The Lauren, A Condominium in downtown Washington DC - Minutes from Board meeting April 22, 2010

The meeting was called to order at 7:05 p.m. by Roger Hirschland. Present were other board members Elizabeth VanderPutten, John Filice, Barrett Witkin, and Dwight Clark; property manager Walter Krolman; and owners Brian Larkin, Stan Caron, Wayne Rhee, and Marilee Aronson.

READING, MODIFICATION, ACCEPTANCE OF MINUTES OF THE MEETING OF MARCH 23, 2010

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

BOARD DISCUSSION OF TREASURER'S REPORT

Highlights of the Treasurer's Report [See Treasurer's Report below]

About $62,000 has been spent from the operating account on capital reserve items. The board approved the transfer of capital reserves to operating account to cover this. This is a normal process. For the benefit of first time attendees, the board discussed the funding of and relationships between the operating fund, the unrestricted capital reserve fund, and the restricted HVAC fund, and explained how transfers are made.

The Board had already approved the audit and noted it will be available at the annual meeting.

The Board also noted that one of the major financial issues ahead is the auditor’s recommendation that we consider changing our accounting system from a modified accrual system to either a straight cash or straight accrual system. They noted that any change would have to consider the accounting capabilities of our financial management firm.

In late afternoon on April 19, 2010 , owner Mokhless Alhariri notified us that bricks on the façade above the first-floor 03-tier were bowing and in danger of falling. The Board and management immediately had the area cordoned off and contacted Seal Engineering, who reviewed the photographs and did an onsite inspection the next morning. On April 21, Seal had the affected area stabilized, which involved erecting scaffolding to protect the trees, shrubs and windows below, removing the damaged bricks, and covering the area with plastic wrap. The Board approved the initial $5,000 emergency expenditure. The single slow-down right now in effecting the repair is getting bricks and mortar to match the existing colors.

The good news is that the damage can be immediately repaired for about $5,000 and remediation is scheduled to start April 23. However, the consulting engineer’s preliminary report recommends that the Lauren put in angle iron supports on each floor immediately for the damaged tier. The cost would be about $20,000. The engineering company is preparing a report on the most optimal, cost effective approach for the rest of the building. The recommendation should be received by April 24. Assuming that the recommendation is for two tiers or about $40,000, the board would approve the installation on two tiers, and the next Board can decide the longer term solution.

Because of the project's potentially high cost, the Board asked the President to ensure that owners know about the situation.

Dwight Clark and John Filice reported on the progress of the hallway redecoration program. The second elevator is expected to be completed by the first week of May. All signs are up and look great. Reader panels will be installed in the front of the elevator aligned with the top of the control panel.

Elizabeth VanderPutten and John Filice reported that their objective was to make the Lauren landscaping beautiful, uncluttered, and low maintenance. The Board commended the new landscaping and the work done by Cacho.

REVIEW AND DISCUSSION ITEMS

The meeting will be at the Marriott Hotel on 22^nd and M Streets at 7:30 p.m. on Thursday, May 6, 2010 . A quorum requires one third of the owners to be present in person or by proxy. Since more than five persons are expected to be nominated, there will be a spreadsheet that will facilitate the weighting of the votes. The Lauren bylaws state that each vote is weighted by the formula in the Public Offering Statement based on the size of the unit relative to the whole building.

A flashing light at the top of the driveway to warn pedestrians of a vehicle exiting the building will be installed shortly.

Photovoltaic switches will be installed shortly to reduce the consumption of energy by automatically turning off the lights during the day. The Board discussed the idea of a motion detector, but agreed that these would not work for several technical reasons. The main outdoor floodlights will also be controlled by a photocell as opposed to the currently malfunctioning timer.

Because the building is only 45% owner occupied, it is unlikely that the Lauren will get FHA approval, but our application is pending.

The Lauren is a residential building. The Board is sensitive to the needs and desires of residents to enjoy their homes in relative peace and quiet. Move-ins and move-outs are inherently disruptive. Lauren policies try to accommodate movers’ needs and residents’ rights. Moves, therefore, are not allowed on Sunday except if religious reasons prevent moving on Saturday. Similarly, moves are not allowed in the evening. There is a $40 per hour fee for moving during other hours.

Lauren policy requires that before anyone moves into the building a signed lease with the approved lease addendum must be submitted to management or a fine of $50 a week up to $200 a month will be levied.

The manager will ensure that anyone scheduling a move-in without the appropriate lease is fully informed of this policy on fines.

In order to protect the newly redecorated elevators from unnecessary damage, the Board urges all owners and tenants to let the Lauren staff know in advance if they are having large deliveries and to arrange these deliveries to the extent possible during weekdays. In addition to reducing inconvenience to residents on weekends, maintenance staff members are available during weekdays to install elevator pads. Under unusual circumstances large items must be delivered on weekends. In those cases, residents are asked to notify management as much in advance as possible so arrangements can be made to protect the elevators. If a delivery is made without prior notification, desk staff will work with the residents to hang the elevator pads if needed. All large deliveries must be made through the South or North doors and not through the lobby.

The roof garden lounge chairs and tables have been cleaned. Three reclining chairs are beyond repair and will be discarded. The Board asked the manager to get brochures on replacements for the eight-year-old grill.

Request for Board to Reconsider Regulations about Dogs to Allow Intermittent Stay(s)

The Board declined the request by an owner for permission to have a dog on a limited basis, and to receive a waiver of condominium regulations that forbid dog ownership. The Condominium has since its inception forbidden ownership of dogs, with the exception of service dogs.

The Board asked the manager to make sure that the desk staff has the phone number for each board member in case of emergency. Printed material or hard-copy messages may be left at the front desk for any member of the Board, or the manager. Owners wishing to contact the board can make inquiries through the manager. The Board can also be reached at thelauren@juno.com.

The Board discussed the possibility of installing a fourth water heater. The current system functions satisfactorily except in very cold weather. The cost would be about $20,000. The Board postponed the decision until the cost of repairing the brick façade is known.

Smoking continues to be a contentious issue in The Lauren, and has been discussed at innumerable Board meetings as well as at several annual meetings. The Board acted on a motion to have the president write to each individual owner asking that a no-smoking clause be added to any lease.

The Board approved the pool contract. The pool is scheduled to be repainted, then opened by May 15.

The Board authorized $1,862 to Castle to repair fire protection system required as a result of a recent inspection of the sprinkler and alarm system.

There is a stop work order for reconstruction in unit 112 and 113 until plans are approved.

Unit owner Stan Caron commented that the building has only improved since he moved here in 2005. He thanked the Board and the manager for their diligent service.

Mr. Caron stated he was offended by receiving an unsigned letter with an alternate proxy to the one sent by the Board President. He said he felt deceived. He felt the intent was to mislead the owners. He asked the Board to reject any of these alternate proxies. However, the president explained that, through the advice of the Lauren attorney, it would be required to accept alternate, legally signed proxies.

Owner Wayne Rhee, whose name was listed on the alternate proxy, said he was not consulted and did not see the mailing and alternate proxy before it was sent. Although he shares some of the concerns cited, he reported that he interviewed many Lauren staff and residents about these issues, and he concluded that the current board is managing the issues well. He expressed support for and confidence in the current Board.

The next meeting will be the annual meeting at the Marriott Hotel on 21st and M Streets on Thursday, May 6, at 7:30 p.m.

Note 1 re Reserve Funds:
2010 Monthly reserve contributions total $ 22,635.85 into respective reserve accounts as follows:

Note 2 re Reserve Funds:
The HVAC reserve fund includes an additional subsidy transfer of $21,972 from the general reserves as of January 1, 2010.

	Planned	Actual	Over/
	Lauren Budget	Simmons Report	(Under) Budget

Income
Fees	273,345	273,402	57
Other Income	48,175	44,435	(3,740)
Transfers from Reserves	0	0	0
Total	321,520	317,837	(3,683)

Expenditures
Operating Expenditures	210,970	214,563	3,593
Capital Expenditures	0	17,186	17,186
Other (Non Operating) Expenditures	97,879	95,810	(2,069)
Total	308,849	327,559	18,710 *

· Coin collection and deposit covering period 02/25/10-03/26/10 performed 03/26/10 and will be shown on April 2010 financial statement.

· First draft accepted at March Board meeting, with request for incidental clarification from auditor. Representation letter signed by Treasurer and Managing Agent and returned.

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

· 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. Interested owners are free to request a copy from our Property Manager in writing. CD purchases / activity during the month are reflected in the monthly statement.

· The Treasurer and Property Manager discuss the following with Smith Barney on a regular basis: a) Current money market funds; b) CD Maturing Dates d) Non Smith Barney CDs to be moved into our Smith Barney account.

· Interiors: Approximately $ 25,000 to $ 30,000 more in capital expenses remains to cover contractor and interior design fees for interior renovations that were begun in 2009.

· Southern façade repair pending investigation by Seal Engineering….Cost to be determined.

The Lauren Condominium Association