Call to Order
President Joe Morris called the meeting to order at 7:35 at the Marriott Washington Hotel
Attendance
Present were the other Board members: Treasurer Michael Silverstein, Secretary Elizabeth VanderPutten; First Vice President Adrienne Simenhoff, and Second Vice President Waldemar Wajszczuk, and a sufficient number of owners (55.1%) in person or represented by proxy to constitute a quorum. Also present were Property Manager Walter Krolman; legal counsel Joe Douglas from 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 or signed for by resident owners.
Reading of the Minutes
The reading of the 1998 Annual Meeting Minutes was waived by consent of the membership.
President's Report
President Morris introduced the Board members. He stated the John Doolittle had resigned during the year, after nine consecutive terms. The Board appointed Adrienne Simenhoff to fill the vacancy.
President Morris thanked Brian Larkin for his work on the Web page and Don Benedict for his leadership of the grounds committee. He also thanked Walter Krolman for his work during the year and the other staff of the building. He noted that Henry Ambe received his ten-year service award and several staff members received spot awards for special services [including Angela Gross, Henry Ambe, Letta Atsbeha, Thomas Burless, Jarita Crawford and Rachel Tadjion].
Joe Morris stated that this has been a year of stability.
In commenting on the major work of the past year, President Morris began with a discussion of the lobby renovation, which was, he said, a continuation of the work of four past Boards. The process was long, difficult and iterative. A Decorating Committee appointed by a previous Board made recommendations. The Board accepted several parts of the plan and augmented it with other parts. The Board hired Georgetown Design to develop specifications and to implement the work as general contractor.
The President listed the number of items completed: new ceiling, walls, lighting, mailbox, refurbished the floors, replaced the upper floor lobby, replaced the first floor carpeting and wallpaper, new side doors installed, new front main entrances, brick paving, re-did the lobby clerks office, elevator lobby and elevators were redone.
Unfortunately, the work is not finished yet. The primary outstanding item is new furniture. The Board considered but rejected a number of proposals. The Board has recently begun discussion with a designer. President Morris also pointed out that there were many complaints about the elevator decorations. The Board has decided to redo the elevators, but has not yet agreed on a plan. There are other items still to be worked on -- bulletin Board, lights, door
The President then reported on the new chiller. After a few problems with start up, the chiller worked fine last year and may actually result in a little savings
He reported on the lawsuit that was filed against the Lauren and several owners shortly after last year's meeting. He stated he could not discuss the lawsuit but said that all the public documents are available at the court. The legal defense of the Lauren is in the hands of an attorney paid for by our insurance company, but the Board has asked the regular Lauren attorney to monitor proceedings.
The Board continues to explore the possibility of having high speed Internet and alternative cable services to the building.
Morris discussed the probability that the roof will have to be replaced in the coming year. This might cost up to $200,000. This has long been expected and funds have been set aside over the years to cover this.
Treasurer's Report
Michael Silverstein reported that the Lauren is in good financial shape. Last year, the Lauren ran an operating surplus of about $46,790 largely because of the mild weather and savings due to the new chiller. Capital expenditures were over-budget but were consistent with the general plans. The Condo had continued to run a small surplus this year because most expenditures are somewhat lower than projected. Cash on hand is $468,000, which is the highest it has ever been. The Board of course was happy to report that the Board did not raise the condominium fees this year.
Committee Reports
In the spirit of keeping the building "high tech", Waldemar Wajszczuk reported on the various companies he and his committee have looked at. Star Power is one potential source for high speed Internet and cable access. This would be in addition to DC Cable and would be installed at no cost to the building. We are also looking at getting a small satellite dish. He also mentioned that Bell Atlantic is talking about implementing high-speed cable. There are still a number of issues to be resolved.
Brian Larkin talked about the Lauren Webpage. The idea is to make the Lauren as attractive to the type of people who want to live in a high quality building. The Webpage offers: PR for the Lauren -- a sophisticated brochure; an index of information; a way to advertise rental and sales. The page has about 10,000 per year and is at http://www/lauren.org
Election of Inspectors
Two persons in the meeting were selected to serve as electors: Vicki Black and John Doolittle.
Nomination and Election of Officers
Five persons had agreed to run before the meeting and were nominated at the meeting: Mason Essif, Joseph Morris, Waldemar Wajszczuk, Adrienne Simenhoff and Elizabeth VanderPutten. Dave Lilling was nominated from the floor. One owner asked that each nominee speak for two minutes, specifically talking about economies that could be implemented.
Joe Morris spoke and said that he considers the major issue is that the building is aging and that the Board must continue to plan for this. Several years ago, he would have said that finance and management were problems. Today he believes the condominium is in excellent shape in both these areas. He believes some problems with staffing remain.
Elizabeth VanderPutten stated that the major problems were keeping and hiring high quality staff members who are relatively low paid in today's booming economy. There are no major areas where costs can be cut. The board has to keep looking at each item, balancing any cost cutting actions with the need to keep of service up.
Waldemar W. Wajszczuk stated that his primary goal on the Board is to keep the amenities and services up. He too says that most cost cutting actions will be at the margins.
Adrienne Simenhoff said she was dedicated to fiscal frugality and to finishing the redecoration.
Mason Essif said he doesn't have an agenda but having been asked many times, he now feels it is his turn to work.
Dave Lilling said he has lived in the building a long time and now wants to serve to see how aggravating it is to be on the Board. The aging of the building is an issue. Maybe there can be a way to reach out to get the zoning situation worked out. He thinks this is important. Amenities are important
Election of the Board
The following candidates were elected to serve as the 1999-2000 Board of Directors:
Discussion of the Presentations
Owner David Lilling said that while he was happy with the Board in general, he was not happy with the lobby decorations. He believes that the redoing of the hallways on the first floor was particularly ill advised and might have been unduly influenced by the business owners. President Morris agreed that within the range of aesthetic judgement, the decorations are controversial but he said the Board made the decision after careful deliberation.
Roger Hirschland who chaired the Decorating Committee said that he had recommended changing the first floor so that it would be more consistent with the first floor lobby. This was not a decision to serve only the business owners but he hoped that it would be a first step in redoing all the halls. Another owner pointed out that the business owners may not like the outcome but again it was not undue influence. Another owner stated the Board did discuss this at the annual meeting and while she might not like it, she did know what it was going to be.
Mike Silverstein said that he agrees that certain decisions may lead to bad results. However, he said that it was a difficult process and that he hoped that any reactions not become personal. The Board has always acted with the best of intentions. We all live under the same roof, and even if dysfunctional at times we have to live together.
New Business
Jason Juffras mentioned the issue of the buses at Embassy Square. The impact of noise and pollution are harmful to the building. Several members spoke. Some owners recommended that the owners call the hotel and the police. We can also try to get the front of the building designated as a "no bus" zone. Others suggested that a committee be appointed to work with the city or other officials to get some relief.
Joe Morris stated that he believes that the issue is not really a Board issue. He believes that the owners should organize to fight this through the regular channels such as the police, City Council and ANC. David Lilling talked about the noise from the renovations in the back of the building. He believes that they have agreed not to dump the dumpster until the afternoon.
Non-resident owner Maxine Schwartzman recommended that the Board consider upgrading some things in the building. She agreed to organize a group to update kitchens. She believes we should upgrade the laundry equipment. The Board should look into the placement of smoke alarms. Maxine also expressed concern about the pending lawsuit. Jan Schneider suggested that certain types of communication about the lawsuit could create liability.
Richard Lebowitz suggested a number of areas that we might be able to save some funds. Perhaps we don't need legal counsel present at the Annual Meeting. He also complained about the cost and performance of the Lauren staff.
Roger was joined by the other owners in thanking the Board for their service over the years.
Adjournment
The meeting was adjourned at 9:20.
Respectively Submitted
Elizabeth VanderPutten, Secretary Eavanderp@yahoo.com
The
Lauren, A Condominium