The Lauren Condominium Association

MINUTES OF THE LAUREN BOARD OF DIRECTORS MEETING SEPTEMBER 23, 2009

The meeting was called to order at 7:10 p.m. by Roger Hirschland. Present were other board members Dwight Clark, Elizabeth VanderPutten, and John Filice; and property manager Walter Krolman. Board member Barrett Witkin joined about 7:40 p.m.

READING, MODIFICATION, ACCEPTANCE OF MINUTES OF THE MEETING OF AUGUST 5, 2009

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

BOARD DISCUSSION OF TREASURER'S REPORT (see report at end of minutes)

The Board questioned a number of items on the budget. The Board asked the manager to find out why the phone costs and gas costs to date are higher than budgeted. They also asked that Simmons print the report in a way that shows the entire text if itemized lines, rather than cutting them off, perhaps by reducing the font size.

The Board again asked the manager to seek legal advice about the fact that the D.C government has still not found the reason why they are erroneously crediting the Lauren with paying property taxes.

Elimination of Coin Option for Laundry Machines

The Board discussed the drawbacks involved in having coins used with laundry machines. Coins must be collected, counted, and deposited, which is time consuming. Allowing coins is a backup in case the card system fails. The Board asked that the manager to investigate options for decreasing the need for coins, such as limiting the number of machines that accept coins, or installing a second card dispenser.

2008 Audit

The 2008 audit will be finished as soon as final documentation is provided from one financial institution. Investments

The Board approved having Capital One CD funds transferred electronically, and recommended the use of electronic funds transfers for the two remaining CD's that are not under the control of Smith Barney.

Reserve Study

The latest reserve study report was done in 2007 and accepted in April 2008. The general recommendation is that these be done at least every five years. The Board recommends that this be done in 2011.

ACTION ITEMS

Dog Ownership Disability Policy Statement

The Board adopted rules for service animals based on the legal advice of the Lauren counsel.

COMMITTEE REPORTS

Decorating Committee Progress Report

The completion date for renovations is still projected to be mid- to late October.

Further discussion will be needed on replacing all the hallway plastic signage.

REVIEW AND DISCUSSION ITEMS

Boiler & Hot Water Replacement

The boiler and hot water heater replacement project has been completed. The equipment will be commissioned in late October when it is turned on for the winter heating season.

HVAC Reserve

Adjustment to the HVAC funding schedule will be discussed in detail for the 2010 annual budget. The major issue of concern is that interest rates are significantly lower than was projected two years ago, when the HVAC fund was set up and the schedule of contributions was formulated.

Parking Lot Gate Repair

The gate was irreparably damaged and has been replaced, along with all related operating mechanisms. Advice is being sought from association legal counsel as to responsibility for the insurance deductible.

TV Master Antenna Conversion to HDTV

The conversion of the master TV antenna is still waiting for parts.

Updated Fee Collection

A revised fee collection policy has been submitted to our lawyer for review. The new document will clarify exactly what procedures the condo will follow in collecting and pursuing monthly condo fees, and will be distributed to all owners in December, along with the new budget.

Unit Renovations

The Board reiterated its long-standing policy that plans for renovations must be submitted to the Board and approved in advance of any work. All permits must also be obtained before work begins and submitted to Management. The Board discussed enhancements to this policy, including requiring a deposit before construction can begin. The next draft of this policy will be discussed at the next meeting.

Revisions to Renovation Guidelines for Owners/Contractors

John Filice reported that the revised unit renovation guidelines will be ready for the next board meeting.

Storage and Bike Room Space

Limited space is available in the basement storage for bike storage within the gated area, as well as other storage areas. In an effort to maximize available space, the board has asked the manager to contact residents and owners and request that they identify all possessions in storage that belong to them. This will help to identify unidentified/abandoned which can be removed to maximize usability of the space.

Lease Paperwork

Owners are reminded that before a tenant moves in they must provide the Lauren with copies of the signed lease, lease addenda, and move-in fee. The Board will enforce the existing policy of charging a $200 fee for violating the policy.

The board asked the manager to be pro-active in identifying potential moves before they occur by speaking to desk personnel, checking on owners of empty units and other means.

OTHER NEW BUSINESS

None

NEXT MEETING

The next monthly Board meeting is scheduled for November 11, 2009.

ADJOURNMENT

The meeting was adjourned at 9:35 p.m..

RESPECTFULLY SUBMITTED

Elizabeth A. VanderPutten, Secretary

Treasurer’s Report, Month Ending August 2009

A.      Total Owners Equity / Net Cash Available

Total owners equity / Net cash available at the end of August 2009 was $ 1,168,976.51

B.     Year-to-date operations, through the end of August 2009:

1. Total income was $1,093,061, per Simmons Management financial report for month ending August 2009
   
2. Total expenses year to date: $1,053,995

3. Laundry Income: 

a.      August coin deposits                                                       $ 0

(August coin revenue will be included in September ‘09 totals)

b.  August Net Credit Card Income:                           $ 1,533.09

Total laundry income August 2009                         $ 1,533.09

C.     Fund Balances as of the end of August 2009

1.      Operating cash balance as of the end of August 2009: $ 128,625.39

2.      Reserve Funds:

a.      Unrestricted capital reserves:                   $    757,998.13

b.      HVAC dedicated replacement reserve

fund booked Balance:                               $    305,320.00   

Total Reserves         $ 1,191,943.52

Note 1 re Reserve Funds:
Monthly reserve contributions total $ 17,247 into respective reserve accounts as follows 

·        General Reserves for 2009 = $11,950 per month

·        Restricted HVAC Reserves for 2009 = $5,297 per month

Note 2 re Reserve Funds:
The HVAC reserve fund includes an additional subsidy transfer of $42,376 from the general reserves as of January 1, 2009.

D.     Miscellaneous Treasurer’s Notes:

1. 2008 Audit

·         Representation letter has been signed by Treasurer as well as Management and returned to auditor.

·         Auditor has advised that they are awaiting closing balance or closing statement from M&T Bank at which the association had a CD during 2008.       

2. Monthly Reserve Contributions

·         Smith Barney has been successfully conducting electronic transfers of our monthly reserve contributions to the respective reserve accounts…General Reserves & Restricted HVAC Reserves.

3. Certificate of Deposit / Smith Barney Investment Activity (Connecticut Avenue Office)

a.      Treasurer and Property Manager have reviewed the monthly Smith Barney statement of account for The Lauren Condominium reserves and have determined it to be accurate.

b.      Interested owners are free to request a copy from our Property Manager in writing.

c.      CD purchases / activity during the month are reflected in the monthly statement.  

d.   On 9/21/09, Smith Barney conducted a $125,613.69 (One Hundred Twenty Five Thousand Six Hundred Thirteen Dollars and 69 cents) transfer from our Reserves to cover Capital Expenditures as discussed elsewhere in this report.  

• Said amount covered Miscellaneous Capital Expenses and kept our Operating Bank Account at a level needed to cover monthly routine expenses.
• In previous Board discussions we have agreed the Operating Account should range between $ 50,000 and $70,000 in order to avoid transfers every month to cover routine expenses.

4. CD Activity vis a vis Potential Capital Expenditures

Smith Barney has recommended a “laddering” of CD investments that will allow access for needed capital expenditures as they arise.

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.      In September, Smith Barney recommended purchase of a $25,000 variable rate CD purchased….Consensus from the Board was to approve said purchase as it presented no real downside risk for loss of principal. OK

e.      Potential “Capital Expenditures” such as those listed below:

      Projected Lauren Needs / Capital Improvement Projects may total         approximately $450,000 through 2009.

·         Boilers and Hot Water Heaters: $261,898…Includes original contract with WL Gary, change orders to date, projected change orders, engineer's design, construction services, and costs to keep Lochinvar hot water heaters running in the interim.

(I.E.: Approx. $6,000 + to reconfigure the venting system on the old Lochinvar water heaters to keep them in operation while we were getting the new ones installed)

                        NOTES RE BOILER / HOT WATER HEATER PROJECT:

–        As of 7/9/09, Smith Barney conducted a “wire transfer” of
$ 92,846 from our reserves to our RBC Operating Account to cover initial payment for our Boiler / Hot Water Heater project.

–        Smith Barney transfer of $99,931 on 8/12/09 for WL Gary Boiler project.

–        Projected final cost for boiler, hot water replacement project is $261,898. Includes contract with WL Gary for replacement, McNabb engineering services and costs to keep existing hot water heaters and air conditioning on line while replacement contract was being executed.

–        Chiller Issue: During the installation an air filter in the boiler room took on extra dust, debris etc. Cacho normally cleans it 4 times a year. The dust caused an emergency after hours service call by McQuay to diagnose and remedy air conditioning outage. Cost was $759. Expense initially coded to GL 51075 (HVAC Repairs and Maintenance)

·         Interiors: $245,832…Includes Contractor fees for actual construction regarding Hallways and Common Area Renovation, designer's fees / expenses, and estimated signage:

NOTE:

–        The next interior design progress payment is $37,397.

–        This amount was included in the $ 125K Reserve transfer referenced above.

E.     Remaining CD’s to be transferred to Smith Barney upon maturity:

1.      Capital One: Matured 7/28/09 (4.88%)

·         Joe Morris, Co-Signatory with Elizabeth VanderPutten

·         The total at maturity is $78,216.95

·         There has been a problem with receipt of check…Joe Morris has been in direct contact with Capital One bank.

·         As of 9/22/09, John Filice sent Joe Morris a completed “Outbound Wire Request Form” to initiate an Electronic Transfer.

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  

- END OF TREASURER’S REPORT -