Tuesday, August 9, 2011

Minutes June 15, 2011

Cloverleaf Center Condominium
June 15, 2011 Board of Directors Meeting
7:00‐9:00 PM
Upcounty Regional Services Center Conference Room A
12900 Middlebrook Road
Germantown MD

Minutes, corrected

                    I.      Call to order, 7:04 PM: Farouk Youssef opened with the following:
a.      During this Board’s first open meeting, almost two years ago, we voted to abide by Robert’s Rules of Order, as amended. We have since worked in that frame fantastically.  The meeting tonight is no different. Tonight we face pressing problems, and the rules will be in force for everyone (Board members, residents, and guests.) At the end of the meeting there will be an open forum; until then, no interruptions and no speeches, unless recognized by the Chair.
b.      Mr. Youssef introduced the members of the Board and the Summit Manager.
                  II.      Proof of announcement:
a.      Notice of the meeting was sent December 15, 2010.
b.      A sign was placed at the entrance to the community.
                III.      Establishment of a quorum:
a.      Mr. Youssef, President,
b.      Andrew Kim, Vice President,
c.       Peter Franke, Treasurer, and
d.      Hinaya Jainoor: Present, establishing a quorum of the Board.
e.      Diana Smith was absent due to an emergency.
               IV.      Correction and approval of the May 18 and June 2, 2011 minutes:
a.      Mr. Franke moved to correct the May 18 and the June 2 minutes. Motion to correct seconded. Vote 4 Aye/0 Nay.
b.      Mr. Youssef moved to approve by mutual assent the May 18 and June 2, 2011 minutes, as corrected. Motion seconded.
                                                                    i.      Mr. Franke stated that the formal copy placed in the minute book contains all corrections and that none of the many copies circulated to members and marked by them is authoritative.
                                                                  ii.      Vote 4 Aye/0 Nay.
                 V.      Management Report by Elan Krueger of Summit Management Services, Inc.:
a.      Mr. Krueger requested mutual release from management with an end date of June 30, stating a fundamental and irreconcilable disagreement.
                                                                    i.      Mr. Krueger stated that the Association’s auditor and collections attorney agree that Summit has handled the account appropriately.
                                                                  ii.      The Board asked to remove an individual from work on the account.
1.      The in-house CPA reviewed the account; it is essentially correct. 
2.      The BOD refuses to pay for executive level work.
b.      Summit forwarded all documentation to support application for FHA approval to the attorney, except the delinquency status report.
                                                                    i.      Mr. Krueger stated that he prefers that the Board send the delinquency report, along with a disclaimer to not hold Summit liable.
c.       The insurance claim against the master policy for water damage to 20526 GCD from 13015 B totals about $27,000.
                                                                    i.      Mr. Krueger expects subrogation of the claim ($23,279.91 repairs plus $4382.13 emergency response) to the owner of 13015B.
d.      Summit is awaiting Guardian’s response regarding the side-wall sprinklers.
e.      Brickman proposes replacement of the damaged bricks by using existing bricks from less noticeable on-site locations, for $300.
f.        Brickman proposes removing the dead tree and stump between Phases 6 and 7, planting two trees (river birch), and adding soil and seed to address the drainage issue, for $1255.
                                                                    i.      Mr. Franke recommends waiting for Ms. Smith’s input on this choice.
                                                                  ii.      Mr. Krueger expressed his concern that Brickman has made several proposals that the Board has not approved.
g.      Summit sent ACC violation letters to ten TH owners for paint, wood trim.
                                                                    i.      There has been one response, and some repairs without response.
h.      The violation letter for 20537 GCD has been re-sent to the owner’s address in Boyds.
                                                                    i.       A rescission letter will be sent to 20533 GCD. This letter will, however, note the other ACC violations.
i.        Mr. Krueger announced that the meetings for the remainder of the year have been booked for the third Wednesday of each month.
                                                                    i.      Mr. Franke asked that the October meeting be rescheduled on Oct 26 (The Bylaws require that the Annual Meeting be on the anniversary.)
                                                                  ii.      Mr. Youssef stated that there will be an election for a Plex Director at the Annual Meeting, and asked to follow the timeline in the Bylaws.
                                                                iii.      Mr. Krueger stated he has a schedule for mailing the nomination letters, proxies, etc.
j.        Mr. Krueger provided a printed current roster of unit owners.
                                                                    i.      Mr. Franke will distribute to the members of the Board.
               VI.      Continuing Business:
a.      Accounting:
                                                                    i.      Delinquencies and FHA renewal:
1.      Mr. Youssef stated that the position of the Board is that Mr. Krueger should provide to the lawyers whatever number for delinquencies that he wants.
2.      Mr. Franke noted some consequences that may result from delinquencies: 
a.      Loss of value for owners because of difficulty refinancing or reselling their units.
b.      Decrease of family-ownership and increase of non-owner occupancy.
c.       Difficulty obtaining a bank loan for rehabilitation and renovation.
3.      Mr. Youssef moved to draft letters from the Board to the delinquent owners, emphasizing that they “step up and pay dues.”  Seconded.
a.      Mr. Franke suggested one letter for those who owe less than $1000, and a very different letter for those who owe more.
b.      Mr. Franke noted that the sum of all delinquencies less than $1000 is about $6000. If those who owe less than $1000 pay up, the Association’s delinquency rate would be 10%.
c.       Vote: 4 Aye, 0 Nay.
4.      Mr. Youssef noted that the May 31, 2011 Summit report still stated: “Total Delinquent Special Assessments …$924,337.76.” Mr. Youssef noted that this is obviously not true.
a.      Plex unit owners paying their dues on time are not delinquent.  Look for the example of your mortgage. If you make your payments on time, the bottom line decreases. That is called your “pay-off amount.”
b.      The mechanism to pay the Special Assessment on time is $235 a month.
c.       The 74% delinquency rate might have been the reason we are not getting a loan from the bank, because credit bureaus and banks talk to each other.
                                                                  ii.      Mr. Youssef moved to close the meeting at 8:40 PM to discuss the current WTP report. Seconded. Vote: 4 Aye/ 0 Nay.
                                                                iii.      Acceleration of assessments upon default
1.      Mr. Franke noted that upon default of one or more payments, the entire balance of an assessment may be accelerated at the option of the Board of Directors.
2.      Mr. Youssef noted that when an account is sent to the lawyer for collection, it is out of our hands.
                                                                 iv.      Mr. Krueger noted that the cost for the lender questionnaire is about $35 (about 80% of the information in the questionnaire is recurring), plus another $35 to $50 for the settlement statement.
                                                                   v.      Mr. Krueger reported that he received the return receipt (dated May 23) for the Association’s Federal taxes, and one also for the MD taxes.
b.      Building envelope:
                                                                    i.      Bidding Summary (June 13)
1.      Mr. Youssef stated that the engineer received six bids for the project and is organizing the bids on a spreadsheet in order to choose one contractor.
a.      Comparison of unit prices
b.      Comparison of the parts of the project
                                                                                                                                            i.      Refurbishment of balconies
                                                                                                                                          ii.      Siding (sheathing, water barrier)
                                                                                                                                        iii.      Roof work (gaps and flashing)
2.      Prices of the bids range from $3M to $1.897M.
a.      All the bids are over our ball-park estimate. We need to sit down with the contractors to see why the prices are so high. All the contractors go to one whole-sale supplier in Baltimore. Why do they list different prices for the same products?  We’ll shake the price down drastically.
3.      The loan request is for $1.5M ($1.4M for the project, plus $100K in reserve.)
                                                                  ii.      Regarding the loan:
1.       Mr. Youssef said that after serious talks with a bank, we are hopeful that we will hear a positive response.
2.      We talked with that bank about our delinquencies, what we are going to do, terms of finance, and interest rate. We will deposit a year’s funds in advance in their bank.
3.      The loan is at the Underwriter. Instead of 5.5%, we expect they cannot give us less than 6%.
4.      We hope to start digging and working in July.
c.       ACC continuing business:
                                                                    i.      13035 B:
1.      The garage door has been replaced.
2.      The violation is hereby cleared.
3.      Mr. Krueger noted the door is not an exact match, but is close.
4.      Mr. Franke noted that the Association is responsible for painting the outside of doors, but recommends we wait on that.
                                                                  ii.      13061 B:
1.      An application for the urgent water heater vent cover replacement was mailed to the Association’s PO Box.
2.      The application is hereby approved and the unit owner is advised of Bylaws Article V, Section 21.
                                                                iii.      13049 B:
1.      The owners have not paid the fines levied and the costs incurred for repairs.
2.      Mr. Krueger suggested that the ACC forgive one of the fines if the owner were to pay the remaining $450.
3.      Mr. Youssef noted that the owners have exceeded the time (thirty days) to appeal.
4.      Mr. Krueger noted that the owners sent a nasty letter.
5.      Mr. Youssef stated that we have followed proper procedure, and that is the end of it. The fines and fees stand.
                                                                 iv.      20537 GCD:
1.      Mr. Krueger has resent to the unit owner’s address the letter regarding window a/c units, auto work on site, and the lease.
                                                                   v.      TH unit violations (as previously noted):
1.      13107 B: The required work has been done and the owner has responded by letter.  Violation hereby cleared.
2.      4 DPD and 20539 GCD: The required work has been done, but the owners have not yet responded by letter.
3.      Required work on the other units cited has not been done, as of the date of the last visit, nor have the owners responded.
d.      Drainage between Phases 6 and 7:
                                                                    i.      Mr. Krueger noted that making multiple proposals takes a vendors’ (eg, Bridget’s) time.
                                                                  ii.      Mr. Youssef stated that the Board has rejected previous proposals for valid reasons. This proposal is tabled in order to evaluate whether the two trees died because they were too close to each other, and whether to replace with only one tree.
e.      Discussion of Summit’s complaints regarding the May 18 Minutes:
                                                                    i.      Mr. Youssef asked that Mr. Krueger tell the Board of anybody abusing the accounting department.
                                                                  ii.      Mr. Krueger’s statement:
1.      He advised:
a.      The Board should remove the name of the Summit employee from the post of the draft minutes.
b.      He wanted to submit a short paragraph to be inserted into the May minutes, rejecting the Board’s position regarding the employee.
c.       The problem stems from the way the assessment was made.
2.      Mr. Krueger’s complaint about the amendment to the Minutes:
a.      The 30 or so words in six or seven sentences (bullets) do not accurately reflect what was spoken over five minutes.
b.      The addendum is a misquotation.
                                                                iii.      Mr. Youssef’s response:
1.       What was said was said in an open meeting. Twenty people heard what was said. It is out of our hands, and we cannot redo what has been done.
2.      In the same meeting, a request was made not to print the name of another person to avoid retaliation. Elan Krueger, you did not object during the meeting to naming the employee.
3.      As to the termination question: The short answer is that the Board and the Association will hold you to the terms of the contract until the end. There has been no cause. Mutual termination is not an option because we are awaiting a positive answer from a bank, we are working with a lawyer for FHA approval, and a contractor is putting together a huge proposal. We cannot throw all that into the trash because of a minute, juvenile dispute.
                                                                 iv.      Mr. Krueger rebutted:
1.      The minutes are not a record of what was said. They reflect what was done. The posted conversation is at best misleading or incomplete.
                                                                   v.      Mr. Youssef disagreed with that.
                                                                 vi.      Mr. Franke stated:
1.      Mr. Krueger may give his version of what happened.
2.      Mr. Krueger disputes the references. Moved to publish in these minutes the references from the Board’s June 2 review of Summit’s complaint:
a.      On July 28, 2009, the Board approved a resolution to adopt the rules contained in the current edition of Robert’s Rules of Order Newly Revised, which shall govern the Board in all cases to which they are applicable and in which they are not inconsistent with the bylaws and any special rules of order the Board may adopt. 
b.      Robert’s Rules of Order Newly Revised 10th Edition is the current edition. It states, in part:
                                                                                                                                            i.      Page 451: In an ordinary society, unless the minutes are to be published, they should contain mainly a record of what was done at the meeting, not what was said by the members.
                                                                                                                                          ii.      Page 452: Any correction is made in the text of the minutes being approved; the minutes of the meeting making the correction merely state that the minutes were approved “as corrected”…
                                                                                                                                        iii.      Page 456: The minutes of a meeting are normally read and approved at the beginning of the next regular meeting…Corrections, if any, and approval of the minutes are normally done by unanimous consent.
                                                                                                                                         iv.      Page 457: A draft of the minutes of the preceding meeting can be sent to all members in advance, usually with the notice…Correction of them and approval, however, is handled in the usual way. It must be understood in such a case that the formal copy placed in the minute book contains all corrections and that none of the many copies circulated to members and marked by them is authoritative…
c.       Seconded. Vote 3 Aye/ 1 Abstain.
             VII.      New Business (8:05)
a.      ACC new business:
                                                                    i.      13055 B:
1.      Applicant request:
a.      Add a ventilation pipe from furnace to roof.
b.      Add a larger a/c, moving the compressor a foot or more left (as seen from the street); remove a section of a fence.
c.       Move the electrical disconnect box to the sidewall by the entrance to 20546 GCD.
2.      Mr. Youssef noted that the application included signature of only one of the four property owners most affected by the change. Furthermore, the signer is the apparent renter at 20546 GCD, not the owner. The building has been completely refurbished. We cannot approve anything that causes a structural change. The fence is not an Association fence; we don’t care for it. We do care about removing the electrical box; that is a huge problem. There are already two other big units in that area; making space for another big unit would encroach outside perimeter of conformity of the a/c units.
3.      George Stillman (guest) requested the floor. He stated:
a.      The Code evolves over time. You don’t have to comply with a change until you replace it. Can’t argue with the County on this issue.
b.      There are two issues.
                                                                                                                                            i.      First is a request for combustion air for safety issues. Originally, the furnace drew air through a vent connected to the living space. This unit has a gas fireplace. To replace the furnace, requires air. Will use a roof kit and assume all liability. Can go up or to the side.
                                                                                                                                          ii.      The new a/c condensing units on the ground are larger. Cannot set the unit to the right because of a sewer cleanout, plus needed distance from the gas meter.  Will protrude a few inches out to left. Regarding the disconnect box, the desire of the Association and the Code are irreconcilable: 3’ of clearance in front of the box, plus 15” L/R offset. The Inspector has looked at it and the County will not grant an exception.
c.       The owner cannot occupy the unit. Cost is not the issue.
4.      Mr. Youssef: We want the homeowner to be happy, but we must reconcile differences. This is a refurbished building. Please produce the name of the Inspector and the cited County Code. We are not fighting this. We want it done in the right way.
5.      Continued the 13055 B ACC hearing to 7 PM, Friday, June 17, in front of 20546 GCD.
b.      Continued the calendar for the Oct 26 election to the next regular meeting.
           VIII.      Community Forum (8:20‐8:30)
a.      Howard Coward asked how the delinquency rate is calculated.
b.      Bernadette Owen asked if we will make loan without community interaction.
                                                                    i.      Mr. Youssef stated that we will.
                IX.      Motion to adjourn to a closed session (8:40)
                  X.      Closed session (8:45)
a.      Session was closed to review WTP cases.
b.      Two Structura bills need payment. Send copies.
c.       Mr. Krueger may put together a statement to clarify what he said during the meeting of May concerning the accounting.
                XI.      Adjournment (9:50)

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