Cloverleaf Center Condominium
Board of Directors
Meeting
Board of Directors
Special Meeting
December 21, 2011
7:00‐9:00 PM
Upcounty Regional Services
Center Conference Room D
12900 Middlebrook Road
Germantown MD
Minutes
I.
Farouk Youssef called the Board to order at 7:10
PM.
II.
The following Directors were present to establish
a quorum of the Board:
a.
Farouk Youssef, President;
b.
Andrew Kim, Vice-President, by proxy to Mr.
Youssef;
c.
Peter Franke, Treasurer;
d.
Noorul Hinaya Jainoor, Member at Large;
e.
Kreg Williams, Member at Large.
III.
Proof of announcement: Notice of the regular
open board meetings of the Board was sent by postcard. Notice of the Special
Meeting of the Board of Directors to “…discuss and vote on amendments to
Resolution 2010-1…” was sent by a postcard postmarked December 9, 2011. A sign was
also posted at the entrance to the community.
IV.
Motion to elect a Secretary: Mr. Youssef announced
that Mr. Williams has volunteered. He moved to nominate Mr. Williams as
Secretary of the Association. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.
V.
Mr. Franke moved to approve/re-approve the minutes
of the following BOD meetings: August 17, 2011, September 21, 2011, October 26,
2011 (BOD portion) and November 16, 2011. Mr. Youssef seconded. Vote: 5 Aye, 0
Nay.
VI.
Mr. Youssef stated that the Board will now discuss
and vote on amendments to Resolution 2010-1. He stated that:
As a
result of the engineering study and their open bidding of six companies to repair
the Plex units, we settled on Katchmark, even though their bid was not the lowest.
Their original bid was for $1, 916,958, and Mr. Youssef negotiated that down to
$1,700,000.
“Building
1” was refurbished by a 2008 resolution for a special assessment put upon the
Association. Subsequently, there was some legal action, and a Commission Panel
judge ruled was that a newly elected board would decide the fate of the
rehabilitation and the special assessment. In July, 2010, we put that
resolution to a vote, but the only dollar amount we had at that time was the
old number and we voted at that time for $14,100.
Since
then, there have been some significant changes for the rehabilitation project.
New roofs have been added, so each building will be rehabilitated from the roof
down, including the siding and balconies. The reason the project is pressing upon
us now is because the buildings are deteriorating in a way that is costing us
money. One renter has an insurance claim. It is not optimal time now to wait.
We have the contractor and may have the bank. We have already been turned down
eight times. Finally, we have a small local bank willing to extend a loan with
reasonable conditions. For that, we need to amend the resolution, and that will
reflect a substantial increase in cost.
We
will decide that tonight by a vote in front of you. We will keep the cost at
$235/month, and extend the term from 60 to 108 months. “Bldg 1” did not have a
new roof. At the end, it will be re-roofed. For those who already paid $14,100,
as well as for foreclosed units, the new owners will be responsible for the
extra $11,280. If the community does not accept our amendment to go ahead, they
have a mechanism to rescind our action. Briefly, you have 30 days from the date
of the communiqué to collect 50 signatures to force a special meeting, at which
time a change to it would be made by majority.
Mr. Youssef asked Mr. Franke to read
aloud the resolution titled Amendment and Reformation of Resolution 2010-1
of March 17, 2010. Mr. Franke read:
Whereas
the Plex Unit owners voted on March 17, 2010 a levy upon themselves of a
special assessment to repair certain long standing deficiencies in their common
property, and
Whereas the Board of
Directors thereby enacted Resolution 2010-1, and
Whereas the Board concludes,
having gathered all necessary facts and analyses, that
The prior Board’s
estimate of $14,100 per unit is insufficient to cover the costs of repairs to
the remaining six (6) buildings, due mainly to the increased scope of the
project required by current Montgomery County Code regarding repairs to the
roofing and the decks.
The
project can now go forward, however, by the affirmative resolution to amend and
reform Resolution 2010-1 so as to reflect the costs previously obligated to
this project and the expected future costs, including $1.7 million in contract
costs for repairs, plus interest and other costs.
Time is of the essence of
this project and of this assessment.
The elected current
members of the Board of Directors therefore affirmatively resolve that this
project shall now go forward, and amend and reform Resolution 2010-1 such that:
The Special Assessment
repayment term is extended from 60 months to 108 months. The monthly Special
Assessment for each 98 Plex Unit owner is $235. The total Special Assessment
for each Plex Unit owner is $25,380. The $25,380 consists of the following two
parts: A $14,100 lien that was due and payable July 1, 2010, plus a $11,280
lien that is due and payable on this 21st Day of December, 2011,
upon the affirmation of this Resolution.
This lien may be
satisfied by payment of $235 per month for 108 months and owners who are
current in these monthly payments are not delinquent in that portion not yet
due. Owners are individually responsible for and shall pay on demand any and
all costs of collection due to non-payment, fees, legal interest, plus the
acceleration of this lien in its entirety.
Plex Unit owners who
purchased a Plex Unit through a regular home sale or a foreclosure after the
$14,100 collections originally began in October 2008 will also be responsible
for their portion of the increased cost of the project, plus any unpaid portion
of the $14,100 special assessment. Owners who are in this situation will be
notified separately by our Property Management Company about how much the
additional payment will be and when their monthly payments will begin.
This Special Assessment
covers the costs for the renovations specified in the engineering study as
negotiated with the selected bidder, plus the costs for the repairs to Phase 13
(“Building 1”), which was completed except for the roof, engineering and
bidding costs, a commercial loan up to $1.7 million for the specified repairs
of the limited common elements of the remaining six (6) Plex buildings, loan interest
and expenses, costs for collections, bad debts and certain other legal fees
that relate only to this project, and unforeseen costs as may occasionally
occur that relate to these repairs.
Although this Special
Assessment shall continue to be memorialized in the Operating Budget, these are
limited common element reserve expenses and are paid exclusively and entirely
by the Plex unit owners. Certain Plex Unit operational expenses (maintenance)
and limited common element reserve expenses may in the future benefit as a
result of these repairs and further reserve study.
Mr. Franke moved to approve the resolution
titled Amendment and Reformation of Resolution 2010-1 of March 17, 2010.
Wade Owen (13037 Bridger Dr) rose to debate, and was told that the motion had
not yet been seconded. He then left the meeting. Mr. Williams seconded the
motion. There was no further debate and the question was put. Vote: 5 Aye, 0
Nay. Mr. Youssef stated that the resolution passed and would be signed later.
Mr. Youssef responded to the question
why we should pay the extra cost of interest?
He stated that the Plex community is a big community and that repairs
are extended over a length of time to make them bearable, while TH units must
pay their repair costs up-front. The buildings are 17 years old and the work
cannot wait.
Mr. Youssef responded to questions where
will the work begin and whether more than one building can be done at a time. He
stated that we will start with a single building, as it is not easy to figure
out what is behind the skin, but the construction company is capable of working
on two at a time. The engineer will choose where to begin, probably “Building 2”
[Phase 14.]
Mr. Youssef responded to Mr. Krueger’s
question whether the resolution had been reviewed by a lawyer, and suggestion to
send it to WTP regarding foreclosures. Mr. Youssef stated that it had not, and that
he will take the suggestion under advisement.
VII.
Management report:
a.
After we switched to John Manougian Insurance
Agency, Inc., we were immediately challenged with a claim:
i.
Mr. Krueger stated that a missing downspout may
have caused rain water to channel from the roof through a hole into a blind
space at 12957 Bridger Dr. As there may be black stuff, remediation will be
designed by an environmental company.
ii.
Mr. Krueger stated that the tenant gave us notice
of intent to file a liability claim for lost contents. That claim was denied by
the tenant’s renter’s insurance, and the tenant decided that we’re not moving quickly
enough. Mr. Krueger also stated he is duty bound to tell us that the tenant notified
Montgomery County about her living conditions, and that we and the Unit owner will
get citations with 30 days to comply.
iii.
The downspout was repaired. Environmental testing,
design and remediation will proceed on the basis of an issue with mold. Repairs
to drywall and wood may be covered by insurance.
b.
Potomac Trash: Proposed a two year extension of
their contract with no increase in fees. Mr. Williams moved to accept this proposal
and Ms. Jainoor seconded. Vote: 5 Aye, 0 Nay.
c.
ACC continuing business:
i.
12953 Bridger Dr (Scott) Request to replace
garage door. Vote: Aye 5, 0 Nay. Approved.
ii.
13061 Bridger Dr (D’Arrigo): Approval of revised
request. Vote: Aye 5, 0 Nay. Approved.
d.
The 2012 management contract was signed by Mr.
Youssef.
e.
Bound copies of the 2012 Audit were handed out
to the Board.
f.
The 2012 approved budget was sent to Unit owners,
and coupon books have been ordered.
g.
2012 Regularly Scheduled Board of Directors
Meetings:
i.
Meetings have been scheduled for the next six
months.
ii.
Meetings will be held at 7 PM on the third
Wednesday of each month at the Upcounty Regional Services Center.
iii.
The next regularly scheduled board meeting will
be January 18 in room C.
VIII.
Continuing business
a.
Mr. Youssef moved to close the meeting at 8:30 PM
to discuss the collections and legal actions. Mr. Franke seconded. Vote: 5 Aye,
0 Nay.
b.
13055 Bridger Dr (Ducker):
i.
In response to a question from Brian Korody (14
DPC), Mr. Youssef stated that we had filed a motion with the CCOC to dismiss
this complaint. Time for filing a counter motion has past. Our motion should
stand.
c.
12834 Duck Pond Dr (Little):
i.
Owner twice did not respond to calls for a
hearing.
ii.
Mr. Youssef moved to authorize cutting the wires
and billing the owner. Mr. Williams
seconded. Vote: 5 Aye, 0 Nay.
d.
13049 Bridger Dr (Quay):
i.
Mr. Youssef asked Mr. Krueger to summon Mr. Quay
for a hearing at the next Board meeting, prior to referring this matter to
collections.
ii.
Mr. Krueger will check whether 15 days notice is
sufficient, as the next regularly scheduled meeting is less than 30 days.
e.
Access to Units requiring work on sprinkler
systems:
i.
Mr. Krueger stated that access to Units
requiring work on the sprinkler systems has been difficult to obtain.
IX.
New Business (ACC) was discussed during the
Management Report.
X.
Motion to adjourn to closed session (8:30 PM)
XI.
Closed session (8:30-9:00 PM)
a.
FHA opinion in case of judgment lien,
garnishment, and/or a payment plan.
b.
Filing for Reconsideration.
XII.
Adjournment (9:00 PM)
a.
Mr. Youssef moved to adjourn. Mr. Williams
seconded. Vote 5 Aye, 0 Nay.
January
9, 2012, 7:30 PM
Farouk Youssef, Andrew Kim, Kreg Williams, and Peter Franke,
IAW CCC Bylaws Article III, Sections 9, 10, 15, and elsewhere, met in a public
location on the above mentioned date and discussed a proposed bank loan.
