MINUTES OF THE LAUREN ANNUAL MEETING
MAY 14, 2015 

CALL TO ORDER
The 36th annual meeting of the Lauren Condominium was called to order at 7:30 p.m. by Amy Bertha, President, Board of Directors. The meeting was held at the Embassy Suites Hotel at 22nd and N Streets NW, Washington, DC.

PROOF OF NOTICE OF MEETING
The president reminded owners that they had received a mailed notification of the annual meeting.

READING (OR WAIVER OF READING) OF THE MINUTES OF PRECEDING MEETING
The reading of the minutes from the 2014 annual meeting was waived and those minutes were accepted by unanimous consent of the attendees.

QUORUM
There was 41.6 percent of the ownership represented at meeting either in person or by proxy.

REPORTS OF THE BOARD OF DIRECTORS

President's Report
Amy Bertha had other board members introduce themselves. They were Treasurer John Filice, Secretary Elizabeth VanderPutten, First Vice President Roger Hirschland, and Second Vice President Dwight Clark. Also present at the meeting were Property Manager Walter Krolman; and legal counselor Joe Douglass of the law firm Whiteford, Taylor & Preston. 

The Lauren's finances are sound, the president said. We received a clean audit for 2013 and finally got the long due 2011 tax refund from the city. Unfortunately, for the first time in our history, we had to foreclose on a unit that had fallen into deep arrears.  We recouped all the money owed us plus attorneys’ fees. She stressed the point that the board takes seriously suggestions from owners and tenants, and cited several examples of suggestions that have already been adopted by the board.

Ms. Bertha reviewed the major activities at the Lauren since the last annual meeting, highlighted major current projects/activities underway and addressed a couple of major projects for the future. Among major recent and current projects, she noted that the facade work was completed and that the board had decided to contract out the Lauren landscaping. The latter will free up Lauren staff to concentrate on building maintenance activities. Inside the building, the Lauren-owned rental unit was updated so we can now charge market rates. Among current projects, the president described work underway to improve the appearance of the roof garden, including re-staining or replacing some worn furniture and adding new plants. She also mentioned ongoing attempts to get FIOS Internet in the building,

Looking ahead, the president talked about two major projects: elevator renovations and HVAC replacement. After continued elevator problems, the board hired a consultant who recommended a modernization of the two elevators in three to five years. This is a huge project that will likely take the better part of a year to complete, with each elevator likely being out of service for three months. The board is continuing to discuss the best timing of this and how to best fund the estimated $600,000 to $700,000. The goal is to avoid a special assessment, she said. Fortunately, the HVAC news is much better. Coating of the condensation pans, done six years ago on an untested, trial basis with the hope of delaying having to replace the Whalen units, seems to be holding up in almost all cases. This forestalls replacing the entire units any time in the near future.  [See the president’s talking points at President's Address].

Treasurer's Report
John Filice reviewed each page of his 14-page Annual Meeting Treasurer's Report. Capital Reserves are about $1.9 million, with slightly over half set aside for the projected replacement of the HVAC system. Operating expenses and income in 2013 were close to budget, with no major surplus and no deficit. In 2014, there will be about $100,000 in planned capital expenditures. He pointed out the table of condo fee increases and noted that in 2012 and 2013 the increase was less than 2%. He called attention to the Reserves Summary re Major Project’s table on page 4, which lists upcoming major capital expenditures in the next few years.

A question was asked whether we have sufficient funds to cover the estimated $2 million HVAC renovation now. The answer was that, while we don't have the funds yet, conditions have changed and we may not need to replace the units any time soon. Some trial repairs, including sealing the leaking pans, seem to have worked in almost every case. However, while the Whalen units are no longer leaking, the airflow of many units is not working very efficiently. There was a discussion of where the funds for this and for the elevator update would come from. This discussion was continued after the election.

[For the copy of the Annual Meeting Treasurer's Report see Treasurer's Report]

REPORTS OF COMMITTEES

Roger Hirschland, board vice president and chair of the Conservation Committee, reported the committee has recommended and the board has approved a change to 50 percent wind energy from Washington Gas and Electric. The committee is also considering other energy saving strategies to recommend to the board for consideration, such as purchasing water-saving toilets, group purchases of efficient refrigerators, installation of thermopane windows to conserve heat and air-conditioned cool air, composting for the roof garden, and motion sensors to turn on stairwell lights.

The committee plans to visit our recycling facility to see how our paper, plastic, glass, and metal are actually sorted and processed. Residents and owners are welcome to participate in such a visit (contact Roger Hirschland). Reports from the Conservation Committee will be recorded in minutes of the monthly meetings.

Attendees asked that the Board find a way to have owners replace windows with more energy efficient, newer ones.

ELECTION OF INSPECTORS OF ELECTION
Inspectors of election were not needed, given that only five persons were nominated for the board, and the attendees voted unanimously to accept the entire slate by acclamation.

NOMINATION AND ELECTION OF OFFICERS
The following candidates were nominated:

• Dwight Clark
• John Filice
• Roger Hirschland
• Elizabeth VanderPutten
• Aaron Tax

The Board was elected by acclamation.

NEW BUSINESS

Following the election, a question was asked as to whether the Lauren has enough funds to pay for the $600,000 to $800,000 elevator replacement scheduled for some time in the near future. John Filice explained that we do not have sufficient unrestricted reserves yet without leaving the Lauren finances in a precarious financial state. Instead, the board is considering taking part of the funds from unrestricted capital reserves, part from annual income, and to borrow the remainder from the dedicated HVAC reserve funds.

Several investment owners observed that they strongly favored maintaining the Lauren as a premium place to live, but were concerned about the level of annual fees. One owner commented on the increasing competition in the burgeoning rental market in D.C., with many new buildings offering amenities such as exercise rooms. Another investment owner, who was concerned about the condo fees level, said that neither of the thermostats in her two units worked properly, and that she understood this to be a common problem in the Lauren. She wondered if energy costs might be reduced by the Lauren replacing all the thermostats. Walter Krolman pointed out the owners are free to replace their thermostats any time they wish. 

There was a brief discussion of the building not being a nonsmoking  building. Roger Hirschland responded that many smoking issues have been reduced in the last year or so, as Walter Krolman has been generally successful in dealing with issues as they arise on a case-by-case basis. Mr. Hirschland encouraged all investment owners to add a no-smoking clause to their leases. Joe Douglass, the Lauren's attorney, explained that, in order for the board to prohibit smoking in individual units, 80 percent of the owners would have to approve such a policy by changing the bylaws. However, because of some recent changes in the law that permit proxy voting, this might be feasible. Amy Bertha pointed out that board members are already busy, and suggested that what is needed is for someone to champion the cause and oversee the effort.

There was also a brief discussion regarding replacing the windows in the Lauren. The windows are not considered a common element, so the condo fees are not able to go toward replacing the windows. In the past an owner organized a contractor to come and replace windows for any unit where the owner was interested (the cost was divided among the owners). This approach allowed for group savings from bulk purchasing. Amy Bertha suggested that it would be great, if another owner was willing to organize this again.

ADJOURNMENT
The meeting was adjourned at 8:39 p.m.

Respectfully submitted,
Elizabeth VanderPutten, Secretary