and have no right to use 11

any of the facilities or amenities except as a guest of a Member. 12

1.4. The Amenities fee is calculated as twenty-four (24) times the monthly GRF 13

assessment and rounded up to the nearest dollar. The Amenities fee is 14

reviewed annually and is implemented on January 1st of each year. 15

1.5. Existing GRF Member (owner & co-owner), co-occupant non-owner(s) and 16

qualified permanent resident(s) may transfer from one unit to another without 17

having to pay the Amenities fee again. They have thirty (30) days to complete 18

the transfer. 19

1.6. If they are out of the community for more than thirty (30) days, a new Amenities 20

fee will need to be paid. 21

1.7. The Amenities fee shall be allocated as follows: 22

1.7.1. Fifty percent (50%) into the GRF Capital Improvement Fund. 23

1.7.2. Fifty percent (50%) into the GRF Reserve Fund. 24

2. PAYMENT OF AMENITIES FEE: 25 26

2.1. New Members are encouraged to pay the Amenities fee in full at the close of 27

the purchase escrow. By California statute, GRF has established a finance plan 28

to pay the Amenities fee over a seven-year period for those Members who wish 29

to finance the fee. 30

31

2.2. Members who opt to finance the payment of their Amenities fee must complete 32

a Promissory Installment Note and agree to the terms of the Note. 33

34

2.2.1. If a Member opts to finance the Amenities fee, the 35

Member shall pay a one-time upfront payment of twenty-36

five percent (25%) of the total Amenities fee at the close 37

of Escrow and make seven (7) equal annual installment 38

payments of the remaining balance. Each annual 39

payment will be due and payable on the anniversary of 40

the date of purchase until the principal amount, including 41

55



Page 2 of 5

the finance charge, is paid in full. 42

2.2.2. The annual finance charge on matured, unpaid amounts 43

shall be one percent (1%) per month (APR of 12%) paid 44

annually on the outstanding balance. 45

2.2.3. In the event that a unit changes ownership before the 46

Amenities fee is paid in full, the balance due must be paid 47

before transfer is complete. 48

2.2.4. All co-occupant non-owners and qualified permanent 49

residents must pay the Amenities fee in advance without 50

an option to finance. 51

52

3. MEMBERSHIP CERTIFICATE AND MUTUAL STOCK CERTIFICATE PROCESSING 53

FEE: 54 55

3.1. GRF shall issue one membership and one stock certificate per unit. They may 56

contain one or more names. 57

3.2. A certificate processing fee of two hundred fifty dollars ($250) will be charged 58

in advance each time the certificates are changed or altered to cover the cost 59

of preparing, recording and/or replacing either or both certificates. 60

3.3. The certificate processing fee will be waived when a shareholder/member 61

elects to remove a deceased co-owner from the title and have new certificates 62

issued. The fee will be waived only within one (1) year of the owner’s death 63

and will not be waived for other transfer requests such as the replacement of 64

lost certificates, or the addition or removal of Member owners or non-resident 65

co-owner(s). 66

3.4. The Certificate processing fee shall be allocated to Cost Center 533 (Stock 67

Transfer). 68

69

4. TRANSFER FEE – IN ESCROW: 70 71

The seller of a Mutual share of stock shall pay a transfer fee of five hundred dollars ($500) to 72

cover the cost of transferring ownership(s). The fee shall be allocated to Cost Center 533 73

(Stock Transfer). 74

75

5. NON – OWNER, CO-OCCUPANT PROCESSING FEE 76 77

Non – Owner, Co-Occupant Processing fee of one hundred dollars ($100) shall be charged 78

to cover the actual set up and processing costs and shall be allocated to Cost Center 533 79

(Stock Transfer). 80

81

82

83

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6. MUTUAL CORPORATION FEES 84 85

Each Mutual represents a fully independent corporation and as such may establish fees 86

applicable to the Mutual. GRF operates as the management company for the Mutuals and will, 87

as part of its duties, apply Mutual Fees in accordance with established Mutual policies (See 88

the 7000 Policy Series). 89

90

7. STOCK TRANSFER LEGAL REVIEW OF TRUST FEES 91 92

7.1. Upon a requested transfer of stock ownership by a Trust, either by the sale of 93

a unit or an in-house ownership transfer, Probate Code §18100.5 delegates to 94

the GRF the right to request the current acting trustee or successor trustee to 95

provide either a certification of trust, or a copy of the trust. The following 96

procedures will be is implemented. 97

7.1.1. Any trustee or successor trustee seeking to transfer the 98

ownership of a mutual unit, either by the sale of the unit 99

through escrow or an in-house ownership transfer, will be 100

required to provide the Stock Transfer Office a 101

Certification of Trust, or, a copy of the Trust document for 102

the GRF attorney to review prior to any completed 103

transfer of ownership. 104

7.1.2. The Stock Transfer Office shall not proceed with any sale 105

or transfer of ownership via a trust document prior to the 106

GRF attorney reviewing the trust and providing in writing 107

a letter of release allowing the Stock Transfer Office to 108

proceed. 109

7.1.3. In an effort to offset the cost of the required GRF attorney 110

review, there shall be assessed to the trustee or 111

successor trustee, a fee of one hundred twenty-five 112

dollars ($125) representing the attorney’s fee and GRF’s 113

pro-rated staff time, to be collected at the time of the trust 114

review. 115 116

7.1.4. Legal Review of Trust Fees shall be allocated to Cost 117

Center 533 (Stock Transfer). 118 119

8. LESSEE ANNUAL AMENITIES FEE – MUTUAL 17 ONLY 120 121

8.1. The GRF annual Lessee Amenities fee is a required use fee for access to the 122

Trust facilities, amenities, and participation in GRF activities. The Lessee fee 123

is calculated at twenty-five percent (25%) of the GRF annual assessment 124

rounded up to the nearest dollar for each occupant. 125

126

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Page 4 of 5

8.2. The required annual Lessee Amenities fee payment is due and payable in full 127

on the date of the lease agreement. No monthly payments can be made. 128

8.3. If delinquent, the Lessee shall pay damages to reimburse GRF for its expense 129

and overhead in collecting the payment as follows: 130

8.3.1. A twenty-five dollar ($25) late fee, and 131

8.3.2. Interest at one percent (1%) per month (APR of 12%) 132

from the original date due until the date the full payment 133

is received. 134

8.4. In addition to late fees, for each check from a Lessee that a bank returns for 135

any reason, the Lessee must pay a twenty-five dollar ($25) returned check fee, 136

and all bank charges assessed against the association. 137

8.5. If a Lessee becomes more than ninety (90) days delinquent, the Lessee will 138

receive a 30-day notice of GRF's intent to suspend the right to use GRF 139

amenities and Trust facilities, including driving privileges upon GRF Trust 140

streets. GRF may also refer the Lessee account to an attorney or collection 141

agency for appropriate action. All fees incurred by an attorney or collection 142

agency to recover the delinquent amounts will be assessed to the Lessee. 143

8.6. GRF reserves the right to collect the delinquent account for the Amenities fee 144

from Lessor. 145

8.7. Lessee Amenities fees shall be allocated as stated in Section 1.7. 146

147

9. The fee for verifying Powers of Attorney and Court Orders will be seventy-five dollars 148

($75) per document, per review, and shall be allocated to Cost Center 533 (Stock 149

Transfer). 150

151

10. The fee for additional Leisure World maps will be one dollar ($1) per map (shareholders 152

excluded). 153

154

11. All Fees are subject to annual review and are subject to change. 155

156

157

158

159

160

161

162

163

164

165

166

167

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Page 5 of 5

Document History

Adopted: 21 Apr 70 Amended: 31 Aug 73 Amended: 20 Nov 73 Amended: 19 Aug 75 Amended: 31 Aug 77 Amended: 16 Jun 81 Rescinded: 20 Oct 81 (Amendments passed 16 Jun 81) Amended: 16 Dec 86 (Effective 01 Jan 87) Amended: 21 Jul 87 (Effective 01 Aug 87)

Amended: 20 Sep 88 (Effective 01 Jan 89)

Amended: 21 Nov 89 Amended: 16 Nov 93 (Effective 01 Dec 93)

Amended: 18 Nov 03 (Effective 01 Jan 04)

Amended: 15 May 07 (Effective 01 Jul 07)

Amended: 17 July 12 (Effective 01 Sept 12)

Amended: 22 Apr 14 (subheading correction only)

Amended: 28 Oct 14 (Effective 01 Jan 2015)

Amended: 27 Oct 15 (Effective 01 Jan 2016)

Amended: 27 Dec 16 (Effective 01 Jan 2017)

Amended: 23 May 17 (Effective 01 each year) Amended: 19 Dec 17 Amended: 17 Dec 18 Amended: 23 Apr 19 Amended: 23 Jul 19 Keywords:

168

59

40-5516-3 Finance

COMMITTEE NON-BUDGETED EXPENSES


Page 1 of 1

1

Operations of the Golden Rain Foundation (GRF) are based upon the approved budget. 2

However, various needs of GRF may necessitate unexpected and unplanned expenditures: i.e. 3

non-budgeted expense. 4

5

6

1. COMMITTEES 7 8

1.1. Standing committees of GRF may authorize non-budgeted expenses to an amount not 9

to exceed $1,000 by majority vote of the Committee and duly noted within the 10

Committee meeting minutes. 11

12

1.2. Non–budgeted expenses greater than $1,000 but less than $2,500 require Finance 13

Committee review and approval if funds are available. 14

15

1.3. Non-budgeted expenses greater than $2,500 require Finance Committee review if 16

funds are available, and approval by the GRF BOD. 17

18

2. SUBCOMMITTEES AND/OR AD HOC COMMITTEES 19 20

2.1. Ad hoc and Subcommittee Committees have no spending authority; all requests for 21

a non- budgeted expense are required to be approved by the GRF BOD and the 22

standing Committee that recommended the Committee’s formation. 23

24

25

Document History

Adopted: 22 Apr 14 Amended: 22 Aug 17 Amended: 23 Jul 19

Keywords:

26

60