July 18 2012 BOD Meeting

Following are the Minutes for the Cloverleaf Center Condominium Board of Directors Meeting, July 18, 2012, Conference Room A, Upcounty Regional Services Center, Germantown, MD, 20874.

Farouk Youssef, President of the Association, called this regularly scheduled and announced meeting of the Board to order at 7:03 PM. The other Directors—Peter Franke, Andrew Kim, Kreg Williams, Hinaya Jainoor—were all present. Minutes for the June 20 meeting were not available and approval was postponed, pending availability. (Note: The May 16, 2012 minutes are also pending approval.)  An agenda for this meeting was not available, but the meeting was held on the following issues at hand.

Elan Krueger reported that the call for candidates will be sent 60 days prior to the Oct 24 Annual Meeting. Ballots and a reminder of the meeting will be sent 30 days prior. The ARC approved the proposal at 20608 DPD. Deck safety letters were sent to 13031 and 13035 B, and a patio storage violation letter to 20548 GCD. A response was sent to 13001 B regarding request for reimbursement for interior repairs.  An insurance claim at 13051 B was settled for about $9,612. A tenant claim at 12957 B was settled for about $8,065. A service request by 13100 B (CCIIIC) for a French drain is not the Association’s responsibility, as the owner’s property extends 4’ from building. Furthermore, the CCIIIC attorney’s opinion is that by common law, no Board has responsibility for runoff.  Management will check whether Brickman has identified the correct pine tree for removal. The fire alarm mother board in Plex phase 13 (“Building 1”) failed, and was replaced for about $2,400. Mr. Krueger asked that the Board grant blanket approval for replacement of the windows and doors and the labor prices from Katchmark.

Motion: The Board hereby gives blanket approval for the replacement of doors, windows and sliders, provided that the unit owner contracts directly for replacing such items. The styles of windows, doors and sliders described and illustrated in the July 9, 2012 Katchmark Proposal are architecturally acceptable for installation.  Approved 5 Aye, 0 Nay.

Motion to pay contractor for Revised Invoice # 3 (July 11, 2012) and to forward to ANB: Approved 5/0.

Motion to close meeting at 8:30 to discuss a payment plan request and a bankruptcy write-off : 5/0.

Motion to pay $218 for 12 months PO Box fee, due July 31: Approved 5/0.

Motion for Mr. Youssef and Mr. Williams to reopen negotiations with Dennis Robinson (Montgomery County) regarding leasing a portion of our property, as the County wants to move on their project in September (letter of July 11), in the midst of our own project: Approved 5/0.

Structura modifications to the contract deferred to executive session, to be held within about 10 days.

In open session, there were discussions of an iron fence (estimated at $10-14/ft), whether delinquent owners are now paying, removal of the dead pine tree, who will run for the new board, when gutters will be replaced, when the balconies will be done, and the balcony sliders.

The closed session discussed also the ANB account and executed contracts, and adjourned at 9 PM.

Note: Farouk Youssef, Peter Franke and Kreg Williams met at a public location on at 8 PM on Monday, July 30, for an emergency meeting of the Board concerning the request of the County to proceed with their project as early as September; Andrew Kim sent his regrets as he was unable to attend. The Board discussed the negotiation with the County, and an implied threat of eminent domain. A motion was made (FY/KW) and approved (3/0) to authorize hiring a lawyer to respond to and to obstruct any explicit threat of eminent domain.

June 20, 2012 BOD Meeting

Following are the Minutes for the Cloverleaf Center Condominium Board of Directors Meeting held June 20, 2012 in Conference Room A, Upcounty Regional Services Center, Germantown, MD, 20874. 

Farouk Youssef, President of the Association, called to order this regularly scheduled and announced meeting of the Board at 7:05 PM. Peter Franke, Andrew Kim, and Kreg Williams were present. Hinaya Jainoor arrived at 7:13 PM. The Manager was not available. 

Mr. Youssef noted that the doors and windows are the property of the Unit owners; the sliding doors must be removed, and if it must be replaced, the Owner must replace it. These buildings were built in 1994-97, and that is a long time ago. Steve Katchmark is here to speak later on the contractor’s proposal for replacing doors and windows. Kirby McCleary (SRG) is here and is also invited to speak later.

Mr. Franke asked to speak on several items of continuing business: There are several more instances of BBQs on Plex unit decks and patios; the 20608 DPP ACC request has been approved; and Condominium Bylaws, Chapter V, Section 14(k), states, in part: “…Any member who keeps or maintains any pet upon any portion of the Condominium shall indemnify and hold the Association, and each of its members free and harmless from any loss, claim or liability of any kind or character whatever arising by reason of keeping or maintaining such pet within the Condominium…”; additionally, our Rule 12 (June 3, 1997) states, in part: “…The law of the County addressing Animal Control and Humane Treatment is adopted as the principle of practice within the community…”  Summaries of these laws have been found at: http://www.montgomerycountymd.gov/poltmpl.asp?url=/content/POL/districts/MSB/animal/summarylaws.asp  

A motion was made (PF/KG) to approve the May 16, 2012 minutes. Mr. Youssef objected to a comment in new business, item III. g. Mr. Youssef stated that it is easy to claim that they did building 1. They did not pay for it and left it for another board to deal with the debt, the lawyers, etc.  The tough part was to address how to deal with the roofs, which a recent MIT study says are responsible for 68% of leaks. We did six roofs for $350K. We are now opening building 2 to do the job as it should be built. That was promised, and will be done. Let us hold up: 4/0. 

The ACC added the following condition for approval of the garage door replacement request from 20520 Bridger Way: “Solid white, no windows.”

A motion was made (FY/AK) to pay the SRG invoices #7589 and 7590 by July 10. Approved: 5 Aye, 0 Nay.

Motion (FY/AK) to reject the bill and threat for non-payment letter from 13001 B: Mr. Youssef noted that work will be torn up by the contractor, and that was said here before. Mr. Kim noted that the owner did this on his own, and the work was not life-threatening or an emergency. Approved: 5/0.

Mr. Youssef noted that we should have had the money for the loan in the bank last week, but the bank’s lawyer found a lien on the property [including the town house property and everyone’s personal property.] Mr. Youssef will take action for trespass, and those who signed will be called to task. The lien has been removed, and we have a bill. 

A motion was made to approve the “Minutes of Meeting of the Board of directors of Cloverleaf Center Condominium [sic]”). [In plain language: The Condominium is authorized to borrow $1.3MM pursuant to certain loan documents. The loan documents are approved. The President and Treasurer are authorized to execute those documents on behalf of the Condominium, and other actions they deem necessary or advisable.] Approved: 5 Aye, 0 Nay, 0 Abstentions. Five copies were signed, a copy for each Director.

The meeting opened for public discussion. Gratitude was expressed; a question about the wood door frames; a comment about paying even more; a question whether the town houses are implicated in the loan [no]; and the order of work. 

Mr. Katchmark was invited to give an update: The roofing, trim work, gutters are done. Started the siding and replacing the wood trim, and investigating the backs (rot, framing.)

Mr. McCleary then spoke. He became involved two years ago. It was a slow process to find out what is wrong and to do the bidding, and to wait for the Association to get financing.  He investigated several of the six buildings, and found occurrences of leaks, negative sheathing, and other joint problems. He stated that in the mid 1990’s, Code did not require a weather resistant barrier, and water will find a lapse. Wall to roof joints were also not flashed properly.  Other issues found: Leaks around the sliders; deterioration and separation; water infiltration and deterioration of deck attachments; wooden floor trusses, supported on end of well beds, should attach to the ledger board (in one case, in building 3, was split.) 

Now, we have a handle on the other balconies. We’ve opened 50% of them in building 2, and did not find that. In building 2, we did find a gap and slope, and found that it had dropped, and that the block at the corner had deteriorated, due to an important defect in the design. Today we found the same condition in the opposite deck. This is not just a siding project, and we have found some structural damage, so we’re doing spot structural repairs, removing some sheathing, adding weather protection, and window and door flashing. New siding and roofs were an issue, and the window and door options.

 [Question from floor whether we’re going to remove the sheathing?] Mr. McCleary answered for deck only. [Statement from floor that in building 1 there were three stories of rot] Mr. McCleary answered that it does not have that damage or indication.  Mr. Katchmark also answered that if it is in poor shape, we will replace it, and if the thermo-ply [sheathing] is buckled, we will replace it.

Mr. Katchmark added that ideally, we want to pull all the windows, and we can replace windows at reduced cost. Doors [sliders] will be removed and put back in: We will need the help of the owners so we can remove and replace them.

Public questions and answers continued: Cost to replace a slider (about $900); warped door [will address]; quality of windows, doors (upper medium grade, better than what is there, and energy efficient); warranties (offer 5 years workmanship); what to do with deck stack (clip and water proof); the doors of delinquents (yes, a problem); can all windows and doors be done in one day (yes)?

Mr. Kim stated to just email all your requests to cloverleafproject@katchmark.com. Public discussion then broke into individual conversations involving the owners with Mr. Katchmark and Mr. McCleary.

A brief closed meeting was held to discuss the current delinquencies.

The meeting adjourned at 9 PM.

May 16 2012 BOD Meeting

Board of Directors Meeting

May 16, 2012

Upcounty Regional Services Center, Room A

12900 Middlebrook Road, Germantown MD

I.                    Farouk Youssef called the meeting to order at 7:04 PM. FY, Peter Franke and Kreg Williams were present and constituted a quorum. (Andrew Kim arrived at 7:20 PM; Hinaya Jainoor was absent.) Meeting was announced by post card and sign. Motion (FY, PF) to read & approve minutes of April 18, 2012. Vote: 3 Aye, 0 Nay, 2 Abstain.

II.                  Continuing business and management report (Elan Krueger)

a.      Motion (FY, KW) to close meeting at 8:30 PM to discuss delinquencies and another legal matter. Vote: 3 Aye, 0 Nay, 2 Abstain. 

b.      FY reported on the construction and the loan; issue of gutters and downspouts; temporary repair work related to the project; inspection of concrete; ironwork:

                                                  i.      Since the roofs were finished faster than expected, we’re now in a lull.  That is a calamity for all of us, as the loan has not yet been approved, so we don’t have enough money to proceed to the next logical step (the siding and the balconies.)  The portion not yet done also includes new gutters & downspouts, and we don’t want to tear them out again when the siding is removed. That said, heavy rains caused some units to continue to leak, especially around the sliders.

                                                ii.      We have not been idle in this regard, and have promptly answered all questions from the bank about our cash-flow. For example, actual cash-based income is not reported in the accrual-method statements. To calculate cash income for the bank, we tabulated actual income listed on the monthly activity reports and arranged the data by class of ownership. For the period from January 2011 through March 2012, it took about 36 hours to reverse-engineer the reports to get a single value (cash income) for that period. Since the accountant could not get to that project in time, we did the work.

                                              iii.      We asked the bank for a date certain on the loan, explaining that if we are further delayed, we need to go ahead with the gutters, downspouts, and balconies. They explained that they cannot give us a date certain, and we asked what it is exactly that they want, so that there is no misinterpretation. The bank wants it simplified, and understands and mostly agrees with our statements of cash on hand.

                                               iv.      A now old, repeated problem is that the engineer did not know where the leaks are coming from. In one case, about a week ago, the engineer and his assistant located the source of a leak, at a cost of $6500. In another incidence, in “Bldg 2,” we’ll see how to remedy within two weeks.

                                                 v.      FY, EK and PF inspected concrete walkways and concluded the issue is not pressing right now. TH people own their lot so concrete is theirs; what is a concern are the walkways from one building to another.

                                               vi.      Found a trade person who has fixed the iron railings.

c.       Motion (PF/KW) to proceed at this time with drainage, tree replacement between TH Buildings 6 and 7 (behind 14 DPC). Vote: 4 Aye, 0 Nay, 1 Abstain.

d.      13055B ACC requests (AC, vent): The owner wrote on May 10, 2012 that: “…the current disconnect box can and will be reused since 1) it will not negatively impact the functioning of the new system and 2) the box does not need to be relocated.” The BOD approved the owner to remove a portion of the fence and reapproved erecting the ventilation pipe. FY underlined the instruction to not change or relocate the disconnect box from its current location and signed both requests.

e.      20608DPP ACC request (removal, replacement, realignment): Deferred decision pending a meeting at the site, and an examination.

f.        EK noted the Annual Meeting will be held on Wednesday, October 24, 2012. The meeting notice and call for candidates will be mailed in August.

g.      FHA. Motion.

III.                New business and community forum

a.      BBQs are prohibited on Plex decks and patios: EK sent 4 letters and 1 email to Plex unit owners notifying them that use or storage of BBQ grills on Plex decks or patios is against the rules and a violation of the Montgomery County Fire Code.

b.       Discussion of the “MD Pit bull Case”: The MD Court of Appeals has ruled that owners in multifamily housing are not allowed to keep that breed or mixed breed. FY stated that if this singles them out, that may constitute an illegal enforcement of law, and that the case may be put into the Federal Courts system. EK stated the case involved a pit bull in an apt building; the victim’s family sued everyone, including the apt building owner; the Court stated the breed is inherently dangerous, and allowing a pit bull is negligent and makes the building owner liable; the recommendation is if Association’s rules allow, to pass a rule to prohibit pit bulls and pit-bull cross breeds; insurance will not cover us if sued. Should such a rule apply to anyone who now owns a Pit bull breed, or hence forth? What now is the MD law on liability if an animal’s owner does not assume full liability? As other Condominium Associations may be asking similar questions, may we limit our Association’s portion for legal consultation of these matters to two hours, or however much is a fair share?

c.       Motion (PF/FY) to pay Structura Invoice #7511. Vote 4 Aye, 0 Nay, 1 Abstain.

d.      FY deferred discussion on drafting a binding resolution for repayment of a construction loan.

e.      PF noted that some new owners may not be paying their dues, or not paying consistently. To avoid this, and to give the benefit of the doubt, FY recommends a warning letter to those, stating that fees are due the first day of the month, a $15 late fee is applied after the 15^th, and after 90 days the delinquency may be referred to the attorney for collection of assessments, legal fees, and legal interest. Discussion of recovery of legal fees for collections, warning letters.

f.        Received a letter, allegedly from 13001B, a form of threatening correspondence to pay or else. First, the letter is not dated or signed and is not a legal document. Second, we will not yield to threats. In the past, that owner was the first to receive an engineering study of a unit, as well as temporary repairs.  The work he has done will be redone in the project, and everything he has done will be destroyed. FY rejects the letter.

g.      Open discussion included the project, loan and Brickman landscaping.

                                                  i.      Anna Prisutti of 13009 B stated “At least we [the previous Board] succeeded in doing one building, but not the stuff not required, which was the roof."

IV.                Closed discussion and adjournment

a.      Discussed WTP cases and actions.

The ACC met in a special session at 20608DPP at 7 PM on May 24, 2012.

1.      AK, PF and MH (owner) were present. FY, KW & HNJ were unable to attend.

2.      Owner measured the areal dimensions (100”W and 72”D) of the proposed flagstones. This depth is slightly greater than the existing pavers & will displace a few inches of grass. Space between pavers will consist of a sand-gravel mixture.

3.       AK & PF found no objections & recommended approval of the proposal.

The BOD met in an emergency session at a public location at 7:45 PM on June 4, 2012 to discuss ANB’s approval of Cloverleaf’s request for a commercial term loan.

1.      The Executive Committee (FY, AK & PF) was present. KW & HNJ were unable to attend.

2.      FY moved to hire a competent attorney from WTP to execute the ANB loan documents until closing. Vote: 3 Aye, 0 Nay, 2 Abstentions by absence.

3.      AK volunteered to draft a binding resolution to direct repayment of the loan.

a.      Repayment is funded by the special assessment, as amended, and by 57% of the reserve fund.

b.      The BOD directs that no less than minimum required payments shall ever be made. The BOD authorizes payment of $18,000 or more per month, if possible, so as to pay off the loan during the term of the special assessment.

c.       Attach a copy of the executed June 4, 2012 commercial term loan letter.

4.      FY called S. Katchmark, who affirmed that downspouts will be removed and reattached with greatest care, and that gutters will not be touched during siding work.