Owners and Board members introduced themselves.

President Elizabeth VanderPutten called the meeting to order at 7:15 at the Marriott Washington Hotel

Present were the other Board members: Treasurer Joe Morris, Secretary Waldemar Wajszczuk, First Vice President Mason Essif, Second Vice President Eileen Collins, and a sufficient number of owners in person or represented by proxy (54.2%) to constitute a quorum. Also present were Property Manager Walter Krolman, legal counsel Joe Douglas from the firm of Whiteford, Taylor and Preston, and Naomi Paulraj from Dubin and Associates.

Property Manager Walter Krolman verified that notices of the Annual Meeting had been delivered by certified mail or signed by resident owner

The reading of the 1999 Annual Meeting Minutes was waived by consent of the membership

Dr. VanderPutten began her President’s Report by welcoming owners to the 20^th Annual Meeting of the Association. She recounted how the Sunderland Apartments Tenants’ Association had been the first renters group in DC to successfully complete an apartment-to-condominium conversion. She told of borrowing $10 million plus and buying the building and of hiring a developer. For new owners, she recounted how the Lauren got its name. The developer gave us all $1,000 if we would name the building after his newly born daughter. She said she has lost all contact with him but hopes Lauren has matured as nicely as we have as a building

Dr. VanderPutten recalled the high hopes at the start, and the frustrations and mistakes made along the way and of some acrimonious meetings in those early years. She recalled having to raise condo fees 18 percent the first year and then having a Special Assessment levied that same year. She recalled what she said may have been the least civil meeting when faced with a crisis of the bricks falling off the building, reserves of only $30,000, and an estimated bill of $1 million.

Dr. VanderPutten reported that this has been a good year. We were able to have a 1% increase in condo fees after last year’s 0%. Reserves are up—partially due to continued contributions, but also to some fortuitous events. Several years ago, the roofing consultant we use told us that we would have to replace the roof by 2000. Last year, after another inspection, he recommended only that we replace the back roof where the chiller is and do some minor repairs. The estimated life of the roof is 20 years, so.

We completed or almost completed some of the projects discussed last year. The new laundry equipment is in—and any day now we will have the credit cards in place. She for one will be glad not to have to lug quarters around.

We haven’t completed work yet but are hopeful that this summer we will finally have high-speed internet/cable access with StarPower.

This year, she said, she is pleased with the furniture in the lobby. As she tells everyone, she did not choose the rug (thought it wouldn’t work as they say) and more or less deferred to others for the furniture. I’m glad—their taste is definitely better than mine. She really enjoys walking into the lobby. She said she knows that some would still like us to replace the old tile in the lobby to make it more compatible with the upper lobby and we are getting quotes on that. Adrienne Simenhoff deserves most of the credit. She also thanked the Board members who she said showed remarkable patience and diligence.

Last year, she reported, many complained about the noise in the neighborhood. She appointed a noise committee headed by Brian Larkin and consisting of Jason Juffras and David Lilling. They achieved a lot—notably the signs that tell busses not to idle and fairly consistent enforcement of the 7:00 am starting time for work in the buildings next door. Roger Hirschland has gotten agreement from the city to install a traffic signal on 20^th street—but now we must await the city’s implementation schedule.

We have also done some behind the scenes repairs including upgrading some chiller equipment and Insulating pipes.

She thanked Walter Krolman, and said she believe the staff have performed very well this year. Despite the incredibly tight labor market, we have had virtually no turnover. We all continue to delight in the beautiful gardens brought to us by Cacho, other staff and Don Benedict.

Probably one of the best things to report this year, Dr. VanderPutten said, is that the value of our units is up—both in terms of rental and sales. This reflects in part, of course, the overall improvement of the district and an interesting increase in sales of condominiums around the country. But it also reflects our strong capital position, constantly redecorated building, shining laundry, enviable roof garden, services and friendly neighbors.

The President said that there is another reason why out building is today an "enviable" place to live and that is the Board itself. The current Board is a highly committed, highly ethical group of people. We do not always agree, which is good, but we always act in what we believe are the best interests of the building. This is our home and is a major investment for us. We do more than just meet a few hours a month—we all take our responsibilities seriously. "It has been a pleasure to work with each person," she said.

Dr. VanderPutten mentioned the rather contentious debates that marked the beginning of our condominium. One of the areas was what is the nature of the building—residential, SP2 or a mixture. The original documents state that no more than 20% of the building could be SP2. Almost from the beginning this has led to disputes which unfortunately do continue today. She said that after the elections, there would be a discussion of a petition that was circulated by the Owners’ Committee for the Normalization of the Lauren. It is hoped, she said, that the discussion would help end – or provide a means to an end – of the remaining disagreements.

Dr VanderPutten noted that she had started by recalling our early financial situation, the mistakes we made early on, and the lean years of financial tension. Today, she said, we are in as strong a financial position as we have ever been. This is a security for all of us as owners and it is an asset that improves the value of all of our properties.

She said that whenever someone is considering buying a unit, one of the things they will ask her as President is about our capital reserves. They are always pleased when they hear the answer because it means at least two things. It means the likelihood of a special assessment is remote and it means that this is a mature, well run Association. She said she believes the next Board and future Boards will continue to maintain our fiscal strength.

As a 26-year-old building, she sees the continued need for capital repairs and improvements. The roof, which has a life expectancy of 20 years, was scheduled to be replaced this year. But the same company that told us five years ago that we were living on borrowed time told us this year that we only need to replace a portion next year, and that we can probably get a couple of more years out of the rest. The elevator is under constant maintenance. Still it is old and costs rise. Redecorating is a continuing process. It will soon be time to begin planning the next round, which will be the hallways.

Finally, as a condominium on the cusp between the commercial and residential communities, she foresees both continued tension and excitement living as we do in a vibrant, downtown DC neighborhood.

According to the 1999 audited financial statement, the Lauren’s income in 1999 was $713,000 from condo fees and $80,000 from other sources. The Association spent $566,000 not counting capital expenditures and depreciation. This was about 4 percent below budget. Capital expenditures funded by withdrawals from reserves were $19,000. Capital reserves on Dec. 31, 1999 stood at $546,000.

Budgeted operating expenses for this year (calendar 2000) are $613,000. As usual, expenses are running a little below budget. Condo fees were raised 1 percent as of January 1. As of March 31, 2000, reserves were $571,000.

From 1993 to 2000, condo fees have increased by an average of 3.6 percent annually. Beginning-of-year budgeted operating expenses have increased at an average rate of 2.5 percent annually over this period, about even with inflation, or perhaps a little below. The difference reflects the Association’s efforts to boost capital reserves.

The reserve fund was perilously low in the early 1990s It has grown from $216,000 on Dec. 31, 1995 to $571,000 on March 31, 2000. In this period there have also been substantial capital expenditures. The major project this year has been laundry room renovation , with replacement of all machines, installation of a card payment system to improve convenience and security, new ventilation, and redecoration. Other major projects in the past seven years include the new air conditioning chiller, lobby redecoration, hallway redecoration, replacement of the hot water storage tank, replacement of hallway air handling equipment, parking lot repaving, façade repairs, removal of the oil storage tank, and the video camera security system. In addition to these major items, numerous smaller fixtures have been replaced or upgraded.

On the horizon is a new roof, which we expect will cost close to $200,000. At one time, the board expected that this would have been done by now, but an engineering study showed that the present roof had another couple of years of useful life, so replacement was postponed. However, replacement will be necessary next year or the year after.

The Lauren needs a new reserves study to project likely future capital expenditures over next decade or so and estimate reserves needed to cover them. In the meantime, the current Board believes the Association should have sufficient reserves to cover two major expenditures in a short time period without having to have a special assessment and without wiping out the fund. This implies reserves of about $600,000. This should secure us from the potential risk of serious financial disruption in the immediate future.

Waldemar Wajszczuk reported that the Board had selected StarPower as an alternate provider of cable TV, local & long distance phone service and high-speed Internet for The Lauren. He indicated that a contract has been signed with StarPower and that construction documents had been reviewed and approved by the Board. Currently, the Lauren is waiting for the next step to begin which is to have StarPower come into the building to install its infrastructure and equipment, as well as install network interface devices in units which would like to have StarPower services.

A representative of StarPower delivered a short presentation to the membership on the services offered by the company. He stressed the benefits of increased services over other providers and lower prices, especially when multiple services are bundled together. He also answered several questions posed by Association members.

Committee member Dave Lilling reported that work on the building next door is almost complete. The last dumpster located at the building next door is expected to be removed by next month. Still, he mentioned, there is the issue of the recycling pick-up twice a week at 7:00 am. Mr. Lilling said he is working with the recycling pick-up company to have them voluntarily move the pick-up to a later time.

The following candidates were elected by acclamation to serve as the 2000-2001 Board of Directors:

• Elizabeth A. VanderPutten

• Joe Morris

• Mason Essif

• Waldemar Wajszczuk

• Matthew Eisenberg

Roger Hirschland wanted to thank Adrienne Simenhoff for finishing the job of redecorating the Lobby and for her work on the Board. He also thanked the rest of the board for their work.

At the conclusion of the Lauren Condominium Association’s Annual Meeting, owners who wished to remain met with the Lauren C-of-O Normalization Committee. The Committee is an independent group of Lauren owners. It was not appointed by the Board and does not represent the Board. (see Owners' C-of-O Normalization Committee Meeting)

Waldemar J. Wajszczuk, Jr., Secretary