CCC BOD Meeting Minutes March 16, 2011

Cloverleaf Center Condominium

Board of Directors Meeting

Upcounty Regional Services Center

12900 Middlebrook Road, Germantown, MD

Conference Room A

March 16, 2011

Minutes

A. The meeting was called to order at 7:06 PM by Farouk Youssef.

B. Proof of announcement was provided by a notice of the Regular Board Meeting schedule sent by Summit Management on December 15, 2010, and by a sign that was posted for this meeting at the front entrance to the community on March 13.

C. A quorum of the Board was established by presence of:

Farouk Youssef, President, Townhouse Representative;

Andrew Kim, VP, Plex Units representative;

Peter Franke, Treasurer, Plex Units representative; and

Diana Smith, member at large, Plex Units representative.

Hinaya Jainoor, member at large and Townhouse Representative was unable to attend due to work responsibilities and provided a proxy to Mr. Youssef for voting purposes. 

D. Mr. Youssef moved to approve the February 16, 2011 minutes, as written. Mr. Franke seconded. He also noted that the minutes are posted on the website in order to make them available to all homeowners before the next BOD meeting. Vote: 5 Aye, 0 Nay.

E. Elan Kreuger, Summit Management, reported the following:

I. State Farm Insurance: Mr. Kreuger requested correction to the Unit listing and endorsement. He expects a $103 per year reduction in the liability portion of the bill.

II. Guardian Fire Alarm: The February 7 annual inspection report noted numerous items that need repair. Some are minor. Others are more pressing and the Association may be in non-compliance. This could compromise fire safety and result in fines. Mr. Kreuger therefore recommended that the BOD promptly accept or modify the $9562 Guardian proposal (which excludes additional sales taxes and fuel surcharges), and repair of these items. Ms. Smith asked how soon the work will be completed. Mr. Kreuger answered within a month. Mr. Franke moved to approve the work order proposal. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

III. Spring Grounds Clean-Up: The Association of Retarded Citizens (ARC) will pickup trash from the grounds at 9:30 AM March 17 for $100. Mr. Youssef instructed Summit Management to send out a post card to all Unit owners to include the following four reminders:

1. Pick up trash.

2. Pick up their pets’ droppings, and utilize the dog stations for the droppings.

3. Pick up cigarette butts.

4. Please, limit vehicle speed to 15 MPH when driving inside the community, especially now since the warm weather is coming and more children will now be playing outside.

Mr. Kreuger stated that Summit will send on the same card a reminder of the April 27 bulk trash pick up.

IV. Accounts Receivable:

1. Mr. Kreuger announced that on March 3, Mr. Youssef and Mr. Franke met with representatives of Summit Management and with representatives of Whiteford, Taylor, Preston in order to estimate ($79,636.78) the bookkeeping and auditing category “Allowance for Uncollectable Debt”.

2. He stated that DeLeon & Stang can now finish the 2010 audit.

3. He also requested that any further discussion of delinquencies be in closed session.

V. Verizon:

1. Mr. Kreuger stated that in his numerous contacts with Verizon, that company had said that the boxes installed (previously described as “tombstones”) are mini-boxes and that complaints of unsightliness normally disappear after the landscaping has a chance to grow back naturally.

2. Mr. Youssef stated that a CCIIIC Unit that was connected prior to a contract and that wire had caused a trip-hazard, as the wire was left on the surface. Mr. Youssef reported that he contacted County Executive Ike Leggett’s office and was referred to Mr. Watkins of the Office of Cable & Communications, who resolved this hazard within 24 hours.

3. He sent a letter of thanks to Mr. Watkins on behalf of the Association.

VI. Refinance request for delinquency rate:

1. Mr. Kreuger stated that Summit Accounting will recalculate the delinquency rate given to Unit owners seeking to refinance.

2. Mr. Youssef stated that the CCC governing documents define a delinquency as an assessment that has not been paid 60 days or more from the date it is due.

3. Mr. Kreuger stated that in order to calculate the risk of a refinance request, a lender is not obligated to use that CCC definition, and may choose to use the FHA definition of 30 days.

F. Continuing Business (7:30 PM):

I. Association Secretary:

Mr. Franke asked for a volunteer Association Secretary. He reminded the Association that an election will be held in October and that several positions (Secretary, Treasurer) may be held by someone other than a Director. He urged all in the Association to participate in the community as an elected Director or other officer, or on a Committee.

II. Preparation for July, 2011 approval of FHA status:

1. Mr. Youssef stated that the Board’s immediate priority is for all unit owners to pay their assessment payments on time. This will allow owners who seek to refinance and/or sell their property the opportunity of FHA approval, and also will allow the forward movement of the residing project. He also stated that so far six companies have expressed interest in bidding on the residing project proposal (still in draft.)

2. Mr. Franke summarized the cash status of the project in order to rationalize why the Board requires all unit owners to pay all of their assessment on time.

a. First, in regard to the reserves:

2/28/11 UB MM reserves:     

$206,210.11

12/31/10 UB CD reserves:    

$ 35,505.34

12/31/10 due to reserves:    

$ 35,861.22
Approximate reserve cash:    

$277,576.67

b. Mr. Franke calculates that about 57.3% of the reserves are usable for Plex unit limited common elements that relate to the project (e.g., roofs, siding, caulking, etc.)  Note: Only Plex unit owners have paid for this portion of the reserve funds. Mr. Franke stated that at this time about $158,947.59 of the reserves may be used for this project.

c. Second, the operating fund account (RBC) on March 15, 2011 was $154,336.49. After subtracting what is “due to reserves” (plus an outstanding Structura bill of $8,918.45), and leaving four months of operating expenses ($79,600), the remaining $29,956.82 in the operating account may be added to the UB special assessment checking account ($34,896.07 on 2/28/11.)

d. With that amount of cash available at the present time for construction (total $223,800.48), Mr. Franke calculates that CCC could leverage, at 20%, an additional $1,119,002.38 for a construction loan. Mr. Youssef stated that Cloverleaf Center Condominium is now in a more favorable light for obtaining such a loan than a year ago.

3. Mr. Youssef stated that APM and TMGA were paid about $14,000 a year for management. CCC engaged Summit Management at considerably higher cost because of their reputation for being modern and for providing superior service, e.g., a fully engaged and licensed accountant.

a. Mr. Youssef stated that the BOD is at a disadvantage in regard to negotiations for a loan if it does not get up-to-date financial figures (e.g., February’s FS not available at tonight’s meeting.) Mr. Youssef stated that the Board would also like to receive real-time information of the payments of the assessments.

b. Mr. Franke stated that Ms Conway had provided an Activity Report for 01/01/2011 to 01/31/2011, and also an Activity Report for February (March 3.)  

c. The Activity Reports are needed to follow the payments of the assessments. Mr. Franke asked that Ms. Conway continue to provide them as early each month as possible.

4. Mr. Kreuger stated that the monthly accounts are done during the week following the 15^th of the month, and suggested that after the current schedule expires in July, the meetings could be delayed an extra week. Meanwhile, Summit will prioritize the CCC accounts. He also stated that the firm that will file for FHA approval for CCC agrees with the steps taken so far to reduce the delinquencies. Further, the audit will be finalized before processing the FHA paperwork.  

 

5. Discussion of the application of payments to delinquencies and late fees:

a. Mr. Kreuger stated that the practice of first applying a payment to late fees before applying that payment to the current assessments is a common practice, and is, in his opinion, not in conflict with the Act. He said that of around $50,000 outstanding, about $2100 is for late fees.

b. Mr. Franke stated his opinion that the priority of payments currently applied hurts rather than helps the Association. Proposed MD bills address the issue, but these bills may not pass.

c. Mr. Youssef stated that two Unit owners trying to refinance had reported to him that Summit had reported very high rates of delinquency, which had hindered the refinance process. Documentation from one of the Unit owners was presented.

d. Examining this documentation, Mr. Kreuger stated that there is a problem in the figures given to the Unit owners. The Whiteford, Taylor, Preston and the Summit Accounting delinquency rate does not match the figures given to the Unit owners. Mr. Youssef insisted that Summit Management in the future provide accurate figures to the BOD and to the Unit owners.

6. Mr. Youssef moved to close the meeting later to discuss delinquencies and the Whiteford, Taylor, Preston, LLC report. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

III. Mr. Kreuger said yes to Mr. Youssef’s request to draft a letter to all Unit owners in order to create a lessee database. Mr. Youssef stated that the BOD was unified in the desire to have an up-to-date list of units that are not owner occupied, especially in light of the pending submission for FHA re-approval.

IV. Mr. Youssef stated that Structura Engineering has now submitted draft plans for the repair project. The BOD is studying these plans, and a meeting with Structura has been scheduled for March 23 to discuss changes for the final draft and plans for bids. He stressed that that it is highly desirable that all BOD members attend this meeting.  

V. Mr. Franke moved to transfer $35,861 from the operating funds to the reserves. Ms. Smith seconded. Vote: 5 Aye, 0 Nay.

   

VI. There are no new reported ACC violations. Mr. Kreuger reported he sent a letter to 13035 Bridger Dr regarding the garage door violation. He has contracted Brickman to remove the pavers at 13049 Bridger Dr., and to sod or seed. Other current ACC violations remain tabled at this time due to foreclosure status, etc.

VII. Mr. Kreuger stated that CCIIIC has agreed to sign a contract with Verizon for FIOS.

VIII. Mr. Franke stated that he will place new keys in the fire-alarm room keys boxes where needed.

IX. Mr. Youssef stated that any residents interested in the April 27^th bulk trash pick should put any appropriate items out the night before.

X. Ms. Smith asked if the Association needs to retain the very large volume of records remaining at EZ Storage, or should those records be cataloged and/or purged. Mr. Kim stated there is a non-profit organization which performs such services, and will look into cost.

G. New Business (8:15 PM):

I. Mr. Youssef stated that CCC has paid the previous $9,012 Structura invoice, and will pay the February invoice ($8,918.45) pending any necessary corrections to the draft report subsequent to the March 23 meeting between Structura and the BOD.  Approximately $3500 additional cost may be expected for Structura’s services during the bidding/review.

II Mr. Franke moved, per the Act, to discuss in closed session the letters received from 13055 Bridger Dr., and the correspondence between 13019 Bridger Dr. and Summit. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

H. Community Forum (8:20 PM):

I. Aileen Kelly, 20557 Golf Course asked whether Verizon will repair their damage (e.g., the plates between each two town houses.) Ms. Kelly stated her opinion that the town houses are paying esthetically for FIOS at Cloverleaf.

II. Several other Unit owners also expressed their complaints about Verizon’s FIOS wiring installation.

III. Anna Prisutti, 13009 Bridger Drive, stated that the FIOS wiring to her unit was not done, and that her calls to Verizon had not resolved this. She will email the specifics to Summit .

IV. Steve Colferai, 20553 Golf Course Drive, asked about repair of a pothole near the entrance. He also complimented Summit Management for its prompt response to a street light outage. He asked that Brickman do more tree pruning.

V. George Filsinger, 13005 Bridger Drive, asked that the pine tree now growing onto his deck be pruned. Sandy Filsinger asked what items will be taken in the bulk trash pick-up. Furniture and household items are acceptable, but no electronics (esp. no TVs), no chemicals.  Those items should be taken to the Shady Grove Recycling Center.

I. Mr. Youssef closed the meeting, as previously announced. (8:30 PM):  Mr. Youssef, Mr. Kim, Mr. Franke, Ms. Smith, and Mr. Kreuger remained.

I. The BOD discussed the March 14, 2011 Whiteford, Taylor, Preston Assessment Collection Status Report.

II. Mr. Youssef and Mr. Kreuger plan to attend the CCC delinquency court hearing scheduled on April 13, 2011.

III. The BOD answered two letters regarding 13055 Bridger Dr. by return letter sent to the Unit owner’s address, the owners’ realtor, and to Whiteford, Taylor, Preston. A copy was also given to Mr. Kreuger for the Association’s records.

IV. In regard to the correspondence between 13019 Bridger Dr. and Summit:

1. The BOD and Summit Management affirm their desire to maintain the continuity of a reasonable and fiscally sound policy toward payment plan proposals, while considering any mitigating circumstances presented by a Unit owner. Payment plans of one year or less have in the past been approved, with the condition that the Unit owner must remain current in payment of all assessments.

2. The BOD again emphasizes that Unit owners shall mail their requests by signed letter (to P.O. Box 2346, Germantown, MD, 20875,) so that the request may be handled in a legal manner.

J. Mr. Youssef adjourned the meeting at 9:00 PM.   

February 16, 2011 Board Meeting Draft Minutes

Cloverleaf Center Condominium

Board of Directors Meeting

Upcounty Regional Services Center

Conference Room A

12900 Middlebrook Road,

Germantown MD 20874

February 16, 2011

Minutes

              I.      Farouk Youssef called the meeting  to order at 7:04 PM. Mr. Youssef made the following remarks:

The Board will vote in this session on the County’s request for an easement on a part of the property adjacent to Century Blvd extension. The Board rejected the first offer ($4600), and eventually got $6000 plus a commitment to reforest what will be lost. After tonight’s vote, the community will have 15 days to object. There is a requirement that 15% of the unit owners agree to such objection. Mr. Youssef stated that he felt that would be futile, as the County can regardless complete the project by eminent domain.

The renovation project for “buildings two through seven” is progressing on schedule. On Feb 15, 2011, the Board received the Draft Design Document from Structura. For the next three to four weeks, the Board will review the designs for decks, envelopes, what is underneath the envelopes, and for installing flashing, which led to the problems we have. The decks and railing will not be removed, which would have required DPS intervention. The project was delayed three to four months because of interventions by the Fire Dept and DPS, and work that we “had” to do. Without the cacophony and shenanigans, we could have already been started. Now that we have the design, the next phase is bidding. Five companies have already expressed interest in bidding.

The project is now a reality, not a fiction. All we need now is the money. People have to pay their dues. Why do some not make their payments, but have cars and take trips? To those who say they cannot help that they are delinquent I say: that is not our problem. We cannot subsidize these people. We put this project in shape because the vote of the unit owners was an overwhelming “yes.” The community needs the money from the special assessments in order to complete the renovation. Another note: Anyone who can and will do some research for grant money would be most welcome. Any grant money would facilitate obtaining other money sources and/or better lending rates. 

            II.      Proof of announcement: The regular Board meeting 2011 schedule was mailed to all homeowners December 15, 2010, and a sign for this meeting was posted at the front entrance to the property.

          III.      Quorum: Farouk Youssef, President; Peter Franke, Treasurer; Diana Smith, member at large; and Hinaya Jainoor, member at large, were present and established a quorum of the Board.  Andrew Kim, Vice President, was absent. Mr. Kim provided a proxy (copy attached) to Mr. Youssef.

          IV.      Approval of Minutes: Mr. Franke moved to approve the January 19, 2011 Minutes, correcting one typo. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

            V.      Mr. Youssef noted that the meeting will be closed later in order to discuss delinquencies and related financial matters.

          VI.      Elan Krueger from Summit Management presented the management report:

The unit owner of 20536 Golf Course Drive was notified by letter [Jan 26] that the plumbing issue discussed in the January meeting is his responsibility, per the Declaration, as the blocked pipe serves his one unit only.

The report of the February 7 fire alarm annual inspection lists items that need to be reviewed and prioritized prior to performing repairs and recommendations.

Brickman proposed removing the leaning tree at 12800 Duck Pond Dr. for $130, and removing the pavers and over-seed the area at 13049 Bridger Dr. for $300.

A bulk trash pickup has been scheduled for April 27.

Scates will repair on February 17 the damage in the recent storm (siding gone, wood exposed.) Mr. Youssef noted that Structura is available for this repair.

Mr. Krueger stated that the priority for the application of payments is not addressed in the CCC Bylaws but is specified in the CCC 1997 resolution. Ms. Smith noted that another resolution permits the BOD to allow a waiver of a late fee once per year per unit owner. Mr. Franke noted that the current practice (crediting payment of a prior late fee before crediting the current monthly payment, and then charging a late fee for the current payment because the amount of the payment is not then sufficient to pay the first late fee plus the current monthly charge) is not to the benefit of the community (applying the payments to the operating funds), and may violate the Act. Mr. Franke recommended that the Board consider amending the 1997 resolution, e.g., by adding language such as “the priority of the application of payments shall comply with the laws of the State of Maryland.” Mr. Youssef noted that the purpose of the regular assessment is to fund operations, and stated that a tax attorney should know whether the current practice is proper. However, as payments of delinquencies referred to the collection agency are handled under the advice of an attorney, the matter of the priority of payments will be discussed with Whiteford Taylor Preston (WTP) first.

Mr. Krueger stated that the $1632.02 listed as a CCIIIC 2009 receivable does not show on the CCIIIC books. Mr. Krueger stated that Kevin Pascoe, CCIIIC President, has said that the former CCIIIC management [APM] did not tell him that this money is due. Mr. Krueger will ask Brenda Conway to move this along.

Mr. Krueger reported that closing the books for 2010 and proceeding with the 2010 audit is delayed pending the Board’s response to management’s request that the Board to estimate the dollar amount of “uncollectable debt.” Mr. Youssef stated he believed that 12.5% is considered normal, but that CCC will need each and every dollar due them and will pursue all money due to the Association. Ms. Smith asked how long the audit will take and if this will affect the July FHA approval. Mr. Krueger stated that he believed the audit will be completed in April and that that will probably not affect the FHA approval. Estimation of uncollectible debt will be discussed with WTP.

Mr. Franke stated that the Bylaws require that owners provide the name and address of mortgagees (Article VI, Section 1). In this regard, the Board desires that management maintain the names and addresses of mortgagees.

        VII.      Continuing Business:

Mr. Franke requested a volunteer for Association Secretary, as Ms. Smith and Ms. Jainoor have declined.

In accordance with 11-125(f)(4) of the Act, Mr. Youssef moved that the Board approve the final agreement reached with Montgomery County regarding the easement for construction of the extension of Century Boulevard. That agreement is for the County to pay CCC $6000 rent and to reforest the barrier between the boulevard and the community after the construction. Mr. Franke seconded, and asked for any discussion or comment by the unit owners present. Ira Salins, 20549 Golf Course Drive, asked if CCIIIC will receive any money for the easement. Mr. Youssef stated that CCIIIC has been approached by the County also, and presumes they will negotiate an agreement.  CCC desires to coordinate the reforestation with CCIIIC. Ms. Smith wants the services of an arborist. Vote: 5 Aye, 0  Nay.

Mr. Franke moved to discuss the definition of special assessment delinquencies in closed session. He noted that Summit is alleged to have stated that there are a very high number of special assessment delinquencies.  Mr. Youssef seconded. Vote 5 Aye, 0 Nay.

Mr. Franke stated that the Association’s Bylaws require a roster of unit owners, partially for reasons related to the elections of Directors. There will be an election for a plex unit Director later this year. The Bylaws also state that leases shall be subject in all respects to the provisions of the Act, Declaration and Bylaws (Article V-Maintenance and Repair-Section 13 (g).)  Common sense demands accurate knowledge of those who actually live in the community. In this regard, the Board desires that management maintain in the roster the names and addresses of lessees. Summit Management updates the roster according to tax records, and Mr. Krueger is willing to send a letter to the unit owners asking for leesee information.

Further notes on existing ACC violations: 13035 Bridger garage door will be discussed with the Property Agent after the next walk through.  Units in foreclosure will be discussed with mortgagees and prospective buyers.

Mr. Youssef reiterated to Mr. Krueger that he desires access to 13029 Bridger regarding pest control. 

Mr. Krueger stated that the DPD coverage on the SFIG Master Policy probably does not include a charge for the two CCIIIC units.  Mr. Youssef asked whether SFIG has been asked to increase the replacement value for “building1” [Phase 13] due to its reconstruction. Mr. Krueger will check.

Lack of additional fire alarm room keys will be immediately rectified.

      VIII.      New Business

Mr. Franke moved to approve payment of the $9,102.90 Structura invoice. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

Mr. Youssef stated that he had responded on Jan 31 to a letter dated January 25 from 13003 Bridger Dr. regarding the special assessment.  Mr. Franke moved to review the letter and the response in closed session. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

Ms. Smith stated that she had been in contact with the Maryland Department of Natural Resources regarding the selection of suitable plantings along Century Blvd extension.

Ms. Smith stated that she is concerned about the growing volume of Association records, and that she has researched alternative storage formats, and the costs associated with record retention and/or destruction of outdated files according to certain accounting and legal guidelines.

          IX.      Community Forum (8:05 PM)

Mr. Salins, 20549 Golf Course Drive, said some mailboxes need to be replaced because of rust and have no large storage slot for packages; that the peeling paint on one townhouse is very noticeable and may adversely affect property values; that the FIOS “tombstones” are unsightly and a hazard; and that the Fire Department has in the past removed the winter sand from the roads.

Nicole Youssef, 20535 Golf Course Drive, spoke of the amount of dog waste not picked up, and of broken glass. She asked for a thorough clean-up this spring.

A resident stated that there is a pothole near 20543 GCD.

Ajith Edakandi, 20527 GCD, handed a letter addressed to the Board to Mr. Franke to discuss in closed session.

            X.      Mr. Youssef moved to adjourn to closed session to discuss the matters specified above. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

          XI.      Mr. Youssef called the session to order at 8:15 PM. Directors Youssef, Franke, Jainoor and Smith, and Mr. Krueger (Summit Management) were present.   

Mr. Krueger raised the question of carrying on the books a bad debt write-off for 2010. The Board responded that it desires a timely audit and will discuss a bad debt allowance with WTP on March 3.

The most current WTP report of delinquencies was discussed, including pending Court action regarding certain grievous delinquencies.

A copy of the Association’s response to the letter from 13003 Bridger Dr was given to Summit Management. The Board affirmed that it will uniformly deny any special dispensation regarding the Special Assessment.

Mr. Franke presented the letter from Mr. Edakandi and a similar verbal report from another unit owner regarding difficulties in refinancing their mortgages due to allegedly incorrect information given by Summit Management Accounting. Mr. Franke related these owners’ complaints that they were also charged $287 for the incorrect information. Mr. Krueger will, when Summit is given a copy of the letter, forward the complaints to Accounting for review.   

Mr. Youssef called for adjournment at 9:00 PM.

Jan 19, 2011 Draft Minutes

Cloverleaf Center Condominium

Board of Directors

January 19, 2011

7:00‐9:00 PM

Upcounty Regional Services Center Conference Room A

12900 Middlebrook Road

Germantown MD

Minutes

              I.      The President called the meeting to order at 7:02 PM and made the following remarks:

a.       The engineer is making progress in the design phase. One persistent problem is the flaw in the original design involving the flashers. This caused deterioration, and it is a difficult problem to resolve without removing a lot of other things. Upon completion of the design study, February 15, the construction project will approach a crucial point: The bidding for a construction contractor and for a construction loan.

b.      The balances on the special assessment accounts that were paid-up prior to the CCOC’s stay will soon be exhausted. It is vitally important to the well-being of the entire community that each Plex unit owner now pays the special assessment from this point forward. Delinquencies, especially in the special assessment, may hinder us getting a loan or aid. The Board will work vigorously to collect delinquencies.

c.       The President calls for volunteers to reconstitute the Finance and the Building Committees now. The small BOD can only do so much. The Association is going to need some extra help keeping an eye on community affairs during construction. Anyone interested is asked to contact Tiffani or Elan.

d.      There will be some time at the end of this session for an open forum, prior to adjournment to a closed session.

            II.      Proof of announcement: Notice of the schedule of Board meetings for 2011 was sent December 15, 2010, and a sign was posted at the entrance to the community. Regular meetings will be held the third Wednesday of each month.

          III.      Establishment of a quorum: At 7:06 PM, Mr. Youssef noted for the record that the following Directors were present:

·         Farouk Youssef,

·         Andrew Kim,

·         Peter Franke,

·         Diana Smith, and

·         Noorul Hinaya Jainoor, who constituted a quorum of the Board of Directors.

          IV.      Approval of December 1, 2010 minutes:

a.       Mr. Youssef moved to approve the minutes of both open and closed sessions of December 1 as written. Mr. Franke seconded. Vote: 5 Aye/0 Nay.

            V.      Summit Management report:

a.       Tiffany Hope, Assistant Community Manager, expressed Summit’s regrets that Elan Kreuger is unable to attend this meeting.

b.      The FHA approval deadline extended to July, 2011. Delinquency reduction is in order and will be discussed in a closed meeting.

c.       Verizon FIOS should be ready in April to offer services. Summit received service requests for some damage during the installation. Repairs have been made by Verizon.

d.      Two sewer backups within one week at 20536 Golf Course Drive.

e.      Proposal for tree removal, pruning by Brickman.

f.        Pending ACC matters:

                                                               i.      13049 Bridger Dr.: The BOD on Feb 11 may order the pavers removed and charge the owners; Summit sent notice to the owners to remediate.

                                                             ii.      13029 Bridger Dr.: ACC violation (wire) tabled due to foreclosure status. BOD and Summit requested that the bank order extermination services. Mr. Youssef stated we will need permission to enter. 

                                                            iii.      13015 Bridger Dr.: HOC property; patio items violation.

                                                           iv.      13035 Bridger Dr.: ACC violation (wire) tabled due to distressed property status. Garage door needs repair.

g.       Guardian fire alarm signals were tripped by the cold weather. Mr. Krueger will price recommended weather stripping.

h.      December was final Brickman leaf pick-up in 2010.

i.         The 2010 audit has not yet begun.

          VI.      Continuing Business (7:20)

a.       The position of Association Secretary remains vacant. Mr. Youssef asked for a Board member to volunteer. He stated that the Secretary takes notes, keeps the community records, and performs other tasks vital to the smooth operation of the association. There exists, for example, a need for lists of mortgagees, homeowners and tenants. “We need to know who is living where and whether or not we have a copy of a lease.” Mr. Kim asked if we can hire a note-taker, as that part is quite time consuming. Ms. Hope stated that might be done for approximately $75 per meeting. Mr. Franke stated there was no item in the budget to pay for this service.

b.      A copy of the CCOC December 1, 2010 Order of Dismissal of Case 26-08 was given to Summit for inclusion in the records.

c.       The estimated date for FIOS availability in the community is April 1.

d.      Mr. Youssef stated that after negotiations with Dennis Robinson and the December 15, 2010 notice to the Association, the BOD will on Feb 16, 2011 consider granting a temporary easement to the County for $6000, as specified.

e.      The FHA deadline for Cloverleaf’s approval has been changed to July, 2011.

f.        Mr. Franke asked whether the application of Part X of the Association’s 1997 Administrative Resolution for Collection of Assessments—where the order of priority of allocation is to pay off any late fees, etc. prior to paying off the special and the monthly assessments—complies, per Article V, Section 8 of our Bylaws, with the Act, whereby a late charge may not be imposed more than once for the same delinquent payment [§11-110 (e) (2).]  The practice has been to pay the $15 fee levied on a delinquent assessment from the payment of a later assessment, thereby causing another $15 fee to be applied. Mr. Franke states that generating the additional late fee by such a rule imposes a second fee for the same delinquent payment. This is prohibited by law, and is contrary to the interests of the Association. Ms. Hope will ask Mr. Kreuger to resolve this complaint with Summit’s Accounting Department, and report to the Board.

g.       A Structura proposal offering professional engineering and consulting services for CCC’s building envelope and repair design, originally offered for $17.5K, has now increased to $19K due to extra work. The updated proposal was presented to the Board. Mr. Youssef moved to accept the proposal as written. Mr. Franke seconded. Vote: 5 Aye, 0 Nay. A $1588 portion of the bill was given to Ms. Hope.

h.      ACC violations:

·         13049 Bridger: Mr. Youssef moved to order pavers removed after February 11 and to charge the owner, if still in violation. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

·         13029 Bridger: Mr. Youssef moved to continue at a later time the discussion of the ACC violation of this foreclosed property. Mr. Franke seconded. Vote 5 Aye/0 Nay.

·         13015 Bridger: Mr. Youssef moved to continue at a later time the discussion of the ACC violation of this distressed property. Mr. Franke seconded. Vote 5 Aye, 0 Nay. 

·         13035 Bridger: Mr. Youssef asked that Mr. Krueger determine during the next walk through whether the garage door in the unit needs repair.

·         12911 Bridger: Mr. Youssef asked that Mr. Kreuger confirm that the HOC was notified of the violation, and whether the unit is in violation during the next walk through.

·         Mr. Youssef asked Ms. Hope to convey to Mr. Krueger that the banks who own the foreclosed units fare obligated to pay the assessments.

i.         Mr. Youssef asked that Mr. Krueger request permission to enter in order to follow-up the pest-control at 13029 Bridger Dr.

j.        Mr. Franke asked that Mr. Krueger confirm that the Duck Pond Drive addresses on the SFIG master policy include only the Cloverleaf Center Condominium addresses, not the two Clover Center III Condominium addresses included in the range of addresses listed, and to confirm that CCC is not paying premiums for those two CCIIIC addresses. Ms. Smith requested that SFIG explain the $749.68 endorsement premium increase and the CMP4729 endorsement.

        VII.      New Business (7:40)

a.       The owners of 13003 Bridger Dr. requested by certified letter on December 6 the immediate remedy or repair of their deck balcony.

·         Mr. Youssef stated that it is the intention of the Association to follow the engineer’s repair priorities. In general, repairs to the decks will be done at the same time. In no case will there be preferential treatment. The exception required by law is “immediate” danger of collapse.

·         Mr. Kim asked for some of the reasons given by the owners: Mr. Franke responded that they allege that they are unable to change the HVAC filter, are prevented from showing the premises to prospective buyers, and potential life safety.

·         Mr. Franke noted that the County did not restrict proper maintenance by qualified personnel, that showing the premises to prospective buyers includes full disclosure by the owners, and that potential danger is not the same as imminent danger.

·         Mr. Youssef moved to reject the request for immediate repair of the deck balcony at 13003 Bridger Dr. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.  

b.      Plumbing issue at 20536 Golf Course Drive:

·         Mr. Youssef related some of the history of the problem. The unit owner had previously inserted a camera showing an obstruction in the line carrying waste to the main line outside of the house.  An estimate to fix the blockage was about $8K and included the possible use of explosives. That was rejected in favor of snaking the obstruction. Mr. Youssef stated that a master plumber with whom he was acquainted recommends sending the camera all the way to the end of the line to see if the actual problem may be further downstream.

·         Mr. Youssef stated that the unit owner had called for a plumber, rather than asking Summit Management to handle the request, and then reported the plumbing problem personally to Mr. Youssef at his residence. Mr. Youssef moved that Mr. Kreuger inquire about the cost to hire a master plumber to recommend a solution to the problem, and that Mr. Kreuger write a letter to the unit owner reminding him to follow the service request procedures in place for all unit owners. Ms. Smith seconded. Vote 5 Aye,0 Nay.  

c.       Mr. Franke moved to authorize Brickman, per a December 14 proposal, to remove a dead pine located behind 20559 Golf Course Dr, grind the stump, and to trim branches away from 20535 & 20537 Golf Course Drive, for the amount of $1,250. Mr. Youssef stated he will abstain from commenting or voting on this matter, as his unit is involved in the proposed work. Ms. Smith seconded. Vote 4 Aye, 0 Nay, 1 Abstain.

d.      Several alarm rooms do not have keys. Mr. Youssef moved to make seven duplicate keys. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

e.      The CCC ezStorage unit monthly rent for record storage will increase on May 1 from $65 to $68. Mr. Franke will attempt to negotiate a roll-back.

f.        Ms. Smith asked that Ms. Hope ascertain whether the electric meters are actually read on a regular basis. Mr. Youssef stated the Public Service Commission requires an actual reading no less than once every three months.

g.       As http://cloverleafcenter1.blogspot.com/ is sufficient at this time for Association web presence, the additional expense of another website was unanimously rejected.

h.      Mr. Youssef asked Ms. Hope to convey to Summit Management the necessity of having a list of all Cloverleaf Center Condominium occupants on file, and asked that a letter be sent to all unit owners requesting the names of mortgagees and names of any tenants.

i.         Mr. Youssef noted that CCIIIC has signed a management contract with Summit.

j.        Mr. Youssef asked that Summit schedule a bulk trash pick-up in the Easter to Memorial Day time frame.

k.       Mr. Youssef and Mr. Franke commented that reports of CCC Plex SA balances are useful. Charges for these reports may be discussed at a later date.

l.         Mr. Youssef moved to discuss the following matters in a closed session, following the Community Forum. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

·         Summit charge to tenants for information stating that the SA delinquency rate is 67%.

·         WTP collections status report; 2010 bad debt write-off; FDS repayment plan.

      VIII.      Community Forum (8:00‐8:10)

a.       Brickman will be asked to look into removing a pine that is leaning (dying) at Duck Pond Court & Duck Pond Place at the time when the dead tree is removed.

b.      Regarding concern that FIOS has left unsightly and dangerous ground panels, not mentioned prior to installation and not flush to the ground, thereby creating a trip hazard: Mr. Youssef and Mr. Krueger have discussed this at length and will discuss this further with Verizon.

c.       Verified the 5 Aye, 0 Nay vote to reject request for immediate repair (VII. A.)

d.      Is a lump sum payment of special assessment still being considered? Mr. Franke stated that the assessment of $14,100 by vote of the Association is without interest charges and that any change to that amount will be by vote of the Association.

e.      Mr. Youssef noted that nobody has asked how the $14,100 came about. This amount was suggested by the previous BOD. It was stayed by a judge, who then ordered us to proceed. It was then passed by a voting majority.

f.        Is there a condemned unit in the community? Mr. Youssef stated that a condemnation notice was placed on a foreclosed unit because there was no electricity in the unit and there were squatters living in it. The bank now has that unit in their possession and it is not condemned.

          IX.      Meeting adjourned to closed session by Mr. Youssef at 8:15. Mr. Youssef called the closed session of the Board of Directors to order at 8:20 to discuss those matters specified above that are not subject to public review. Directors Youssef, Kim, Franke, Jainoor, and Smith were present. Ms. Hope of Summit Management was also present.

a.       Summit Management has allegedly charged unit owner(s) for delinquency information related to refinance. Ms. Hope will ask for clarification of the delinquency rate given (67%), and the Accounting Department charges ($325.)

b.      Repayment plan proposal: Franklin Debt Services proposed payment terms of $650 per month for a delinquent unit owner client. The BOD agreed to counter with an offer of $1077 ($688+$389) per month for twelve months, commencing February 1, 2011, in order to discharge the arrearage through January, 2011 and to stay current with the 2011 regular and special assessments. Additionally, the BOD states that this agreement, if accepted, will be null & void if any payment were missed, and that the account would be then returned to Whiteford, Taylor Preston LLC for immediate collection. Summit Management will draft a letter ASAP to the unit owner and/or Franklin Debt Services with these terms.

c.       2010 bad debt write-off: The BOD discussed certain WTP requests and recommendations regarding four accounts that together total $6,980.97.  Three accounts ($2960.25, $2,044.46, and $1661.26) are related to foreclosures. The fourth account ($315) is related to disputed fees. “Because the restrictive language on the checks stated that the payment represented payment in full, we are unable to collect the remaining balance of $315.00.” The BOD agreed to discharge the three accounts related to foreclosures as 2010 bad debts and to request that Summit Accounting roll-back the $315, else it also be discharged as a 2010 bad debt.

d.      WTP January 14, 2011 Assessment Collection Status Report: The BOD discussed the remaining delinquent accounts listed in the report and agreed that the attorneys continue each case as specified. One account needs an address correction from VA to MD. Delinquent accounts will be vigorously pursued to the extent that Maryland law allows.  

            X.      Adjournment: Mr. Youssef adjourned the meeting at 9:11 PM.

December 1, 2010 Meeting Minutes

Cloverleaf Center Condominium

Board of Directors Meeting

Upcounty Regional Services Center

 Conference Rooms A and D

12900 Middlebrook Road

Germantown MD

December 1, 2010

Minutes

I.        Call to order:  Farouk Youssef, President, called the meeting to order at 7:02 PM. 

II.      Proof of announcement:  Mr. Youssef stated that on October 27 Summit Management had 2010 mailed the 2011 Draft Budget and Notice of Board Meeting to the Unit owners.  A sign was posted at the entrance to the community announcing this meeting.

III.    Establishment of quorum:  At 7:02 PM, Mr. Youssef noted for the record that the following Directors were present:

·         Farouk Youssef,

·         Andrew Kim,

·         Peter Franke, and

·         Diana Smith, who constituted a quorum of the Board of Directors.

·         Mr. Youssef stated that Noorul Hinaya Jainoor had sent word that she would be late.

IV.    Remarks from the President: 

1.        Mr. Youssef stated that the draft of the proposed 2011 Budget has been sent to the Unit owners as required, and that no written comments have been received. The proposed 2011 budget will therefore proceed to final vote at this evening’s Board of Directors meeting.

2.       Mr. Youssef stated also that the several Committees that were formed in August, 2009 have not yet convened. The issues that the Committees were to address are important to the community, and to the Board, as Unit owner participation may alleviate some of the work that the current Board has performed since the elections of July, 2009. Mr. Youssef will ask that the Board revive these Committees in January 2011.

3.        Mr. Youssef thanked the Board for its accomplishments in 2010, and offered his personal Best Wishes to all Cloverleaf Center Condominium Unit owners during the holiday season.

V.      Approval of the October 26, 2010 Minutes:

1.       Mr. Franke stated that:

a)      A quorum of the Association present in person or by proxy did not attend the 2010 Annual Meeting, and those in attendance did not call for an adjournment and a rescheduled meeting. The Minutes of the 2009 meeting that were read during the Oct 26 Board Meeting will be presented to the Association for approval at the next Annual Meeting, Wednesday, October 26, 2011, or any adjournment thereof.

b)      Summit Management notified the Unit owners on September 30 of the Oct 26 Annual meeting and that the Annual Meeting may be adjourned and scheduled for a later date at which time those members present in person or by proxy will constitute a quorum. The notice stated that if a quorum is not obtained, procedures under Section 5-206 of the Corporations and Associations Article of the Annotated Code of Maryland may be invoked. (The Maryland Condominium Act states that the Council of Unit Owners is subject to those provisions of Title 5, Subtitle 2 of the Corporations and Associations Article that are not inconsistent with the Act.)

c)       Article II Section 9 of our Bylaws provides that “If any meeting of the Association cannot be held because a quorum of members has not attended, a majority of the Unit Owners may adjourn the meeting and call for an additional meeting provided at least fifteen (15) days notice of the time, place and purpose of the additional meeting is given to all Unit Owners.”  Notice of Meeting of the Cloverleaf Center Condominium Association shall state that the procedure authorized by Section 11-109(c) (8) (ii) of the Maryland Condominium Act might be invoked, and, if by majority vote the unit owners present in person or by proxy call for the additional meeting, then another meeting of the Council of Unit Owners may be called for the same purpose.

2.       Discussion:

a)      Unit owner Wade Owen asked for clarification of the Directors’ terms. Mr. Franke stated that the two Town House Directors are elected for three year terms, as are two of the Plex Unit Directors. The third Plex Unit Director is elected to a two year term. No Director positions were due for election at the 2010 Annual meeting; one Plex Unit Director will be due for election to a two year term at the 2011 Annual Meeting, Wednesday, October 26, 2011.

b)      The Board Meeting was interrupted at 7:12 PM by another group which had been scheduled to meet in Room A.  Elan Kreuger confirmed that the Board Meeting reservation was for Room D.  The President called for a five minute recess so as to relocate the Board Meeting to Room D.

c)       Mr. Franke referred Mr. Owen to page 8 of the CCC ByLaws regarding Directors’ elections and Board Member terms, and the requirements of the Act when calling for the Annual Meeting and the election of Directors: Notice of meeting not less than 10 days, nor more than 90 days; call for candidates 60 days prior to the meeting; call for ballots and proxies 30 days prior to the meeting.  Mr. Youssef stated that Phil Ochs, who oversaw the 2009 Special Election for the CCOC, determined that the two Town House Directors elected with the highest number of votes serve for three years, that the two Plex Directors elected with the highest number of votes serve for three years, and the Plex Director elected with the third highest number of votes serves two years.

d)      Nairool Hinaya Jainoor arrived at 7:20 PM and was briefed on the above discussion.

3.       Mr. Youssef moved to approve the October 26 Minutes as read, even though the Meeting was not an Annual Meeting.  Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

4.       Mr. Owen asked whether the Board records the reasons for and the votes for the closing of Directors’ meetings, and the votes taken during a closed meeting. Mr. Youssef stated that will henceforth be done.

VI.    Report from Summit Management :

1.       Elan Krueger reported and/or updated the following items:

2.       Chesapeake Fire Protection stated that their company contracts for their services only with Management Agencies, not with HOA’s. Summit refuses this condition, as the services (and thus the fiscal responsibility) belong to the HOA. Therefore, CCC declines the services of Chesapeake, and Summit has renegotiated with Guardian. Mr. Krueger stated that Guardian has agreed to decrease their quote for a one year (2011) contract from $7730 to $6500. Farouk Youssef moved to ratify the proposed contract at $6500. Noorul Hinaya Jainoor seconded. Vote: 5 Aye, 0 Nay.

3.       The State Farm master insurance policy has been modified to include the missing addresses on Duck Pond Dr.  Mr. Franke questioned whether “12800-12804 Duck Pond Dr” inadvertently includes any charge for the two CCIIIC units at 12801 DPD and 12803 DPD. Ms. Smith requested that State Farm clarify the Endorsement Premium Increase of $749.68 on pg 1 and explain the meaning of Endorsement CMP4729. Mr. Kreuger will refer both questions to State Farm.

4.       The BOD agreed to table the ACC matters for those units in the process of foreclosure.

5.       Mr. Krueger called for approval of the budget.

6.       Collections matters are included in the Management Report. Mr. Youssef pointed out that two accounts listed Virginia addresses and that must be corrected.

7.       FHA approval expires December 7.  Bids to process the paperwork to renew approval have been narrowed to either Condo Approvals, LLC or to Whiteford, Taylor, Preston LLP. Mr. Youssef stated that although the special assessments are temporary, the regular assessments are permanent and that the CCC delinquent rate of over 15% was clearly a hindrance to obtaining FHA approval. He stated that he would discuss delinquent accounts only in closed session, even if filed for collection through the courts and a matter of public record. Mr. Youssef noted the $57,226 collections reported by Whiteford, Taylor, Preston LLP. Mr. Krueger stated that CCC is within shouting distance of the 15% delinquency rate, that receivables have dropped by $4500, and that the two foreclosures argue for the full amount of the special assessment. “We are making progress.”

8.       Mr. Youssef entered a motion to call for a closed session at 8:30 PM to discuss collections, Structura, and delinquencies as they relate to FHA approval. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.

9.       Peter Franke moved to approve the expenditure of $990 to $1500 to expedite FHA approval, noting that $1000 was in draft budget for this purpose. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

10.   Mr. Franke moved to discuss the 2011 Summit Management Contract in Closed Session. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

Continuing Business: (8:00 PM)

1.       2011 Budget:

a.       Mr. Franke stated that, to date, no written comments regarding the proposed budget had been received by the CCC BOD, and moved to approve the proposed 2011 budget as it is written in draft version 2011CCCj2, mailed to the Unit owners, and available at this meeting as a handout. Mr. Youssef seconded.

b.      Mr. Owen stated that he observed no allocation for Bad Debt in 2011 in the budget. Mr. Youssef stated he was as a rule reluctant to write off Bad Debt of any amount owed to CCC. Mr. Krueger stated that the 2010 Bad Debt Allowance was $6600 and that the aim, especially in light of the pending FHA approval process, is to reduce the number of delinquencies for amounts that are, essentially, considered uncollectable. Mr. Franke responded that absence of a Bad Debt account in the draft proposed budget was an oversight.

c.       Anna Prisutti, Unit owner, asked whether the management fees and the miscellaneous fee items were time & materials expenses.  Mr. Franke answered that the monthly management fee was $2680 and that time & materials were part of the basis for the other associated management fees.

d.      Peter Franke asked if there was any further discussion. As no additional questions were forthcoming, the proposed 2011 Budget was put to a vote of the Board of Directors and was approved by a vote 5 Aye, 0 Nay.

2.       ACC:

a.       Mr. Krueger stated that the ACC application for 13003 Bridger Drive (Rabeau) was incomplete, as it lacked the required four signatures, and was returned. A comment was made that the Board is concerned that it keep the continuity of the high shrubs in the community.

b.      Mr. Krueger stated that Summit Management has not been notified of any abatement of the ACC violations at 13049 Bridger Drive, which resulted in two $150 fines having been levied against the Unit owners (Quay & Skiffington.)  Mr. Franke stated that the satellite dish wire violation had indeed been removed. Mr. Youssef stated but that the stone pavers were still in place, that the $150 fine stands, and moved to allow 30 days to abate the paver stone violation else the Association will thereafter correct the violation and hold the Unit owners responsible for any and all charges associated with correcting the violation. Mr. Franke seconded. Vote: 5 Aye, 0 Nay.    

3.       DOT contract:

a.       Mr. Youssef stated that MDOT had reduced the scope of the CCC temporary easement needed for the extension of Century Blvd, and reduced the proposed payment from $10,000 to $4,900. Mr. Youssef stated his intention to continue negotiations with Dennis Robinson of MDOT; Mr. Robinson has stated that MDOT sent a notice in 2007 to Ravi Parkhie (TMGA) concerning the proposed Century Blvd extension and inviting community comments at that time.

b.      Mr. Franke moved to immediately inform the Unit owners of the easement, as required by the Act, and to schedule Board action on February 16. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

4.       CCOC 26-08 Order:

a.       Mr. Youssef stated that he has requested that Peter Drymalski of CCOC send the final Order for Case # 26-08.  

New Business (8:20)

1.       Election of Officers:

a.       Peter Franke nominated Farouk Youssef for President of CCC. Diana Smith seconded. Vote:  4 Aye, 0 Nay, 1 Abstain.

b.      Farouk Youssef nominated Andrew Kim for Vice President of CCC. Peter Franke seconded. Vote: 4 Aye, 0 Nay, 1 Abstain.

c.       Farouk Youssef nominated Peter Franke for Treasurer of CCC. Noorul Hinaya Jainoor seconded.  Vote:  4 Aye, 0 Nay, 1 Abstain.

d.      Peter Franke nominated Diana Smith for Secretary of CCC. Diana Smith declined.

e.      Peter Franke nominated Noorul Hinaya Jainoor for Secretary of CCC. Noorul Hinaya Jainoor declined.

f.        Farouk Youssef moved to table the election of Secretary. Peter Franke seconded. Vote:  5 Aye, 0 Nay.

2.       Confidentiality of the  bidding process:

a.       Mr. Youssef stated that Structura had given rough estimates for costs related to the repair project and that those estimates would remain under wraps until the bidding process was complete, as competitive bidding could be swayed by premature release of these estimates. In addition, Mr. Youssef stated that specifications, trade secrets and technical know-how under negotiation with Structura will not be made public and are to be considered, henceforth, subject to subpoena.

b.      Mr. Youssef stated that two banks had been contacted for a $1.5 million loan, that one had declined, and the other was still studying the documentation prior to decision.

c.       Mr. Youssef asked for community contribution of ideas that could lead to Federal Grant money for the project. Mr. Krueger stated that he believed federal dollars such as Block Grants were administered at the County level and that a good beginning might be with the MPDU program as they have several units in CCC under their guidelines. 

3.       Storm water management:

a.       Farouk Youssef stated the BOD had received correspondence from a law firm indicating the Association may be financially responsibility to the County concerning the maintenance of the storm water areas adjacent to CCC. Ms. Prisutti stated that it would appear that no action should be considered at the present time as the extension of Century Blvd would obliterate those areas and would be conducted by County according to their own master plan. Mr. Franke stated that the question for CCC is the shared maintenance agreement regarding the property adjacent to Crystal Rock and Kinster Drive that the developers appeared to have titled to CCIIIC (Phase V).  Mr. Krueger stated that the CCC should probably disregard the correspondence and wait to hear from the County.  

Community Forum: (8:35 PM)

1.       Ms. Prisutti stated that she thought the BOD should consider lump sum and/or immediate payment(s) for the special assessment fees for the construction project as delinquencies of special assessments would have to be absorbed by non-delinquent homeowners, and that the interest on a loan of $1.5 million (or more) could pose a drain on the non-delinquent homeowners.

2.       Mr. Youssef stated that that one bank would consider themselves the assessor (i.e., 98 individual loans payable to the bank.)

Adjournment :

1.       Mr. Youssef adjourned the meeting at 8:50 PM.

Cloverleaf Center Condominium

Closed Board of Directors Meeting

Upcounty Regional Services Center

 Conference Rooms A and D

12900 Middlebrook Road

Germantown MD

December 1, 2010

Minutes

              I.      The closed meeting called to order by Farouk Youssef at 8:50 PM.

            II.      The Board of Directors voted (5 Aye, 0 Nay) during the Dec. 1 open Board meeting to close a portion of the Board meeting on this date to further discuss the management contract, collections, Structura, and delinquencies as they relate to FHA approval.

          III.      The closed meeting was attended by Farouk Youssef, Andrew Kim, Peter Franke, Diana Smith, Noorul Hinaya Jainoor, and Elan Krueger.

         IV.      Business

1.       Collections:

a.       Reviewed accounts currently at collections with Whiteford, Taylor, Preston LLP.

b.      Discussed accounts that would be eligible for write-off as bad debt(s) at year end 2010. Mr. Franke moved to finalize write-offs after receiving Aged Owner Balances List for Nov 30 figures from Mr. Krueger. Farouk Youssef seconded. Vote: 5 Aye, 0 Nay.   

2.       FHA Approval:

a.       Compared rates and benefits offered by Condo Approvals, LLC vs. Whiteford, Taylor, Preston LLP for services related to obtaining FHA condominium approval Ms. Smith entered motion to engage Whiteford, Taylor, Preston LLP as of this date at the rate of $1500 for services related to FHA Approval. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay. 

3.       Structura:  

a.       Discussed current progress.

4.       Summit Management Contract:

a.       Discussed administrative fees, renewal, and administrative and accounting concerns. Ms. Smith moved to approve the Summit Mgmt proposed contract for one calendar year, January 1 through December 31, 2011, $2,680 month, $32,160 per annum,  plus any fees listed in Appendix A applicable to conducting business for CCC (e.g. postage, copying, late notices.)  Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

b.      Mr. Franke moved to authorize Summit Management to order Coupon Books for homeowner regular and special assessments for the calendar year 2011. Mr. Youssef seconded. Vote: 5 Aye, 0 Nay.

           V.      Mr. Youssef adjourned the session at 9:30 PM.