ORCHARD KNOLLS HOMEOWNER’S ASSOCIATION, INC (HOA)

PO Box 4225, North Potomac, Maryland 20885

Incorporated 1989 - A Self-Managed, Volunteer Community

Soliciting on HOA Property is Prohibited by Covenants

Governing Documents Are Available On Web Page

WWW.ORCHARDKNOLLS.ORG

Minutes – Monthly Board Meeting

Owners Welcome, Others by Appointment

July 11, 2005

TABLE OF CONTENTS:

1. Administrative Matters, Minutes Review & Approval

2. Hearings (If Any)

3. Treasurer’s Report and Financial Business

4. Architectural Review Committee and Property Maintenance

5. Unfinished Business

6. New Business

7. Deferred to Next Meeting (Not Discussed)

8. Deferred to Annual Meeting (Not Discussed)

BOARD OF DIRECTORS (BOD) - Volunteers, Elected at Annual Membership Meeting – 3 Year Term Expires:

President	Richard Schinner	301-977-5196	evantage@comcast.net	Nov 2005
VP, Detached Homes	Lisa Goodman	301-963-3807	goodgrl@verizon.net	Nov 2005
VP, Town Homes	Eileen Solomon	301-330-2876	betamax14@comcast.net	Nov 2007
Treasurer	Mohammad Homaitabar	301-318-8446	homaitabar@yahoo.com	Nov 2005
Secretary	Jerry Way	301-977-0523	jerway1@verizon.net	Nov 2005

ARCHITECTURAL REVIEW COMMITTEE (ARC) - Volunteers Appointed by BOD – Indefinite Terms

Member – 1	Kathy Wyatt	Representing Detached Homes
Member – 2	Rita Becker	Representing Non-Garaged Town Homes, HOC & MHP
Member – 3	Dennis Zepp	Representing Garaged Town Homes
Member - 4	Lisa Goodman	ARC Chairperson (Acting)
Member - 5	Val Puddington	Representing Detached Homes

Members of Board of Directors are absentia members of Architectural Review Committee

COMMUNITY DEMOGRAPHICS:

Developer:	Elm Street Development Corp - Northern Virginia
Detached Home Builders:	Southern Engineering and Northern Virginia	83	55%
Garaged Town Home Builders:	NVR Classics (Northern Virginia Ryan)	48	32%
Privately Owned Non-Garaged Town Home Builders:	NVR	12	8%
County Owned Non-Garaged Town home Builders:	NVR	7	5%
Total Homes:	Total Homes:	150

CONTRACT SERVICES AND SUPPLIERS:

Auditors & Taxes Preparation	Ahlberg & Company, P.C.	Painting & Finishes	Mullin Painting Services
Attorney and Legal Consultant	David Gardner	Resident Agent:	Attorney David Gardner
Banking	Bank of America	Sprinkler & Underground Lighting	Unity Environmental Systems
Bookkeeping & Collections	Association Bookkeeping Svcs	Signs	The Sign Store
Copy & Reproduction Services	Kinkos	Snow Removal (Town Homes)	Landscape Innovations Inc.
Exterior Construction & Fencing	TML Construction	Street Lighting and Electrical	Power Systems Electric
Electricity	Pepco	Stone Mason	Frank Twyman
HOA Stationary	Rockville Printing	Towing	G&G Towing Services
Insurance & Bonds	State Farm	Trash & Waste Services	Titus of Montgomery County
Lawncare, Landscape, Tree Services	Landscape Innovations Inc.	Water & Sewer	WSSC
Paving & Concrete, Striping	American Paving and Striping	Web Master	Interland, Inc.

1. ADMINISTRATIVE & MINUTES REVIEW :

Call To Order:	President called meeting to order at 7:00 p.m.
Absent BOD Members:	President left early
Guests:	None
Guest Presentations	None

Two Board Meetings This Month; There were two board meetings this month June 13 and 21.

BOD Votes to Restore Distribution of Unedited Minutes to Board Members: A motion was made: “Secretary will distribute original minutes to all board members. These minutes will be reviewed and voted on at next board meeting. Official minutes for permanent HOA records are those reviewed and voted upon at monthly board meetings”. The motion was seconded. Vote passed three (3) Yes, one (1) No, one (1) abstain.

BOD Votes to Remove Property Maintenance Violations Table in Web Minutes: Some board members are uncomfortable with owner addresses of property violations in minutes published on the web. A motion was made to no longer publish them on the web. Motion seconded. Vote passed four (4) Yes, one (1) No.

BOD Votes to Remove Names/Addresses (for Negative Context) in Web Minutes: Some board members are uncomfortable having minutes on the web site that include occasional identification of owner names and property addresses associated with identified problem areas in the community. Motion seconded. Passed four (4), one (1) No.

Minutes of June 13 and 21 Reviewed, Voted, and Approved: Motion made to accept both meetings minutes and seconded. Passed four (4) accept, one (1) absent.

2. SCHEDULED BOD HEARINGS:

Rule 2005-3; Property Maintenance & Architectural Guidelines Violations: Board scheduled 3 hearings for next meeting September 12^th.
Rule 2003-1; Common Area Behavior Violations:	None

3. TREASURER’S REPORT AND FINANCIAL STATUS:

June Financial Statement Delayed: June monthly financial statements did not arrive from ABS.

4. ARCHITECTURAL REVIEW COMMITTEE & PROPERTY MAINTENANCE BUSINESS:

Forty-Three, June 12 Annual Townhome Community Inspection Letters Mailed Owners of properties for the 67 observed violations were mailed notices this month.

Third-Notice Property Maintenance Hearings Scheduled September 12th: (Rule 2005-3): Secretary provided original of 3 Notice of Scheduled Hearing letters to be mailed if board approves. The hearings are required under provisions of Rule 2005-3 if owners refused to comply after a first and second notice over two years. The hearings are scheduled for 7pm, 7:30pm, and 8pm at next regularly scheduled board meeting September 12^th. After discussion about whether to postpone, and a review of the actual hearing procedures, BOD voted to proceed to mail the notices and schedule the hearings for September.

Architectural Change Request (ACR) Applications:

15602 Gooseberry Court	Change Front Door Color	Approved
15622 Blackberry Drive	Widen Drive Turn Around	Approved
15618 Blackberry Ter	Modify Rear Yard Drainage	Approved
15618 Blackberry Ter	Change Walk to Flagstone	Approved
12002 Blackberry Ter	Deck Modification	In ARC Review
12009 Pineapple Grove Dr	Addition of Wood Rails	In ARC Review

Complaint: 1201? Cherry Blossom Place - Fenced Rear Yard May Encroach Common Area: Owner called secretary to inform BOD they will not be providing a plat or survey of their property as requested in our recent letter. Our letter originated from the June 12 Semi-annual community inspection, requested the plat or survey to ascertain whether owner’s rear enclosed and fenced yard was encroaching into common area of the community. BOD will research lot’s legal dimensions Vs HOA common area at Montgomery County Park and Planning.

5. UNFINISHED BUSINESS - (Previous Minutes):

Porten Homes Rezoning: No one present tonight was knowledgeable to provide a recent activity report. Planning Board hearing was conducted July 7^th. Rezoning was approved by a close 3 – 2 vote of the Planning Board. There are 2 more steps, the Hearing Examiner Review and the County Council Vote. At hearing, our Orchard Knolls team did a professional job in support of HOA. Team members David Haas, David Gillis, Brian Lee and Lisa Goodman provided knowledgeable and passionate testimony. Attorney David Gardner and Land Use Expert Malcolm Rivkin provided a stellar technical opposition in pleading our case. Rick Schinner, Jerry Way, Eileen Solomon, Dennis Zepp and Abigail Nickelsen attended to cede witness time and lend support. Meeting lasted 8:15 to 11:15 Pm. July 18-19 Zoning Hearing remains on schedule. Lisa Goodman will contact David Haas to identify next steps.

Lawncare and Landscape Services Corrected: In late June, BOD Members met with contractor and walked the site. Contractor stated he lost his site supervisor and was experiencing poor quality workers. Contractor offered a get-well plan coming in to spend the entire day at Orchard Knolls with a new supervisor and crew – addressing all elements of the contract. The work was done in early July.

Complaint – HOC Property at 1200? Cherry Blossom Place - Tenant Operating a Business – Secretary reports three different site managers have been assigned this year. BOD asked secretary to identify if business is still being operated – if so, send another letter to HOC.

Replaced 3 Leyland Cypress Trees Along West Blackberry Drive Split Rail Fence – In May, BOD approved order for 8 replacement trees removed in years past. The order was reduced to 3 Leyland Cypress, they were planted along Blackberry Drive.

Asphalt Resealing Project: To be scheduled for August 15-16 for path work and August 17 for townhomes.

NSF Law Suit - Garnishment and Judgment Stands. Converted to Bad Debt: Attorney advises that we have a court ordered garnishment and a judgment that will continue into the future. Attorney advises we take no further action on this matter until a garnishment or judgment issue surfaces in court. Secretary reminded BOD that our auditor revised our books to show this NSF as a write off from bad debt.

2004 Draft Audit: The draft audit had been distributed to all board members in previous months.

Final 2004 Audit: No Problems; In Compliance and Conformity: The final audit report was distributed tonight. It revealed no problems with our financial condition, accounting or bookkeeping practices at year end 2004. Treasurer distributed the final document to all members tonight. There were no changes from the draft. Treasurer will store the bound version in HOA permanent records.

6. NEW BUSINESS

June 21 Specially Called BOD Meeting - Approves Borrowing From Replacement Reserves: (See Separate Minutes of this meeting).

2006 Budget Planning: Assessment Increase Looming: Budget meeting set for October.

Orchard Knoll’s White Vinyl Fence Along Rt 28 Damaged: Vandals have apparently damaged a rail. It has fallen out and looks poor. It will not go back. In addition vandals have taken the top caps off about half-dozen posts. They are missing. Mohammad will contact Long Fence for a price to repair the fence and the caps.

Sprinkler Contractor Not Paid $1, 000 Startup Deposit. Unity Sprinkler contacted us looking for his $1,000 deposit required by contract after completion of spring startup. Secretary will investigate.

Pepco Power Pole Cable Hanging on Rt 28 in Front of Orchard Knolls. A heavy cable is broken and hanging to the ground from a power pole out front. In addition a section from underground is tangled around our white vinyl fence. Secretary contacted Pepco earlier this month.

Tree Down on Walking Path: Apparently a tree went over across the walking path behind Pineapple Grove Drive. Secretary will investigate.

7. DEFERRED TO NEXT MEETING - (NOT DISCUSSED)

No Soliciting Signs to be Installed at Entrance: We are still looking for the bronze signs used by Kentlands.

We will continue to shop for those signs.

No Advertising Signs at Gazebo: We will contract for these signs with the “No Soliciting” signs.

Directory Update – Lisa, Eileen and Rick have begun the effort to produce the document shortly.

Duplicate Entrance Marque on East Corner of Blackberry Drive Would Be Attractive – RFQ outstanding.

Suspicious Mailbox Behavior – BOD received information from an owner that Cherry Blossom Place tenant that was evicted over a year ago, occasionally returns and sits in a parked vehicle in Cherry Blossom Place apparently waiting for the mail to arrive at the gazebo. What precisely happens once the mail arrives is unknown. There is reason to believe that this behavior may be linked to the 2004 attempted break-in(s) at the gazebo mailbox units. There is no violation of law that we know of at this time. We have asked the owner to report any related events.

Multiple Unregistered, Unlicensed Day Care Operations – BOD has received complaints of high traffic baby and small children “pick-ups” and “drop-offs” particularly in townhomes Complaints are centered around a significant traffic increase in am and pm with observations of a myriad of non owner/tenant children being dropped off and picked up. Secretary noted records indicate there are no registered Day Care Operations in Orchard Knolls at this time. Owner observations indicate otherwise. BOD again decided to table the matter until a less busy time.

Gazebo Mailbox - Attempted Break-In and Damage – Secretary sent letter to Postmaster documenting attempted break-in events – requesting assistance in securing the area and the unit. There has been no response

8. DEFERRED TO ANNUAL MEMBERSHIP MEETING: 

Should Blackberry Drive (West) Tot-Lot be Upgraded? The scheduled 2003 upgrade did not materialize due to high cost of equipment. Straw polls indicate little demand. Only swing and see-saw remain. Other equipment was unsafe and removed. BOD limited 2003 upgrades to the east lot. That has been a success. NE Tot-Lot is complete. Alternatives such as a community picnic area with covered pavilion or grass the area. Tot-Lots have high maintenance cost such as painting, big-bark mulch, repairs, fencing, etc. Grassing it over would eliminate the deficit in Reserves. It will reduce liability and may lower quarterly fees. At 2004 annual meeting, there was no interest to upgrade this lot. After significant discussion membership declined to endorse spending the money.

Upstream Bank Erosion Continues to Exposes Bridge: During celebratory discussions that the bridge upgrade is finally complete - secretary pointed out risk of bridge wash-out (again) in a heavy storm is diminished but not gone. Because BOD continues to ignore erosion control on the upstream side of the creek banks, there is no assurance the bridge will remain in place during or after severe flooding conditions.

Establish Volunteer Entrance Committee: A suggestion was made at last Annual Meeting to develop a volunteer “Entrance Landscape Committee” to take design and implementation responsibility for landscape and floral upkeep of our entrance. The committee would be made up of an equal number of townhome vs. single family home members, and granted the entire budget currently in place for annual entrance maintenance.

Establish (Hire) HOA Maintenance Person: A suggestion was made at Annual Meeting to hire a part time maintenance person to accomplish routine non-major repair and upgrade tasks such as sign maintenance, minor painting, light bulb replacement etc. Responsibilities and a fee schedule could be identified in advance

$1,920 for Additional Streetlight at Intersection of Cherry Blossom Lane at Blackberry Drive - This area is very dark. It does not have a streetlight on Cherry Blossom Lane (area of Stop sign). Area is prone to black ice. This intersection has had two vehicle accidents and one pedestrian accident. Neighbors request lighting. The Opposite end of Cherry Blossom Lane has a streetlight – this end does not.

$3,250 for New Blackberry Drive Sidewalk Street Light (Tot-Lot Entrance) - Contractor quote for this unit arrived this month. The cost is $3,250. The high cost is due to the long underground supply circuit and requirement to go under Cherry Blossom Lane. In addition, the project requires completion of an added streetlight on Cherry Blossom Lane – another $1,920. Both projects will be deferred to Annual Meeting.

ADJOURNMENT Monthly meeting adjourned at 8:50 Pm

NEXT REGULARLY SCHEDULED BOD MEETING – September 12, 2005 – 7pm. No August Meeting. Meeting may be rescheduled to following Monday in order to have financial report available from ABS.

Three property maintenance hearings will be conducted between 7 – 8 pm. Regular monthly business is expected to be delayed. Call any board member for location. Owners and residents welcome. Non-owners and guests by invitation only. Input by US mail, email, or web page.