Call to Order

The meeting was called to order by President Dr. Brian Larkin at 7:12 p.m. in the Marriott Hotel on 22nd Street.

Attendance

Present were four members of the Board of Directors, President Brian Larkin, Vice President Jason Juffras, Treasurer Waldemar Wajszczuk and Secretary John Doolittle plus Property Manager Walter Krolman. Vice President Paul Kearney was not present due to an illness. A sufficient number of owners were present in person or represented by proxy to constitute a quorum (59.52 percent). Also present were Walter Krolman, Property Manager, Joe Douglass, legal counsel with the firm Whiteford, Taylor and Preston, and Susan Fitzgerald controller with the financial management firm Dubin and Associates.

Proof of Notice

Property Manager, Walter Krolman, verified that notices of the Annual Meeting had been delivered by certified mail to all owners.

Reading of the Minutes

The reading of the minutes of the 1997 Annual Meeting was waived by consent of the membership.

President's Report

President Larkin introduced the members of the board of directors and Building Manager, Walter Krolman. In addition, he introduced Ken Ingram, an attorney with the firm providing the board with legal counsel, Whiteford, Taylor and Preston and Susan Fitzpatrick of the financial management firm Dubin and Associates.

In his report, President Larkin emphasized several major themes which dominated the board's consciousness during the past year. They were articulated as principles which are summarized below:

Principle One: The Lauren is the home of some 300 or so people The first responsibility of the Board is to promote the personal safety and security of the people who live and work in the Lauren. The Security Committee conducted a comprehensive study of security issues in the building. Members included three past Lauren Board presidents and a Lauren medical practitioner. As an outgrowth of the study, specific measures were instituted by the Board. These include mandating that a member of the Board be on call at all times. In addition a Board member will have a set of keys to all areas of the building.

Other security related measures the Board undertook include: 1) initiating an electrical wire inspection, 2) installing automatic door closers on all units as recommended by fire inspectors and our insurance firm, 3) reinforcing the pool deck railings, and 4) distributing emergency instructions to all residents.

Principle Two: The Lauren is a Business. This requires that the Board of Directors is responsible for actively ensuring that the Lauren is run in a fiscally sound, thoroughly business like manner. The Board reviewed all contractual relationships and in the process reduced expenses by about $2,500. The financial management firm was instructed to produce reports that make it easier for Board members to make financial decisions.

The Personnel Committee reviewed all personnel policies and in the process recommended making modifications to some and adding others. The result was a personnel handbook which clearly articulates policies for our employees.

The five-year budget projection will provide guidance for future boards to set goals and plan for capital expenditures.

The Lauren's financial and business records are in the process of being computerized. A master list of owners, tenants, and long-term guests has been created.

Principle Three: The Lauren is a major investment for 146 or so unit owners. The attractiveness of the building affects property values. The hallway renovations are underway. Today a contract was signed and sent to our decorating contractor, Gotwald and Finch to begin the project. The grounds around the Lauren are the most attractive in the city thanks to the gardening committee, Don Benedick and Cacho Salinas.

The Board has aggressively sought to limit the Lauren's exposure to liability suits. The pool is a potential problem so the following measures were taken: tightening controls over pool parties, closing the pool deck between 1 and 6 a.m. during the swimming season, installing a camera to monitor the pool area.

The Board initiated the inspection and evenutal removal of an oil storage tank buried in front of the building. This action avoided a potential expense of having to clean up oil that might have leaked from the tank.

Principle Four: The Buck Stops With the Board. The Board cannot escape the existential fact that they and they alone are the final, legally and morally responsible representatives of the Lauren Condominium Association. The Board has been working hard to move up a notch and become as professional as its non resident manager is professional. The Board examined its relationship with its agents, including the financial management firm, auditing firm, legal firm, and property manager.

The future requires more hard work including continuing to computerize the Lauren's records and business. Financially, the operating budget needs the same thorough analysis as was given the capital budget. The situation involving business owners and property values in the building must be resolved.

The future of the building is a major issue. Will the trend of increasing non-resident ownership continue? Will a balance emerge between residential and commercial use or will it eventually become all commercial?

Credits for the past year go to the members of the Board, those who served on committees and the Lauren staff. Our manager Walter Krolman is thoroughly professional. manager. He is now an Association Management Specialist after having received the A.M.S. certification this past year.

Treasurer's Report

The treasurer, Waldemar Wajszczuk, reported that The Lauren finished 1995 in good financial shape. While the Lauren's operating budget was nearly three percent under budget he noted that the capital reserves continue to be below the desired level. At the end of 1995 the capital reserves stood at $216,401, a number about two-thirds of the $360,000 the Board of Directors considers minimally sufficient to cover anticipated and unanticipated major repairs in the future. He noted that while the Board has been working hard to build up the reserves over the last two years, the effort has been slowed by large capital expenditures m 1995 and large anticipated expenditures in 1996. The major projects in 1995 included the facade and parking lot repairs and in 1996 they will include the oil tank removal and hallway renovations. As a result of these large projects, the reserve figure will be slightly lower at the end of 1996 than in 1995. However, the reserves should begin growing again in 1997 and by the end of 1998 they should reach the Board goal of $360,000 without the need for major increases in monthly association fees. The treasurer also reported that the Board has been active in tightening its control over the Association's funds to help reduce the chances of bookkeeping errors, and that the treasurer and the Board have started looking at ways to make the Association's capital reserves yield better by looking into new types of investments which would bring better results in CDs and Money Market Funds.

Committee Reports

Security Committee

Security Committee was chaired by Board Vice President Jason Juffras. Other members included Dr. Lillian Comas -Dias, and former Board Presidents John Filice and Elizabeth VanderPutten. The committee and others toured building to view first hand the steps taken to make the building more secure. Then the committee distributed a survey to obtain residents' views on their building. The results were encouraging. Fifty out of fifty-one respondents rated the building as being very safe or safe. The main concern which was mentioned was the issue of building access. Three quarters of the responses indicated the present building access policy was fine. In response to these survey results the Board has modified the times when access to the building is "open". Open access times are now weekdays, 8 a.m. to 5 p.m. and Saturdays, 1-5 p.m. In addition, the desk staff has been reminded to adhere to these policies.

Building Manger, Walter Krolman, has reviewed emergency procedures with the front desk staff. In addition, the process whereby staff members report incidents which occur in the building has been formalized. The policy for checking and replacing batteries in smoke detectors was reviewed. Laminated fire and emergency exit cards were revised and printed and will be distributed to all residents. The iron railing around the pool deck has been reinforced and furniture on roof deck been reconfigured to minimize possibility of someone falling over the railing.

Hallway Renovation Committee

Hallway Renovation Committee Chairs Paul Keaney and Waldemar Wajszczuk plus committee members Susan Dunbar and John Doolittle reviewed several options for remodeling the hallways. The committee decided that a master plan for the total building would be advisable. Various firms were invited to bid on the project and Gotwald and Finch of Georgetown was selected. Fabric, carpet and floor tile samples were presented along with several designs for remodeling the lobby. The contract has been signed and work on the hallways will begin as soon as the materials are available from the vendors.

Nomination and Election of Officers

Five people were nominated including the current board members Brian Larkin, Waldemar Wajszczuk and John Doolittle.

Eileen Collins served on the Board ten years ago. Dr. collins has a PhD in mathatics and works at the White House.

Joseph Morris has served as President Board and Secretary. He is a Senior Program Specialist with National Academy of Sciences specializing in transportation research.

It was moved and seconded that we accept the slate be accepted and that nominations be closed.

Election of the Board

The nominees were elected by acclimation. The 1996-97 Board of Directors is:

• Eileen Collins
• John Doolittle
• Brian Larkin
• Joseph Morris
• Waldemar Wajszczuk

Unfinished Business

There was no unfinished business.

New Business

Discussion On The Future Of The Building

President Larkin wondered about the future of the building. Will it return to a being a building like it was ten or so years ago when most residents were owners? He doubted that and noted that increasingly the building's residents are rentors. The high number of renters is in part due to the relatively low resale prices for units that are sold, according to Larkin. Rather than to simply drift along with this scenario, Larkin suggested the Board look into the encouraging the City to legitimize the SP2 status of the Lauren. Under SP2 zoning rules, up to 50 percent of the units in a building could be professional, according to Larkin. The City has refused to award Certificates of Occupancy which has created a stalemate. By restoring the building to SP2 units would most likely sell to professionals at a higher price. Since the conversion to a condominium in 1979, the building has been designated SP2 and there were always businesses here. Larkin added that most of the first floor was businesses.

President Larkin suggested another option which is to seek a complete change of zoning classification. The change would be from mixed use to commercial which is designated 3C3.

Larkin said that yesterday he went to a meeting with Zoning Board staff to discuss these issues. Others attending the meeting were Board members John Doolittle and Waldemar Wajszczuk plus Building Manager Walter Krolman and a representative from our legal firm, Julie Dumowski.

Making application to change the zoning status of the building requires approval from 100% of owners. Larkin said that chances of getting that approval were slim. Owners of the large office building at 1920 N have applied to the Zoning Board for this change. Larkin expressed a desire to find a solution that everyone can go along with. He added that yesterday's meeting may have succeeded if the planning staff exerts some pressure on the Board of Zoning Adjustment to resolve the stalemate.

Elizabeth VanderPutten said it is terrible to be in the limbo of not being sure of the status of business and professional owners and wonders if association wants to take a stand in support of the City's granting them C of O's. A discussion followed during which the following points were made: Businesses have operated above the first floor since 1979. Approximately 30 business and professionals presently operate in the building but only 3 have Certificates of Occupancy. About 15 unit owners are appealing the Board of Zoning Adjustment over its refusal to grant them Certificates of Occupancy.

President Larkin summarized the matter by saying the building is faced with an economic problem in that property values are diminished by the C of O situation which places the building in limbo. He said the building has some choices. One is to ignore the problem. Another would be to seek a set of strategies to restore the Lauren to a functional SP2 status whereby applicants could reasonably hope to obtain a Certificate of Occupancy. A third approach would be to seek a change to commercial zoning status, 3C3. Roger Hirschland urged the Board not to agree to a cap on future applications for Certificates of Occupancy. President Larkin assured those attending that the Board is merely studying the matter and was not contemplating taking any action at this time.

Another matter was raised. The issue of early morning noise from garbage dumsters being loaded by the garage entrance. President Larkin indicated he would look into the matter.

Adjournment

The meeting was adjourned at 9:45. Copies of the Minutes of this meeting may be obtained via e-mail by sending Property Manager Walter Krolman a request at info@lauren.org

Respectfully Submitted,

John Doolittle, Secretary