The Lauren Condominium Association

MINUTES OF THE BOARD OF DIRECTORS
NOVEMBER 13, 2006 

READING, MODIFICATION, ACCEPTANCE OF MINUTES OF THE MEETINGS OF OCTOBER 23, 2006

The Board approved the Minutes as a true record of the meetings.

2007 Budget

The sole purpose of this meeting was to plan the annual budget for 2007. 

The Board discussed a budget draft prepared by the Treasurer and the Property Manager.  The following items were modified.

• The Board agreed to raise the rent on Lauren-owned parking spaces by $15 per space per month, which is about on par for similar-sized outdoor parking. 
• The Board discussed the amount of funds received from in-unit services and thought this could be higher. In-house work that Lauren employees do during assigned hours is billed to the Lauren. These in-unit activities include routine maintenance, light plumbing, and electrical work. The Lauren will charge owners for the service. Only work done outside regular hours by Lauren staff can be billed privately. This work generally involves construction, painting, or major repair.
• Utility cost declined the past year. The Board agreed to lock in the current rate for gas for a full year.
• The Board agreed to raise the rent for the Lauren-owned unit to cover the increase in condo fees.
• The contract for professional services may need adjustment when the final new contract for a management company is signed.
• The Board agreed to raise the move-in fee by $25 to cover the cost of providing security during move-ins.

The preliminary budget results in about a 2% increase in condominium fees before considerations for HVAC capital planning are factored in.

The major issue facing the condo is budgeting for replacing the HVAC system that is well past its industry standard for useful life. Dwight Clark reported that the planned coating of Whalen unit pans may extend their remaining useful life. Failure to recoat the pans could result in severe water damage to the building as well as the rapid diminishment of heating and air conditioning in apartments. Because of this operation must be done only when the air-conditioning is off, only a limited number of tiers can be done during any one season, so the installation will be spread over several years. The overall cost is estimated to be between $10,000 and $11,000 per unit. 

The Board considered various options for paying for the new HVAC system. These include borrowing, special assessment, condo dues, and combinations. The Board rejected a special assessment because they felt it would be too extreme, have a strongly negative impact on many owners, adversely affect the image and standing of The Lauren, and importantly diminish property values. They rejected borrowing because it would add hundreds of thousands of dollars in interest to the total project cost and because they believed other, less drastic options were available.

The Board discussed a preliminary proposal offered by Brian Larkin to spread the cost over an extended period as a way of keeping condo fees as low as possible, and agreed to set up a special capital reserve fund for the HVAC project. They asked Brian Larkin to work on the details of this plan so they could take it up again on November 21 when they will meet to finalize the 2007 budget.

MATTERS ARISING FROM THE MEETINGS OF OCTOBER 23, 2006

New Management Firm

The Board selected a new Management firm, pending final agreement on contract wording.

NEXT MEETING

A budget meeting continuation will be held on November 21 at 7:00 PM.

ADJOURNMENT

The meeting adjourned at 10:15 PM.

EXECUTIVE SESSION

An executive session followed the open meeting.

RESPECTFULLY SUBMITTED

Elizabeth A. VanderPutten, Secretary 

TO SUBSCRIBE

To receive e-mail copies of Board Minutes, send a request to Property Manager Walter Krolman at manager@lauren.org

Minutes and other Lauren information may be found in the Business Section of The Lauren web site www.lauren.org/business.htm