1, Regine Schumacher, Secretary for Seal Beach Mutual No ...

MINUTES OF THE ANNUAL SHAREHOLDERS' MEETINGSEAL BEACH MUTUAL SEVENTEEN

June 26, 2018

The Annual Meeting of the Shareholders of Seal Beach Mutual Seventeen, a Californiacorporation, was called to order by President Hayes at 10:01 a.m. on Tuesday, June 26,2018, in Clubhouse 4.

PLEDG^OF ALLEGIANCE

President Hayes led the Pledge of Allegiance.

QUORUM

President Hayes advised that a quorum was present, either in person or by ballot, and hedeclared the meeting officially in session.

CERTIFICATION OF NOTLCE OF MEETLNG

Secretary Schumacher read the Certification Notice:

1, Regine Schumacher, Secretary for Seal Beach Mutual No. Seventeen,hereby certify that the Notice of Stockholders' Meeting and Ballots weremailed in accordance with Article IV, Section 4, of the Bylaws of saidCorporation to all subscribers of common stock as of May 26,2018.

EXPLANATION OF WRITE-IN CANDIDATE

Ms. Cheryl Wilson, Accurate Voting Services, Inc. explained the process of a write-incandidate and nomination of that write-in candidate.

INTRODUCTION OF CANDIDATES

The following nominated candidates were introduced as follows:

Catherine GassmanPeter HayesNick MassettiTom McCabe

(Incumbent)(Incumbent)(Incumbent)(New Candidate)

President Hayes called for nominations from the floor. There being no furthernominations, President Hayes requested a motion to close the nominations. Upon aMOTION duly made by Tyler Jones, Unit 63-B, and seconded by Eugene Badzey, Unit51-A, it was

RESOLVED, That the nominations be closed.

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ANNUAL SHAREHOLDERS' MEETING June 26, 2018SEAL BEACH MUTUAL SEVENTEENThe MOTION passed.

BALLOTING

Ms. Cheryl Wilson from Accurate Voting Services thanked the Mutual for the opportunityto provide this election procedure for the Mutual. They are the outside independentelection service company that was selected to create the ballot, mail the ballot to theshareholders, and receive the return ballots to be opened today to determine MutualSeventeen's new Directors.

President Hayes announced that the ballot boxes were closed and instructed anyinterested shareholders to accompany Accurate Voting Services to the counting area toobserve the counting of the ballots. When the counting is completed, the newly-electedBoard will hold its Organizational Meeting to elect officers. The results of the election willbe posted on the main doors of all the clubhouses.

MINUTES

President Hayes asked for a motion to dispense with reading the minutes of the lastAnnual Shareholders' Meeting held on June 23, 2017, and that they be approved asprinted and distributed. Upon a MOTION duly made by Thomas McCabe, Unit 83-C andseconded by Henry Broadbent, Unit 1-A, it was

RESOLVED, That the Annual Shareholders' Meeting minutesof June 23, 2017 be approved as printed and distributed.

The MOTION passed.

INTRODIICTION OF CURRENT BOARD MEMBERS AND GUESTS

President Hayes introduced the current 2017-2018 Board members:

Peter Hayes, PresidentCathy Gassman, Vice PresidentRegine Schumacher, SecretaryNick Massetti, TreasurerNorma Poe, Director

President Hayes then introduced the Golden Rain Foundation Representative, PerryMoore; Executive Director, Randy Ankeny; and Mutual Administration Director, JodiHopkins.

PRESIDENT'S REPORT

Mr. Hayes presented his report (attached).

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June 26, 2018ANNUAL SHAREHOLDERS' MEETINGSEAL BEACH MUTUAL SEVENTEEN

VICE PRESIDENT'S REPORT

Ms. Gassman read her report.

SECRETARY'S REPORT

Ms. Schumacher read her report.

TREASURER'S REPORT

Mr. Massetti read his report.

GOLDEN RAIN FOUNDATION REPRESENTATIVE'S REPORT

Mr. Moore presented his report (attached).

EXECUTIVE DIRECTOR'S REPORT

Mr. Ankeny presented his report (attached).

MUTUAL ADMINISTRATION DIRECTOR'S REPORT

Ms. Hopkins presented her report (attached).

ELECTIQN RESULTS

Ms. Cheryl Wilson of Accurate Voting Service, Inc., reported the following results of theelection: Catherine Gassman, elected with 54 votes for a 2-year term; Peter Hayes,elected with 61 votes for a 2-year term Nick Massetti, elected with 60 votes for a 2-yearterm.

ADJOURNMENT

There being no further business to conduct, the meeting was adjourned at 10:33 a.m.

yU ^4^c ^'^^^ ^ ^^<^Attest, Regine Schumacher, SecretarySEAL BEACH MUTUAL SEVENTEENIh: 6/26/18Attachments

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Mutual 17 Annual Meetins, June 26th, 2018

President's Report

Fellow Board members, residents and guests. Good morning and welcome to ourAnnual Meeting. We truly appreciate the interest of those residents who take thetime to attend these meetings to detennine how well the Mutual is bemg managedand by whom. You really don't have to wait until the Annual Meeting each year tofind out what's going on in the Mutual. All residents are always welcome at themonthly Board meetings on the first Tuesday of each month.

I hope you were able to arrive early enough to take advantage of the comestiblesorganized for your dining pleasure by our chef-de-cuisine, Cathy. Thank youCathy.

The year 2017 was, fortunately, devoid of any major catastrophes, for which weare tmly grateful. Mainly our efforts were concentrated on keeping the Mutualoperating smoothly, complying with the myriad of government rules andregulations covering the operation of Community Interest Developments such asours, and doing so without unreasonably increasing the monthly fees.

Our balcony painting project is proceeding at a fairly steady pace, although it hasbeen slowed down somewhat by the necessity to perform extensive repairs to manymore deteriorated support pedestals. David Harris has been attacking theseproblems with some rather innovative solutions.

The heavy rains that visited us early in the year, while very welcome afiter a fewyears of drought, caused us to lose some trees but these have mostly been replacedand our newly planted trees are growing very nicely. Unfortunately the droughtconditions prevailed again during the recent winter and we are still hampered tosome extent by watering restrictions.

The last few years have seen significant mcreases in the number of units whichhave changed hands, compared to previous years, and 2017 was no exception. In2015 we saw 17 units change hands, in 2016 it was 10 and m 2017 it was 15. Itlooks as though we may see more of the same in 2018, since we have alreadyrecorded 6 as of the end of May.

A piece of good news of significant interest has recently arrived and I thought itmight be appropriate if I shared it with you at this time, even though it reallybelongs in a later report. If you read the monthly Board meeting minutes, and Ihonestly believe some of you do, you may remember that in April we voted tocontract with a Structural Engineering firm to conduct a seismic evaluation of ourbuildings. We recently received a draft of that report which is rather extensive. Idon't want to bore you with all the details but one paragraph in the ExecutiveSummary really says it all."The buildings are expected to maintain structural stability during a code-levelearthquake. Seismic strengthening is not considered necessary and is not requiredby current code or city ordinance".

The Board has worked diligently to ensure that the Mutual is operated smoothlyand efficiently for the benefit of all residents to the greatest extent possible. Theremay be a few residents who sometimes feel that their particular pet peeves arebeing overlooked, but fortunately they are a very small minority. You can't pleaseeverybody all the time, although we try to do our best.

In conclusion I would like to recognize and thank the Golden Rain Foundationstaff for providing the professional expertise necessary to carry out the day to daymanagement of Leisure World in general and Mutual 17 in particular. Despite aflurry of dismptions caused by recent staffing changes the minutes are beingprocessed in a timely manner, escrows are being closed at a record rate, theAdministration Department is offering much needed advice on many controversialmatters, inspections are being carried out expeditiously to keep constructionprojects moving along, and the Maintenance Department is being responsive to allour physical property needs at a very reasonable cost. What more could we askfor?We are indeed very fortunate to enjoy the amenities provided for our enjoymenthere in Leisure World.

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Peter Hayes, President

MUTUAL SEVENTEEN ANNUAL MEETINGGOLDEN RAIN REPRESENTATIVE'S REPORT

June 26, 2018I am happy to have this opportunity to thank all the volunteers whocontribute their time and effort, not only for the Mutuals but for all of LeisureWorld. I thank the Mutual 17 Board Members for their service. I'd like toparticularly recognize the Mutual Administration staff, as well as LindaStone for her leadership and the GRF Board of Directors for their hardwork.

This is my fifth year serving as Mutual Seventeen's GRF representative. Ifany of our shareholders have concerns, please share them and suggestpossible solutions; the most effective way to do this is by letter, to theappropriate GRF Committee.During the past year, I served as Chair of the Los Alamitos Medical CenterAdvisory Counsel, Vice Chair of the Recreation Committee and as amember of the Mutual Administration, and Security, Bus & TrafficCommittees.A recap of the year's activities are itemized in the Annual report. Thisreport is the collective work of the GRF Board, representing the majoractivities of the Golden Rain Foundation. The Annual Report is availableon the GRF web site. Go to www.lwsb.com, click on the "Golden RainFoundation" upper tab, click on "documents" on the fly outThank you to the Mutual Seventeen shareholders for their support; I willcontinue to work in your best interests.Respectfully submitted,

Perry MooreGRF RepresentativeMutual Seventeen

GRFGoldan Rdn Foundation

Executive Director's Annual Meeting Report

To the President, Directors, and Shareholders of Mutual 17,

It's been five years since I joined the Golden Rain Foundation of Seal Beach (GRF). I am trulyhonored and delighted to report our community is running well, and our over 230 staff membersare working diligently to insure smooth and fully transparent operations of GRF and the 16 MutualCorporations to whom we provide service. This is due to our collective commitment to protect thevalue of Trust property and the enhancement of lifestyle. We collectively strive to create afoundation of accountability, responsible partnership and leadership. At its most basic, weendeavor to do truly meaningful work for our community, our Shareholder/Members, our Boards.We are committed as an organization to serving our community the highest ethical standards,finding thoughtful, effective and innovative ways to support the varied and diverse communityneeds, while retaining focus on efficiency, respect, teamwork, innovation, and integrity.

The strength of our community continues to come through, by collectively working together with afirm commitment to safety and risk mitigation. Our efforts have been recognized again with anotice of achievement by Philadelphia Insurance Companies for "Outstanding Risk Management";this recognition is evident in the reduction (emphasis added) in insurance premiums for this policyperiod.

This speaks highly of everyone who unselfishly volunteers their time to serve on a Board.The compassion you show to those we serve, is an inspiration for us all. I've noticed how youtreat everyone with respect and kindness, no matter what the situation is. We both know howstressful it can be at times; however, your words and actions have gone a long way in yourcollective accomplishments in helping and serving our community. Your work does not gounnoticed. The key to our success rests in you, who embody the spirit of community byunselfishly saying "what may I do for you". You are the heart and soul of Seal Beach LeisureWorld.

Community means strength that joins our strength to do the workthat needs to be done. Arms to holds us when we falter. A circle ofhealing. A circle of Friends. Someplace where we can be free.

Starhawk

We look forward to working with the Boards to ensure that our community continues to prosperand thrive for the mutual benefit of all Shareholders and Members.

Thank you for allowing my staff and I to be part of your community and your lives.

Respectfully submitted,

Randy Ankeny,Executive Directorfor the Golden Rain Foundation

Annual Mutual Shareholders' Meeting 2018

Mutual Administration Director's Report

It has been a great year, all thanks to everyone's talent and unwavering effort. One of thegreatest gifts you can give is your time. A Mutual nurtures the community spirit throughit's volunteers. Volunteers are the tifeblood of any community. The work you haveaccomplished emphasizes the values and priorities of your community.

Thank you to this Mutual Board of Directors. We know that for you this is an add-on to themany things you do including your career, your family, other volunteer opportunities andyour social life. Thank you for always taking our calls, answering our emails and bringingyour passion, intellect, insight, experience and resources to the job of making life betterfor all of us.

Please join our team of staff members, along with the new or returning Mutual Directors,in continuing the legacy that was set by others many years ago. Let us also continue thegrowth of our community by incorporating everyone and working for the good of all.

Thank you to the Golden Rain Foundation (GRF) Board of Directors, more specificallyyour GRF Representative.

Thank you to our Executive Director, Randy Ankeny - working with you is a privilege. Withyour leadership, we look forward to the next year working with the Board to continue toprovide an outstanding community.

Thank you to everyone for your part in our journey.

Respectfully,

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Jodi HopkinsMutual Administration Director