Cloverleaf Center Condominium
Board of Directors Meeting and
Call for Annual Meeting of the Association
Upcounty Regional Services Center
Conference Room A
12900 Middlebrook Road
Germantown, MD 20875
October 26, 2010
Minutes
I. Farouk Youssef called for the assembly to come to order at 6:39 PM.
1. Mr. Youssef stated that on Sept. 30, 2010 a letter had been mailed by Summit Management to all Association Unit Owners. The letter announced a Board of Directors Meeting at 6:30 PM, and called for the Annual Meeting of the Association to commence at 7:00 PM on October 26, 2010.
2. Mr. Youssef stated that a sign was posted at the entrance to the community announcing the same.
II. Directors:
1. Three Directors were present at 6:40 PM and established a quorum of the BOD:
· Farouk Youssef, Town House Director, President,
· Peter Franke, Plex Director, Treasurer, and
· Diana Smith, Plex Director At Large.
2. Noorul Hinaya Jainoor, Town House Director At Large, arrived at 6:45 PM.
3. Andrew Kim, Plex Director, Vice-President, and Secretary, arrived at 7:30 PM.
III. Reading of Minutes:
1. Mr. Franke made a motion to approve the minutes of the October 27, 2009 Annual Meeting and Mr. Youssef seconded. The vote was 3 Aye, 0 Nay.
2. Mr. Franke made a motion to approve the minutes of the September 22, 2010 BOD Meeting and Mr. Youssef seconded. The vote was 3 Aye, 0 Nay.
IV. Continuing Business (6:45 PM):
1. Mr. Youssef stated that no one may video or audio tape the meeting without the consent of all present, and asked also that cell phones not be used during the meeting.
2. Report from Elan Kreuger, Summit Management:
A. Landscaping and Snow Contacts: Mr. Krueger stated that although he had not intended to put the landscaping contract up for bid this year, it was in fact re-considered, as the snow contract bidders generally want both landscaping and snow removal contracts, and because picking one contractor for both services may reduce the overall rate. Mr. Krueger stated that initially the Brickman time and materials estimate for snow removal was about $46,000. Subsequently, Stolburg Landscaping entered a flat rate bid of $20,000 for snow removal, and Brickman countered by matching that figure for a flat rate.
Mr. Youssef asked for clarification regarding flat rates and Mr. Krueger stated that it is a fixed price regardless of the amount of snow that falls, and regardless the number of ice or snow events.
Ms. Smith asked about the $600 charge that Brickman proposed for staking the hydrants, and recommended that we forego that expense by performing this task ourselves. Ms. Smith asked whether Brickman had repaired the August 23, 2010 sink hole. Mr. Krueger stated that work has been completed, and also stated that the cost of the proposed 2011 Brickman landscaping contract is $28,476.
A Unit Owner asked if communities whose snow removal contracts were based upon time and materials would be given preference over those with flat rate contracts. Mr. Krueger stated that in his experience that there was no difference.
There being no further discussion, Mr. Franke moved to award the landscaping and snow removal contracts for 2011 to Brickman, and Mr. Youssef seconded. Vote was 4 Aye, 0 Nay.
B. Fire Alarm Monitoring Contract:
Mr. Youssef stated that Chesapeake’s reference checks were in order and mileage for emergency visits was an extra charge.
Mr. Franke asked when the contract needs be in place. Mr. Krueger stated that December 1st is ideal, else on January 1st if finalizing it takes longer. The current Guardian contract has a 60 day out clause, but there is no date on the contract. Guardian is not interested in matching Chesapeake’s cost proposal for service.
Mr. Youssef moved to approve the Chesapeake contract at $5425, and Mr. Franke seconded. The vote was 4 Aye, 0 Nay.
C. Master Insurance Policy:
Mr. Krueger stated that his understanding is that the BOD wishes to remain with State Farm, and asked if there were any more questions.
Mr. Franke asked for an explanation of the term “inland marine.”
Mr. Kreuger stated that is a normal insurance term and is required for writing policy for condominium coverage.
Mr. Kreuger also stated the essential coverage will remain the same at renewal, regardless that there are fewer endorsements, as some options are now included.
Ms. Smith asked why State Farm did not include the Duck Pond Drive addresses on the listing of properties covered (pg 2 of the State Farm proposal.)
Ms. Smith also asked why the Schedule of Additional Interests (endorsement # CMP4788, pg 7 of the State Farm proposal) lists TMGA & APM, which are the former CCC management agencies.
Mr. Youssef stated that coverage may be for prior events, if any residual issues surface within three years.
Mr. Franke moved to amend the proposal to include the Duck Pond Drive addresses on the contract, and Mr. Youssef seconded. The vote was 4 Aye, 0 Nay.
Mr. Franke moved to approve the State Farm proposal, as amended, and to renew the contract, and Diana Smith seconded. The vote was 4 Aye, 0 Nay.
3. ACC
A. Mr. Franke said that the satellite dish violation at 12919 Bridger Drive (Yu) has been abated. The BOD will not impose a fine.
B. Mr. Youssef stated that the satellite dish violation at 13049 Bridger Drive (Quay & Skiffington) has not been abated per the September 22, 2010BOD instructions to the Unit Owners, nor has an appeal been filed, as the Unit Owners were advised, per Summit Management’s September 27, 2010 letter, was their right.
Mr. Youssef made a motion to let stand the fine $150 fine. Mr. Franke seconded. The vote was 4 Aye, 0 Nay.
Mr. Youssef stated that the Unit Owners of 13049 Bridger Drive (Quay & Skiffington) have also not abated the flag stone violation per the BOD’s instructions to the Unit Owners on September 22, 2010, and per Summit Management’s September 27, 2010 letter to the Unit Owners.
Mr. Youssef made a motion to grant an additional 30 days to remove the stones, after which time, if the violation has not been abated, a $150 fine will be imposed. Alternatively, the BOD may arrange to remove the stones and repair the lawn, and assess the charges for these repairs to the Unit Owners. Mr. Franke seconded. The vote was 4 Aye, 0 Nay.
C. Mr. Youssef noted that the unabated ACC violations at 13015 Bridger Drive (Flores) and 13029 Bridger Drive (Sumeradzka) need to be discussed in a closed meeting, as these properties are considered “distressed” and in the process of foreclosure.
4. Settlement of CCOC Case No. 26-08
A. Mr. Youssef stated that on Thursday, October 21, 2010, all parties signed stipulations to settle Case No. 26-08 and to dismiss it with prejudice.
5. Structura Rehabilitation Group
A. Mr. Youssef stated that he had received today, via US Mail, rough estimates for the repair project from Structura. The estimates appear to be on the high side, and Mr. Youssef will need more time to study them carefully.
V. New Business (7:15 PM)
1. FHA
A. Mr. Youssef stated that FHA approval of Cloverleaf will greatly affect the Unit Owners’ prospects for sales and refinancing. Without approval, the end result for the Unit Owners will likely be a community of investors, rather than homeowners.
B. Mr. Krueger said that Cloverleaf has had FHA certification in the past, but that the HUD regulations have recently been rewritten. Cloverleaf’s current certification expires on December 2, 2010.
C. Mr. Kreuger said that there are a lot of items which homeowners need in order to take advantage of government insured low interest rates, and which are pertinent to unhindered FHA approval. These include:
· Current Reserve Study.
· Money in the Operations and Reserve Accounts.
· Documents in order.
· Percentage of Unit Owners’ assessment payments more than 30 days delinquent should be no more than 15%.
D. Mr. Krueger said that Summit Management has received quotes from firms who assist in expediting paperwork required by the FHA for the approval process and recommended that the BOD consider selection of a firm to assist with the process of recertification for FHA.
E. Mr. Franke moved to discuss the matter in closed session and Mr. Youssef seconded. The vote was 4 Aye, 0 Nay.
2. Draft of the Proposed 2011 Budget:
A. Mr. Youssef stated that the BOD has already met with two banks to secure a loan for the repair project. A ten year term (five year loan call clause, and an extension of five years) is under consideration. If CCC qualifies, the negotiated interest rate will be less than the costly and never utilized OBA loan.
B. Mr. Youssef said that the two rough cost estimates indicate that the final costs for the project may be higher. The BOD will seek a minimum of four (4) bids in order to ensure that over the long run, what the Plex Unit Owners spend will increase in value by at least 15% when reselling or claiming tax deductions for repairs.
C. Mr. Youssef made a motion to mail the draft proposed budget (a handout at this meeting) within one week to all Unit Owners, and to state therein that the Unit Owners have 30 days before the next meeting to comment in writing on the draft of the proposed budget (until the end of November), at which time the budget will be approved. Mr. Franke seconded the motion. The vote was 4 Aye, 0 Nay.
VI. Call for a count of the number of those present:
In order to establish whether there was thirty-eight (38) Unit Owners present, the quorum required for an Annual Meeting, Mr. Youssef asked for a count of the number of Unit Owners present or present by proxy. Mr. Krueger counted twenty-eight (28).
VII. Adjournment:
Mr. Youssef adjourned the meeting at 7:25 PM.
Cloverleaf Center Condominium
Closed Board of Directors Meeting
October 26, 2010
Upcounty Regional Services Center
Conference Room A
Minutes
I. Mr. Youssef called for a closed Board of Directors meeting at 8:20 PM in order to discuss the matters not subject to public review.
II. Directors Youssef, Kim, Franke, Jainoor, and Smith were present, as was Mr. Krueger of Summit Management.
III. FHA recertification was discussed.
IV. Distressed units were discussed.
V. A Unit Owner was heard.
VI. Mr. Youssef adjourned the closed meeting at 9:00 PM.
