August 17, 2011 Board meeting minutes

Cloverleaf Center Condominium

Board of Directors Meeting

August 17, 2011, 7:00-9:00 PM

Upcounty Regional Services Center, Room A

Germantown, MD

Minutes

I.                     Call to Order (7:07 PM)

II.                    Establishment of a quorum of the Board of Directors

a.       Present:

                                                               i.      Farouk Youssef, President

                                                              ii.      Andrew Kim, Vice President

b.       Absent (due to travel):

                                                               i.      Peter Franke, Treasurer, gave his proxy for this meeting to Mr. Youssef.

                                                              ii.      Hinaya Jainoor, Member-At-Large. A written proxy was given to Mr. Youssef.

III.                  Proof of Announcement

a.       Postcards were sent to all unit owners, and a sign was posted at the entrance.

IV.                 Continuing Business

a.       Approval of the Minutes

                                                               i.      The July 20, 2011 minutes were approved (4 Ayes [2 by proxy], 0 Nay.)

b.       Management Report (Elan Krueger, Summit Management)

                                                               i.      The Annual Meeting will be held Wednesday, October 26, 2011, 7 to 9 p.m. at the Germantown Upcounty Regional Services Center, Conference Room A.  Postcards calling for one BOD candidate have been mailed-out.  The official cut-off date is Wed., September 21, 2011, which is the same as the next Board meeting.

                                                              ii.      Todd Canali recently joined Summit Management as a new Administrative Assistant.  He replaces Tiffany Hope.

                                                            iii.      A test was conducted by Guardian Fire Protection at 13009 Bridger Dr (Anna Prisutti.)  The sidewall sprinkler head was replaced, and drywall patched. 

1.       Letters were sent to the 13 owners who have sidewall sprinkler heads that need to be replaced, but only two have responded so far. 

2.       The Board urges those unit owners to respond. 

3.       About $7,300 of Guardian Fire Protection’s invoice is in negotiation. 

                                                            iv.      Bulk-trash will be removed by Potomac Disposal on September 24, 2011.  Reminder postcards will be mailed-out.

                                                             v.      A water leak at 13015 Bridger Dr. flooded the unit below. 

1.       13015 Bridger Dr. is FHA-owned property, and there has been a lack of response. 

2.       The money paid by insurance to CCC needs to be reconciled with the invoice from Minkoff. Some of that payment will go to the unit owners to apply to flooring repair (and/or upgrades.)  Minkoff is currently waiting for a response from the unit owners whether to select a flooring option within the limit of the insurance reimbursement, or to upgrade and receive credit off Minkoff’s price.

3.       Mr. Youssef asked Mr. Krueger who is responsible for paying the percentage that Summit charges for the insurance claim.

4.       Mr. Krueger answered the usual charge is to the people who instigate the incident. This has been done already for other incidents. The Association does not pay more.

                                                            vi.      The draft of the 2010 Financial Audit from Deleon & Stang was forwarded earlier this month, and should be signed within sixty days. 

1.       Mr. Youssef stated that the draft audit was full of mistakes, and a revision needs to be scheduled.

c.       ACC

                                                               i.      13055 Bridger Dr. (Ducker):  The Board sent a letter to the unit owner stating that the unit owner, not the vendor, must certify responsibility for any damages due to the requested roof exhaust pipe.

                                                              ii.      20613 Duck Pond Pl. (Eapen):  The unit owner requested placing paving flagstones in front of that unit to cover an area of perpetually-dead lawn.  Previous attempts to revive the dead lawn have been unsuccessful.  Mr. Youssef moved to approve the application.  Andrew Kim seconded (2 Ayes, 2 Proxy Ayes, 0 Nays.) 

1.       Wade Owen of 13037 Bridger Dr. asked whether voting on these matters with two proxy votes is permitted under the CCC Condominium Bylaws.

2.       Mr. Youssef stated that such is permitted. 

3.       Mr. Krueger suggested that this meeting be continued assuming that such is permitted. Any necessary changes can be made afterwards. 

4.       Aileen Kelly of 20557 Golf Course Dr. suggested that, if in doubt, the Board Members who are present at the meeting can suggest a decision and it can be voted upon officially at a later time.

1.       There are currently four cases in which violations need to be removed, and two which require an ACC Hearing.

1.       12953 Bridger Dr (FHA):  Garage door repair needed.  A letter was sent on July 6, 2011.  It is still in violation as of July 29, 2011.  A hearing will be scheduled. A follow-up letter will be mailed.

2.       12834 Duck Pond Dr: Cable hanging from the exterior.  It is still in violation as of August 2, 2011.  A hearing will be scheduled.

3.       20533 Golf Course Dr:  Exterior rotten wood.  It was still in violation as of July 29, 2011 but was rectified upon later re-inspection.

4.       20547 Golf Course Dr:  Cable hanging from the exterior.  It is still in violation as of July 29, 2011 but was rectified upon later re-inspection.

5.       20612 Duck Pond Dr:  Exterior rotten wood and missing/crooked exterior numbers.  They were rectified as of July 29, 2011.

6.       20602 Duck Pond Dr.:  Exterior rotten wood.  It was rectified as of July 29, 2011.

d.       Financials

                                                               i.      Mr. Youssef moved to hold a closed meeting of the Board after the open meeting.  Andrew Kim seconded (2 Ayes, 2 Proxy Ayes, 0 Nay.)

                                                              ii.      Mr. Youssef stated that page 86 of the July Financial Statement shows total legal fees to date of $19,378.

1.       June’s legal fee was $17,169, all related to Whiteford Taylor Preston (WTP.)

2.       Mr. Youssef asked Mr. Krueger if CCC will be getting any money back from WTP, and Mr. Krueger stated that he will check the amount.

3.       Mr. Youssef stated that the Board cannot waive these attorney fees, charged to the unit owners in connection with efforts to collect on accounts with delinquent assessments.

e.       Mr. Youssef stated that the term for Diana Smith, who has been functioning as a Member-At-Large, expired on July 22, 2011, and that she will no longer be serving on the Board.

V.                  New Business

a.       Mr. Youssef stated that some Board Members have used their personal vehicles for conducting needed Association business.

                                                               i.      Several recent trips have been expensive due to the distance traveled (e.g., to and from various lenders in Northern Virginia.)  He recommends that the Board approve reimbursement for mileage, and tabled discussion to the next Board meeting.

VI.                 Open Forum

a.       Assessment Delinquencies:  A letter has been drafted and will be mailed to the homeowners to urge all unit owners to bring their accounts up-to-date, especially those with relatively small balances due.  Even if the amount is small, that will help in lowering the overall delinquency rate.  WTP, the collections law firm, has been efficient.  Last year, a total of $69,500 was collected.  A total of $61,000 has been collected so far this year (as of 08/15/11).  The overall delinquency rate, however, will not be lowered, even if some owners choose to voluntarily pay-off the Special Assessment in full.

b.       The planning phase of the Plex Units Renovation Project is nearing its end, and a company called Katchmark Construction is so far the best candidate overall.  The project can potentially begin as early as October of this year if funding becomes available, and the entire project is expected to last less than one year.  One of the strong points for Katchmark is that it will utilize its in-house crews for most of the project, instead of utilizing subcontractors.  The project will encompass the repairing/refurbishing of the decks, siding, the internal sheathing, and the roof.  Our shingles are no longer up to code and will need to be completely refurbished.  It is estimated that there will be an increase in the price due to the increased scope of the work, and another Special Meeting to increase the Special Assessment amount up to approximately $18,000.  The monthly payment will likely stay the same, and the term of the Special Assessment likely be extended.  As of today, the estimate for the total amount, including the expected interest, will be approximately $1.6 million at 5.5% APR.

c.       A tree stump near 20559 Duck Pond Dr. needs to be removed.

VII.               Adjournment (8:11 PM) Mr. Youssef moved to adjourn to a closed session.  Mr. Kim seconded (2 Ayes, 2 Proxy Ayes, 0 Nay.)

VIII.              President’s Call to Order:  8:15 PM.

a.       Mr. Youssef, Mr. Kim, and Mr. Krueger were present.

IX.                  Business

a.       Various topics regarding delinquent accounts were discussed.

b.       Various financial and accounting-related matters were discussed.

X.                   Adjournment of the Meeting

a.       Mr. Youssef moved to adjourn the meeting at 9:00 PM.  Mr. Kim seconded (2 Ayes, 2 Proxy Ayes, 0 Nay.)