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MINUTES OF THE BOARD OF DIRECTORS
July 25, 2007
The meeting was called to order at 7:13 p.m. by Roger Hirschland. Present were other board members Dwight Clark, John Filice, and Jeffrey Wertkin, and property manager Walter Krolman.
READING, MODIFICATION, ACCEPTANCE OF MINUTES OF THE MEETINGS OF JUNE 20, 2007
The Board approved the April minutes as a true record of the meeting.
TREASURER'S REPORT FOR JUNE 2007
Net cash available at the end of June 2007 was $965,932.69..
For year-to-date operations, through the end of June 2007:
- Total income was $505786, which is under budget by $20,312
- Total operating expenses were $412,272, which is over budget by $717.
- Capital expenditures were $48,756
Certificate of Deposit activity during June was as follows:
- NONE -
Fund Balances
- Operating fund balance as of the end of June 2007 is $53,781.
- Reserve fund booked balance as of the end of June 2007 is $911,749.
- HVAC replacement reserve fund booked balance as of the end of June 2007 is $14,550.
Certificates of Deposit
Treasurer John Filice invested significant time and effort in collecting all information relevant to the Association's Certificates of Deposit, and creating an easy-to-read spreadsheet summarizing this information. John presented this information to the Board, and highlighted items that required Board attention.
After consultation with John, the Board decided to open a second bank account at "Flag Bank" to store reserve contributions. As money accumulates in the 2nd Flag Bank account, the Board will periodically buy new CDs to increase the rate of return.
John also reported that the Association's account at Chevy Chase Bank, which holds the revenue from the laundry services, had a very high balance. The Board decided to purchase a CD with the money that is currently in the Chevy Chase account, and transfer the remainder to the 2nd Flag Bank account.
The Board discussed the difficulties that arise when attempting to transfer money on behalf of the Association, especially when there is a new Treasurer on the Board. John indicated he was going to call each bank and find out the best way to change signatories.
Problems with Simmons Management Company
During the Board's June meeting, the Board members asked our property manager, Walter Krolman, to meet with Simmons and make an effort to resolve some of the ongoing difficulties the Association is experiencing with its new management company. During the last week of June, Walter met with Larry Simmons and five of his staff members to go over three issues: (1) accurate unit accounting; (2) making sure invoices are paid on a timely basis; and (3) providing financial reports to the Board on a timely basis. Walter reported that Simmons listened to his concerns and indicated that steps would be taken to ensure they are addressed.
Walter indicated he will continue to work with Simmons to collect uncollected condominium fees from a number of owners. Walter also said he will draft email by August 1st documenting his meeting with Simmons.
Association Audit Status
The association received the 2005 audit. At the June meeting, the Board agreed to wait until it received the 2006 audit and then distribute both audits to the residents at the same time. Unfortunately, the Board has not yet received confirmation from the auditor that the 2006 audit is on its way. It is expected in the not-too-distant future.
ACTION ITEMS
Request for Reimbursement
A Board member received a request from a tenant seeking reimbursement for work done to repair damage to his car allegedly caused by leaking in the basement garage. The tenant submitted paperwork, but the Board did not feel it had the necessary information to decide the issue. The Board requested that the tenant appear at the next Board meeting to make a formal request and clarify the nature of the claim.
COMMITTEE REPORTS
Decorating Committee
The design committee reported that they would be meeting with two additional interior designers on July 26. After that July 26 meeting, the committee may be in a better position to select a designer and move forward.
Smoking Committee
The Board was told that the smoking committee had met since the June meeting, but it had not yet received a report.
REVIEW AND DISCUSSION ITEMS
Pool and Roof Garden rules
In a previous meeting, the Board asked Walter to order signs that outline the rules for the pool and roof garden. Walter reported that he ordered the new signs and they should be ready in the next few weeks.
Trash chute signs
Concerned about the ongoing problem of clogging in the trash chute, the Board asked Walter at a previous meeting to prepare signs for the trash chute that provide residents with guidelines on what types of items should be put in the chute. Walter reported that these signs have been ordered and should be ready in the next few weeks.
D.C. Tax Status
No update was available on the two unresolved tax issues. Walter requested the president to provide the name of a tax-office employee who had been helpful on other tax matters in the past.
Waterproofing the Pool Mechanical Room
The Board received a plan from Seal Engineering to complete the waterproofing project. The Board asked Vice-President Dwight Clark (our resident architectural expert) to review the proposal after the meeting and report back to the Board. If Dwight endorses the proposal, the Board will recommend that Board takes steps to bid out the contracting work to complete the waterproofing project.
Boiler Replacement
The Board received a proposal from Jack McNabb's engineering firm regarding replacement of the boilers. The existing boilers are not particularly efficient, and the Board believes that the Association can experience long-term savings and help protect the environment by installing more efficient boilers. However, the Board has not committed to this large expenditure at this time. Jack McNabb's preliminary estimate for boiler replacement is $300,000. The Board reviewed the proposal and decided to go back to Mr. McNabb and ask him two questions: (1) can he give more specifics about the $300,000 estimate?; and (2) what is the drop-dead date for ordering to have it ready by the 2007-2008 winter?
Comcast Advertisements
During June a Comcast representative twice put advertisements in every door in The Lauren. The Board did not approve this action, and expressed its concern that this practice presents a security problem for residents because the advertisements can be used to figure out who is not at home. Walter called Comcast and they assured us they would not paper the building again.
NEW BUSINESS
Reserve Studies
The Board discussed the need for an updated reserve study. The Board believes that it is good practice to update this study once every 4 or 5 years. The last update was 4 years ago. The Board voted unanimously to use the same company who did the previous reserve study at a cost of $4,200. The Board asked Walter to engage this company for the reserve study, and to inform them that we need the study by October so that the Board could use the study for next year's budgeting purposes.
NEXT MEETING
The next meeting was tentatively scheduled for Monday August 20.
ADJOURNMENT
The meeting was adjourned at 9:15 p.m. for Executive Session.
RESPECTFULLY SUBMITTED
Jeffrey Wertkin, Second Vice-President. for 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/lrn_business.htm