Owners and Board members introduced themselves.

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

Present were other Board Members: Treasurer Joseph Morris, Vice President Dwight Clark, Vice President Deborah Becker and a sufficient number of owners in persona or represented by proxy (48.1%) to constitute a quorum. Board member Secretary Matthew Eisenberg was not in attendance. Also present at the meeting were Property Manager Walter Krolman and legal counsel Joe Douglass from the firm of Whiteford, Taylor and Preston.

Reading of Minutes

Reading of the 2000 Annual Meeting Minutes was waived by consent of membership.

President's Report

Introduction and Acknowledgements

Board President Elizabeth VanderPutten began her President's Report with the introduction of new Board members Dwight Clark and Deborah Becker. She specifically acknowledged and thanked Property Manager Walter Krolman and the other Lauren staff for their hard work and dedication.

Dr. VanderPutten also acknowledged the accomplishments of various special committees: the Technology Committee for the successful installation of StarPower; the Noise Committee for eliminating the running of hotel buses outside the building and thus a reduction of noise; and the Decorating Committee for finishing the lobby decorating.

Also commended were the settlement of all lawsuits involving the Association and unit owners, resulting in the outcome that all units will be treated fairly and equally.

Where We Are Today

Dr. VanderPutten was pleased to report that the capital reserve study prepared in December 2000 this year was well conducted by the engineer and financial team. The report concluded that the Lauren is in good shape, although the study indicated that we would need to replace the roof this year, make repairs in the garage in 2003, and replace convector pans in 2004. We will also need to make the elevators more accessible in future. Capital reserves are near a desired level.

This was a good year for sales and rentals. Both sales and rental rates are up, though one negative effect of the increase has been an increase in property tax assessments of 60-80%.

There were some negative changes this year. The Lauren's previous management firm was bought by Zalco Realty, Inc., which has caused some problems. While most of the details were worked out, Zalco sent a letter to the Lauren requesting either an increase in contract fees or termination of our contract. We reluctantly agreed to the contract increase, but at the same time created a committee responsible for writing a statement of work and locating an alternative firm that would provide management services at an acceptable rate.

Additionally, our audit firm notified us that they no longer want to audit the Lauren, due in part to the Zalco takeover. A new firm was chosen and the results of their audit were distributed tonight.

Gas prices have increased considerably this year and are expected to increase again next year. This most likely will result in an increase in condo fees in the coming year.

Future Plans

There are plans to explore options for making the building wheelchair accessible. A committee chaired by Board member Dwight Clark is researching this project. Funds are available for the project.

Other plans include improving the air conditioning and the windows. Property Manager Walter Krolman is in the process of securing bids to price installation of double paned windows, which would great reduce outside noise and improve energy conservation. While individual owners must pay for the replacement of their own unit windows, a lower group rate may be obtained if several windows are replaced at once. Samples will be available in the next couple of weeks.

Treasurer's Report

Treasurer Joseph Morris remarked that his comments for tonight were based mainly on the draft audit for the year 2000 and therefore some changes may be made before they are written into the minutes.

Income of the Lauren for the year 2000 was $84,000 from sources other than condo fees. Operating expenses were $597,000, which was 2% below budget. Capital expenditures were $101,000, mostly for laundry room renovation, as well as for completing lobby decorating, patchwork on the roof and improvements in the heating and ventilating control systems.

Reserves in the replacement fund currently total $636,000, which will be used for future repairs of major physical components of common elements of the condominium. A balance of $64,000 is being held in the operating fund. The operating budget for the year 2001 is $662,000.

For the year 2001, condo fees were increased by 2% (fees were increased 1% last year). Operating expenses increased 4.5%, mostly due to a gas bill increase of 21% and a 5% increase in payroll-related expenses.

The Condominium Association's reserve funds have recovered and are approaching adequacy. The reserve study shows that we are financially healthy. The studies also recommended the Association continue contributing to the reserve fund, increases rates at the rate of inflation. At the same time, no dramatic condo fee increases are expected in the near future.

We may need to make repairs to the concrete floors in the basement and garage. The Board plans to obtain a second opinion before making any decisions about such repairs.

Roof replacement is scheduled for this fall. The cost for roof replacement is expected to be at about $ 225,000, though bids have not yet been acquired.

(Read Dr. Elizabeth VanderPutten's Presidential Address)

Election of the Board

Owners Don Benedict and Natalie Peters volunteered and were nominated to collect and count ballots.

The following candidates were elected by acclamation to serve as the 2001-2002 Lauren Condominium Association Board of Directors:

• Dr. Elizabeth VanderPutten
• Joe Morris
• Dwight Clark
• Deborah Becker
• Rebecca Kane

New Business

Certificates of Occupancy Permits

Concern was raised as to the current number of businesses in Lauren that have valid certificates of occupancy (C of O)

Dr. Vanderputten explained the Board's policy that, in order for a new business to move in, the new owner must have a valid certificate of occupancy or home occupation permit. Dr. VanderPutten commented that the Board notifies purchasers in writing of this policy. Without valid certificates of occupancy or home occupation permits, units can be used only for residential purposes.

One attendee inquired about regulations restricting which floors may have a business.

Last year the ANC said that they would only recommend approval of non-residential uses on the first and second floors, but the District has not imposed this restriction.

Updating Current Lease Agreement

An owner asked about the need to update the current lease agreement. The Association's attorney recommend that the Lauren provide an addendum addressing concerns of condo, without changing entire lease, since an owner or tenant may have problems with a specifically designed lease.

Installation of Double-paned Windows

Meeting attendees urged the installation of more energy-efficient, double-paned windows in the building given the following reasons: concern over energy problems around country; the resulting energy and thus energy-cost savings for the Condominium and its owners; a great reduction in outside noise and thus improvement in quality of life for all residents and staff; and the need to update the building in order to maintain and enhance the value of the building.

Several ideas for financing the installation were discussed. Estimated prices for installing one of the three sizes of windows in building range from $750 to $1200-1300 (at volume discount) include removal of old windows, labor, and materials. It was suggested that the Association consider subsidizing owners' purchase of the new windows in order to encourage as many owners as possible to do so.

Another suggestion was to mandate that all owners install the more energy-efficient windows, even if it is at an individual expense.

While Attorney Joe Douglass said that there may be a legal mechanism for the Association to undertake building-wide window replacement, Dr. VanderPutten responded that the Board has tried to avoid making obligatory assessments. The cost to do so is high-about $3,000 per unit. Concern was raised that if some owners voluntarily change their windows now at their own expense, and in the future the Board does decide to impose an obligatory assessment to change all windows, those who first made the change should be credited for their expense. Dr. VanderPutten's commented that ultimately, it should be an individual decision for owners.

Attendees discussed the scope of savings that would be made over time by installing double-paned windows. Joe Morris estimated that, given current energy costs, new windows would save about 15% month (about $20) per unit. This is not considered a major part of the Association's budget. Dwight Clark commented that to a certain degree we could calculate the savings over a period of time. It was recommended that at least the new windows should be installed on the penthouse level, which could have a positive effect on rest of building.

As for uniformity of the design of windows, they would match existing windows in terms of style and color.

Attendees also discussed other ways to conserve energy in the building, such as raising the temperature of the air conditioning and lower heating. In the past savings were found by raising the temperature of the chiller by one degree in summer months; however, many residents complained when this was done. It was also suggested that we could reduce lighting in the hallways by turning off every other light. Dr. VanderPutten and other attendees remarked that this also was tried in the past, but the lighting was restored after residents complained that the hallways were too dark.

Wheelchair Accessibility

Attendees discussed the lack of wheelchair access in lobby. Dr. VanderPutten noted the difficulty in providing such, since there is not enough space to install ramps in the lobby or garage. All options for better access are being considered.

Possible Sale of Association-owned Unit

The Board is currently looking into the advantages of selling the Association-owned unit on the second floor versus continuing to rent the unit. Legal ramifications of a sale are being considered.

Increase in Property Tax Assessments

A considerable increase in recent property tax assessments was noted, perhaps due to an increase in the general area. Assessments may be reviewed with an assessor at the Office of Tax and Revenue. If an owner is still dissatisfied, the owner has a right to file an appeal challenging the assessment. Attorney Joe Douglass commented that, generally, appeals would not succeed unless it is proven that the Office's assessment is far from correct, rather than within a reasonable range. Assessments are currently conducted annually.

Recently, an efficiency sold from low to mid $80,000. Prices for one-bedroom units are around $130,000, while assessments are still lower at about $110,000. It was cautioned that requesting a review of an assessment could also lead to a higher one.

Assessment data is available on the D.C. Office of Tax and Revenue website, as well as at the library in the Lusk real estate sales book. ANC representative Vince Micone might be contacted regarding further concerns.

Thanks

Dr. VanderPutten complimented Roger Hirschland for his attempts to get a traffic light installed at 20th and N Streets.

Dr. Brian Larkin was joined by the other owners in thanking the Board for their work and Elizabeth VanderPutten and Joe Morris in particular for the effort and work they have contributed during their long tenures as Board members.

Adjournment

The Annual Meeting was adjourned at 8:15 p.m.

Respectfully submitted,

Deborah Becker, Vice President