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MINUTES OF THE BOARD OF DIRECTORS August 20, 2007
The meeting was called to order at 7:08 p.m. by Roger Hirschland. Present were other board members Dwight Clark, John Filice, and Jeffrey Wertkin, and property manager Walter Krolman. Also present were residents Ethan Stier and Claudia Guidi.
READING, MODIFICATION, ACCEPTANCE OF MINUTES OF THE MEETING OF JULY 25, 2007
The Board approved the July minutes as a true record of the meeting.
TREASURER’S REPORT FOR JULY 2007
Net cash available at the end of July 2007 was $986,706.67.
For year-to-date operations, through the end of July 2007:
- · Total income was $592,358, which is under budget by $21,423.
- · Total operating expenses were $478,069, which is under budget by $4,184.
- · Capital expenditures were $48,756
Fund Balances
- · Operating fund balance as of the end of July 2007 is $52,261.
- · Unrestricted reserve fund booked balance as of the end of July 2007 is $925,706.
- · HVAC reserve fund booked balance as of the end of July 2007 is $16,975.
Certificate of Deposit activity during July was a follows:
- Bank: Washington First, Washington, DC
- Dollar Amount Deposited: $75,976.36
- Rate: 5.25 %; APY: 5.35 %
- Term: 36 Months (Maturity: 7/24/10)
Brokerage Firms for the Association’s Certificates of Deposit
In June, Treasurer John Filice met with CPA Auditor Howard Goldklang, a principal in the auditing company that has been conducting the Association’s audits for the past several years. At this meeting, John learned that there are “broker firms” that broker and manage Certificates of Deposits for condominium associations. These firms consolidate CDs into one portfolio, and manage this portfolio on behalf of the Association. The service includes “laddering’ the CDs to ensure the Association is sufficiently liquid, completing all necessary paperwork, managing signatures, providing notifications when actions occur, and generating summary reports.
These firms typically charge a minimum fee and may also take a percentage of the balance. Mr. Goldklang informed John that Associations with more than $300,000 in reserves tend to benefit from using these types of broker firms. The Board authorized John to initiate meetings with two or the three of these brokerage firms to investigate whether The Lauren should utilize this service.
Association Audit Status
At his meeting with John Filice, Mr. Goldklang indicated that the Lauren’s 2006 audit should be ready by the end of August.
COMMITTEE REPORTS
Smoking Committee
Ethan Stier, the chair of the smoking committee, reported on the committee’s June meeting. Ethan made a brief presentation to the Board which included the following information:
Internet research revealed that residential buildings have gone smoke free (in the whole building) in Maine, Utah, West Virginia, Northern California, Washington, and Michigan. In each case, the transition toward a smoke-free building included a clause “grandfathering” existing tenants and residents when implementing the new rules.
There have been other successful experiences regulating smoking in private property. For example, motorists in Arkansas are prohibited from smoking in their cars when there is a minor present.
A website for smoke free housing in Maine includes the following statement by the Maine Attorney General: “The right to smoke is not protected under law, according to the opinion of the U.S. Department of Housing and Urban Development (HUD). As long as the policy is not used to target a protected class or minority, a building manager is legally free to restrict or prohibit smoking.”
It is a common belief that filters and other devices can completely eliminate the smoke coming through a building’s ventilation systems. In fact, there is evidence that these devices may reduce the smoke but they are not one hundred percent effective.
It is a common belief that smokers prefer to live in a smoking environment. This is not accurate because many smokers report a preference for a smoke free apartment.
The committee found data that suggests that a smoking ban positively affects the value of bars and restaurants. After some discussion, the Board asked the smoking committee to prepare survey that will eventually be circulated among the residents and tenants. The purpose of the survey will be to learn the preferences of owners and renters. The committee will distribute a draft of the survey to the Board prior to the next Board’s meeting for further discussion prior to circulation.
Decorating Committee
The decorating committee reported that it met with two other designers, and received a proposal from one of the designers. The committee will meet again to review the proposals, and will make a decision regarding the proposals in the next few weeks.
REVIEW AND DISCUSSION ITEMS
Replacement of the Boilers – McNabb Proposal
Dwight reported that he discussed boiler replacement proposal with Jack McNabb. Jack advised that the Board not attempt to install new boilers before the next heating season. Instead, Jack recommended to Dwight that we study the proposal and, if we decide to move forward, to shoot for an installation start date around April.
Dwight also reported that Jack’s $300,000 estimated cost for the boiler replacement was a worst-case scenario– meaning that the total cost is likely to be less than $300,000. The Board estimated that the Association could save approximately $25,000 per year by installing more efficient boilers.
The Board discussed the life of the current boilers. Based on previous reserve studies, the Board believed that the existing boilers had approximately 6-7 years of life remaining. Given the other projects the Board would like to complete, the Board will look very closely at the boiler replacement proposal and remain mindful of maintaining sufficient reserve funds.
Installation of Exterior Light
A resident on the first floor requested that the Board consider installing a light on exterior of the south wall of the building to discourage loitering and other miscreant behavior. The Board will ask the resident to come to the next meeting to discuss her concerns.
Financial Management issues
Previously there were six units with issues relating to condominium fees. Problems with four of these accounts have been resolved. The remaining two units are both owned by owners who are out of the country for an extended basis. Property Manager Walter Krolman agreed to reach out to the tenants of these units for the best way to contact the owners.
Damage from water in garage
A tenant who submitted a request for reimbursement for damage caused to his car from a leak in the garage was compensated.
Recent Hot Water and Air Conditioning Problems
The causes of the recent outages were minor mechanical problems and they have been repaired.
Pedestrian Gate
The pedestrian gate for the outside parking lot does not always close securely and lock. Lauren maintenance has been unable to remedy this problem, as it appears to require equipment that is not in-house. The original installer has been called to inspect and repair the gate.
Common element fence
The Board had approved the request of an owner on the first floor to build a common element fence on the patio behind the building. The owner has postponed that project due to cost.
Reserve Study
On behalf of the Board, Walter Krolman has engaged the Reserve Advisors company for the reserve study. The Board requested that the study be completed by October 10 so that it may be used to assist the Board in preparing the 2008 budget.
Roof Garden and Trash Chute Signs
The signs for the roof garden and trash chutes have been received and will be posted shortly.
Pest Control
Residents are reminded that the association has a contract with Owl Pest Control. Residents who have pest problems have the option to sign up at the front desk for free inspection and treatment.
DC Tax Status
There has been no recent correspondence from DC regarding the Association’s tax status. Walter Krolman will continue to look into this issue.
Preparation of 2008 Budget Process
The board discussed the process that will be used to prepare the 2008 budget. Walter Krolman and John Filice will meet in October to hammer out preliminary meetings. During November, the Board will convene a special meeting open only to Board members to discuss the budget. The budget will then be officially adopted at the next public meeting in December.
ADJOURNMENT
The meeting was adjourned at 9:02 pm for Executive Session.
RESPECTFULLY SUBMITTED
Jeffrey Wertkin, Second Vice-President, for Elizabeth A. VanderPutten, Secretary.
NEXT MEETING
The next meeting will be Tuesday September 18
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