The president reported that the building is on a sound footing, financially and physically.

In the area of finances, the condo was fortunate to receive a check for $54,735 from the insurance company in coverage of funds embezzled by the former management company, minus a $10,000 deductible. Given the size of losses that others suffered, he suggested that the Lauren was most fortunate in recouping most of the funds that were stolen from us.

The board has aggressively pursued owners who were behind in their payments and has helped bring all but one up to date, and is working with that last owner to bring the unit’s balance to zero.

The 2007 final audit was received, and it approved of accounting procedures practiced by the Lauren. The 2008 audit preliminary draft also indicated no problems, but is not quite final. It should be in hand in a matter of two or three weeks.

The physical plant is generally in good shape. There are two major capital improvement projects in the works: the redecoration of the hallways, lobby, and elevator cabs for $229,000, and the replacement of the boiler and hot water heaters, for $185,000. The redecoration is undeniably due, to keep the building looking in top shape, and the heating equipment on the roof is necessary both to replace aging, unreliable equipment and to obtain much greater efficiency from new equipment.

The president reported that the HVAC (heating, ventilation, and air conditioning) separate capital fund is on track, currently with almost $280,000 put aside for eventual replacement of the entire system.

In order to convey to owners the kinds of things the board deals with throughout the year, the president enumerated issues that had come up or were pending:

1. Smoking continues to be an issue for some owners­that is, nonsmoking owners are occasionally disturbed by tobacco smoke that filters in from other units. In each case in which complaints have been received, the manager has worked with both parties. To date, the issues have largely been solved with the cooperation of the smokers, either by their quitting smoking or by agreeing to smoke only on the roof deck. The president urged owners to include no-smoking clauses in all leases they provide to renters.
2. The building, at age 35, inevitably is experiencing some leaks. On the first floor, damage has occurred in one area as a result of leaking pipes, sewage blockage, and condensation from the air-conditioning system. The problems have been corrected. On the tenth floor, one unit was damaged as a result of a breach in the roof during a severe storm. After many months, the condo is still negotiating with the insurance company to recoup payment for repairs, which included replacing an entire floor and several walls in one unit. The roof has been repaired and no further problems have been experienced.
3. Removal of trash by our latest service company has proceeded smoothly. Condo staff ensures the safety of passersby by placing warning stanchions on the sidewalk when the trash truck is in the driveway.
4. Occasional complaints have come in about noise behind the building emanating from clanging trash receptacles. Condo manager Walter Krolman is in touch with the manager of the business building behind the condo and is making an effort to have them minimize noise, particularly at late hours.
5. The owners were reminded that parties of six or more on the roof deck require a signed permission form, a deposit, and an insurance rider. This should be worked out with the building manager.
6. It was noted that a sign on the front door advises visitors that owners have been requested not to admit anyone they do not know.
7. The president reported that we have an ongoing issue with the city tax department because taxes for Unit 212, which the condominium owns, were erroneously credited to the condo, but we had not paid the city. The building manager is working with the tax office to determine what the condo actually owes­and to ensure that we are not charged penalty or interest on the taxes that should have been paid in 2007.
8. The master TV antenna on the roof is being serviced to accommodate the switch in signals from analog to digital. Those in the building who rely on the coaxial cable from the roof will be able to receive television programming without separate converter boxes in their apartments.
9. Fencing to enclose two building overhangs on the N Street side of the building is about to be installed, to prevent people from sleeping in those sheltered spaces.
10. The president acknowledged with thanks the generous donations by owners over the December holiday period, which resulted in a collection of $9,400 in gifts to be divided among the staff.
11. The president pointed out that by consolidating our capital fund investments under one roof at Smith Barney, the complex process of laddering the investments so they mature at different times is now in the hands of professional brokers­and the condominium does not pay for this service. Furthermore, he repeated that these funds are all insured.