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MINUTES OF THE BOARD OF DIRECTORS
DECEMBER 17, 2007
READING, MODIFICATION, ACCEPTANCE OF MINUTES OF THE MEETINGS OF NOVEMBER 20, 2007
The Board approved the minutes as a true record of the meetings.
FINANCIAL REPORT
TREASURERS REPORT FOR OCTOBER 2007
Net
cash available at the end of October 2007 was $991,403.15.
For
year-to-date operations, through the end of October 2007:
- Total income was $833,259, which is under budget by $43,571.
- Total operating expenses were $612,071, which is over budget by $411.
- Capital expenditures were $73,723
Fund
Balances as of the end of October, 2007:
- Operating
fund balance as of the end of October 2007 is $27,990.00
- Reserve Funds:
- Unrestricted
capital reserve fund booked balance:
$ 885,718.00
- HVAC
dedicated replacement reserve fund booked Balance:
$ 105,395.00 *
Total Reserves
$ 991,113.00
* 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 October, 2007.
Certificate of Deposit activity during October was as follows:
- None
OTHER FINANCIAL BUSINESS
Financial Reports and Processes
- The board discussed a number of issues relating to financial reporting that involve both our financial management company and in-house policies and procedures.
- One item involves income from laundry and the frequency of deposits. The Board was concerned that a large amount of laundry money has not been deposited in the bank and instructed the manager to make the deposits this week. The Board directed that laundry funds must be deposited at least every two weeks into the "holding" account.
- The Board stated that funds should be moved from the "holding" account to an interest bearing account when its balance reaches $1,000, unless advised otherwise by the new brokerage firm.
- The rent checks from the unit owned by the Lauren do not seem to be appearing on the monthly reports. This needs to be resolved quickly.
- The Board also discussed the need to have accrued interest from certificates of deposit and other investments included in the monthly financial reports.
- The monthly financial reports received from Simmons should also have the HVAC restricted reserve account shown as a separate line item.
- The treasurer reported that Simmons has agreed to the contractual date of having the monthly reports prepared by the 15th of the month.
Brokerage Firm Update
The Board discussed the proposal from the Smith Barney brokerage firm and approved it pending final review of references by the treasurer and the attorney. The Board expected this to be completed by the end of the year.
Tax-DC Corporate Update Status
The manager reported that he is still waiting for a response from the D.C. tax department to the Lauren's request for a waiver. This is the 2002 issue where D.C. says we did not pay and we say we paid. The president expressed the frustration of all board members over this issue dragging on, and asked the manager to go over to the tax office in person to resolve the issue. The board also intends to document its attempts to deal with DC office in a letter to the tax office.
Audit Status
The 2005 audit is complete, and the Treasurer has been told that 2006 is almost ready. If the 2006 report is not ready by the middle of January, the Board will send out the 2005 audit In the meantime, any owner who wants a copy of the 2005 audit may get one from the Manager.
ACTION ITEMS
2008 Budget
The Board formally approved the budget for 2008 as determined at the last meeting and approved in the interim by e-mail vote.
Move-In Fees
Earlier this year, the Board changed the move in fee for an unfurnished unit to $200 and for a furnished unit to $150. There is also a penalty fee for units that turn over more than once in a calendar year. The Board clarified that the penalty fee is $200 more than the regular fee (e.g. unfurnished $400 and furnished $350.)
Board's Walk-Through Building Inspection
The board scheduled their annual building inspection for Saturday, January 26, at 10:30 a.m. During the one-and-a-half-hour tour, the board, manager, and chief of maintenance will walk through the building and inspect the physical property from the boilers and hot water heaters on the roof to the stairwells, alarm system in the lobby, to the electrical, telephone, and gas valves, and garage in the basement. The tour will also include all office spaces.
COMMITTEE REPORTS
Decorating Committee
Vice President Jeff Wertkin reported that the contract for a designer for the hallways redecoration is signed.
Smoking Committee Report
There was no report from this committee.
The president reported that there have been recent smoking issues in the building. The Board asked the manager to follow up with the unit owner and tenant whose smoking is affecting another owner.
REVIEW AND DISCUSSION ITEMS
Employees Holiday Fund
The President reported that he will send out thanks and acknowledgments this week. The gifts will be given to the staff by Monday, December 24. Additional contributions will be accepted until December 24.
2008 Budget Follow-Up
The letter from the President announcing the new condo fees was sent on December 12, 2007. The coupons for payment will be sent by December 24.
The board wished to remind owners who pay by check that they should put their unit number on the check and include the coupon provided by Simmons Management.
Unit 1006 / Pool Waterproofing
The manager reported that most of the work in unit 1006 and around the pool is nearly complete. Seal Engineering must still approve the work.
2007 Reserve Study
There appear to be some anomalies in the 2007 reserve study that need to be resolved before the board feels comfortable in using it for future budgeting purposes. The treasurer reported that the manager has prepared a detailed list of apparent discrepancies between the company's current and previous report. The next step is for board members John Filice and Dwight Clark, property manager Walter Krolman, and consulting engineer Jack McNabb to resolve these items. John will schedule a meeting as soon as possible after the holidays.
Association Paperwork Storage
The Board is still awaiting recommendations from our roofing consultant about whether items can be stored in unit 1006 without damaging the waterproofing. The Board is still considering off-site storage.
NEXT MEETING
The next meeting is scheduled for Thursday, January 24.
ADJOURNMENT
The meeting was adjourned at 9:45 p.m.
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/lrn_business.htm