FINANCE COMMITTEE - lwsb.com COMMITTEE i Updated: 2/17/2017 10:09 a.m. Agenda Administration Conference Room Tuesday, February 21, 2017 10:00 a.m. 1. …

FINANCE COMMITTEE

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Updated: 2/17/2017 10:09 a.m.

Agenda Administration Conference Room

Tuesday, February 21, 2017 10:00 a.m.

1. Call to Order/Pledge of Allegiance

2. Roll Call/Notice of Quorum

3. Chairs Announcements

a. Introduction of Guests and Staff

b. Rules of Order

c. Chairs Report

4. Approval of Minutes

a. Minutes of Meeting, January 17, 2017 (Pgs. 1-9)

5. Shareholder/Member Comments – Agenda Items Only (Limited to 3 minutes per person)

6. Correspondence

7. Financials

a. To Accept Month of January 2017 Financial Statements for Audit (Separate Cover)

8. Old Business

a. Reserve Study, Update

9. New Business

a. Reserve Funding Request: Administration Building, First Floor Improvements (Pg. 10)

b. Capital Funding Request: Traffic Control Evaluation (Pg. 11)

c. Reserve Funding Request: Concrete Replacement at Clubhouse 6 (Pg. 12)

d. Capital Funding Request: Air Extraction Units for Both LW Woodshops (Pg. 13)

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e. NuVision Lease (Pgs. 14-15)

f. Resales (Onsite Sales) Office Lease (Pgs. 16-23)

g. Capital Funding Request: Purchase of AED Units (Separate Cover)

10. Policies

a. Finance Committee Policies Review (Separate Cover)

11. Staff Reports

a. Purchasing Manager (Pgs. 24-27)

b. Director of Finance (Pgs. 28-30)

c. Executive Director

12. President's Comments

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

14. Committee Member Comments

15. Next Regular Meeting Tuesday, March 21, 2017 – 10:00 a.m. Administration Conference Room

16. Adjournment

FINANCE COMMITTEE MINUTES

JANUARY 17, 2017

The meeting of the Finance Committee was called to order at 10:00 a.m. by Chair Hood and was held on Tuesday, January 17, 2017, in the Administration Conference Room, followed by the Pledge of Allegiance. ROLL CALL

Present: Mr. P. Hood, Chair Ms. P. Snowden

Ms. L. Stone, Vice Chair Mr. R. Stone

Ms. S. Hopewell Mrs. H. Tran

Mr. B. Lukoff Mrs. C. Damoci, Ex-Officio

Also Mr. R. Ankeny, Executive Director

Present: Ms. C. Miller, Director of Finance

Ms. J. Rodgers, Purchasing Manager

Mrs. L. Whitlock, Administrative Secretary

Mrs. J. Reed, GRF Representative, Mutual Four

Mrs. M. Greer, GRF Representative, Mutual Eleven

Three Shareholders/Foundation Members

There being no objections, Chair Hood declared the reading of the Quorum Notification be dispensed with by unanimous consent.

The Chair stated that 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 proscribed Foundation member comment period, not to exceed three

minutes, as set forth in Policy 5610, Participation by Foundation Members. The minutes

of today’s committee meeting will be presented to the Board for approval following the

approval of the committee meeting minutes in February, 2017.

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FINANCE COMMITTEE MINUTES – 01/17/2017 Page 2 of 9

CHAIR'S ANNOUNCEMENTS AND REPORTS Chair Hood welcomed the Finance Committee Members, guests and staff, including GRF

President, Carole Damoci; Executive Director, Randy Ankeny; Director of Finance,

Carolyn Miller; Purchasing Manager, Julie Rodgers; and Administrative Secretary, Laura

Whitlock. He also requested that members please wait to be called upon and to please

turn off or silence their cell phones.

APPROVAL OF MINUTES

The minutes of the Finance Committee meeting of Tuesday,

December 20, 2016, were approved as presented.

FINANCIALS Ms. L. Stone MOTIONED, seconded by Ms. Hopewell and unanimously carried –

TO approve the Financial Statements for December 2016, as

presented by the Director of Finance.

OLD BUSINESS Approval of Lease Emergency Meals, a food delivery service, has recently changed their name to Leisure World Meals (LW Meals), who will provide meals the benefit of our shareholders and members. Their new lease agreement will be in effect from January 1, 2017 through December 31, 2017, utilizing Clubhouse Two, Room B and shall pay to the Golden Rain Foundation (GRF) an annual rent of $1.00. Mr. Lukoff MOTIONED, seconded by Ms. Hopewell and unanimously carried –

TO approve annual lease agreement with Leisure World

Meals (Clubhouse 2, Room B), effective January 1, 2017

through December 31, 2017, and shall pay GRF an annual

rent of $1.00, per the attached exhibit.

Review of Audited Financial Statement Format The Director of Finance reported that at January’s Committee meeting, Mr. Minassian

suggested reformatting some areas of our monthly financial statements.

It is the consensus of the Committee to direct the Director of Finance to compile all of the

suggested changes to the Financial Statement Format and present it to the Committee

for review and approval.

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NEW BUSINESS Capital Funding Request – Addition of Golf Cart Work Area at 1.8 Acre Area The Physical Property Committee (PPC) at its regular scheduled meeting on January 9,

2017, reviewed a request for improvements to Trust Property known as 1.8 Acres. It has

been requested to add a 15 ’x 20’ paved area with a 10’ x 20’ shade cover for the Rolling

Thunder Golf Cart Club. Currently, no electricity is available in this area; however, a

generator could be used until electrical service can be provided. The cost for a generator,

air compressor and shed would cost $2,400.

The PPC unanimously agreed to have MJ Jurado install a 10’ x 20’ shade cover, and

pave 15’ x 20’ area with concrete in the total amount not to exceed $19,200 and forward

this request to the Finance Committee for funding review, then to the Board for final

approval.

Ms. L. Stone MOTIONED, seconded by Mrs. Tran and unanimously carried –

TO approve and recommend to the Board, Capital funding request in an amount not to exceed $19,200.00 for the purpose of MJ Jurado upgrading the 1.8 Acres area by installing a 10’ x 20’ shade cover and paving the 15’ x 20’ area with concrete for the Rolling Thunder Golf Cart Club and associated relative equipment and expenses.

New Capital Request – Storage Racks for Service Maintenance Department

The PPC at its regular scheduled meeting on January 9, 2017, reviewed a request for

storage improvements in the Service Maintenance Department. Items of discussion

included the replacement of work benches, storage racks and cabinets exceeding their

useful life. The cost for materials and labor is $14,902.60.

After the committee discussed the scope of work and cost provided, the PPC unanimously

agreed to have the Service Maintenance Department install work benches, storage racks

and cabinets in need of replacement in an amount not to exceed $15,000 from Reserves

and forward this request to the Finance Committee for funding review, then to the Board

for final approval.

Ms. Snowden MOTIONED, seconded by Mr. Lukoff and unanimously carried –

TO approve and recommend to the Board, Reserves funding request in an amount not to exceed $15,000.00 for the purchase and installation of work benches, storage racks and cabinets in need of replacement for the Service Maintenance Department.

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New Capital Request – Purchasing Office Improvements The PPC at its regular scheduled meeting on January 9, 2017, reviewed a request for

improvements in the Purchasing Department. Items of discussion included: outdated work

stations; the lack of heat in the un-insulated building; and quality of lighting. The following

are the cost and needed repairs:

Description Vendor/Department Cost

Construct a new office area with insulation and LED lighting, Material and Labor

Service Maintenance $13,200.00

Replace 3 work stations Talimar Systems $3,791.38

Installation of Heat Pump Greenwood $3,600

Project Total: $20,591.38

Ms. L. Stone MOTIONED, seconded by Mrs. Tran and unanimously carried –

TO approve and recommend to the Board, Capital funding request in an amount not to exceed $20,600 for the Purchasing Office improvements, which include: Service Maintenance constructing a new office area with insulation and installation of LED lighting; purchase of three work-stations from Talimar Systems; and purchase and installation of a heat pump from Greenwood.

Operational Funding Request – Nationwide Fire Protection Services Contract

At its meeting on January 9, 2017, the Physical Property Committee (PPC) opened four

(4) sealed bids out of a possible 14 requests that were sent out by the Physical Property

Department for the annual testing of Trust Property fire alarm monitoring systems and

maintaining service for monitoring the alarms for the Clubhouse. The bids are as follows:

Bidder Total Bid 2017

Total Bid 2018

Total Bid 2019

Total 3 Years

Nationwide Fire $6,890 $6,890 $6,890 $20,670

Western States Fire $9,464 $10,264 $9,464 $29,192

Brethren Fire $33,200 $28,950 $28,950 $91,000

Fire Safety First $37,760 $33,510 $33,510 $104,780

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Ms. Snowden MOTIONED, seconded by Ms. L. Stone and unanimously carried –

TO approve, if needed, and recommend to the Board,

Operations funding request in an amount not to exceed

$20,670 for the purpose of awarding a 3-year contract to

Nationwide Fire Protection for the annual testing of Trust

Property fire alarm monitoring systems and to maintain

service for the monitoring of the Clubhouse alarms.

POLICIES It is the consensus of the Committee to review all policies as it relates to the Finance

Committee. Copies of policies to be provided by staff.

STAFF REPORTS Purchasing Manager The Purchasing Manager provided reports and updates for the Committee’s review. Director of Finance Ms. L. Stone MOTIONED, seconded by Ms. Hopewell and unanimously carried –

TO approve adding $500,000 to the investment ladder and

authorize the Director of Finance to purchase a 52-week

CDAR for the month of January.

Executive Director The Executive Director provided information and updates throughout the meeting. He

also reported that an anonymous envelope was received today with a $100 bill for the

reimbursement for repairs to damaged fence at intersection of Golden Rain Road at the

Channel.

PRESIDENT’S COMMENTS President Damoci encouraged Committee members to refrain from spending money, with the exception of expenses from Capital and/or Reserves. SHAREHOLDER COMMENTS One shareholder/member spoke on various items pertaining to the Committee’s area of purview.

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COMMITTEE MEMBERS COMMENTS Six Committee members spoke on the proceedings and accomplishments of today’s committee meeting. Chair’s Comments Chair Hood thanked the Committee members, shareholders, and staff present for attending and participating in today’s the meeting. He also mentioned that the next Finance Committee is scheduled for Tuesday, February 21, 2017.

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ADJOURNMENT Chair Hood adjourned the meeting at 11:21 p.m. ______________________________________ Phil Hood, Chair FINANCE COMMITTEE Law 01.19.17

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RECAP OF MOTIONS AND ACTIONS TAKEN AT THE

FINANCE COMMITTEE MEETING

MOTIONS

There being no objections, Chair Hood declared the reading of the Quorum Notification be dispensed with by unanimous consent.

The minutes of the Finance Committee meeting of Tuesday, December 20, 2016, were approved as presented.

TO approve the Financial Statements for December 2016, as presented by the Director of Finance.

TO approve annual lease agreement with Leisure World Meals (Clubhouse 2, Room B), effective January 1, 2017 through December 31, 2017, and shall pay GRF an annual rent of $1.00, per the attached exhibit.

TO approve and recommend to the Board, Capital funding request in an amount not to exceed $19,200.00 for the purpose of MJ Jurado upgrading the 1.8 Acres area by installing a 10’ x 20’ shade cover and paving the 15’ x 20’ area with concrete for the Rolling Thunder Golf Cart Club and associated relative equipment and expenses.

TO approve and recommend to the Board, Reserves funding request in an amount not to exceed $15,000.00 for the purchase and installation of work benches, storage racks and cabinets in need of replacement for the Service Maintenance Department.

TO approve and recommend to the Board, Capital funding request in an amount not to exceed $20,600 for the Purchasing Office improvements, which include: Service Maintenance constructing a new office area with insulation and installation of LED lighting; purchase of three workstations from Talimar Systems; and purchase and installation of a heat pump from Greenwood.

TO approve, if needed, and recommend to the Board, Operations

funding request in an amount not to exceed $20,670 for the purpose

of awarding a 3-year contract to Nationwide Fire Protection for the

annual testing of Trust Property fire alarm monitoring systems and

to maintain service for the monitoring of the Clubhouse alarms.

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TO approve adding $500,000 to the investment ladder and authorize

the Director of Finance to purchase a 52-week CDAR for the month

of January.

ACTIONS

It is the consensus of the Committee to direct the Director of Finance to compile

all of the suggested changes to the Financial Statement Format and present it to

the Committee for review and approval.

It is the consensus of the Committee to review all policies as it relates to the

Finance Committee. Copies of policies to be provided by staff.

Meeting adjourned at 11:21 a.m.

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NEW BUSINESS

Item 9A

Golden Rain Foundation Leisure World, Seal Beach

FINANCE COMMITTEE ACTION REQUEST

TO: FINANCE COMMITTEE

FROM: PHYSICAL PROPERTY COMMITTEE (MW)

SUBJECT: ADMINISTRATION BUILDING FIRST FLOOR IMPROVEMENTS

DATE: FEBRUARY 13,2017

CC: FILE

At its regular scheduled meeting on February 13, 2017, the Physical Property Committee (PPC) reviewed a request to make improvements on the first floor of the Administration Building for the Finance and Stock Transfer Departments. The Committee revised the costs provided by the Physical Properties Department to replace lighting with LED fixtures, paint all of the rooms, replace the carpet on the first floor, and replace work stations and filing systems in both departments. The total cost for this project with contingencies would not exceed $92,151.

After a discussion, the PPC unanimously agreed to have the work completed at a cost not to exceed $92,151, and forward to the Finance Committee for funding review and approval. Upon funding approval, forward this item to the Board for final approval.

Committee Action:

To review the Reserve Funding to make improvements to the first floor of the Administration Building for both the Finance and Stock Transfer Departments; including, replacement of the existing lighting with LED fixtures, painting of all rooms, carpet replacement on the first floor, replacement of work stations for a cost not to exceed $92,151, including contingencies. Upon funding approval by the Finance Committee forward this request to the Board for final approval.

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NEW BUSINESS

Item 9B





SUBJECT: CAPITAL FUNDING REQUEST: INTERSECTION TRAFFIC CONTROL EVALUATION


CC: FILE

At its regular scheduled meeting on February 13, 2017, the Physical Property Committee (PPC) reviewed a request from Mutual Six Board of Directors to make changes to the intersection of Oakmont Road/St. Andrews Drive and Interlachen Road/St. Andrews Drive. The PPC reviewed a cost from Urban Crossroads (the community’s Traffic Engineer) to conduct a Traffic Control Evaluation of this area and provide a report and response to the request. The PPC approved, by majority, to to have Urban Crossroads conduct this study for an amount not to exceed $2,200 and send a request to the Finance Committee for Funding review.

Committee Action: To approve Capital Funding request in the amount of $2,200 for the purpose of conducting a Traffic Control Evaluation at the Intersection of Oakmont Road/St. Andrews Drive and Interlachen Road/St. Andrews Drive, provided by Urban Crossroads, our community’s Traffic Engineer.

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NEW BUSINESS

Item 9C





SUBJECT: RESERVE FUNDING REQUEST: CONTRETE REPLACEMENT AT CLUBHOUSE 6


CC: FILE

At its regular scheduled meeting on February 13, 2017, the Physical Property Committee (PPC) reviewed a request to replace the concrete on the West end of the Clubhouse 6. A quote was retained from MJ Jurado to replace 595 sq. ft. of the concrete at this area for a cost not to exceed $8,000. The PPC reviewed the cost and amount of the concrete needed for replacement, and unanimously agreed to recommend MJ Jurado to replace 595 sq. ft. of the concrete on the west-end of the Clubhouse Six for a cost not to exceed $8,000 and forward the request to the Finance Committee for Reserve Funding review.

Committee Action: To approve Reserve Funding request in the amount of $8,000, for the replacement of 595 sq. ft. of concrete on the west-end of the Clubhouse 6.

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NEW BUSINESS

Item 9D




FROM: RECREATION COMMITTEE (TD)

SUBJECT: CAPITAL FUNDING REQUEST: AIR EXTRACTION UNITS FOR BOTH WOODSHOPS

DATE: FEBRUARY 16, 2017

CC: FILE

At its regular scheduled meeting on February 8, 2017, the Recreation Committee (RC) reviewed a request to purchase dust extraction units for both of the LW Woodshops. After a brief discussion, the RC unanimously approved the purchase of two self-contained auxiliary Air Extraction units for both LW Woodshops in an amount not to exceed $2,000. The RC is forwarding this request to the Finance Committee for Capital funding review and approval. Committee Action: To approve Capital Funding request in an amount not to exceed $2,000 for the purchase of two self-contained auxiliary Air Extraction units for both LW Woodshops.

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NEW BUSINESS Item 9E

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NEW BUSINESS Item 9E

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NEW BUSINESS Item 9F

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NEW BUSINESS

Item 9G


COMMITTEE ACTION REQUEST


FROM: EXECUTIVE COMMITTEE

SUBJECT: CAPITAL FUNDING REQUEST: AUTOMATED EXTERNAL DEFIBRILLATORS


CC: FILE

The Executive Committee (EC), at its regular scheduled meeting on February 10, 2017, reviewed a request for having Automated External Defibrillators (AEDs) available in our community. The discussion included the benefits of having AED units, handling of health emergencies and the use and maintenance of the AED units.

After a discussion, the EC unanimously agreed to approve to add a total of 13 AED units at all of our Clubhouses, the Administration Building, Building 5, the Library, Amphitheater and Security. Complete AED package/units, Physio-Control LIFEPAK CR Plus AED (Exhibit A), can be purchased at www.AED.com at approximately $1,815 per unit, and can be installed throughout the community, as approved, in an amount not to exceed $26,000. This Capital Funding request is being forwarded to the Finance Committee for funding review and approval. Upon approval by the Finance Committee, forward to the Board for final approval.

COMMITTEE ACTION:

Approve Capital Funding request and recommend to the Board, the purchase of 13 Physio-Control LIFEPAK CR Plus AED units, which will be placed at all of our Clubhouses, the Administration Building, Building 5, the Library, Amphitheater and Security, in an amount not to exceed $26,000.

Attachment: Exhibit A (www.AED.com)

http://www.aed.com/

POLICIES

Item 10A


COMMITTEE ACTION REQUEST


FROM: EXECUTIVE DIRECTOR

SUBJECT: RESCIND POLICIES: 2283-31, RETURNED CHECKS; 2290-31, CABLE TELEVISION SERVICE COLLECTION; 2243-31, CAPITAL PROJECTS; 2261-31 VERIFICATION OF EXPENSE REPORTS; 3210-31, RETURNED CHECKS; 5524-31 AND 5524.01-31, NON-CURRENT RECEIVABLES AND PAYABLES


CC: FILE

At the Finance Committee Work Study on Friday, February 17, 2017, policies within the purview of the Finance Committee (Exhibit A) were reviewed and it was the consensus of the Finance Committee Work Study to recommend to the Finance Committee to rescind several policies.

COMMITTEE ACTION:

To approve to rescind rescind Policies 2283-31, Returned checks; 2290-31, Cable Television Service Collection; 2243-31, Capital Projects; 2261-31 Verification of Expense Reports; 3210-31, Returned Checks; 5524-31 and 5524.01-31, Non-Current Receivables and Payables; and forward to the Board for approval.

Attachment: Exhibit A

TABLE OF CONTENTS

FISCAL & ACCOUNTING SERVICES

Policy Policy Category Policy Name Last

Amended Page(s)

2283-31 Staff Operations Returned Checks 01/01/1984 1

2290-31 Administration Cable Television Service Collection

05/05/1993 2

2244-31 Administration Reconciliation of Annual Financial Statement

04/01/1998 5

2920-31 Budgets Controls 11/16/1999 6

2243-31 Administration Capital Projects 07/07/2009 10

2261-31 Administration Verification of Expense Reports

07/08/2009 11

2230-31 Accounting Authorized Signatures 07/23/2013 12

STAFF OPERATIONS


Amended Page(s)

3210-31 Controller & Accounting Dept.

Returned Checks 09/20/1983 13

3321.01-31 Accounting Basic Purchasing Procedures & Responsibility

09/15/1986 14

3323-31 Purchasing Dept. Disposition of Surplus Equipment

07/22/2014 17

3325-31 Community Facilities Dept.

Purchase Requisitions of Non-Standard Items

08/23/2016 19

GOLDEN RAIN OPERATIONS


Amended Page(s)

5524-31 Board Internal Operations

Non-current Receivables and Payables

11/16/1971 20

5524.01-31 Board Internal Operations

Non-current Receivables and Payables

03/15/1973 23


Accounts Receivables Collections

06/18/1985 25


Repurchase Agreement 09/11/1990 26

5155-31 Committee Functions Plan Investment Administrative Committee

05/15/2007 28

5330-31 Capital Improvements

Capital Project Initiation 12/18/2007 29

5320-31 Capital Improvements

Budgeting 12/18/2007 30


Procurement Policy 12/18/2007 31

Rescind

Rescind

AmendHold

Rescind

Rescind

Amend-Title Change

Rescind

Hold

Amend-Title Change

OK-Reviewed

Rescind

Rescind

Amend to BODHold-Carolyn

Hold

Hold-Randy

Amend-Title change

Hold

GOLDEN RAIN OPERATIONS


Amended Page(s)


Committee Non-Budgeted Expenses

04/22/2014 40


Safe Deposit Boxes 04/22/2014 42

3324-31 Purchasing Purchasing Fees 09/23/2014 43


Liability Insurance Deductible 10/28/2014 44


Refund Excess Income 10/28/2014 45


Reserves 05/26/2015 46

5115-31 Committee Functions Finance Committee 09/27/2016 51

5061-31 Finance Fees 12/27/2016 54`

Review-Title ChangeHold

Add to 5061-31

Review-Title Change

Amend to BODReview

Amend to BODAmend to BOD

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STAFF REPORTS Item 11A

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Golden Rain Foundation

February 21, 2017 Meeting of the Finance Committee

Director of Finance Report

Page 1

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STAFF REPORTS Item 11B




Page 2

Audit Timeline

Axxerion Update

• November 1, 2016 – Service Purchase Orders went live

o As of 12/12, 368 SPOs have been generated; 64 – full cycle

• January 1, 2017 – Inventory and vendor databases fully developed

• March 31, 2017 – Work order transactions scheduled to go live and discontinue

inventory transaction processing in Adapt and Great Plains

Investments

• January Investment Activity:

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Page 3

o Reinvested $500,000 52-week CDAR @ .45 – proceeds from matured

CDARs

• Liquidity at the end of January:

o Total liquidity in Reserve Funds $2.3M

o $230K maturing CDARs in February

• Total reserve commitments @ 1/31/2017: $1.9M

• Recommended for February:

o Invest $500,000 in a CDAR for 52 weeks @ .45% to continue the

investment ladder; funds from bond proceeds

Aged Receivables (Quarterly)

Contract Renewal Report (Quarterly)

SRO Aging Recap:

Pending Action Items: None

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FINANCE COMMITTEE - lwsb.com COMMITTEE i Updated: 2/17/2017 10:09 a.m. Agenda Administration Conference Room Tuesday, February 21, 2017 10:00 a.m. 1. …