April 20, 2011 BOD Meeting Minutes

Cloverleaf Center Condominium

April 20, 2011 Board of Directors Meeting

7:00‐9:00 PM

Upcounty Regional Services Center Conference Room A

12900 Middlebrook Road

Germantown MD

Minutes

              I.      Call to order by Farouk Youssef at 7:02 PM.

            II.      Proof of announcement: Notice of this meeting was sent December 15, 2010; a sign was posted at the entrance to the Community on April 17.

          III.      Establish quorum of the Board:

a.      Farouk Youssef, President,

b.      Peter Franke, Treasurer,

c.       Hinaya Jainoor, and

d.      Diana Smith were present and established a quorum.

e.      Andrew Kim, Vice President, arrived at 7:10 PM.

         IV.      Mr. Youssef moved to approve the March 16, 2011 minutes and Mr. Franke seconded. Vote 4 Aye, 0 Nay.

           V.      Management Report, Elan Kreuger, Summit Management (7:05 PM):

a.       Letters requesting leases were sent to the Unit owners whose mailing addresses are outside the Community. Of 28 letters, one responded.

b.      A bulk trash pickup has been scheduled for April 27. Notification was mailed April 7. No hazardous materials may be included in this pickup.

c.       A letter was sent to a Unit owner on April 8, 2011, instructing that Unit owner to “…please cease and desist directly contacting the Association’s contractors, other than management.” Mr. Kreuger stated that even though this Unit owner’s points may have been valid, any additional charges incurred by the direct contact of this Unit owner with the vendor will be billed to that Unit owner. Mr. Kreuger asked for inclusion of this letter in the Minutes. Mr. Franke asked that Mr. Kreuger provide the text (Word) file.

d.      The Unit owner of 14 Duck Pond Court sent an ACC application, dated March 28.

e.      The fire sprinkler parts have arrived and the system repairs will be done as soon as possible, pending clarification of the even numbers on Duck Pond Drive, and notification to 8 unit owners that their units need to be entered. If coordinated successfully, repairs will begin April 28.

f.        Brickman has begun the mowing (during season, once a week, or as needed) and the trash pickup that is done in the course of mowing.

g.       FIOS lines have been installed but the damage to the landscaping is still a disaster. Summit has repeatedly contacted Verizon, and has been assured that this will be addressed. Mr. Youssef stated that there are still hanging wires on Building #1 and over a sidewalk, and that these discrepancies must be rectified immediately. Mr. Kreuger also stated that CCIIIC has approved FIOS installation and has scheduled a survey April 28.

h.      Emergency repair to the fire sprinkler system in the utility closet of 20503 Golf Course Drive, and water cleanup from the April 1 event is the Unit owner’s responsibility. The Association is responsible for the cost of resetting the emergency alarm.

i.         Summit authorized towing of a PA tagged car reported by a Unit owner to be parked in the owner’s assigned space at 10:00 PM. Mr. Youssef stated that he also had authorized a tow last month for a violation that occurred at midnight.

j.        Summit sent the March financial statements to the Directors. Mr. Kreuger will ask the Controller to verify $1632 unpaid CCIIIC charges.

k.       DeLeon & Stang will conduct the draft 2010 audit at Summit Management’s offices. Mr. Kreuger said this will likely occur before the next BOD meeting (May 18th.)

l.         The Association’s Accounts Receivable have improved considerably since the last meeting. A unit transfer and the threat of foreclosure on another unit resulted in net receivables falling by more than $42,000.

m.    Mr. Kreuger will investigate the feasibility of posting the engineering study on Summit’s web site.

         VI.      Continuing Business (7:25 PM)

a.      Montgomery County Department of Transportation sent a Right of Entry Agreement on March 25 for Association signature. Mr. Youssef expressed reservations about the standard MDOT agreement. The Association’s choices are to amend the agreement, sign it under reservation, or risk eminent domain.

                                                              i.      Mr. Franke moved to amend the Right of Entry Agreement to include the following Addendum:

1.      “Reforestation” of affected areas with white oak, red oak, cedar, holly, and Norway spruce. 

2.      Restoration of affected green areas to include a barrier of shrubs that will discourage and hinder foot traffic between Century Blvd and the community, coordinated with restoration of CCIIIC.

3.      No heavy equipment on the community’s paved streets.

4.      No parking of contractors’ or subcontractors’ cars in the community.

5.      Full repair to streets, curbs, sidewalks damaged by the project.

                                                            ii.      Ms. Smith seconded the motion. Mr. Franke requested public comment.

1.      Linda Salins (20549 Golf Course Dr) asked about removal of trees near the pond, noise from increased traffic, and a sound barrier.

2.      Mr. Youssef stated that MDOT plans to remove the trees by the pond and will also remove the shrubbery and ground cover along Father Hurley Blvd parallel to Bridger Drive for construction of an in-ground filter and extension of the water main. 

3.      Anna Prisutti (13009 Bridger Dr) stated that an office building between Century Blvd and I-270 would absorb some of the noise, and asked to fence the property in the future.

                                                          iii.      Vote to approve Addendum to Right of Entry Agreement: 5 Aye, 0 Nay.

                                                           iv.      Mr. Franke moved to approve the amended Right of Entry Agreement (with Addendum.)  Mr. Youssef seconded. Vote 5 Aye, 0 Nay.

b.      Secretary: Mr. Kreuger suggested advertising for clerical help through MCC or hiring from Minute by Minute (~$100/hour.) Mr. Kim stated that other clerical temp agencies are less (~$42/hour), noting http://www.ourpeoplework.org/. Mr. Franke noted that pay for the Association Secretary is not a budgeted expense, unlike the eZStorage fee (which has now increased to $68/month.) Mr. Franke instructed Summit to provide an updated roster to the Board. Mr. Kreuger agreed to provide the roster.

c.       The lessee information request is a benefit for the Association and is continued.

d.      Maryland HB100 (order of priority of payments) did not pass. Maryland HB1246 (including a priority lien for four months of Condominium fees) will become law on October 1.

e.      Unit owner complaints continue regarding the costs of resale/refinance packages. Mr. Franke stated that is a contracted cost. Mr. Kreuger will look at this.

f.        Mr. Youssef moved to close the session at 8:30 PM in order to discuss the WTP report. Mr. Franke seconded. Vote 5 Aye, 0 Nay.

g.      Mr. Youssef commented on the building envelope repair project:

                                                              i.      On March 31, the Project Manual (Bid Set) was released.

                                                            ii.      Instructions were given to the four listed bidders at a meeting on the property on April 8. Bids are due April 28.

                                                          iii.      The Association is currently negotiating with two banks for funding of the project. Negotiation includes the difficult issue of delinquencies. Financial institutions consider up to a 10-15% delinquency rate to be normal. The prompt payment of dues by all Unit owners will pay off us now, because more money available for the project means less money borrowed, less interest to pay, as well as FHA approval.

                                                           iv.      Funds have been physically transferred from the operating account into the reserve and special assessment accounts.

h.      ACC continuing business (7:45 PM):

                                                              i.      Mr. Franke moved to schedule a hearing on May 18 to replace the 13035 Bridger Dr. garage door, and for Summit to immediately send notification to the Unit owner. Mr. Youssef seconded. Vote 5 Aye, 0 Nay.

                                                            ii.      Mr. Kreuger reported that the pavers removed from 13049 Bridger Drive were left in front of the building at the Unit owners’ request. Mr. Youssef instructed Summit to notify the Unit owner to dispose of the stones or store them out of sight.

                                                          iii.      The 13029 Bridger Drive ACC violation is continued, as the Unit is bank owned. Summit has received a request for a resale package, and the violation will be noted in that package.

                                                           iv.      The 13015 Bridger Drive and 12911 Bridger Drive ACC violations are continued.

       VII.      New Business (7:50 PM)

a.      ACC new business (8:05 PM):

                                                              i.      The Unit owner of 13061 Bridger Drive left voice mail with Summit on April 14 requesting “urgent” approval for installation (scheduled the following day)  of a new vent on the utility closet door because the direct vent causes the pilot light of a new hot water heater to go out. Mr. Youssef stated that emergency approval was granted with the provision that the Unit owner assure that the building envelope would not be compromised in any way, and that a completed ACC application is submitted ASAP. Mr. Kreuger agreed to follow through with the Unit owner, as the application has not been received. [Ms. Salins and Ms. Prisutti commented on venting hot water heaters.]

                                                            ii.      The Unit owner of 14 Duckpond Ct. submitted an ACC application stating that the existing grade causes water to pool at the front door. The request is to remove the concrete walkway, re-grade for drainage, replace with flagstones, and extend the walkway. [Ms. Salins and Aileen Kelly (20557 Golf Course Drive) commented on the need for uniform appearance in the community, questioned the replacement of concrete with flagstones, and the stability of the flagstones over time.] Mr. Youssef instructed Mr. Kreuger to invite the Unit owner to attend the May 18 meeting to provide further information.

                                                          iii.      [Ms. Salins commented that some townhouses need maintenance for peeling paint, asked to upgrade the sign at the entrance to the community, and reported a “firepit” (either ornamental or functional) on a 3rd floor balcony across from her unit.]

                                                           iv.      [Wade Owen (13037 Bridger Drive) commented that an AC unit extends beyond the edge of the window of a townhouse unit across the street from his unit and asked that the BOD look into this.]  

b.      The April 1 fire alarm event elicited an effective emergency response. Unit owners, residents and guests are advised:

                                                              i.      Use of the utility closets for storage of personal belongings is prohibited (General Rules & Regulations June 3, 1997, #23.)

                                                            ii.      Sprinkler system costs are covered under Bylaws page 24: Article V. Section 13 (a) (iii), line 7 et. seq., and page 25: V. 13 (b) (ii), line 7.

                                                          iii.      The BOD advises Unit owners and residents to exercise caution around the sprinkler systems, as costs for damages & repairs go to the owner.

c.       On April 6, Elizabeth Kessler (13017 Bridger Drive) called Bridget of Brickman regarding edging, mulching, top soil, and trash removal. On April 8, Summit Management sent an order to Ms. Kessler to “…please cease and desist directly contacting the Association’s contractors, other than management.”

                                                              i.      Mr. Franke advised all Unit owners and residents that they may not directly contact the Association’s vendors and contractors, except that they may contact management regarding any issues with or complaints about Association contractors. Mr. Franke read the following: The powers enumerated in Section 11-109(d) of the Act are “…delegated to and exercised by the Board of Directors and/or the managing agent employed by the Board of Directors on behalf of the Association.” (Bylaws, Article II, Section 3.)

                                                            ii.      Mr. Franke moved to instruct Summit Management to send to this Unit owner the following notice to correct this violation: Your direct contact with an Association contractor on April 6, 2011 was a non-continuing violation, as defined in the Association’s Rule and Covenant Enforcement Procedure, June 3, 1997. Should a further violation of the same provision of the Council’s governing documents or Rules and Regulations occur again within the next twelve (12) months, the Board of Directors may take action to enforce the governing documents or Rules and Regulations which have been violated and may impose sanctions after further notice and hearing. Mr. Youssef seconded. Mr. Franke advised all Unit owners and residents to review the Association’s Rule and Covenant Enforcement Procedure. Vote: 4 Aye, 1 Nay.

     VIII.      Community Forum (8:35 PM):

a.      A car with a broken window (covered with plastic and tape) has been parked on Bridger Drive for a very long time. Mr. Youssef stated that the tags appear to be valid. The owner has moved the car from one spot to another in response to three warning tickets. Mr. Youssef requested the identity of the vehicle owner.

          IX.      Mr. Youssef moved to adjourn to a closed session (8:40)

            X.      Closed session discussion of the April 15 WTP collections status report (8:45):

a.      Ms. Smith moved to approve eight requests for the Association President’s signature in this WTP report. Mr. Franke seconded. Vote 5 Aye, 0 Nay.

b.      In regard to FHA approval, the goal remains to further reduce the delinquency rate.  At this time, delinquencies are 15% in the Plex Units and 12% in the Townhouse Units.

          XI.      Mr. Youssef adjourned the meeting at 9:00 PM.