Jan 19, 2011 Draft Minutes

Cloverleaf Center Condominium

Board of Directors

January 19, 2011

7:00‐9:00 PM

Upcounty Regional Services Center Conference Room A

12900 Middlebrook Road

Germantown MD

Minutes

              I.      The President called the meeting to order at 7:02 PM and made the following remarks:

a.       The engineer is making progress in the design phase. One persistent problem is the flaw in the original design involving the flashers. This caused deterioration, and it is a difficult problem to resolve without removing a lot of other things. Upon completion of the design study, February 15, the construction project will approach a crucial point: The bidding for a construction contractor and for a construction loan.

b.      The balances on the special assessment accounts that were paid-up prior to the CCOC’s stay will soon be exhausted. It is vitally important to the well-being of the entire community that each Plex unit owner now pays the special assessment from this point forward. Delinquencies, especially in the special assessment, may hinder us getting a loan or aid. The Board will work vigorously to collect delinquencies.

c.       The President calls for volunteers to reconstitute the Finance and the Building Committees now. The small BOD can only do so much. The Association is going to need some extra help keeping an eye on community affairs during construction. Anyone interested is asked to contact Tiffani or Elan.

d.      There will be some time at the end of this session for an open forum, prior to adjournment to a closed session.

            II.      Proof of announcement: Notice of the schedule of Board meetings for 2011 was sent December 15, 2010, and a sign was posted at the entrance to the community. Regular meetings will be held the third Wednesday of each month.

          III.      Establishment of a quorum: At 7:06 PM, Mr. Youssef noted for the record that the following Directors were present:

·         Farouk Youssef,

·         Andrew Kim,

·         Peter Franke,

·         Diana Smith, and

·         Noorul Hinaya Jainoor, who constituted a quorum of the Board of Directors.

          IV.      Approval of December 1, 2010 minutes:

a.       Mr. Youssef moved to approve the minutes of both open and closed sessions of December 1 as written. Mr. Franke seconded. Vote: 5 Aye/0 Nay.

            V.      Summit Management report:

a.       Tiffany Hope, Assistant Community Manager, expressed Summit’s regrets that Elan Kreuger is unable to attend this meeting.

b.      The FHA approval deadline extended to July, 2011. Delinquency reduction is in order and will be discussed in a closed meeting.

c.       Verizon FIOS should be ready in April to offer services. Summit received service requests for some damage during the installation. Repairs have been made by Verizon.

d.      Two sewer backups within one week at 20536 Golf Course Drive.

e.      Proposal for tree removal, pruning by Brickman.

f.        Pending ACC matters:

                                                               i.      13049 Bridger Dr.: The BOD on Feb 11 may order the pavers removed and charge the owners; Summit sent notice to the owners to remediate.

                                                             ii.      13029 Bridger Dr.: ACC violation (wire) tabled due to foreclosure status. BOD and Summit requested that the bank order extermination services. Mr. Youssef stated we will need permission to enter. 

                                                            iii.      13015 Bridger Dr.: HOC property; patio items violation.

                                                           iv.      13035 Bridger Dr.: ACC violation (wire) tabled due to distressed property status. Garage door needs repair.

g.       Guardian fire alarm signals were tripped by the cold weather. Mr. Krueger will price recommended weather stripping.

h.      December was final Brickman leaf pick-up in 2010.

i.         The 2010 audit has not yet begun.

          VI.      Continuing Business (7:20)

a.       The position of Association Secretary remains vacant. Mr. Youssef asked for a Board member to volunteer. He stated that the Secretary takes notes, keeps the community records, and performs other tasks vital to the smooth operation of the association. There exists, for example, a need for lists of mortgagees, homeowners and tenants. “We need to know who is living where and whether or not we have a copy of a lease.” Mr. Kim asked if we can hire a note-taker, as that part is quite time consuming. Ms. Hope stated that might be done for approximately $75 per meeting. Mr. Franke stated there was no item in the budget to pay for this service.

b.      A copy of the CCOC December 1, 2010 Order of Dismissal of Case 26-08 was given to Summit for inclusion in the records.

c.       The estimated date for FIOS availability in the community is April 1.

d.      Mr. Youssef stated that after negotiations with Dennis Robinson and the December 15, 2010 notice to the Association, the BOD will on Feb 16, 2011 consider granting a temporary easement to the County for $6000, as specified.

e.      The FHA deadline for Cloverleaf’s approval has been changed to July, 2011.

f.        Mr. Franke asked whether the application of Part X of the Association’s 1997 Administrative Resolution for Collection of Assessments—where the order of priority of allocation is to pay off any late fees, etc. prior to paying off the special and the monthly assessments—complies, per Article V, Section 8 of our Bylaws, with the Act, whereby a late charge may not be imposed more than once for the same delinquent payment [§11-110 (e) (2).]  The practice has been to pay the $15 fee levied on a delinquent assessment from the payment of a later assessment, thereby causing another $15 fee to be applied. Mr. Franke states that generating the additional late fee by such a rule imposes a second fee for the same delinquent payment. This is prohibited by law, and is contrary to the interests of the Association. Ms. Hope will ask Mr. Kreuger to resolve this complaint with Summit’s Accounting Department, and report to the Board.

g.       A Structura proposal offering professional engineering and consulting services for CCC’s building envelope and repair design, originally offered for $17.5K, has now increased to $19K due to extra work. The updated proposal was presented to the Board. Mr. Youssef moved to accept the proposal as written. Mr. Franke seconded. Vote: 5 Aye, 0 Nay. A $1588 portion of the bill was given to Ms. Hope.

h.      ACC violations:

·         13049 Bridger: Mr. Youssef moved to order pavers removed after February 11 and to charge the owner, if still in violation. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

·         13029 Bridger: Mr. Youssef moved to continue at a later time the discussion of the ACC violation of this foreclosed property. Mr. Franke seconded. Vote 5 Aye/0 Nay.

·         13015 Bridger: Mr. Youssef moved to continue at a later time the discussion of the ACC violation of this distressed property. Mr. Franke seconded. Vote 5 Aye, 0 Nay. 

·         13035 Bridger: Mr. Youssef asked that Mr. Krueger determine during the next walk through whether the garage door in the unit needs repair.

·         12911 Bridger: Mr. Youssef asked that Mr. Kreuger confirm that the HOC was notified of the violation, and whether the unit is in violation during the next walk through.

·         Mr. Youssef asked Ms. Hope to convey to Mr. Krueger that the banks who own the foreclosed units fare obligated to pay the assessments.

i.         Mr. Youssef asked that Mr. Krueger request permission to enter in order to follow-up the pest-control at 13029 Bridger Dr.

j.        Mr. Franke asked that Mr. Krueger confirm that the Duck Pond Drive addresses on the SFIG master policy include only the Cloverleaf Center Condominium addresses, not the two Clover Center III Condominium addresses included in the range of addresses listed, and to confirm that CCC is not paying premiums for those two CCIIIC addresses. Ms. Smith requested that SFIG explain the $749.68 endorsement premium increase and the CMP4729 endorsement.

        VII.      New Business (7:40)

a.       The owners of 13003 Bridger Dr. requested by certified letter on December 6 the immediate remedy or repair of their deck balcony.

·         Mr. Youssef stated that it is the intention of the Association to follow the engineer’s repair priorities. In general, repairs to the decks will be done at the same time. In no case will there be preferential treatment. The exception required by law is “immediate” danger of collapse.

·         Mr. Kim asked for some of the reasons given by the owners: Mr. Franke responded that they allege that they are unable to change the HVAC filter, are prevented from showing the premises to prospective buyers, and potential life safety.

·         Mr. Franke noted that the County did not restrict proper maintenance by qualified personnel, that showing the premises to prospective buyers includes full disclosure by the owners, and that potential danger is not the same as imminent danger.

·         Mr. Youssef moved to reject the request for immediate repair of the deck balcony at 13003 Bridger Dr. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.  

b.      Plumbing issue at 20536 Golf Course Drive:

·         Mr. Youssef related some of the history of the problem. The unit owner had previously inserted a camera showing an obstruction in the line carrying waste to the main line outside of the house.  An estimate to fix the blockage was about $8K and included the possible use of explosives. That was rejected in favor of snaking the obstruction. Mr. Youssef stated that a master plumber with whom he was acquainted recommends sending the camera all the way to the end of the line to see if the actual problem may be further downstream.

·         Mr. Youssef stated that the unit owner had called for a plumber, rather than asking Summit Management to handle the request, and then reported the plumbing problem personally to Mr. Youssef at his residence. Mr. Youssef moved that Mr. Kreuger inquire about the cost to hire a master plumber to recommend a solution to the problem, and that Mr. Kreuger write a letter to the unit owner reminding him to follow the service request procedures in place for all unit owners. Ms. Smith seconded. Vote 5 Aye,0 Nay.  

c.       Mr. Franke moved to authorize Brickman, per a December 14 proposal, to remove a dead pine located behind 20559 Golf Course Dr, grind the stump, and to trim branches away from 20535 & 20537 Golf Course Drive, for the amount of $1,250. Mr. Youssef stated he will abstain from commenting or voting on this matter, as his unit is involved in the proposed work. Ms. Smith seconded. Vote 4 Aye, 0 Nay, 1 Abstain.

d.      Several alarm rooms do not have keys. Mr. Youssef moved to make seven duplicate keys. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

e.      The CCC ezStorage unit monthly rent for record storage will increase on May 1 from $65 to $68. Mr. Franke will attempt to negotiate a roll-back.

f.        Ms. Smith asked that Ms. Hope ascertain whether the electric meters are actually read on a regular basis. Mr. Youssef stated the Public Service Commission requires an actual reading no less than once every three months.

g.       As http://cloverleafcenter1.blogspot.com/ is sufficient at this time for Association web presence, the additional expense of another website was unanimously rejected.

h.      Mr. Youssef asked Ms. Hope to convey to Summit Management the necessity of having a list of all Cloverleaf Center Condominium occupants on file, and asked that a letter be sent to all unit owners requesting the names of mortgagees and names of any tenants.

i.         Mr. Youssef noted that CCIIIC has signed a management contract with Summit.

j.        Mr. Youssef asked that Summit schedule a bulk trash pick-up in the Easter to Memorial Day time frame.

k.       Mr. Youssef and Mr. Franke commented that reports of CCC Plex SA balances are useful. Charges for these reports may be discussed at a later date.

l.         Mr. Youssef moved to discuss the following matters in a closed session, following the Community Forum. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

·         Summit charge to tenants for information stating that the SA delinquency rate is 67%.

·         WTP collections status report; 2010 bad debt write-off; FDS repayment plan.

      VIII.      Community Forum (8:00‐8:10)

a.       Brickman will be asked to look into removing a pine that is leaning (dying) at Duck Pond Court & Duck Pond Place at the time when the dead tree is removed.

b.      Regarding concern that FIOS has left unsightly and dangerous ground panels, not mentioned prior to installation and not flush to the ground, thereby creating a trip hazard: Mr. Youssef and Mr. Krueger have discussed this at length and will discuss this further with Verizon.

c.       Verified the 5 Aye, 0 Nay vote to reject request for immediate repair (VII. A.)

d.      Is a lump sum payment of special assessment still being considered? Mr. Franke stated that the assessment of $14,100 by vote of the Association is without interest charges and that any change to that amount will be by vote of the Association.

e.      Mr. Youssef noted that nobody has asked how the $14,100 came about. This amount was suggested by the previous BOD. It was stayed by a judge, who then ordered us to proceed. It was then passed by a voting majority.

f.        Is there a condemned unit in the community? Mr. Youssef stated that a condemnation notice was placed on a foreclosed unit because there was no electricity in the unit and there were squatters living in it. The bank now has that unit in their possession and it is not condemned.

          IX.      Meeting adjourned to closed session by Mr. Youssef at 8:15. Mr. Youssef called the closed session of the Board of Directors to order at 8:20 to discuss those matters specified above that are not subject to public review. Directors Youssef, Kim, Franke, Jainoor, and Smith were present. Ms. Hope of Summit Management was also present.

a.       Summit Management has allegedly charged unit owner(s) for delinquency information related to refinance. Ms. Hope will ask for clarification of the delinquency rate given (67%), and the Accounting Department charges ($325.)

b.      Repayment plan proposal: Franklin Debt Services proposed payment terms of $650 per month for a delinquent unit owner client. The BOD agreed to counter with an offer of $1077 ($688+$389) per month for twelve months, commencing February 1, 2011, in order to discharge the arrearage through January, 2011 and to stay current with the 2011 regular and special assessments. Additionally, the BOD states that this agreement, if accepted, will be null & void if any payment were missed, and that the account would be then returned to Whiteford, Taylor Preston LLC for immediate collection. Summit Management will draft a letter ASAP to the unit owner and/or Franklin Debt Services with these terms.

c.       2010 bad debt write-off: The BOD discussed certain WTP requests and recommendations regarding four accounts that together total $6,980.97.  Three accounts ($2960.25, $2,044.46, and $1661.26) are related to foreclosures. The fourth account ($315) is related to disputed fees. “Because the restrictive language on the checks stated that the payment represented payment in full, we are unable to collect the remaining balance of $315.00.” The BOD agreed to discharge the three accounts related to foreclosures as 2010 bad debts and to request that Summit Accounting roll-back the $315, else it also be discharged as a 2010 bad debt.

d.      WTP January 14, 2011 Assessment Collection Status Report: The BOD discussed the remaining delinquent accounts listed in the report and agreed that the attorneys continue each case as specified. One account needs an address correction from VA to MD. Delinquent accounts will be vigorously pursued to the extent that Maryland law allows.  

            X.      Adjournment: Mr. Youssef adjourned the meeting at 9:11 PM.