Board Meeting no. (16/2021) on October 10, 2021

The Board of Directors held its meeting no. (16) for the year 2021 on Sunday, October 10, 2021 at 7:00 pm at the headquarters of the Riffa Views Company, and issued its decisions according to the items below:

1. Meeting minutes approval for meeting No. (15) held on September 12, 2021:

The Board reviewed the minutes and decided to approve it.

2. Comments and issues received from homeowners

The Board examined a complaint submitted by a member of the association concerning the neighbor's refusal to prune the trees that overlook their house. This refusal has resulted in leaves and fruits falling into the complainant's unit. The Board resolved to task the Secretary with initiating communication between the complainant and the neighbor in order to foster mutual understanding on the matter. Additionally, the Association Manager has been assigned the responsibility of circulating operational guidelines to all association members, emphasizing the importance of tree trimming and respecting the privacy of neighboring units within Riffa Views.

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

The Board examined the notes received by the developer on behalf of the Riffa Views project's Steering Committee. These notes pertain to the Master Transfer Agreement (MTA). Following discussion, the Board reaffirmed the importance of implementing the decision made during the second General Assembly held on April 24, 2021. This decision authorized the Board to sign the agreement on behalf of the Association.

The Board also acknowledged that the comments provided by the Developer and the Riffa Views Steering Committee in the document titled "Term Sheet and MTA" necessitate an amendment to one of the paragraphs within the agreement. This amendment requires resubmission at the upcoming General Assembly meeting of the Association for voting and approval. In light of this, the Board made the following decisions:

- Direct the Board Treasurer to respond to the Developer and the Riffa Views Steering Committee, granting preliminary approval for the necessary amendments. It should be emphasized, however, that the final approval for such an amendment must be obtained from the General Assembly.

- Delegate the task of making the necessary amendment within the Master Transfer Agreement (MTA) to the Board Secretary. The amendment should be treated as a separate item on the agenda for the next Annual General Meeting (AGM) of the Association.

- Instruct the Association Manager to send a circular to all members of the Association, including the amendment to the agreement, in order to gather their feedback on the matter. The feedback collected will be presented for discussion at the upcoming General Assembly meeting.

- Direct the Association Manager to prepare a letter to be sent to RERA (Real Estate Regulatory Authority) regarding this issue.

4. Request for Proposal (RFP) for the Association Manager services 

The Board Treasurer provided an update on the appointment of Haj Quantity Surveyors LLC (HAJ) to oversee the tender process for the Association Manager. It was noted that the Board approved this appointment through a vote among its members.

Furthermore, the Board Treasurer informed that a Request for Proposal (RFP) has been prepared and several companies have been invited to participate. The RFP specifies the deadlines for the required procedures, which are as follows:

- October 10, 2021: Deadline for companies participating in the tender to submit their offers.

- October 13, 2021: Confirmation sent to the participating companies regarding their participation in the tender.

- October 17, 2021: Field visit to the Riffa Views site with the presence of the participating companies.

- October 21, 2021: Deadline for receiving inquiries and feedback from the participating companies.

- November 7, 2021: Deadline for receiving offers from the participating companies.

- November 8, 2021: Date for opening the bids submitted by the participating companies.

- December 1, 2021: Announcement of the winning company's name.

- January 1, 2022: Commencement of the tasks and work by the winning company.

5. 2020 Audited Financial Report

The Board reviewed the latest developments regarding the progress of the external auditor on the Association's accounts, and the Board Treasurer indicated that the work is underway to finalize the audited report, and it will be submitted to the Board of Directors.

6. Proposal to change the method of calculating service charges and owners' contributions in common areas

The Board examined the proposal put forth by an Association member to modify the calculation method for service charges in units within Riffa Views, as well as adjust the proportion of owners' contributions towards common areas. This proposal was initially presented during the General Assembly meeting of the Association held on April 24, 2021, where it received approval to authorize the Association's Board of Directors to review and reintroduce it at the subsequent General Assembly meeting.

The Association Manager presented a report explaining the proposed method of calculating the service charges. The Board emphasized that any changes to the current method should not unfairly impact owners or result in unequal distribution of charges. 

The Board discussed the proposal and decided not to implement it at this time. It was determined that applying the proposed changes would result in an increase in service charges for owners of specific units, while decreasing the charges for owners of other units. 

Consequently, the Board concluded that adopting the proposal would not serve the collective interests of all Association members. 

The Board Secretary was assigned to prepare a written response to communicate this decision, which will be included in the Board's report for the year 2021 and presented at the next General Assembly meeting.

7. Report of the General Assembly Organization Sub-Committee

The Board Secretary reviewed Report No. (1) of 2021, dated October 10, 2021. After discussion, the Board decided to schedule the third General Assembly meeting for the year 2022 on Saturday, January 15, 2022. In the event that a quorum is not achieved in the first meeting, the Board decided that the second meeting would be held on January 22, 2022. The Board also approved holding the meeting in person at the Riffa Views International School, taking into account the COVID-19 guidelines issued by the national team. The Association Manager was assigned the task of preparing a letter to be sent to RERA.

The Board approved the agenda for the meeting, which includes the following items:

- Item (1): Appointment of the meeting's Chairman.

- Item (2): Approval of the agenda.

- Item (3): Approval of the minutes from the second General Assembly meeting held on April 24, 2021.

- Item (4): Board of Directors' Report for 2021.

- Item (5): Approval of the audited financial statements for the year 2020.

- Item (6): Presentation of the unaudited financial statements for the year 2021.

- Item (7): Appointment of an external auditor for the fiscal year ending December 31, 2021.

- Item (8): Approval of the Association's budget for the year 2022.

- Item (9): Approval of amendments to the Master Transfer Agreement.

- Item (10): Approval of amendments received from RERA for the Association's By-Laws.

- Item (11): Approval of the appointment of RV Real Estate as the Association Manager for the years 2022-2023.

- Item (12): Discharge of the Board of Directors members from liabilities for their acts or omissions during the fiscal years ending December 31, 2020, and December 31, 2021.

- Item (13): Election of the Board of Directors for the term 2022-2023.

- Item (14): Other business.

The Board also examined the estimated budget for the General Assembly expenses, which was prepared based on a preliminary concept. After deliberation, the Board tentatively approved this budget, with a focus on maximizing cost-effectiveness.

As part of the sub-committee's efforts to organize the General Assembly, the Board discussed the upcoming elections for the Association's Board of Directors. The Board acknowledged that the current Board of Directors' term concludes at the end of this year, 2021. The Board Secretary presented the proposed candidacy form for individuals interested in running for membership on the Board of Directors.

After deliberation, the Board decided to assign the Association Manager with the responsibility of inviting Association members interested in running for the Board of Directors for the next two-year term (2022-2023) to submit their applications by November 11, 2021. The invitations should be sent to the email addresses registered in the Association's records, and the communication should be initiated on October 20, 2021.

Additionally, the Association Manager was tasked with preparing a weekly report on the progress of the candidacy process for membership on the Board of Directors. This report should be circulated to the Board members to keep them informed about the developments.

8. Other Business

The Board discussed the following:

The estimated budget of the Association for the year 2022:

The Board emphasized the importance of completing the preparation of the Association's estimated budget for the year 2022. During the discussion, the Board made the following decisions:

- The Board Treasurer and the Association Manager were assigned the task of incorporating a fixed percentage of the service charges into the budget to allocate funds for the Association's reserve fund.

- The Board Treasurer and the Association Manager were also assigned the responsibility of sending the estimated budget of the Association to the Board members. The budget should be circulated no later than the end of this month.

- The Association Manager has been tasked with reviewing all the observations and suggestions made by Association members during the previous General Assembly meeting held on April 24, 2021, regarding the Association's annual budget.

- The Association Manager has been assigned to send a circular to all Association members who own unit lands, informing them of the Board of Directors' decision to include the calculation of service charges for these lands in the 2023 budget.

- The Board Treasurer has been assigned to draft a letter to the Developer (Riffa Views) regarding the inclusion of 100% service charges for all unsold and unfinished units, starting from the 2022 budget.

The meeting ended at 8:15pm.