Board Meeting no. (1/2022) on January 12, 2022

The Board of Directors held its meeting no. (1) for the year 2022 on Wednesday, January 12, 2022 at 4:30 pm at the headquarters of the Riffa Views Company, and issued its decisions according to the items below:

1. Approval of the Minutes of Meeting No. (20) for the Year 2021, held on December 30, 2021

The Board decided to approve the minutes of the previous meeting.

2. Remarks and Issues Raised by the Owners

The Board reviewed the following remarks and issues under this item:

- Remark regarding rainwater entering a unit:

A complaint was raised by one of the owners concerning rainwater entering the boundaries of their unit. The Board listened to a report from the Association Manager detailing the actions taken last week due to the weather conditions and thunderstorms that affected all areas of Bahrain. The Association Manager explained the measures adopted in coordination with the infrastructure and facilities maintenance service provider (ENOVA). ENOVA’s maintenance team worked continuously during the heavy rains, pumping large amounts of accumulated rainwater from several internal streets.

The Association Manager pointed out that the cause of the water entering that area in the Lakes District is due to the elevation of Street 96 above the entrance wall of the Lakes area in Riffa Views, which led to large amounts of rainwater flowing into the street adjacent to the Lakes wall. After discussion, the Board decided to assign the Association Manager to coordinate with the specialists at the Ministry of Works to find a permanent solution to prevent rainwater from flowing from the street into Riffa Views. Additionally, an extra water pump will be installed in the street opposite the Lakes Mosque to increase water drainage capacity and prevent accumulation. The Association Manager was also instructed to communicate with the complainant and provide feedback.

- Remark regarding the spread and proliferation of rats:

A complaint was raised by one of the owners regarding the spread and proliferation of rats in their area located in East Oasis. The Association Manager indicated that this area is suffering from an increase in the rat population and that coordination has been made with the pest control service provider to present a comprehensive plan aimed at eliminating this issue. After discussion, the Board decided to assign the Association Manager to quickly find a solution to this problem and communicate with the complainant to provide feedback.

3. Riffa Views Master Plan (MP) and Master Transfer Agreement (MTA)

The Board reviewed the final amendments to the Term Sheet and the Master Transfer Agreement (MTA), which were agreed upon by the Association Board, Riffa Views Company (the developer), and its successors in ownership. After discussion, the Board decided the following:

- Approval of the final version of the Term Sheet (TS) attached with the documents of this meeting, and its circulation among Board members for approval and signature.

- Authorization of the Chairman of the Association Board to sign the Term Sheet on behalf of the Board.

- Assignment of the Secretary to include a separate agenda item titled "Amendments to the Master Transfer Agreement" in the next General Assembly meeting of the Association, scheduled for February 2022, for final approval of the amendments by the General Assembly. The Association Board also affirmed that the Term Sheet (TS) will not be effective until final approval is obtained from the Association’s General Assembly at its next meeting in February 2022.

4. Association Manager Services Tender

The Board, without the presence of the Association Manager, reviewed the final report on the Association Manager Services Tender. The Treasurer noted that the report was prepared by the consulting firm "HAJ Quantity Surveyors W.L.L," which was tasked with managing and evaluating the Association Manager Services Tender. The report outlined the procedures followed in the tender process, which are as follows:

- The tender documents were sent to eight (8) bidders selected to participate in the tender via email on October 10, 2021.

- The site visit for bidders was conducted on October 17, 2021.

- Bidders were requested to resubmit their bids by November 7, 2021.

- During the bidding period, additional relevant information became available, and inquiries were raised by the bidders. As a result, supplementary documents and instructions were issued for the tender, sent to the bidders on October 20, 2021, with the final set sent on October 27, 2021.

- Seven (7) bidders were able to submit their bids within the specified deadline of November 7, 2021.

- The bid submissions were presented to the Association Board on November 7, 2021, and the Board opened the bids on November 8, 2021.

- The tender evaluation criteria were set at 40% for technical and engineering assessment and 60% for financial evaluation.

The Treasurer indicated that the tender evaluation resulted in four (4) companies qualifying for the second stage of the tender. These companies were invited to present their proposals before the Board of Directors, and these meetings were held in December 2021.

Upon resubmission of the bids, two companies advanced to the final stage of the tender, while the others were disqualified due to a lack of the required experience in managing shared properties.

The two finalists were asked to resubmit their final financial bids for the tender.

After discussion, the Board decided as follows:

Resolution (1/1/2022): The Board tasked the Secretary, in coordination with the Treasurer, with preparing a report on the Association Manager Services tender to be presented at the upcoming third General Assembly meeting scheduled for February 2022. The final selection of the winning company will be made by the Association members during the General Assembly meeting, with a report detailing the pros and cons of each company's proposal.

5. Association's Estimated Budget for 2022

The Board reviewed the Association's estimated budget for 2022 and listened to a presentation by the Treasurer and the Association Manager, which included several amendments and observations. After discussion, the Board decided the following:

The Association Manager is tasked with finalizing the Association's estimated budget for 2022, incorporating the amendments agreed upon by the Board during this meeting, and distributing the updated budget to the Board members.

6. Proposal to Change the Method of Calculating Service Fees and Owners' Contributions to Common Areas

The Board listened to the Treasurer's report on the proposal to change the method of calculating service fees and owners' contributions to common areas. The Treasurer pointed out that if this proposal were implemented, it would result in the following:

- A 4% increase in service fees (from 3.2 to 3.345 Bahraini Dinars per square meter), which would be borne by Association members who have not undertaken any structural expansions in their units. The increase in service fees would range from 28 to 124 Bahraini Dinars annually, depending on the type of unit.

- 76% of unit owners would pay higher service fees, while 24% of unit owners would pay lower service fees.

- Owners of larger units, specifically those with 6 bedrooms (Type C1) and 5 bedrooms (Type C), would benefit the most from the proposed change in service fee calculations, as they would see a decrease in service fees. In contrast, owners of smaller units would experience an increase in service fees.

After discussion, the Board decided to uphold its previous decision from meeting number (16) of 2021, held on October 10, 2021, which was to reject the implementation of this proposal at the present time. The decision was based on the fact that the proposed change would lead to an increase in service fees for certain types of units, while reducing the fees for others, thereby not serving the general and common interest of all Association members. The Treasurer was tasked with communicating this decision to the proposal's submitter.

7. Any Other Business

The Board discussed the following topics under this item:

1. Expiration of the Current Board of Directors' Term:

The Board listened to an explanation from the Association Manager regarding the expiration of the current Board of Directors' term as of December 7, 2021. It was noted that inquiries were made with the Regulatory Authority, which confirmed that the current board (whose term has expired) is entitled to continue and exercise its powers and responsibilities until a new Board of Directors is elected at the next General Assembly meeting. It was confirmed that neither the law nor the decision addressed any deviation from this.

2. Requests for Construction Expansion of Units Classified as (Very Large XL):

Engineer Reem Akbari, a board member, reviewed several owners' requests regarding construction work to develop land they own in Riffa Views, classified as (Very Large XL). She pointed out that the submitted architectural plans for these works do not fully comply with the conditions and regulations governing construction expansion for existing units. The Board also heard a response from the Association Manager, who noted that these lands are of large size and are classified as having a special nature, allowing their owners to develop them in a manner somewhat different from existing units. This permits different construction specifications from those applied to existing units. After discussion, the Board decided to appoint Engineer Reem Akbari to coordinate with the Association Manager to establish a set of specifications and standards to be followed for future development of these lands.

3. Candidacy for the Board of Directors for 2022 - 2023:

The Board noted that, due to the postponement of the General Assembly meeting of the Riffa Views Owners' Association to February next year, it is more appropriate to reopen the candidacy period for the Board of Directors elections for the years 2022 - 2023 for a limited time. After discussion, the Board decided as follows:

- Resolution (2/1/2022): To reopen the candidacy for the Board of Directors elections for the years 2022 - 2023 for one week, from January 18 to January 25, 2022. The Secretary is tasked with notifying the members of the association regarding this resolution.

The Board confirmed that members who had previously applied for candidacy will not need to resubmit their applications.

The meeting ended at 6:30 PM.