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									                           OYSTER BAY CONDOMINIUM, INC
                               Board of Directors Meeting
                                Thursday, July 16, 2009

The Oyster Bay Condominium Association Board of Directors held its meeting on Thursday,
July 16, 2009, at the Oyster Bay Clubhouse, Dowell, Maryland.

PRESENT:      Joe Ludford, President
              Peter Black, Vice-President
              Paul Mawicke, Treasurer
              Mark Trostle, Vice-Treasurer
              Gerrie Roberts, Recording Secretary

              Homeowners: Stuart Bentley, Jim Roberts, Palmer and Carol Esau,
                          Linda Ludford, John McHenry, Trudy Black


Joe Ludford called the meeting to order at 6:38 pm.


       Vote: On a motion made and duly seconded, the Board voted to approve the
       June 18, 2009 minutes as amended.


Kathy Gonzales reported on the following items:

ThyssenKrupp – Contract offer is for 8 years, with a 6.5% maximum increase each year after the
first year. The longest individual contract currently in place will end in 8 years.

Direct TV - $5 per month savings if we reduce channels. Kathy recommended no change, and
the Board agreed.

Fining Guidelines – Kathy added a page with maximum fines for Classes A, B and C violations
and listed the violations. She also made minor additions to the text.
      AI #38 – Joe Ludford will send revised guidelines to the governance attorney for
                           Oyster Bay Board Minutes of July 16, 2009
Power Washing and Painting of Second Levels – The Cleaning Company has completed
Building 900.

Tree Removal and Trimming – Paul Mawicke marked the trees. Brodie has contracted with

Pool Water Reimbursement – U.S. Aquatics will reimburse us $60.59 for the extra water used.

Telephone Lines [3 per building plus 2 for the clubhouse]. Kathy arranged minimum service for
each line with Verizon. Total cost will be $720 per month. Paul Mawicke suggested that all the
alarm system lines be consolidated into 2 lines which SPC told us is done in other communities.
      AI #39 – Brodie will look into telephone alarm line consolidation

Correspondence –Relative to violation notification, a polite first letter is a problem because it
will not contain the information needed for formal notification, which is part of the hearing and
fining process. The consensus of the Board is that a formal first letter should be sent. Kathy
reported compliance to the letters that were sent after the last Board meeting, which resulted in
the removal of exercise equipment and a table, swing set, and one For Sale sign

      AI #40 - Brodie will develop a violation letter format.


Joe Ludford reported on the following items:

Meeting on Vision – is scheduled for Saturday, July 25 at 10:00 a.m. in the Clubhouse.

Pool Passes – a few owners did not receive passes that were mailed but not received due to a
problem with the mailing address. In those cases, arrangements were made to allow access to the
pool while the problem was being resolved.

Litter Bags – three dispensers are empty, refills are on order, and keys for the dispensers are
being retrieved.

Annual Audit – disclosure letter from our attorney has been sent to the auditor, and the audit has
been completed.

Problem Log – a log form for building monitors or anyone to report a problem in a building has
been developed, and is now located in each electrical room.

Community Directory – Gerrie Roberts issued an update on July 15, 2009.

Letter to U.S. Aquatics – Kathy Gonzales sent a letter on June 1 expressing our dissatisfaction
with their service in opening the pool and requesting a reduction of the initial monthly pool
management fee. [See successful resolution under the Brodie Report.]

                                             Page 2 of 9
                           Oyster Bay Board Minutes of July 16, 2009

Problem With Assigned Parking Spaces – a complaint was received from a part time resident
who has found her parking space occupied on more than one occasion when she has come here.
This could be the result of use by guests of another owner. Parking assignment sheets are
available for posting in each garage, and unit numbers could be stenciled on the assigned parking
spaces. Both actions are being considered by the Board.

      AI #41 – Board to determine best solution to parking space violations

Pavement Evaluation by Geo-Technology Associates – The floor was turned over to Mark
Trostle who reported the results of GTA’s pavement evaluation, which determined that our sub-
grade conditions are not responsible for our poor road conditions and are adequate to support our
pavement structure. Mark explained that the poor road conditions are rather the result of
degradation over the past 15 years due to lack of maintenance and heavy use during construction
of our buildings.

Meeting With Architect – Three Board members met with the President and Marketing Director
of Engineering and Technical Consultants, Inc. of Sterling, VA to discuss a study to confirm or
contradict the preliminary findings by Davidson Associates that were reported at our July 19,
2008 meeting with OBLLC. A draft proposal for the study has been received, and a second
proposal for a complete study of Building 600 will also be provided. This work is needed to
identify problems in our buildings that are suspected but have not been fully investigated.

Sprinkler Pipe Leak at Front Entrance – SMECO pulled up a 2 foot length of PVC pipe when
they dug the trench for a high voltage cable that runs between their new pole and the connection
to our community. SMECO fixed part of the break and should soon finish the repair.


Mid-Year Financial Report – Oyster Bay ended the first six months in good shape with actual
expenses less than budget, and a small cushion for the last six months. The results in four major
categories were somewhat mixed:
     Utilities expense was somewhat less than budget
     Contracts expense was slightly more than budget
     Repair and Maintenance expense was somewhat less than budget
     Administration expense was slightly more than budget

We ended the first six months with a surplus of 8% of budget. The outlook for the next six
months is a static projection from the approved budget going forward, and the expenses of the
past six months. Our income source is fixed, and delinquencies are difficult to forecast, so we
still need to control unnecessary spending. We also need clear forecasting, budgeting, and
projections of all future cash outflows. We do not anticipate a future decline in income, but also
do not expect an improvement in the local housing market in the next six months. We do expect
to meet all current obligations over these next six months, barring unforeseen situations, and
should end the year with a surplus relative to the budget.

                                            Page 3 of 9
                           Oyster Bay Board Minutes of July 16, 2009

Settlement money from OBLLC is now in a separate money market account. Delinquency rate is
running about 5% which is considered quite good!

COMMITTEE REPORTS (Committee Chairs at their option)
Planning Committee – no report.
Landscaping Committee – no report.
Dock Committee – no report.
Clubhouse Committee – no report.
Building Representatives Committee – no report.
Security Committee –
Peter Black cautioned that we could be “hit” by strangers coming into the community, and he
requested that we report any strangers we see to him. We should do this at any time of day or

OPEN FORUM (3 min per speaker)

All comments made during earlier parts of the meeting and at this time are recorded here.

Leasing of Units:

There was considerable talk about putting a cap on both time of rentals and the number of rental
units allowed in the community. Jim Roberts urged “a proactive stance” in managing leases and
described a system for managing leases in a condominium where he is an owner in Florida. The
rules there do not allow leases until owners come to the Board for approval. He suggests this
Board adopt a similar policy. He recognized that this will require a change in the By-laws.

Carol Esau suggested a $50 fee be charged to owners who are leasing their units. Palmer Esau
thought it would be difficult to prevent someone from coming in as a tenant. Mark Trostle
suggested that we adopt a Resolution that required the Board to review leases. Mark pointed out
that the By-laws currently say no transients, and the Board can set limits on the time in residence
required not to be considered a transient. Kathy Gonzales said we should report transients if we
see them; she could send a notice or “consideration letter” to an owner based on “continuity of

      AI #42 - Brodie will send an Association Leasing Form she uses to Peter Black.

                                            Page 4 of 9
                           Oyster Bay Board Minutes of July 16, 2009
By-Law Changes

It being recognized that it is a long term program to change the By-laws, Palmer Esau suggested
the Board get its attorney to work on desired changes soon.

      AI #43 – Board to engage our attorney to craft desired changes in Oyster Bay’s By-

Oyster Raising Project

Palmer Esau said he received a call from Len Zuma, head of the local oyster raising project,
advising that in mid-August his group will be dumping oyster shells in Back Creek, and that he
needs our help building a reef with the shells. We will dump our spats there, and will receive
new spats in our boxes free, or can receive 10 free cages with 500 spats each, which will have to
be taken up each month. Palmer will send an email to the community with this information.

      AI #44 – Palmer Esau to send information on oyster shell dumping to the


Jim Roberts requested that the Landscaping Committee trim the ground vegetation and low
hanging branches on the bank between the 13800 Reef Way building and the water to preserve
the view. This includes the entire bank between 13800 and the 500 Buildings where the invasive
grasses are now over 7 feet tall. Vines crawling up the trees should also be removed.

Oyster Bay Website

Carol Esau said our website needs attention. [note: Gerrie Roberts is designing a better website
at a new URL. It will cost $5 per month with the first 3 months free. She wants to provide for
Q&A to the Board and a Maintenance/Complaint Form.]

Pest Control in Units and Buildings

It was suggested that sooner or later there will be a unit or building that will become infested
with termites or roaches, etc. The idea of arranging for a pest control contractor to deal with that
situation was brought up. No conclusion or decision was reached

                                             Page 5 of 9
                           Oyster Bay Board Minutes of July 16, 2009
Board Matters

Palmer Esau said he would like more feedback from the Board. [note: Joe Ludford
subsequently sent a detailed progress report on the status of all on-going Oyster Bay projects.]

Linda Ludford said she would like to see the minutes as soon as possible after a Board meeting.
[note: the month’s delay in minutes delivery is forced by waiting until the draft minutes are
officially approved at the next Board meeting. Subsequently, the Secretary suggested that the
draft minutes be approved via e-mail which could substantially shorten the time delay!]


1. Fining Guidelines - Brodie Management
Kathy Gonzalez presented the fining guidelines by defining class A, B, and C violations. Initial
action is a written complaint, followed by preliminary investigation, and due process. The Board
agreed to adopt the guidelines subject to approval by the attorney.

      AI #45 – Joe will send the Fining Resolution to the Association’s governance
       attorney for review, and distributed after it is approved by the attorney and signed
       off by the Board.

2. Street Repairs – Mark Trostle
Mark presented two options – (1) to patch the current road or (2) to mill, repair as necessary and
overlay all of the travel-ways with 1.5” new asphalt. He recommended the bid for option (2)
from Reliable Contractors because it is about the same price as option (1). Parking lots will be
seal coated and striped. The Board authorized Mark $100,000 to accept the bid for (2). Work
should take about a month. Final approval by the Board by email vote is subject to a final
contract by the bidding company.

       Vote: On a motion made and duly seconded, the Board voted unanimously to
       authorize Mark Trostle to negotiate with Chesapeake for all of the street repairs at
       a cost not to exceed $100k.

3. Water Bib Project Options – Paul Mawicke

       Because Calvert County has recently raised the cost of connecting water to the county, it
       would cost $21,000 for just the connection fees. It was decided to use the two water
       meters that we have at the docks to feed an underground sprinkler system, and to get a
       bid for that system. We first need to check on old meters at the docks to make sure they
       can be used for irrigation. Authorization of funds was discussed but no decision was
      AI # 46 - Paul will develop the irrigation plan and will get bids

                                            Page 6 of 9
                           Oyster Bay Board Minutes of July 16, 2009
4. Elevator Maintenance Contract – Brodie Management

Brodie has negotiated a new contract with the elevator maintenance company. A report on the
status of the elevators will be sent once a year to the Condo Association. Contract would include
3 service calls per year outside normal business hours at no extra cost.

       Vote: On a motion made and duly seconded, the Board voted unanimously to accept
       the contract offer subject to final terms to be negotiated by Kathy and a positive
       review by Jonas Brody.

      AI #47 - Kathy will run the elevator maintenance contract through Jonas Brody.

5. Revisit of Mosquito Spraying – All

Paul Mawicke contacted Matt Gambrill and determined that Calvert Marina is spraying for
mosquitos. The County will put traps up to count mosquitos before spraying and will spray
accordingly. Paul will provide information to Joe Ludford for an email he will send to residents.

       Vote: On a motion made and duly seconded, the Board voted unanimously on a
       motion to approve the spraying.

      AI #48 - Paul is to get the county to issue a report on mosquito activity in the pond
       and will authorize the spraying based on the report.
      AI #49 – Joe will notify the community by e-mail advising of the intention to spray
       and asking if anyone has a health condition that would prevent us from spraying

6. Changing Photocells to Timers – Paul Mawicke - Deferred.

7. Tree Removal/Trimming – Paul Mawicke

Paul is getting a bid to take down dead trees and trim dead branches from trees that he has
marked with blue ribbons. The removal will be scheduled in 10 days.

      AI #50 – Paul to obtain bids on removal of dead trees and trimming of dead

8. Club House TV Contract – Brodie Management

Difference between the cost of Comcast and Direct TV is minimal, so it was decided to keep our
current contract with Direct TV. [See this item under Management Report]

                                            Page 7 of 9
                            Oyster Bay Board Minutes of July 16, 2009
9. Steps to Control Material that is Put in the Community Dumpster – All

It was suggested that residents moving in and out are a source of material that should not be put
in the dumpster. One idea is to charge a fee to compensate for the moving materials that usually
end up in the dumpster. No conclusion was reached on this matter. - Deferred

10. Lightning Rods for Buildings - All
There is no support for doing this. The consensus of the Board is that there is little benefit in this
area in having lightning rods on our buildings, and thus they should not be installed. - Closed


1. Boat Slip and Vacation Rentals

      AI #51 - Peter Black will work with Kathy Gonzales on a policy for these items.

2. Regulations on Window Signs

Because of the tight real estate market, it was agreed to temporarily allow each owner to put one
up one 4 foot square “For Sale” sign.

       Vote: On a motion made and duly seconded, the Board voted unanimously to allow
       each owner to put one 4 foot square for sale sign of professional quality, to be
       located inside the unit.

      AI #52 - Joe Ludford took an action to ask OBLLC to take the For Sale signs down
       in their units in Building 800, all of which have now been sold.

3. Code Correction Controls

Code corrections to be made by OBLLC should be made in the near future. To date, OBLLC has
not requested access to Condominium property nor provided their plans for making the

      AI #53 - Joe Ludford took an action to request the specifications and dates for the
       proposed repairs from OBLLC.

4. Wi-Fi Availability in the Club House - Deferred.

                                              Page 8 of 9
                          Oyster Bay Board Minutes of July 16, 2009

5. Sierra Grooming of the Point

      AI #54 - Paul will contact Matt Gambrill to see if he will give permission for the
       point to be mowed at our expense.

6. Coastal Restoration Projects

Paul Mawicke suggested that OBCA pursue a grant from NOAA. Joe Ludford researched the
subject and compiled a package of information from the Internet. There are 3 sources of grants
for improving waterfront communities: NOA, EPA, and Non-Government Organizations. Joe
gave the package of information to Kathy Gonzales for follow-up.

      AI #55 – Brodie to follow up on grant source possibilities for the improvement of
       waterfront properties

Additional New Business Item - Condominium Law Change Related to Insurance Deductions

FYI: A recent change in the Maryland Condominium Law puts the responsibility on unit owners
to pay for up to $5,000 of the deductible in the Association’s insurance policy. The Board
recently approved an increase in the deductible in its general policy from $1,000 to $5,000.
Kathy Gonzales advised that Jonas Brody is going to send information on the change in the
Maryland Condominium Law to all owners.

Joe Ludford reviewed the Action Item List from the June 16th meeting of the Board.. An updated
action item list (containing the new action items from these minutes and the previously closed
action items deleted) will accompany the community-wide distribution of these minutes after
they have been appropriately approved by the Board.

EXECUTIVE SESSION - An Executive Session was not held


Joe Ludford adjourned the Board meeting at 10:00 pm.

                                           Page 9 of 9

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