April 19, 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

Jim Stoller (JS)

NOTES / ACTION ITEMS

1. Approval of Minutes

1.1. Minutes of March 1, 2004 Board Meeting Approved by board

2. Financial Overview (BH)

2.1. BH presented the Treasurer’s Report

ANNUAL FINANCIAL REPORT: Our Audit and Accounting firm (Frost, Ruttenberg, and Rothblatt) has completed the work on the annual compilation of the RNC 2003 Financial Statement and expects to deliver it to us by the end of April (a bit later than we previously thought).

JOINT PROPERTY TAX APPEAL: Our appeal is in process and we expect to hear some preliminary results in May.

FINANCIAL STATUS AT MARCH 31, 2004:

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

Cash balances in the Operating Fund plus Replacement Reserve Fund are on budget and have increased to a combined total of $126,889; we have an additional asset of $14,447 in cash in Gas & Electric Deposits. Thus far we are on track to rebuild our Reserve to over $100,000 by year end.

Income received year-to-date of $230,300 is slightly better than budget due to an improvement in our assessments delinquency status and other fees such as move-in/out fees.

Expenses year-to-date are on budget overall, however we have paid some unplanned expenses from 2003 (that we were unaware of) in 2004. This happened once again despite our efforts to ensure that our management company had cleared up the old year's bills.

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 are 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 - none paid yet.
Structural Engineer $10,000 - of which $4500 has been paid so far.
Evacuation Ordinance Lighting $27,000 - of which $8,000 has been paid so far.
Miscellaneous Security, Engineering, and other late invoices $16,000 - all paid by 3/31/04.

Assessment Payments status has improved and we have no significant dollar amounts in the over 60-days overdue category. Our total assessments owing ($2,874) is the lowest it has ever been in the last two years.

BANK LOAN:

We've signed the final paperwork for the $100,000 bank loan is, so all has been approved. This loan is intended to fund the first $100,000 of brickwork leak repairs. The payments on this loan are included in the approved 2004 budget and regular assessments. We'll draw down on this loan as needed for brickwork repairs this spring.

CAPITAL EXPENDITURES:

The Board-approved RNC 2004 budget includes the following special and capital expenditures, all of which are funded by the regular budgeted assessments in 2004:

Brickwork repair loan ($100,000) monthly payments totaling: $24,000 for the year.

Roof hose spigots for maintenance and water testing: $4,000

Landscaping/Beautification: $4,000

Other than the above-mentioned carryovers from 2003 there are no other currently approved capital expenditures.

A frequently asked question is what about "roof leak repairs" and "brickwork repairs". The two-part answer is as follows:

Roof Leaks:
With the spring thaw, the RNC roof is experiencing what we view as "normal" roof leaks caused by expansion/contraction related to winter ice on the roof. The RNC 2004 Annual Budget includes amounts for ongoing roof maintenance and roof repairs. As of now, no special assessment is needed for this "routine" ongoing roof repair expense.

Brickwork Repairs:
RNC has engaged a structural engineer to investigate brickwork water leaks and to prepare a set of specifications to serve as the basis for obtaining repair bids. As of this moment, there are no capital expenditures for brickwork repairs approved by the Board, however once specifications and bids are complete, the Board anticipates approving some amount for such repairs.

The RNC 2004 Annual Budget, supported by the current regular assessments, includes a line item for the monthly payments on a $100,000 bank loan intended to fund the first $100,000 of costs related to the brick repairs, if needed. In addition, we are in discussions with the Developer about brickwork repair costs (and, to be very clear, we are not at present involved in a lawsuit with the Developer).

As noted in the prior Board meetings, once the true estimated cost of the brickwork repair is known, and once the Developer's coverage, if any, of this cost is known, we will then and only then be able to determine what additional funding, if any, will be required from the owners for the brickwork repairs. Depending on the timing and dollar amounts this might or might not necessitate a special assessment this year. At this moment, and for the next several weeks at least, there is no solid answer to this question beyond that stated above.

3. Old Business

3.1. DS Status of EDC $ discrepancies

Enterprise provided RNC with settlement offer of $35,300
After discussions with Enterprise, they have been on-site twice to inspect the façade and have agreed to re-evaluate the settlement offer by May 3rd.

3.2. KS Building facade repairs.

Tim Thompson is evaluating the building and a full scope of work is in progress.

3.3. BH Roof Leaks

Due to freezing/thawing, several roof leaks were reported and addressed.

4. New Business

4.1. Roof Inspection

The RNC Board passed motion to hire Rainbow Roof to perform a thorough inspection of the roofs; not to exceed $1500.

4.2. Change Cleaning Service

The RNC board passed motion to replace Elite Cleaning with Skyline Building Services Inc.

4.3. BH Hi Speed Internet

Provided by Direct TV via Phone Lines with no cost to RNC Association
Testing to begin in near future

4.4. Carpet Cleaning

Targeted for 1st week of May by Skyline Building Services Inc.
An announcement will be posted throughout the building

4.5. Window Washing

Targeted for 1st week of May by Corporate Cleaning
An announcement will be posted throughout the building

4.6. Montgomery Ward Construction Debris

Cleanup of debris from the MW site is scheduled for April 26th. Attendees were told to contact Michelle if their balcony had debris.

4.7. Loading Dock

Ventilation for the loading dock was being investigated.

4.8. Superior Lobby

Request that Michelle schedule installation of 3 lights(already purchased) in Superior Lobby.

5. Committees

5.1. Landscaping

Bids for tree lawn work to straighten bricks, aerate and mulch were being requested.
Moved West Lot shrubs to the Court Yard
Mayors Clean Up scheduled for May 1.

5.2. Social

Scheduling 2nd Annual RNC BBQ

5.3. Rules and Regulations

Hoping to present to RNC Board in June.

6. Neighborhood Update

River North Residents Meeting scheduled at Rezas for April 21st

7. The meeting was adjourned at 7:45