February 8, 2005

Meeting Time

Meeting Time: called to order at 7:01 PM

Board Members

Debra Siena
Bruce Howard
Dave Desser
Rick Edel
Craig Halverson

Phoenix Rising

Patrick Kennelly
Eric Fordyce

NOTES / MOTIONS

I. Approval of Minutes

Motion The Minutes of the meeting of December 7 were approved

II. Financial Status

A. The RNC Financial Dashboards for November and December, 2004 have been posted on the RNC web site. The January 2005 Dashboard will be posted after we receive the official financial package next week. Some highlights:

At December 31, 2004:

Cash balances in the Operating Fund plus Replacement Reserve Fund are significantly better than budget . With the receipt of the $175,000 settlement from Enterprise Development in November our combined cash balance is $361,954 at the end of December as compared to our budget estimate of just over $272,000 at 12/31/04.

Income for the year of $894,272 is slightly better than budget- about 2% better.

Expenses year-to-date total of $918,589 is about $102,000 over budget due primarily to the brickwork repairs. This is essentially what the $100,000 bank loan covered.

Assessment Payments status continues to be good and we have no significant delinquent dollar amounts in the over 60-days overdue category. As of 12/31/04 we had about $3000 in total receivables but less than $600 of that is over 60 days overdue.

Overall, the receipt of the settlement payment from Enterprise has given us a solid cash position and we ended the year in very good financial shape... with the understanding that brickwork repair will continue in the spring.

At January 31, 2005:

The final 1/31/05 financials and final dashboard will be available next week.

This is the month for transition of property management companies from The Building Group to Phoenix Rising Management Group effective 1/31/05 so we will take extra time to ensure that all balances are correctly transferred from one company's accounting system to the other.

A preliminary version of the January financials indicates that everything is about as expected except for the huge snow removal expense in early January. That $9,300 expense basically wiped out our annual snow removal budget for 2005.

B. Auditing Firm: 2004 Compilation Report

Our audit and accounting firm -- Frost, Ruttenberg & Rothblatt, P.C. -- completed its field work for our 2004 Compilation Report in December 2004 (at The Building Group) and expects to issue the written report to us in March 2005.

III. Old Business

A. The Building Group wrap up and transition: TBG has transferred files to Phoenix Rising and handled the January invoices. PR will confirm that they have received all the appropriate documents from The Building Group. Some funds from January collections remain to be transferred. February invoices will be handled by PR

B. Recap of fire: A smoldering flammable material was dropped into the Huron side dumpster.

there is not a connection between the fire alarms in the two buildings
fire panel inspection and alarm system evaluation will occur 2/9/05 (EF)
building currently meets all codes
evaluation of additional smoke alarms and fire extinguishers will be made
bids for smoke alarms in garbage rooms will be obtained
PR will evaluate condition of carpets on H – 5, 6,7
financial responsibility for damage done to the building and common areas reside with the association. Financial responsibility for personal items and unit interiors reside with the owner.
PR will evaluate and make recommendations for any change in fire response procedure

C. Leaks: There are three sources of external leaks: roof, window calking, and tuck pointing failure. PR is inspecting all units that have reported leaking problems on 2/10 and 2/11/2005.

IV. New Business

A. Phoenix Rising was introduced as the new Property Management company and their service structure described. PR comes with high recommendations from board members of other associations they serve.

*The RCM BOD will align its responsibilities with the five service areas of Phoenix Rising

B. Pet fees: Pets have three areas of impact on the building and property.

landscaped areas – largely thought to be from non-building pets
unleashed pets in the building – current policy is one warning and then a fine
pet damage within building.

Motion: increase the pet fee to $125 per year. Following discussion the motion was amended to $100 per year. MOTION PASSED

C. 1. Superior Street West Garage door

replacement not recommended
additional preventive maintenance planned
receiver changed out.
receiver on gates for open lot will be inspected

2. Discussion of responsibility for damage to two cars by malfunctioning garage door.

Motion: Association will pay the deductible for the two autos for which there are incident reports. This motion created a great deal of discussion. While Illinois law prohibits associations from paying such damages in full, the law does allow the board to pay deductibles. While paying deductibles is very appealing in spirit, the board felt that exposing every homeowner (through association fees) to financial responsibility for every other homeowner’s deductible was unacceptable. MOTION FAILED

D. Leaking garage roof: a fix process is in place and the leaks are currently considered ‘nonactive’

E. Book exchange in the Fitness Center

Motion: up to $500 be appropriated for book cases. MOTION PASSED

V. Committees

A. Decorating/Facility/Landscaping New floor mats in lobbies and elevators are working well, reducing transfer of dirt from street to upper floors of buildings. Regarding book exchange in fitness center, committee recommends purchase of two bookcases from Design Within Reach for $492. Prior to purchase, committee will investigate offer to donate two used bookcases from resident.

B. Social – Patrice Kuhn is moving from the building and DS is pursuing a new chair of the committee.

C. Website – Committee will work with PR to add a “New Owner” button to rivernorthcommons.org, providing all necessary information for move-ins.

VI. Neighborhood update

The Ronsley High rise zoning change has been approved. The property owner does not currently have a developer for the project.

Meeting adjourned at 8:55 PM