February 16, 2011 Board Meeting Draft Minutes

Cloverleaf Center Condominium

Board of Directors Meeting

Upcounty Regional Services Center

Conference Room A

12900 Middlebrook Road,

Germantown MD 20874

February 16, 2011

Minutes

              I.      Farouk Youssef called the meeting  to order at 7:04 PM. Mr. Youssef made the following remarks:

The Board will vote in this session on the County’s request for an easement on a part of the property adjacent to Century Blvd extension. The Board rejected the first offer ($4600), and eventually got $6000 plus a commitment to reforest what will be lost. After tonight’s vote, the community will have 15 days to object. There is a requirement that 15% of the unit owners agree to such objection. Mr. Youssef stated that he felt that would be futile, as the County can regardless complete the project by eminent domain.

The renovation project for “buildings two through seven” is progressing on schedule. On Feb 15, 2011, the Board received the Draft Design Document from Structura. For the next three to four weeks, the Board will review the designs for decks, envelopes, what is underneath the envelopes, and for installing flashing, which led to the problems we have. The decks and railing will not be removed, which would have required DPS intervention. The project was delayed three to four months because of interventions by the Fire Dept and DPS, and work that we “had” to do. Without the cacophony and shenanigans, we could have already been started. Now that we have the design, the next phase is bidding. Five companies have already expressed interest in bidding.

The project is now a reality, not a fiction. All we need now is the money. People have to pay their dues. Why do some not make their payments, but have cars and take trips? To those who say they cannot help that they are delinquent I say: that is not our problem. We cannot subsidize these people. We put this project in shape because the vote of the unit owners was an overwhelming “yes.” The community needs the money from the special assessments in order to complete the renovation. Another note: Anyone who can and will do some research for grant money would be most welcome. Any grant money would facilitate obtaining other money sources and/or better lending rates. 

            II.      Proof of announcement: The regular Board meeting 2011 schedule was mailed to all homeowners December 15, 2010, and a sign for this meeting was posted at the front entrance to the property.

          III.      Quorum: Farouk Youssef, President; Peter Franke, Treasurer; Diana Smith, member at large; and Hinaya Jainoor, member at large, were present and established a quorum of the Board.  Andrew Kim, Vice President, was absent. Mr. Kim provided a proxy (copy attached) to Mr. Youssef.

          IV.      Approval of Minutes: Mr. Franke moved to approve the January 19, 2011 Minutes, correcting one typo. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

            V.      Mr. Youssef noted that the meeting will be closed later in order to discuss delinquencies and related financial matters.

          VI.      Elan Krueger from Summit Management presented the management report:

The unit owner of 20536 Golf Course Drive was notified by letter [Jan 26] that the plumbing issue discussed in the January meeting is his responsibility, per the Declaration, as the blocked pipe serves his one unit only.

The report of the February 7 fire alarm annual inspection lists items that need to be reviewed and prioritized prior to performing repairs and recommendations.

Brickman proposed removing the leaning tree at 12800 Duck Pond Dr. for $130, and removing the pavers and over-seed the area at 13049 Bridger Dr. for $300.

A bulk trash pickup has been scheduled for April 27.

Scates will repair on February 17 the damage in the recent storm (siding gone, wood exposed.) Mr. Youssef noted that Structura is available for this repair.

Mr. Krueger stated that the priority for the application of payments is not addressed in the CCC Bylaws but is specified in the CCC 1997 resolution. Ms. Smith noted that another resolution permits the BOD to allow a waiver of a late fee once per year per unit owner. Mr. Franke noted that the current practice (crediting payment of a prior late fee before crediting the current monthly payment, and then charging a late fee for the current payment because the amount of the payment is not then sufficient to pay the first late fee plus the current monthly charge) is not to the benefit of the community (applying the payments to the operating funds), and may violate the Act. Mr. Franke recommended that the Board consider amending the 1997 resolution, e.g., by adding language such as “the priority of the application of payments shall comply with the laws of the State of Maryland.” Mr. Youssef noted that the purpose of the regular assessment is to fund operations, and stated that a tax attorney should know whether the current practice is proper. However, as payments of delinquencies referred to the collection agency are handled under the advice of an attorney, the matter of the priority of payments will be discussed with Whiteford Taylor Preston (WTP) first.

Mr. Krueger stated that the $1632.02 listed as a CCIIIC 2009 receivable does not show on the CCIIIC books. Mr. Krueger stated that Kevin Pascoe, CCIIIC President, has said that the former CCIIIC management [APM] did not tell him that this money is due. Mr. Krueger will ask Brenda Conway to move this along.

Mr. Krueger reported that closing the books for 2010 and proceeding with the 2010 audit is delayed pending the Board’s response to management’s request that the Board to estimate the dollar amount of “uncollectable debt.” Mr. Youssef stated he believed that 12.5% is considered normal, but that CCC will need each and every dollar due them and will pursue all money due to the Association. Ms. Smith asked how long the audit will take and if this will affect the July FHA approval. Mr. Krueger stated that he believed the audit will be completed in April and that that will probably not affect the FHA approval. Estimation of uncollectible debt will be discussed with WTP.

Mr. Franke stated that the Bylaws require that owners provide the name and address of mortgagees (Article VI, Section 1). In this regard, the Board desires that management maintain the names and addresses of mortgagees.

        VII.      Continuing Business:

Mr. Franke requested a volunteer for Association Secretary, as Ms. Smith and Ms. Jainoor have declined.

In accordance with 11-125(f)(4) of the Act, Mr. Youssef moved that the Board approve the final agreement reached with Montgomery County regarding the easement for construction of the extension of Century Boulevard. That agreement is for the County to pay CCC $6000 rent and to reforest the barrier between the boulevard and the community after the construction. Mr. Franke seconded, and asked for any discussion or comment by the unit owners present. Ira Salins, 20549 Golf Course Drive, asked if CCIIIC will receive any money for the easement. Mr. Youssef stated that CCIIIC has been approached by the County also, and presumes they will negotiate an agreement.  CCC desires to coordinate the reforestation with CCIIIC. Ms. Smith wants the services of an arborist. Vote: 5 Aye, 0  Nay.

Mr. Franke moved to discuss the definition of special assessment delinquencies in closed session. He noted that Summit is alleged to have stated that there are a very high number of special assessment delinquencies.  Mr. Youssef seconded. Vote 5 Aye, 0 Nay.

Mr. Franke stated that the Association’s Bylaws require a roster of unit owners, partially for reasons related to the elections of Directors. There will be an election for a plex unit Director later this year. The Bylaws also state that leases shall be subject in all respects to the provisions of the Act, Declaration and Bylaws (Article V-Maintenance and Repair-Section 13 (g).)  Common sense demands accurate knowledge of those who actually live in the community. In this regard, the Board desires that management maintain in the roster the names and addresses of lessees. Summit Management updates the roster according to tax records, and Mr. Krueger is willing to send a letter to the unit owners asking for leesee information.

Further notes on existing ACC violations: 13035 Bridger garage door will be discussed with the Property Agent after the next walk through.  Units in foreclosure will be discussed with mortgagees and prospective buyers.

Mr. Youssef reiterated to Mr. Krueger that he desires access to 13029 Bridger regarding pest control. 

Mr. Krueger stated that the DPD coverage on the SFIG Master Policy probably does not include a charge for the two CCIIIC units.  Mr. Youssef asked whether SFIG has been asked to increase the replacement value for “building1” [Phase 13] due to its reconstruction. Mr. Krueger will check.

Lack of additional fire alarm room keys will be immediately rectified.

      VIII.      New Business

Mr. Franke moved to approve payment of the $9,102.90 Structura invoice. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

Mr. Youssef stated that he had responded on Jan 31 to a letter dated January 25 from 13003 Bridger Dr. regarding the special assessment.  Mr. Franke moved to review the letter and the response in closed session. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

Ms. Smith stated that she had been in contact with the Maryland Department of Natural Resources regarding the selection of suitable plantings along Century Blvd extension.

Ms. Smith stated that she is concerned about the growing volume of Association records, and that she has researched alternative storage formats, and the costs associated with record retention and/or destruction of outdated files according to certain accounting and legal guidelines.

          IX.      Community Forum (8:05 PM)

Mr. Salins, 20549 Golf Course Drive, said some mailboxes need to be replaced because of rust and have no large storage slot for packages; that the peeling paint on one townhouse is very noticeable and may adversely affect property values; that the FIOS “tombstones” are unsightly and a hazard; and that the Fire Department has in the past removed the winter sand from the roads.

Nicole Youssef, 20535 Golf Course Drive, spoke of the amount of dog waste not picked up, and of broken glass. She asked for a thorough clean-up this spring.

A resident stated that there is a pothole near 20543 GCD.

Ajith Edakandi, 20527 GCD, handed a letter addressed to the Board to Mr. Franke to discuss in closed session.

            X.      Mr. Youssef moved to adjourn to closed session to discuss the matters specified above. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

          XI.      Mr. Youssef called the session to order at 8:15 PM. Directors Youssef, Franke, Jainoor and Smith, and Mr. Krueger (Summit Management) were present.   

Mr. Krueger raised the question of carrying on the books a bad debt write-off for 2010. The Board responded that it desires a timely audit and will discuss a bad debt allowance with WTP on March 3.

The most current WTP report of delinquencies was discussed, including pending Court action regarding certain grievous delinquencies.

A copy of the Association’s response to the letter from 13003 Bridger Dr was given to Summit Management. The Board affirmed that it will uniformly deny any special dispensation regarding the Special Assessment.

Mr. Franke presented the letter from Mr. Edakandi and a similar verbal report from another unit owner regarding difficulties in refinancing their mortgages due to allegedly incorrect information given by Summit Management Accounting. Mr. Franke related these owners’ complaints that they were also charged $287 for the incorrect information. Mr. Krueger will, when Summit is given a copy of the letter, forward the complaints to Accounting for review.   

Mr. Youssef called for adjournment at 9:00 PM.