Minutes of the Annual Meeting
May 22, 2003

Call to Order

President Dwight Clark called the meeting to order at 7:10 pm at the Washington Marriott Hotel, 1221 22nd St., N.W.

Proof of Notice of Meeting  

Attendees acknowledged the disbursement of the meeting notification 

Attendance 

Present were Board Members President Dwight Clark, Treasurer Joseph Morris, Secretary Elizabeth VanderPutten and Vice-President Rebecca Kane and a sufficient number of owners in person or represented by proxy (47.1296%). Also present at the meeting were Property Manager Walter Krolman, legal counsel Joe Douglass from the firm of Whiteford, Taylor and Preston and Jeff Koger from the Koger Management Group.

Reading of Minutes 

Reading of the 2002 Annual Meeting Minutes was waived by consent of Membership.

President's Report

President Dwight K. Clark characterized 2002-2003 as "a productive year, with several long-planned projects completed, and others begun."

The largest projects, he said, were a) the replacement of the original roofing and simultaneously b) the expansion and upgrading of the roof garden. Mr. Clark called the roof garden one of our building's "most prized amenities."

"The roof garden gives our building what many people feel one has to give up living in an urban area, a safe and pleasant place to enjoy the outdoors during the day or night. There are a few small details to be taken care of, but for the most part it has been completed. I have been very pleased to see more people than ever enjoying the views and the nice weather."

To help bring The Lauren into ADA compliance, Mr. Clark said four major elements were added.

1. code compliant handrails at the side exits
2. a ramp from the garage to lower lobby level
3. a ramp from the pool house level onto the roof deck
4. a mechanical lift from the lobby to the first floor

A third major project, Mr. Clark said, was the balancing of the water flow for the building heating and cooling system. This turned out to be more complicated than planned because the valves used to adjust the system were rusted and had to be replaced. The final result however, he reported, is that "for what may be the first time since the building was constructed, the system flow has been balanced, which should alleviate the long history of unbalanced heating and cooling throughout the building."

The fourth project was painting the stairwells.

Financial Status

President Clark reported that The Lauren's finances remain sound. He said that after the major building project over the past two years, this year capital expenditures would be kept to a minimum as the Board attempts to rebuild the reserves. He noted that a new capital reserve study will be done this year.

The rental and resale markets remain strong, Mr. Clark reported. Insurance costs, because of the international situation, remain difficult, and the Board intends to watch this very carefully.

Staff

Mr. Clark complimented the staff and credited them with much of the success of the Lauren. He also thanked Brian Larkin for his upkeep of our web page, as well as contributions to various committees, Don Benedict for his contributions to the building landscaping, Roger Hirschland for his work on the Lauren security committee, and his fellow Board members for their work and help during the past year.

Treasurer's Report 

Mr. Morris noted that 2002 was an unusual year for the magnitude of capital expenditures (middle graph).* These were $440,000, the highest in history by far. The major projects were the roof, the roof garden, accessibility modifications, and work on the heating and cooling systems (especially replacement of valves in the water circulation system). The window replacement is part roof deck renovation, part accessibility. The roof garden and ADA accessibility projects were anticipated; the HVAC work was not.  

Mr. Morris said he does not foresee another such year in the near future but importantly, as the graph suggests, the trend will be up. Some possible future capital expenditure needs are reported in the annual auditor's statement for 2002. Some that may be coming up soon include boiler replacement, work on the basement concrete floor, and work on the brick facade. None of these is budgeted yet.  

As the bottom graph shows, the association has been preparing for needed capital expenditures. The graph shows a number that the board finds to be useful in thinking about our financial condition, which we call "net cash on hand." This is the sum of all our bank account and CD balances, less all amounts currently owed to employees and outside parties. In other words, we could pay all our current bills and have this amount left over. This measure excludes the association's other principal asset (in addition to bank accounts and CDs), which is the Lauren apartment we own. The unit is worth considerably more than the mortgage that is on it. 

Mr. Morris also noted that the Board is having the Reserve Study updated this year. The update will tell them, he said, if The Lauren's capital budget plan is still on track and which capital items should have highest priority. 

* Charts are based on data contained in auditors' annual financial reports, 1990 to 2002

Vice President's Report

Vice President Rebecca Kane reported on the addition of a grill to the roof garden. She noted that The Lauren is one of the few condominiums in the area that has one and commented on how much it adds to the pleasure of Lauren residents. 

Election of the Board 

The following candidates were elected by acclamation to serve as the 2003-2004 Lauren Condominium Association Board of Directors: 

• Mr. Dwight Clark  
• Mr. Joseph Morris  
• Dr. Elizabeth VanderPutten  
• Ms. Rebecca Kane  
• Mr. Derek Drummie  

Old Business 

Stairwell Painting and Garage Cleaning and Painting  

Owner Don Benedict requested that the Board paint the garage. The Treasurer explained that the capital reserves need to be rebuilt and that, while the proposal might be desirable, it is not a "must do" priority at this time. 

New Business 

Security and Parking Lot Fence  

Concerns about personal safety and property security in the Lauren parking lot were discussed. There was broad agreement that that the fence needs to be replaced or at a minimum the gaps and holes need to be repaired on a high priority basis.  

President Dwight Clark reported that, in view of possible vandalism to owners' property and for other security reasons, the Board is looking into replacing the fence with a new and higher fence. He also noted that although the Board is trying to keep capital expenditures to a minimum, they consider this a top priority item. 

Lauren's Comparative Financial Status

Jeff Koger from our financial management firm was asked how the Lauren's financial condition compares with that of other condominiums with which Mr. Koger's firm works. He stated that the Lauren's capital reserves are in much better shape than those of most other similar condominiums. He noted that the Lauren boards have taken a long-term, financially responsible approach to providing adequate reserves for future expenditures.

Mortgage on 212 

Unit Owner Roger Hirschland suggested that in light of the current low interest rates the Board might consider paying off the mortgage on Unit 212. Treasurer Joseph Morris agreed and said the Board would definitely look into it. 

Delinquent Accounts 

Mr. Hirschland suggested the Board should receive a monthly statement from Koger Management informing the Board exactly who has paid and who has not paid the most recent month's fees. Jeff Koger replied that his company already provides such a report but would work with the manager to resolve any confusion.  Mr. Filice asked about the number of delinquent accounts. Mr. Koger stated that the Lauren has only one account more than 60 days late. 

Receipts for Credit Card Payments 

Mr. Hirschland pointed out that many owners pay condo fees by credit card. However, some owners receive receipts and others do not. He asked that it be standard procedure for everyone who pays by credit card to receive a timely receipt. 

Brick, tuck pointing 

Unit Owner John Filice referred to the financial statement and asked about the need to have brick pointing done. It was explained that it has been 10+ years since the last time it was repaired and it is likely due again in a year or so. Treasurer Joseph Morris noted again that the Board is having the Reserve Study updated, and would check it before making any expenditures. 

Possible Boiler Replacement  

Mr. Filice asked for clarification about the possible replacement of the boiler as indicated in the financial statement. It was pointed out that there are two boilers. One provides hot water and one provides heat to units. They have different life expectancies. The so-called "Flash Heaters" that provide hot water have a shorter life expectancy and were replaced in the mid-1990's. The main boiler has a very long life expectancy. Again, the Reserve Study update would be consulted before budgeting for any boiler replacement. 

Kudos  

Unit owner Brian Larkin congratulated the Board on what he said was a superb job in remodeling and redecorating the roof garden. He pointed out that for the first 20 years, the Lauren had an ordinary roof deck consisting simply of a deck, small pool, a few wooden benches, and some cheap lawn furniture. In 1996, the Board with important help from Don Benedict, Cacho Salinas and Walter Krolman, upgraded it to a roof garden and began adding trees, shrubs, flowers, wind chimes and even a small fountain. By the end of 1997, the Lauren had one of the nicest roof gardens in the District. But the current Board, he said, has elevated the roof garden to a whole new class and created an amenity that it adds significantly to the quality of life of everyone living in The Lauren and to the value of every owner's property. 

Dr. Larkin praised Dwight Clark for his special contributions both this and last year, and noted that The Lauren was indeed fortunate to have a president at this time who is an architect and has been able to deal knowingly with the major capital projects including the roof garden remodeling, the ADA handicapped compliance, and HVAC rebalancing projects. 

Lastly, Dr. Larkin thanked Don Benedict for his continued liaison with the neighborhood police and Roger Hirschland for his work heading the Lauren Security Committee, which Dr. Larkin said had helped elevate the issue of personal safety and security in The Lauren to a high level of priority and visibility.  

The Board members were thanked for their work.  

Adjournment 

The Annual Meeting was adjourned at 8:15 pm  

Respectfully submitted, 

Elizabeth A. VanderPutten, Secretary 

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