March 1, 2004

Meeting Time

Meeting called to order at 7:03pm

Board Members

David Desser (DD)
Bruce Howard (BH)
Brian Madurzak (BM)
Ken Sherman (KS)
Debra Siena (DS)

The Building Group

Michelle Lucas (ML)
Jim Stoller (JS)

NOTES / ACTION ITEMS

1. Approval of Minutes

1.1. Minutes of December 1, 2003 Board Meeting Approved by board

2. Financial Overview (BH)

2.1. BH presented the January P&L and Reserve balance - Financial Dashboard

ANNUAL FINANCIAL REPORT:  Our Audit and Accounting firm (Frost, Ruttenberg, and Rothblatt) began the annual compilation of the RNC 2003 Financial Statement in January and should complete it in March.

SPECIAL ASSESSMENT PAYMENT STATUS:  The Special Assessment in the amount of one month's regular assessment (total of about $60,000) was due 12/1/03.  Although there were several owners who were late, as of the end of January the Association had received 100% of the Special Assessment payments.

FINANCIAL STATUS:  A recap of the year-end 2003 status is given below, followed by the 1/31/04 status.

YEAR-END 2003:  

Our overall 2003 income of $809,000 was $78,000 better than budget, but our expense total of $876,000 was $230,000 worse than budget.  This meant we needed to tap our Replacements Reserve fund for some planned (Lobby Renovation, Landscaping) and for some surprising, large, unplanned costs as reported in prior meetings and correspondence. 

Because about $57,000 of expected December capital expenditures were not completed or were not billed in December, we ended the year with a combined total Operating Fund and Replacement Reserves Fund of $107,000.  This cash level was better than we expected, but will be leveled off when those deferred expenses are paid in 2004. 

Our Delinquent Assessment Payment situation improved dramatically near year end with our legal collection action producing complete payment on our only long-term delinquency collection situation.  At year end, we had only $400 in assessment payments more than 60 days overdue, and no owner balances over $1,000.

CURRENT STATUS AT JANUARY 31, 2004:

The RNC Financial Dashboard as of January 31, 2004 has been posted on the RNC web site (copies also distributed at Board Meeting).  Highlights:

Combined cash balance in the Operating Fund plus Replacement Reserve Fund has increased to $123,700 and we have an additional $14,000 in cash tied up in Gas & Electric Deposits.

Income received in January was at 99% of budget.  However, we had a shortfall of $4,500 in regular assessment payments which was offset by late payments of the December special assessment (not in our 2004 budget).

Expenses in January were on budget overall, but invoices for several expected expenses were not received and are now expected in February. 

The items in the December 2003 budget that were not paid because of non-completion or missing invoices are listed below.  These items will cause an "over budget" condition in our 2004 monthly financials when they paid, but the cash to pay for them carried over from 2003, so eventually our cash balance will level off to what we expected it to be.  Expenses carried over from 2003 into 2004:

  • Inner Garage Doors $9,800 - paid in January
  • Brickwork Repairs $10,000
  • Structural Engineer $10,000 - some paid in January
  • Evacuation Ordinance Lighting $27,000
  • Miscellaneous Security, Engineering, and other late invoices $16,000.

Our Delinquent Assessment Payment status remains good with no significant dollar amounts in the over 90-days overdue category.  A large number of owners were late, however, with their January payments.  We will watch this closely.

BANK LOAN - The final paperwork for the $100,000 bank loan is in our hands for signature, so all has been approved.  This loan is intended to fund the first $100,000 of necessary brickwork and leak repairs.  The payments on this loan are included in the approved 2004 budget.  Last fall we thought that repair construction might start very soon, but the winter freeze set in before anything could get done, so we'll draw down on this loan as needed this spring.

2.2. BH Finance Committee introduction - In response to our request for volunteers to serve on a new RNC Finance Committee, five owners have stepped up: Tony Crisman, Tom Galluppi, Stephan Nolan, Dayna Siegel and Silvia Vettese.  The purpose of the committee is to provide input, guidance, owner opinions, and some assistance to the Association Treasurer.  The committee had its first "get-organized" meeting in early February. 

2.3. BH Property tax appeal update - As mentioned before, we filed a joint appeal of our property tax increase. The very large increase in the assessed value of our property, and the resultant increase in property tax, is not scheduled to show up in our tax bills until the "Second Half" billing.  Therefore, the tax bills we received a few weeks ago did not reflect the tax increase nor any results of our appeal. Our appeal is moving along in the expected slow, stepwise, government process that will produce some news for us in the March-to-May timeframe, not before.  We have a proven results-producing law firm handling our appeal, so we're hopeful of getting the best possible outcome.

2.4. BH Annual Pet Assessment - The board agreed to increase the annual pet assessment to $60 per dog. The increase is in line with the 20% unit/parking assessment increase and will be included in the May 1 assessment. A Pet Registration form will be sent to all units. It was suggested that RNC hold a meeting to inform pet owners about the pet rules and regulations.

3. Old Business

3.1. DS Status of EDC $ discrepancies

    • Debra gave a recap of our meeting with Enterprise on Feb 20 th to discuss the following issues:
      • Discrepancies in Enterprise Management spending of RNC funds
      • Outstanding Punchlist Issues
      • Ongoing Tuckpointing/Facade/Leak issues
    • Enterprise agreed to provide RNC with settlement amount as well as a scope of the work by March 15.

3.2. KS Building facade repairs.

    • Tim Thompson will provide RNC with specifications/cost estimates. Work to repair the facade will be scheduled to begin mid-April. The work will be done in a cost-effective manner. It will fix the damage done but will also focus on the root of the damage. A loan for $100, 000 to be used toward the work has been approved by a local bank. Upon the completion of our negotiations with Enterprise, we will determine how to proceed/pay for the work.

3.3. KS Bldg Emergency lighting & signage project

    • The emergency lighting throughout RNC is nearly completed.
    • Michelle received quotes for the signage and the board approved $3000 to fund.

3.4. KS Energen, a company that analyzes an organizations utility bills has reviewed RNC's bills and reported that they can save RNC $4,400 next year. Ken will follow up.

4. New Business

4.1. BM High Speed Internet

    • The representative from Comcast has moved back the date to wire the River North area to June 2004.
    • To date, only 11 units have decided to sign up with Ex-Wire. With the vendor needing 50 units to sign up to make the deal feasible, this does not look like an option in the foreseeable future.

5. The meeting was adjourned at 8:20

Note: These minutes have not yet been approved by the RNC Board of Directors but will be motioned for approval at the next open meeting.