Board Meeting no. (3/3/2024) on June 25, 2024

The Board of Directors held its meeting no. (3/3/2024) on Tuesday, June 25, 2024 at 5:00 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. 2/3/2024 Held on May 29, 2024 

The Board approved the minutes of the previous meeting.

2. Monthly Report of the Association Manager for May 2024 

The Board listened to a brief explanation from the Association Manager, highlighting the main points from the May 2024 monthly report. After discussion, the Board tasked the Association Manager with the following:

1. Redraw distance markings along the main walkway at the Lagoon Estate. 

2. Prepare a detailed report on the expenditures from the proceeds of the sale of additional land for units. 

3. Invite several insurance companies to provide competitive quotes for insuring residential units. 

4. Contact the General Directorate of Traffic to launch an awareness campaign to limit the use of golf carts by children.

3. Renewal of the Association Manager’s Contract for 2024-2026 

The Board listened to a presentation from Mr. Abdulla Kamal, Vice-Chairman, regarding a report he prepared for the Board on renewing the Association Manager’s contract. The presentation covered the following points:

- During the first term of the Board, specifically in the last quarter of 2021, a tender was conducted to provide Association Manager services. The Board supervised the tender independently from the current Association Manager (RV Real Estate WLL), and HAJ Quantory Surveyors WLL ("HAJ") oversaw the tender, prepared the request for proposals, invited companies, and evaluated bids.

- HAJ’s report recommended the two best companies: Savills Middle East Co. WLL and RV Real Estate Company WLL. The Board decided to let Association members select the winning company through a vote at the Third General Assembly meeting on March 19, 2022, resulting in the selection of RV Real Estate Company WLL for two years.

- The entire tender process was highly transparent and professional, requiring significant effort and time to reach the best bids for the tender award.

Mr. Kamal also mentioned that he requested an evaluation from the previous Board (2022-2024) regarding the overall performance of the Association Manager, and the evaluation showed a score of 97.5% in favor of the current Association Manager.

Mr. Kamal highlighted several positives in favor of the current Association Manager:

1. The company has full knowledge and understanding of the challenges and issues in the Riffa Views community and how to address them. 

2. The company has extensive experience managing joint property for the Association since 2012. 

3. The company holds a solid position to assist the Association in dealing with and communicating with relevant parties in the community. 

4. The company plays a key role in completing the approval process for the master plan and executing the primary transfer agreement. 

5. The company provides high-quality services with a qualified team capable of fulfilling required tasks.

However, Mr. Kamal also noted a few negatives that, while not significantly impacting the overall evaluation, should be considered:

1. The contract cost has been increasing year after year. 

2. The company relies exclusively on its contract with the Association to fund its operations. 

3. The company is owned by the Developer (Riffa Views).

Mr. Kamal requested the Association Manager to provide a report on why the Association should renew its contract with the company. The company provided the following justifications:

- The team has accumulated 17 years of experience. 

- The company is aware of the project’s challenges, such as the shared irrigation system, oil wells within the community, and updates to the master plan. 

- The company has successfully managed Riffa Views since the Association’s establishment in 2020. 

- The additional land for the units is still registered in the company’s name. 

- The ownership of common areas is still registered under the company, which is currently handling all procedures for transferring ownership to the Association. 

- The company successfully manages relations with all stakeholders, particularly creditors, to ensure the project’s integrity. 

- The company remains the most cost-effective option for the Association.

Regarding the evaluation of the renewal proposal, Mr. Kamal explained the following:

- There was a significant increase in the contract cost for 2023, which was part of the previous contract. 

- The increase in 2023 was justified by the additional staff that was to be hired. 

- Savills Middle East Co. WLL submitted a bid for 2022 and 2023, with an equal annual cost of BHD 258,468. 

- Assuming a 3% increase in Savills' fees for 2023, their proposed fees for 2024 would be BHD 266,222. 

- This means that the current Association Manager’s fees are quite reasonable, only BHD 2,250 higher than Savills’ estimated fees for 2024.

Mr. Kamal concluded his presentation with the following points:

- The 2021 tender process was comprehensive, and its results remain valid. 

- The quality of the Association Manager’s performance and work received an overall evaluation score of 97.5%. 

- The positives of renewing the contract outweigh the negatives. 

- The Association Manager has been dedicated to supporting the project and Riffa Views community over the past 17 years, positioning the company well to leverage accumulated knowledge for the Association’s benefit. 

- The Association still relies on the company for managing common areas and land registration procedures. 

- The Association Manager’s fees remain competitive.

Based on this, Mr. Kamal recommended renewing the current Association Manager’s contract for three years instead of two to avoid the contract ending upon the election of the next Board. He also recommended increasing the contract cost by 1% for 2024, 2025, and 2026.

The Board discussed the proposal and asked the Association Manager for clarification on several issues.

The Board agreed to renew the Association Manager’s contract for three years, starting from April 1, 2024, to March 31, 2027.

The Board also encouraged the Association Manager to find ways to reduce the ongoing increase in operational costs for future years, considering that the services required to manage the Association are not expected to change significantly.

4. Setting the Goals and Values of the Board for the Third Term (2024-2026) 

The Board reviewed the proposed goals and values for the third term (2024-2026). After discussion, the Board tasked its members with reviewing the proposal and sending their comments to the Association Manager, with the item to be discussed again in the next meeting.

5. Approval of the Association’s Project List for 2024-2026 

The Board reviewed the list of the Association’s projects for 2024-2026, as outlined in the monthly report of the Association Manager. After discussion, the Board tasked its members with reviewing and prioritizing these projects for further discussion at the next meeting.

6. Subcommittees of the Association (Social and Cultural - Agricultural) 

The Association Manager reported that resident applications for joining the subcommittees (Social and Cultural and Agricultural Committees) had been received. After discussion, the Board tasked the Association Manager with arranging an introductory meeting for each committee.

7. Escalation of the Stray Dog Problem in Riffa Views 

The Board listened to an explanation from the Association Manager regarding the measures taken to control the increasing number of stray dogs in Riffa Views. The Association Manager mentioned that a specialized company had been contracted to capture the dogs, with eight cages placed in various locations, which are relocated as needed. After discussion, the Board decided the following:

- Intensify efforts by the specialized company, particularly during the summer. 

- Coordinate with the Ministry of Municipalities to explore ways to eliminate stray dogs.

8. Follow-up on Decisions from the Board’s Second Term (2022-2024) 

The Board reviewed a list of outstanding decisions from the Board’s second term (2022-2024). After discussion, the Board tasked the Association Manager with implementing the following recommendations:

1. Complete the report on gardens and green areas in Riffa Views. 

2. Include a regular report on recurring complaints from Association members in the monthly report of the Association Manager. 

3. Add the launch of an interactive web and mobile service platform for the Association to the Association’s project list. 

4. Continue coordinating with the municipality to provide irrigation water outside the Riffa Views boundary wall on Road 96. 

5. Continue planting along the boundary of the artificial lakes in Riffa Views. 

6. Freeze the decision to raise the sale price of additional land in Riffa Views from BHD 10 to BHD 13. 

7. Continue efforts and coordination with the Ministry of Works to find a permanent solution to prevent rainwater flow from outside. 

8. Add the construction of the Riffa Views Owners Association headquarters to the Association’s project list. 

9. Coordinate with the Royal Golf Club regarding the sale of additional lands owned by the club. 

10. Coordinate with the Ministry of Municipalities for the official opening ceremony of the new communal garden in Park Estate (P-10). 

11. Coordinate with the Urban Planning and Development Authority for the approval and registration of the Riffa Views Master Plan, including the division of common areas and additional lands. 

12. Add the maintenance and upgrade of the irrigation sprinkler system in common areas to the Association’s project list due to corrosion and damage. 

13. Add the second phase of developing Gate 2 in Lagoon Estate to the Association’s project list. 

14. Coordinate with the Urban Planning and Development Authority and the Southern Municipality to approve the construction standards and specifications. 

15. Obtain the best offers for enabling the payment of service charges via credit cards.

9. Review of Service Provider Contracts in Riffa Views 

The Board reviewed the list of service provider contracts in Riffa Views. During the discussion, the Board decided the following:

- Regarding the infrastructure and facilities maintenance contract, expiring on June 30, 2024, the Association Manager was tasked with contacting Enova again to obtain a competitive offer and present it to the Board for consideration in renewing the contract for three years. 

- Regarding the security services contract, expiring on December 31, 2024, the Association Manager was tasked with contacting Security Solutions Co. WLL again to obtain a competitive offer and present it to the Board for consideration in renewing the contract for three years.

10. Any Other Business 

Under this item, the Board discussed the following topics:

1. Restructuring the Committee for Diversifying the Association’s Income Sources: 

The Board noted that several Association members were interested in submitting proposals to diversify the Association’s income through projects and investment opportunities. After discussion, the Board decided to restructure the Committee for Diversifying the Association’s Income Sources, with Mr. Mohammed Mahmoud, Board Treasurer. The Board also invited interested Association members to join the committee and instructed the Association Manager to arrange an introductory meeting for the committee as soon as possible.

2. Preparing a List of Contractors and Service Providers for General Services in Riffa Views: 

The Board emphasized the need to prepare a list of contractors and service providers for general services frequently requested by residents. This list should include companies and institutions offering competitive prices. The Association Manager was tasked with preparing a proposal for the Board’s review.

3. Proposal from the Royal Golf Club to Allocate a Temporary Venue for Riffa Views Residents: 

The Association Manager reported receiving a proposal from the Royal Golf Club to allocate a space for the benefit of Riffa Views residents. The Board expressed its appreciation for the efforts made by the club's management and welcomed the idea, provided that guarantees for the allocation of the space for no less than four years are secured, given that the Association would incur additional costs to furnish and equip the venue. The Association Manager was tasked with continuing coordination with the club on this matter.

The meeting ended at 8:00 p.m.