Annual Meeting -- May 12, 2008

Roger B. Hirschland

Introduction

Good evening. The Lauren is popularly described on our website as a premium place to live. I'm glad to say that I think the building is living up to its reputation. Your board has met monthly since the last annual meeting to conduct condo business. You are always welcome to attend these meetings. Matters covered at these meetings are sometimes mundane, sometimes interesting, but always important.

Financial Status

We're on a sound footing. We've been working actively and attentively to iron out a number of kinks in our accounting system with financial manager Simmons Management. Many of the issues-but not all-were related to transition problems encountered in switching from our previous management company, Koger, to Simmons.

We recently received the 2005 audit, long delayed because of accounting problems encountered in our previous management company. You are welcome to pick up a copy at the table outside.

The 2006 audit, which we received today, has some news that is not entirely good, and it's related to our time under Koger Management. I consider us lucky that our apparent problems are not greater than they seem to be. Elizabeth VanderPutten will address this report in detail.

We owe big thanks to our treasurer, John Filice, who spent a great deal of time this year consolidating our investments under one account at Smith-Barney. The 13 or so CD's are now watched over by one firm, so that we can more easily know which investment is maturing when, what our rates of return are. It's also easier to ensure that all of our funds are receiving interest.

Our HVAC special reserve fund is on track. Thanks again to our economist Brian Larkin, who prepared the spreadsheet we are following in building these reserves.

Our long-running tax dispute with the District of Columbia has been resolved to our advantage. The tax office mailed us a letter exonerating us from any old liability.

Regarding the collection of condominium fees, most owners are highly responsible in meeting the deadlines. A few are not. The board is aggressively pursuing these delinquent accounts, and not allowing any to exceed two months' delinquency without referring the matter to our lawyer. Many of the apparent problems in the past year were due to matters relating to the Koger-Simmons transition.

As to capital improvements, in the past years, we waterproofed the pool room (Unit 1006), because it had been leaking chronically into units beside it and below. That cost the condo about $28,000, and has been completed. The board plans to have the boiler and the hot-water heater replaced this year. This investment will provide much more efficient equipment that will be both environmentally and economically advantageous.

The reserve study done in 2003 was updated in 2007. After tweaking some of the figures and dates, the board accepted the revised study and will use it in determining the budget for 2009.

Committee Work

The Decoration Committee has worked diligently, employing the expertise of a professional interior designer to help in both design and specifications for replacement of hallway carpets, front-office upgrades, and elevator cab renewal. Committee chair Erin Erlenborn will report in detail.

Garage Door

Our garage door finally required replacement. We had a new door fashioned in Ohio, and, in the several-week interim period when the doorway remained open, we hired a watchman to guard the door during evening hours. The new door is working well.

Trash Removal

Our long-time current vendor has provided us notice that they will no longer service the building because of the risks involved in driving into and out of the steep driveway, along with the need to pick up the bins in the tight space at the bottom of the driveway. We looked into alternative means of trash removal, including raising the bins through a hole to the parking lot and pulling the bins to the street. Neither alternative proved feasible or advisable, so we are negotiating with new vendors to provide service in the manner we've used all along.

Landscaping

Staff have replaced large or dead bushes along the south side of the building and have done a super job in keeping the grounds looking pretty.

Webmaster

Our resident webmaster Brian Larkin is going to give up the position after many years of faithfully creating and maintaining the site. We offer thanks to him for the valuable work, and now seek a replacement.

Smoking

Several owners or tenants experienced serious inconvenience and discomfort from neighbors smoking nearby laterally or vertically. The issues were eventually resolved through the mediation of the property manager and the cooperation of the smokers themselves, who agreed to quit the habit -- for which the residents and the board are grateful.

First-floor flooding

After many incidents of first-floor flooding, building staff identified the probable area of blockage in a waste pipe. That four-inch pipe, which turned out to be almost completely clogged, was replaced, so we expect that the problem is now resolved.

Move-in Fees Reminder

Owners are reminded that the fairly new and increased move-in fees are $150 for a furnished unit, and $200 for an unfurnished unit. In addition, there is a $200 penalty, over and above the move-in fee, if a move is conducted in less than a year from the previous move for that unit.

Thanks

I want to thank my fellow board members for their service, and express appreciation and thanks for the able services of our property manager Walter Krolman and condo attorney Joe Douglass.