Cloverleaf Center Condominium
May 18, 2011 Board of Directors Meeting
7:00‐9:00 PM
Upcounty Regional Services Center Conference Room A
12900 Middlebrook Road
Germantown MD
Minutes
I. Farouk Youssef called the Meeting to order at 7:02 PM
a. Mr. Youssef remarked:
i. The delinquency rate is too high. Some in our community have not faced their obligation to pay their dues, so that our community may function correctly. The Association is not a for-profit organization. It has no mechanism to support people who are not paying their obligations.
ii. There are two options: (1) Pay your dues. (2) If you cannot make it, if you cannot afford to live here, you may leave.
iii. Delinquencies are $79,212.56 (down from about $127,000.) We are in a hole. This is unacceptable. We are trying to transact business with lenders and we are trying to renew FHA approval for owner occupied units.
iv. We will diligently pursue what is owed to the Association. We will go hard on those among us who do not pay their dues. We will charge the legal rate of interest (up to 18%), we will hold hearings, and we will assess penalties.
II. Proof of announcement: This meeting was announced on a postcard sent to Unit Owners on December 15, 2010, a sign was posted at the entrance to the community on May 15 and notice was posted on the website (http://cloverleafcenter1.blogspot.com/).
III. Establishment of a quorum of the Board (7:06 PM):
a. Farouk Youssef, President,
b. Andrew Kim, Vice President,
c. Peter Franke, Treasurer,
d. Hinaya Jainoor, and
e. Diana Smith: All present, establishing a quorum of the Board.
IV. Mr. Youssef moved to approve the April 20 minutes. Mr. Franke seconded. Vote 5 Aye/0 Nay.
V. Management Report: (7:07 PM):
a. Elan Krueger announced Summit Management moved from the Silver Spring office to:
Summit Management Services, Inc.
3833 Farragut Ave.
Kensington, MD 20895
Tel 301 495-0146
Fax 301 495-0147
Please mark this change in your records, and do not send correspondence to Silver Spring. Accounting remains in Alexandria. Tel, fax and emails remain the same.
b. On May 5, Guardian Fire Protection performed the bulk of the contracted repair services approved in March. It now needs to access ten units that have “sidewall” sprinkler heads through Unit Owners’ closets. This work will be coordinated between Guardian and the Unit Owner by Summit.
c. Poor drainage between the units of Phases 6 and 7 (The townhouses between Duck Pond Place and Duck Pond Court) causes standing water after storms. Summit received a proposal from Brickman to remediate this (and to remove two dead trees) for $2450. Reservations about this solution were expressed, and Brickman proposes an alternative 40’ (rather than 100’) drain.
d. During a walk-through of the townhouses on April 21, Mr. Krueger and Mr. Youssef noted numerous violations for rotting wood and painting maintenance. Summit has sent notices of these violations to the Owners. There is a 30-day period for remediation. One Owner has completed the work and signed off on it; another has completed the work but has not yet signed that the work has been satisfactorily completed. Mr. Krueger will follow-up on these violation letters.
e. The auditors have not yet held a site visit at Summit Accounting offices for the 2010 audit. Taxes (2010 Federal and State) have been completed. Mr. Youssef stated that lending institutions require the 2010 taxes and audit in order to consider our requests for funding our upcoming repair project.
f. A current collections report has been prepared.
VI. Continuing Business (7:20)
a. Because of an objection from Mr. Robinson, Mr. Franke moved to reconsider the DOT Addendum so as to amend it, changing the term “reforestation” to “restoration” in regard to affected area (e.g., removal of trees between Father Hurley Blvd and Bridger Way.) Mr. Youssef stated that Mr. Robinson has since informed him that there have been other problems (with the developer) and that there is a temporary halt to the project. He moved to table reconsideration of the DOT Addendum. Mr. Franke seconded the motion to table. Vote 5 Aye, 0 Nay.
b. Ms. Smith moved to instruct Summit to inform WTP to prepare necessary paperwork for the FHA approval request. Mr. Franke seconded. Discussion:
i. Mr. Krueger stated that there has been no further response to the lessee letters. We believe we have 28/150 units that are not owner occupied (notices are sent to an alternative addresses; may be rentals or in foreclosure.) There are two known foreclosures. Mr. Youssef commented that lenders may be interested in a different rate of rental properties than the 15% used by FHA.
ii. Association criteria regarding “delinquent” payments are that an obligation overdue more than 30 days is “late”; if it is overdue more than 60 days, it becomes “delinquent.” After 90 days, the delinquency is referred to the attorney for collection. FHA and lenders may use other criteria for their own purposes.
iii. In regard to bills charged to Unit Owners for maintenance or repair to limited common elements, Mr. Franke suggested that it may be advantageous, in respect to reducing the rate of delinquency, for the Association to handle such bills (but not charges for repairs to general common elements, e.g., the recent removal of pavers) in a manner other than as the collection of common charges. [Bylaws Article V, Section 13 (b) (v); note that the Act, 11-110 (b) (2) (ii) and (iii) is more permissive.]
iv. Mr. Krueger stated that he will lower the cost of the resale packages from $225 to $200. The cost for a standard refinance package will remain at $35 to $50, depending upon the length of lender’s questionnaire and the involvement of the settlement attorney.
v. Mr. Krueger said he will bring the following complaints to Brenda’s attention:
1. Paid up-to-date Special Assessment balances should not be reported as delinquencies. Mr. Franke stated that this damages the Association. Mr. Krueger stated that is because of the wording of the Resolution. Mr. Franke said that the stated intention of the Association in passing the Resolution was that the lien be paid at the rate of $235 monthly. For example, on April 30, a Plex Unit Owner’s Special Assessment balance of $11,750 was timely, not a delinquency. That the $11,750 remaining lien is a personal obligation of the Unit Owner per the governing documents does not make it a delinquency.
2. A Unit Owner wrote a letter to the Board because Accounting said to that Owner that the balance owed was $13,006. A copy of the letter was given to Mr. Krueger. Mr. Franke stated that the assessments for that Owner had not in fact been accelerated. Mr. Kim asked that the Accounting folks in summit Management STOP quoting the ENTIRE amount of the special assessment whenever someone is late in payment. All they have to say is, “Mr./Ms. so and so, we have not received your monthly special assessment payment of $235” instead of saying “your outstanding balance is $13,462,” which appears more painful than it has to be and unnecessarily freaks people out.
3. Mr. Youssef stated that it is not in the interest of the Association for Raluca to be involved in the business of the Association.
a. Mr. Youssef: We have a severe problem in Accounting. It has been said we have 75% delinquency…
b. Mr. Krueger: That has since been corrected.
c. Mr. Youssef: We do not want Raluca to have anything to do with our accounts.
d. Mr. Krueger: Raluca has a degree in accounting. No one has complained.
e. Mr. Youssef: The Client does not want Raluca to handle the account.
f. Mr. Krueger: The problem comes from the way the resolution was written.
g. Mr. Youssef: That is not true.
vi. The question was called for a vote: 5 Aye, 0 Nay.
c. Mr. Youssef moved that a response to the Unit Owner’s letter and the WTP report be discussed in closed session. Mr. Franke seconded. Vote 5 Aye, 0 Nay.
d. Building envelope report:
i. Of the original nine bidders, only two serious bids remain, for a variety of reasons. It is highly desirable to obtain three more bids. The bidding process has been extended to include those already entered, plus additional bidders, through May 23. At that point, a closed Session of the Board will convene, and the bids will be opened for simultaneous consideration.
ii. Mr. Youssef met for a second time this morning with a local lender; they require the 2010 audit. Negotiation with another lender reached an impasse over delinquencies. Mr. Franke stated that the delinquency rate must be lowered for the health of our community.
e. Letters regarding direct contact with vendors and rule enforcement are attached, per the April minutes.
f. ACC continuing business:
i. 13035B garage door hearing: The violation is in a foreclosed unit. The property was sold at auction about October, 2010 (according to a neighbor.) MDAT records indicate that the Owner is still “MONCADA, EDGAR ET AL.” Repair could be done (e.g., Gaithersburg Garage Door) with back billing to the Owner or to the bank. Mr. Youssef moved to table the matter until current ownership is determined. Mr. Franke seconded. Vote: 5 Aye/0 Nay.
ii. 13061 B, ACC application: Mr. Krueger said that the ACC application for vent installation that was promised prior to emergency approval has not been received. He will write the Owner to demand the application.
iii. 14 DPC, request for further information: The Owner was present and offered the explanations requested. The Unit Owners who spoke during the April meeting asked no questions this time. The Owner was advised to commence work within six months and to submit a certificate of compliance. Vote on the 14 DPC ACC Application: 5 Aye/0 Nay.
iv. 20537 GCD, complaint of ACC violation:
1. In response to a complaint from Wade Owen during the April meeting, Mr. Franke reported that he observed at this address an A/C unit protruding outside the existing frame of an upper front window, a violation [General Rules & Regulations, June 3, 1997, Rule 14.] He also saw a person performing major automobile maintenance (brake work) in the driveway of this unit, also a violation [Rule 18.] Mr. Youssef stated that there is another A/C unit protruding from a window in the rear.
2. It was alleged that as many as five common element parking spaces have been used simultaneously by residents at this one address. [This is not a violation of our Parking Rules. However, simultaneous use of five common (but rare) parking spaces is an unreasonable interference with the rights, comfort and convenience of other Unit Owners and occupants.]
3. Subletting a portion of a Unit (other than the entire Unit) is a violation [Bylaws Article V, Section 14(g). A failure of the lessee to comply in all respects to the provisions of the Act, Declaration and Bylaws is a default under the lease, which default may be remedied by the Unit Owner, or by the Council of Unit Owners in accordance with the Act.] Mr. Krueger will write a letter to the Unit Owner of record to demand all lessee information, abatement of the violations, and adherence to the rules and Bylaws by the Unit Owner, lessees and their guests.
VII. New Business (8:25)
a. Swale drainage between Phases 6 and 7:
i. [Ms. Smith states that the French drain is NOT a good idea: It does not function more than ten years, and requires regular maintenance of the filter cloth to prevent clogging, an added expense. Remove the stump and the dead tree, plant a tree that flourishes in wet areas or standing water, then let nature take its course: Atlantic White Cedar, Bald Cypress, Black Ash, Freeman Maple, Green Ash, Nuttal Oak, Pear, Pin Oak, Planetree, Pond Cypress, Pumpkin Ash, Red Maple, River Birch, Swamp Cottonwood, Swamp Tupelo, Sweetbay Magnolia, Water Tupelo.]
ii. Mr. Franke suggests that this problem can be fixed by removing the dead tree and the stump (mulching may have contributed to the problem) and removing some of the dirt from the swale.
b. Taxes: Mr. Franke moved to approve signature of the 2010 taxes. Mr. Youssef seconded. Vote: 5 Aye/ 0 Nay. Mr. Youssef signed the returns and handed to Mr. Krueger to file. Mr. Franke requested a copy of the signed return for the Board.
VIII. Community Forum
a. A Unit Owner reported seeing a group of young people kicking the retaining wall at the corner of Bridger Drive and Golf Course Way. The Unit Owner approached a young woman in the group and informed her (and those with her) that this was unacceptable and that her parents could be billed for the destruction of this wall. The young woman is alleged to have said that the community will pay for it. As concern was expressed that this Unit Owner may be targeted for retaliation, the name of the Owner will not be reported in this forum. Mr. Franke expressed appreciation to this Owner for confirming suspicions that the damage to the wall was vandalism.
b. Linda Salins (20549 GCD) stated that the arborvitae at the rear of 20555 GCD, previously approved for removal, still remains dead.
c. Aileen Kelley (20557 GCD) asked when we will repair the pot hole at the entrance to the community. Mr. Youssef stated that WSSC is responsible and that they repaired an entirely different area (the SE corner of Bridger Drive) when called. Mr. Krueger stated he called WSSC and gave the address of the nearest townhouse and they should repair it in the very near future.
d. Brian Korody (14 DPC) wants the stump at the rear of 20559 GCD removed.
e. Ms. Kelley says fix the brown spots in the common area behind 20559 Golf Course Drive.
f. The Salins want Verizon to straighten the FIOS plate on their property.
g. Ms. Kelley wants Verizon to remove a FIOS wire sticking out of the ground.
h. Mr. Korody wants Brickman to use a small mower, rather than a weed-wacker, on the small town house yards (for a more even result.)
i. Ms. Salins wants a permanent bulletin board to replace the temporary sign used to announce BOD meetings. The cost is approximately $500. Mr. Franke stated that this is not a currently budgeted item and will place it on the agenda.
IX. Motion to adjourn to a closed session (8:40)
X. Closed session (8:40 – 9:00)
a. Discussion of WTP collections status report: Ms. Smith complained that she did not receive the current report, and cannot therefore vote on any recommendations. Mr. Franke stated that he had received it about three hours before the meeting and was barely able to print, review, and preview it for the Board. WTP recommended the President’s signature on five cases (including several that were approved for signature at the April Meeting.) Mr. Franke moved to approve these signatures. Mr. Youssef seconded. Vote: 4 Aye/ 1 Abstain.
b. Discussion of letter from 12955B: Mr. Kim reiterated his response to Summit Accounting (see above.) Mr. Youssef reiterated that Raluca is not to manage this Association’s records or communicate with its members (see above.) Mr. Franke will draft a written response to the Unit Owners’ letter.
XI. Adjournment (9:00 PM)
XII. Attachments
