Call to Order

President Joe Morris called the meeting to order at 7:15 p.m. at the Marriott Washington Hotel.

Attendance

Present were the four other members of the Board of Directors, Eileen Collins, Second Vice President, John Doolittle, Secretary, Elizabeth VanderPutten, First Vice President, and Waldemar Wajszczuk, Treasurer. A sufficient number of owners were present in person or represented by proxy to constitute a quorum (57 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 Morris reviewed the past year's activity by the Board of Directors. He mentioned the service awards which had been presented to two Lauren employees for their long tenure with the building, Desiderio "Cacho" Salinas and Thomas Burless. Three additional awards were given to employees for their exemplary service.

The work of three standing committees was recognized by Morris as contributing to the accomplishments of the Board during the previous year. They were Zoning chaired by Dr. Brian Larkin, Landscaping chaired by Don Benedick, and Decorating chaired by Roger Hirschland.

Morris said he was pleased with what he described as an improvement in the building's finances despite the fact there were major expenditures for a new chiller and redecorating. The replacement of the 26-year old chiller cost approximately $100,000.

The lobby and first floor redecorating will begin soon, according to Morris. He said the committee approved the revised plans submitted by Georgetown Design.

Treasurer's Report

The Treasurer, Waldemar Wajszczuk, reported that The Lauren finished 1998 in very good financial shape. The Capital Reserves as of December 31, 1997 stood at $384,429. This amount was approximately $90,000 more than expected due to several capital projects that were deferred until 1998 and lower than expected expenditures for the projects that were completed during 1997.

The Lauren's operating expenses for fiscal year 1997 were under budget by nearly four percent and this combined with higher than expected non-condominium fee income resulted in an operating surplus of $27,374. The only operating budget category that exceeded budget estimates was "Utilities," which resulted from an unexpected increase in the water and sewer fees.

The budget for 1998 increased by nearly 4.5% from the 1997 level. Although there were reductions in several of the operating budget categories for 1998 that were made possible by cost cutting measures, an increase in the overall budget was required to fund the large capital expenses planned for the year - over $203,000. These expenses included replacement of the air conditioning chiller that was estimated to cost roughly $150,000 and additional funding for the lobby renovation (Actual expenditures f or the chiller turned out to be less than the budgeted amount).

The Treasurer also reported that a new investment plan was implemented in 1997 to improve the Association's return on its capital reserves. The plan consisted of acquiring six CDs with staggered maturity dates. After two years, all six CDs will be for three-year terms with one coming due every six months. By using CDs with three-year maturities, the Association will be able to reap the benefit of higher interest rates given for longer-term investments.

Committee Reports

Redecorating

Chair Roger Hirschland reviewed the proposal that the lobby redecorating committee, composed of unit owners, made to the board. Following Mr. Hirschland's presentation, Matt Gifford of Georgetown Design Group reviewed the final plans for the work to be done in the lobby and first floor, which are based on the committee's recommendations as modified by the Board. He said the project would begin at the curb with new pavers and proceed through new glass doors into the lobby. The lob by's ceiling w ill be dropped and recessed lighting installed. Wood paneling will be removed from the lobby walls and replaced with textured dry wall and wall covering. The front desk will be gutted and given a facelift. New counters and desk areas will be installed. Cabinets will be redone as will the mailboxes. The lobby stairs will be refinished in granite. The area around the elevators will be given a dramatic treatment of pilasters. Elevator interiors will be given new w all and floor treatme nts. The first floor hallway and doors will be given new color and textures that complement the work being done in the lobby. Lobby furniture will be replaced.

Security

Chair Elizabeth VanderPutten reviewed the efforts made by the committee to make the building as secure as possible. These measures included signage, alarms in the elevators, exterior lighting, and video cameras. She added that there had been no reported instances of security problems this year.

Marketing

Chair John Doolittle summarized the efforts by the committee to improve the image and increase the visibility of the Lauren with the goal of raising the selling and rental prices of units. He mentioned the brochure has been prepared which is available to Realtors and other interested in the building. Bookmarks are also available which promote the Lauren's homepage on the Internet. He then demonstrated the Lauren's website which is maintained by Brian Larkin. Larkin has evidence that the site has be en visited by persons who are moving to Washington and looking for housing in the Dupont Circle area. Doolittle said anyone in the building who wants to advertise the availability of their unit may do so free of charge.

Zoning

The Zoning committee was charged with keeping the Board and unit owners informed on zoning developments that may affect the building. Chair Brian Larkin reviewed the various contacts he has had with city officials regarding the status of the building with respect to its zoning and the long-standing requests for Certificates of Occupancy by professionals. Larkin said he had met with Second Ward Councilman Jack Evans and David Colby who heads up the District's Zoning Planning Board.

Election of Inspectors

Two persons in the meeting were selected to serve as electors, Mason Essif and Brian Larkin.

Nomination and Election of Officers

Five persons were nominated for election to the Board of Directors. It was moved and seconded that nominations be closed. The slate composed of

• John Doolittle,
• Joseph Morris,
• Michael Silverstein,
• Adrienne Simenhoff, and
• Elizabeth VanderPutten

was elected by acclamation.

Unfinished Business

There was no unfinished business.

New Business

Roger Hirschland complained about fumes from busses idling in front of the Embassy Suites Hotel on N Street.

Walter Krolman indicated that the owner occupancy rate in the building continues to stand at just under 50 percent.

Brian Larkin suggested that board members would ideally plan to serve two or three terms so as to insure that experienced members would be on the board as new ones are elected.

Adjournment

The meeting was adjourned at 8:30 p.m. Copies of the Minutes of this meeting may be obtained via e-mail by sending Property Manager Walter Krolman a request at Lauren@erols.com .

Respectfully Submitted,

John Doolittle, Secretary