The Lauren Condominium Association

MINUTES OF THE BOARD OF DIRECTORS OCTOBER 28, 2007

The meeting was called to order at 7:06 p.m. by Roger Hirschland. Present were other board members Dwight Clark, Elizabeth VanderPutten and Jeffrey Wertkin, and property manager Walter Krolman. Also present were residents Roger Berg, Ethan Stier and Claudia Guidi. Board member John Filice joined the meeting around 8:15 p.m.

READING, MODIFICATION, ACCEPTANCE OF MINUTES OF THE MEETING OF SEPTEMBER 18, 2007

The Board approved the September minutes as a true record of the meeting.

TREASURER'S REPORT FOR September, 2007

Net cash available at the end of September 2007 was $991,403.15.

For year-to-date operations, through the end of September 2007:

• Total income was $756,240, which is under budget by $32,907.
• Total operating expenses were $612,071, which is under budget by $6,037.
• Capital expenditures were $73,723

Fund Balances as of the end of September, 2007:

• Operating fund balance as of the end of September 2007 is $44,557.00

• Reserve Funds:

1. Unrestricted capital reserve fund booked balance:                  $ 869,566.00
2. HVAC dedicated replacement reserve fund booked Balance:   $ 102,737.00*  
3. Total Reserves                                                                  $ 972,303.00

*  The HVAC reserve fund includes a transfer of $78,812 from the general reserves plus monthly condo fee contribution ($2,425.25 per month)  through August, 2007

 Certificate of Deposit activity during September was as follows:

 a. Chevy Chase Bank:

• A 7 month  CD was opened at Chevy Chase Bank.
• Balance at opening was $96,000.
• Interest rate for current term is 4.91% with a yield of 5.00%.
• Next maturity date is 28 April 08. 
• NOTE: Funds to open up this CD were from existing Chevy Chase money market, which included accumulated Laundry Revenue as well as a cash transfer of reserve funds by Simmons Management

b. Independence Federal:

• A 9 month (276 day) CD was rolled over at Independence Federal. Balance at rollover was $99,057.23.
• Interest rate for current term is 3.640%.
• Next maturity date is 2 July 08.

Update: Brokerage Firms for the Association’s Certificates of Deposit

The Treasurer reported meeting with two brokerage firms that were recommended by the Lauren auditors to manage the association's investment portfolio, and to provide advice on appropriate investment instruments. The firms make their profits from payments from the Banks. There is little or no cost to the Lauren. Funds are insured above the FDIC level. The Board and manager had some questions about the services: In whose name are the CDs registered? What is the nature of the insurance? Can the monthly reports be sent to the manager directly and not only to the signatories. Based on the presentation by the Treasurer, the Board tentatively selected one firm, and asked that a formal proposal be submitted for review by Lauren legal counsel.

Update: Association Audit Status

Update: D.C. Taxes

The issue of possible back taxes being owed remains unresolved. A fax has been sent to a new contact in the D.C. tax office. The president asked that the manager take an active role in resolving this issue promptly, including calling the contact to confirm receipt of the fax and to find out if she is the correct person to deal with.

Update: Financial Management

The Treasurer will meet with Simmons by mid-December at the latest.

ACTION ITEMS

Update: Water Leak in Pool Room (1006)

The Board addressed the waterproofing of the pool room floor and walls (1006). In an e-mail vote, the Board had approved the bid of Foundation Sealers, Inc. This vote was confirmed at the meeting. In the most recent leakage into the room, due to the heavy rain, the water detectors failed to notify the front desk staff, and leakage occurred into the unit below 1006. Caulking and backing around the edge of the pool also appear to be defective. The Board approved adding this task on to the basic contract, assuming an appropriate price can be reached and that Foundation Sealers can do this promptly.

COMMITTEE REPORTS

Decorating Committee

The committee recommended a firm to do the redecoration of the Lauren halls. The Board accepted the recommendation in principle, but will wait to give approval until the reserve study is completed, and until a bottom line estimate for the redecoration is agreed to by the Board.

Smoking Committee

Ethan Stier reported for the committee. The Board discussed questions that might be included in a survey of the building owners and residents. Among topics considered were the extent to which the responder is affected by second-hand smoke in the building; whether the person would want to put the question to a bylaw vote; status of responder (owner, resident owner, tenant); suggestions for reducing the impact of second-hand smoke short of a ban; and a non-binding indication of whether the responder would support a ban on smoking for new residents and owners. The survey might include a paragraph addressing whether any ban on smoking would have to grandfather any current owner or tenant.

Recent Smoking Issues in the Building

The Board was pleased that a conflict over smoking between tenants in adjoining units was resolved by discussion among the owners and the manager. The Board strongly recommends that owners and tenants resolve issues among themselves to the extent possible.

REVIEW AND DISCUSSION ITEMS

Reserve Study

The new reserve study is expected to be submitted to the Board within two weeks for discussion at the next Board meeting.

Boiler Replacement

No further information has been received from Jack McNabb. The Board would like the report this winter.

Late Payments 

The Board reiterated the Lauren policy that late fees will be incurred for all late payments of condo fees. Fees not received by the 10th of the month will be assessed $25. If payment is not received by the end of the month, an additional $25 will be assessed. The management firm, Simmons, will levy these fees. After one month, overdue accounts will be referred to the Lauren attorney.

The Board also asked the manager to follow through on all non-payment of within unit service bills every 30 days.

Check Cashing

The board asked the manager to be sure that checks for miscellaneous expenditures such as payments for in-house work, purchase of cards for the washer/dryers etc. are submitted to Simmons for deposit at a minimum of once a week. Simmons should deposit these checks with all due speed.

Update: Storage of Lauren documents

This is a continuing issue since storage space at the Lauren is so limited. In the past month, a significant number of boxes have been moved from 1006 and the boiler room. The manager has begun to go through the boxes to eliminate duplicate or old papers.

HVAC Changeover from AC to Heat

The heat is ready to be turned on. As usual at this time, residents are divided about whether heat should be on. The President and manager will decide when it should be on temporarily or permanently.

NEW BUSINESS

Respect for desk personnel

The board discussed several recent incidents in which visitors to the building were verbally abusive to the front-desk personnel when asked to abide by building policy and use the intercom to gain access to the Lauren. The board asked the manager to talk with the residents of units involved and directed that this kind of abuse would not be tolerated. Tenants who misbehave toward Lauren personnel will risk eviction. The board directed the manager to keep a close eye on this kind of behavior, and noted that owners and tenants are responsible for ensuring that their guests comply with condo regulations, as well as ensuring that guests show respect for desk personnel.

Long-Term Staff

The Board recognized the long-standing service of many of the staff and reinstated the policy of giving awards and letters for 10 and 20 years of service.

NEXT MEETING 

The next meeting will be Thursday, November 15, for budget discussion. NOTE: The annual budget meeting has been rescheduled for Monday, November 19.

ADJOURNMENT

The meeting was adjourned at 9:43 p.m.

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/lrn_business.htm