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MINUTES OF THE LAUREN BOARD OF DIRECTORS
MEETING
MARCH 26, 2009
The
meeting was called to order at 7:03 p.m. by Roger Hirschland. Present were other
board members Dwight Clark, Elizabeth VanderPutten, and John Filice; and
property manager Walter Krolman.
READING, MODIFICATION, ACCEPTANCE OF MINUTES
OF THE MEETING OF FEBRUARY 25, 2009
The
Board approved the February minutes as a true record of the prior meeting.
BOARD DISCUSSION OF
TREASURER’S REPORT
Status of Reclaiming Funds from Koger
The Board discussed the recent decision by the U.S. District
Court for the Eastern District of Virginia that found that Koger, the Lauren’s
previous management firm, made certain false certifications on its application
for insurance from Continental Casualty Insurance.
As a result, the court ruled that the insurance was void.
This means that the Lauren can not collect from Koger’s insurance
policy. As a result, the Board will
continue to aggressively pursue collection from our own insurance.
Audit
The Board reviewed the 2007 audit report.
With the exception of the funds in receivable from Koger of $64,735, the
audit concluded that the Lauren’s financial statements fairly, in all
materials respects, report the financial position of the Condominium and that
the results of its operations and its cash flows are in conformity with
accounting principles generally accepted in the USA.
This is often referred to as a clean audit.
The 2007 audit is available
online and to owners upon request of management. A supply
will be on hand at the 2009 Annual Meeting.
The board also reviewed the 2008 draft audit report. The
Board questioned the auditor’s assertion in the draft 2008 audit that minutes
were not available from August 2008 to the end of the year.
These minutes are available and posted on the Lauren Web page. The Board
asked that this be changed in the report.
The Board also discussed the statement in the report that the auditors were unable to find some closing statements for certificates of deposit that were closed out during 2008. It was explained that the current treasurer is not a signatory on the accounts of those matured certificates, and therefore the bank did not honor his request for statements. This issue should no longer be a problem after the few remaining CD’s mature in the coming two years (see list at end of minutes).
TREASURER’S REPORT: (See below)
ACTION ITEMS
Within-Unit
Circuit Breakers
The Lauren has Federal Pacific Electric panels that are
known historically to have caused problems in other buildings.
According to an Industry New Article, if there have not been problems, as
in the case of the Lauren, we are probably fine. The Board discussed the
situation with various electricians but did not get a consensus from the experts
about whether there could be a problem. There is a consensus that the circuit
breakers be checked regularly. One possible sign would be that there is heat
near the breakers. The Board will have maintenance check the circuit breaker
boxes while doing the bi-yearly change of filters.
Security
The
board reviewed proposals to close off the Lauren building overhang on N Street
and a portion of the landings in the basement level of the stairwells to reduce
vandalism and trashing. The Board approved the plans for the outside overhang
but asked for possible alternatives to fencing for the interior stairwells.
Pet
Request
The
Board reviewed the medical request for a resident to have a dog.
The request was approved on the conditions that the dog is not to be in
public spaces longer than needed to enter or exit the building and is not an
annoyance to neighbors. The owner must also ensure that the owner not exercise
the dog on Lauren lawns.
Annual
Meeting
Annual
meeting arrangements have been confirmed for May 6, 2009, at the Marriott Hotel
on 22nd Street.
COMMITTEE REPORTS
Decorating Committee Report
Recommendations to Award Contract: The Board
discussed the leading four of the 10 bids received. The committee and board
members agreed that two were at the top. The
Board discussed the relative merits of the two bids in terms of cost, quality,
experience, references, and payment schedules. The Board will continue to review
but expects to make a decision within the next two weeks.
DISCUSSION
ITEMS
Owner
Presentation on Unit Renovations
The
presentation was postponed until the next meeting at the request of the owner.
Boiler
and Hot Water Heater Replacement
The
Board expressed serious concern that the request for bids were not sent out
earlier as promised by the consulting engineer.
The Board asked the manager to ensure that the requests were sent out and
to set a firm date when bids are due.
Master Antennae
The manager reported that he is aiming for the master antennae system to be digitally compatible by May 1, 2009.
None
The
board scheduled its next meeting for Wednesday, April 22, 2009,
at 7:00 p.m.
ADJOURNMENT
The meeting was adjourned at
8:43 for Executive Session.
RESPECTFULLY SUBMITTED
Elizabeth
A. VanderPutten, Secretary
ADDENDUM
[March 30, 2009]
Barrett
Witkin has agreed to serve on the board, replacing Jeffrey Wertkin.
Treasurer’s Report
Month Ending February 28, 2009
A.
Total Owners Equity / Net Cash Available:
Total Owners Equity / Net cash available at the end of
February 2009 was:
$ 1,261,770.82
B.
Year-to-date operations, through the end of February 2009:
- Total
Income Year to Date was $196,516 per Simmons Management Financial Report
- Total
Expenses Year to Date were $ 204,642
- Laundry
Income:
a.
January and
February Coin Deposits
$ 1,164.25
(made
2/2/09)
b.
February
Net Credit Card Income:
$ 1,493.95
Total Laundry Income February 2009
$ 2,658.20
C.
Fund Balances as of the end of February 2009
1.
Operating Cash
balance: $ 8,589.89
2.
Reserve Funds:
a.
Unrestricted capital reserves:
$ 994,500.93
b.
HVAC dedicated replacement reserve
fund
booked balance:
$ 273,538.00
Total Reserves
$ 1,268,038.93
Note 1 re Reserve
Funds:
Monthly Condo Reserve Contributions for 2009 are $17,247
Note 2 re Reserve
Funds:
The HVAC reserve fund includes a transfer of $
42,376 from the general reserves as of January 1, 2009 plus a portion ($5,297
per month) of Monthly Condo Reserve Contributions.
D.
Miscellaneous Treasurer Notes:
- 2006 Audit Re Koger Bankruptcy:
·
Our 2006 audit
revealed we were missing monies due to the Koger Management Company’s
bankruptcy / embezzlement situation.
·
Goldklang
provided the figure of $ 64,735.00
·
The recovery of
this money is being pursued through The Lauren’s legal counsel and our
insurance carrier.
·
Patty Dial of
Travelers advised property manager she has spoken with CPA Jeremy Powell of
Goldklang Cavanaugh to clarify certain items. She implied that a resolution
should be forthcoming shortly.
- Audits
2007
Audit:
·
2007 final audit
has been received
·
Board to discuss
how we wish to distribute the 2007 audit since our 2008 Audit (see below) is
pending.
2008
Audit:
·
The draft 2008
audit has been received and distributed to the Board of Directors for their
review and comments.
·
Signature of
draft pending Board approval.
- Monthly Reserve Contributions
·
Simmons
Management has been successfully conducting electronic transfers of our Monthly
Reserve contributions.
- Certificate of Deposit / Smith Barney Investment
Activity
1.
The monthly Smith
Barney statement of account for The Lauren Condominium Reserves has been
reviewed and determined to be accurate.
2.
Interested owners
are free to request a copy from our Property Manager in writing.
3.
CD purchases / activity during the month are reflected in the monthly
statement.
- CD Activity vis a vis Potential Capital Expenditures
The Treasurer and Property Manager discuss the following with
Smith Barney on a regular basis:
a.
Current money
market funds
b.
CD
Maturing Dates
c.
Non Smith Barney
CDs to be moved into our Smith Barney account.
d.
Potential
“Capital Expenditures” such as those listed below:
Projected Lauren Needs / Capital Improvement Projects may total
approximately $ 430,000 through 2009.
·
Boiler:
Approximately $150.000.00
·
Hot Water Heater:
Approximately $80,000 per 2009 budget which is reflective of McNabb’s latest
estimate.
·
Interiors:
Approximately $200,000.00
e.
Currently, our
reserve funds are sufficient to cover such Capital Improvements without concern
of compromising our ability to address emergency matters.
E.
Remaining CD’s to be transferred to Smith Barney upon maturity:
1.
Capital One:
Matures 7/28/09 (4.88%)
$72,691.50
2. Principal Bank: Matures 2/8/10 (4.89%) $74,389.98
3.
WA First Bank:
Matures 7/24/10 (5.25%)
$77,735.79
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END OF TREASURER’S REPORT -
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TO SUBSCRIBE Previous issues of Lauren Board Minutes from 1996 through this month are available from www.lauren.org/minutes.htm Other Lauren information may be found in the Business Section of the Lauren Web site www.lauren.org/business.htm |