April 26, 2005

Meeting Time

Meeting Time: called to order at 7:00 PM

Board Members

Debra Siena
Bruce Howard
David Desser
Rick Edel

Phoenix Rising

Eric Fordyce

NOTES / MOTIONS

I. Approval of Minutes

Minutes of the meeting of February 8, 2005 were approved

II. Financial Status as of March 31, 2005

  1. Cash on hand in the combined Operating Fund and Replacement Reserve Fund was $453.227. The replacement reserve continues to build with an end-of-month balance of $348,281.
    1. Assets: The association is seeking confirmation of the existence of a $5,027 utilities deposit, which has not yet been listed as an asset on the current Financial Dashboard
    2. Liabilities: the Association’s 5-year bank loan remaining balance is $92,807
  2. Income & Expenses. Note: The Financial Dashboard is still being affected by the transition in management companies from The Building Group to Phoenix Rising on 2/1/05.
    1. The Operating Fund is inflated due to several large invoices, which were not available for payment in March. Expenses for March of $51,371 were well below budget; the association is still responsible for many deferred bills
    2. April expenses will be high, due to the addition of unpaid February/March invoices, plus snow removal expenses of $25,000 from January, 2005; the association is negotiating a reduction of the snow removal charges
    3. Income for March of $88,941 reflects additional income from February; Year-to-date income is $17,801 below budget. Note: assessment income has been below budget due to change of payment address and EFT procedures with management changeover. RNC anticipates a return to normal in coming months.
    4. Delinquent Unit Owner Payments. The total owed by unit owners is $11,792. RNC has sent letters to delinquent owners and will assess fines and begin the process of collections on unpaid balances. Although not reflected on the current Financial Dashboard, the association continues to track aging of delinquencies in the 60-90 days late, and over 90 days late categories

III. Old Business

A. Capital Projects: 1) Brick & Mortar Repair

Working sessions of the board have been held to: 1) discuss the scope of needed brick & mortar capital repairs; 2) plan a strategy to address active leaks; 3) develop a plan for long-term façade and roof maintenance and repair

The board had agreed to a Unanimous Consent Resolution (UCR) on a contract with engineering firm Warton, Inc. authorizing a complete visual inspection of building facades and roof level masonry, visual observations of Units reporting leaks and evaluation of reports and drawings from engineering firms and contractors from previous years.

Motion: to approve the UCR in the amount of $4,200 to engage the services of Warton, Inc., originally approved by board members via email on April 11, 2005. Motion Passed

At Warton’s suggestion, the board agreed to the following steps to address water penetration issues at RNC:

  1. Bral Construction, the masonry contractor who performed tuck pointing and brick repair in 2004, will be brought back in 2005 to complete repairs in approximately 18 scaffold drops covering all areas of reported leaks
  2. Bral’s work will be supervised and inspected by Jim Warton, of Warton, Inc., and Patrick Kennelly of Phoenix Rising
  3. The association has allocated $110,000 for brickwork and masonry repairs to be completed in 2005; this is the desired cap for this year’s repairs
  4. Because leaks can be caused by many factors, repairs may or may not provide immediate relief to all units. But Warton is optimistic the repairs will address many issues
  5. Another working session is planned for May 10th to discuss the scope and cost of RNC’s long-term Capital Repair Project

B. Capital Projects: 1) Roof Maintenance & Repair

At recent meetings, the board discussed negotiating a roof maintenance contract at a reduced fee in exchange for hiring the contractor for future replacement of roofs. Further investigation reveals accepting a future obligation would not be in the association’s best interests.

Instead of paying a fee for each repair visit, the board negotiated contracts with Active Roofing Co. of Chicago for spot repairs to 4 active roof leak areas, and for maintenance service to "insure" RNC at no additional cost against leaks over a 12-month period.

Active Roofing offers a 20% discount ($370.00) on repair of 4 active leaks if signed with a service contract. Including the discount, the cost for both agreements would be $15,280, compared with $18,000 budgeted for roof repairs in 2005, a savings of $2,720.

Note: Active’s maintenance contract does not cover natural disasters; payment is due in advance; agreement calls for a 7% cap on increases at the end of one year.

Motion: to approve a Premium Maintenance Service contract for 12 months in the amount of $13,800 with Active Roofing Co., Inc. Motion Passed

Motion: to approve spot repairs of 4 active roof leaks in the amount of $1,480 with Active Roofing Co., Inc. Motion Passed

C. Key Return / Distribution Procedures

  • 25 unit owners retrieved keys during recent key retrieval period
  • A 2-week deadline has been set for key retrieval from PR’s office, after which unclaimed keys will be destroyed
  • PR is installing key lock-boxes in utility closets in Superior and Huron buildings for owner use

D. Garage Power Washing

  • Concerns about basement drains and/or damage to automobiles has prevented RNC from power-washing garages for two years
  • Aqua Shot Company offers a cleaning system that power-washes floors, while sucking up dirt and water
  • Aqua Shot proposal is $2,574 over allocation for 2005 garage cleaning
  • Residents would be given 2 weeks notice of garage cleaning, after which company would clean around remaining vehicles; RNC will accept not liability for loss or damage to vehicles that have not been moved

Motion: to approve power washing of Superior and Huron garages by Aqua Shot Co. in the amount of $7,574. Motion Passed

E. Smoke Detector / Fire Extinguishers

  • Recent incidents of a smoldering fire in the Huron trash compactor, and minor car fire in the Superior loading dock have raised concerns about fire safety and protection
  • Fox Valley Fire & Safety proposes installing smoke detectors in Superior and Huron trash compactor rooms with connections to building fire zone alert systems
  • Provide 2 fire extinguishers to be installed by RNC in trash rooms

Motion: to approve Fox Valley Fire & Safety proposal in the amount of $7,000 for installation ASAP. Motion Passed

F. Evacuation maps

  • Evacuation maps are required by the City of Chicago to be installed between elevators on all floors of Superior and Huron buildings
  • Board has approved design of map

Motion: to create 16 evacuation maps for installation in elevator lobbies at a cost not to exceed $900. Motion Passed

IV. New Business

  1. Window Cleaning
    • Shine On Window Cleaning service proposes cleaning exterior windows of Superior and Huron buildings
    • As a vendor to PR, RNC benefits from bulk service discount
    • Screens to be removed by tenants if they do not slide from outside

    Motion: to approve Shine On Window Cleaning proposal for exterior window cleaning in the amount of $2325. Motion Passed

  2. Landscape Upgrades
    • Kinsella Landscape Inc. proposes landscaping improvements, including mulch/hardwood bark, brick pavers for outside parking lot walkway, hardscaping, replacement of stone and edging, and sod
    • Discussion to extend maintenance contract through 2005

    Motion: to approve Kinsella Landscape, Inc. proposal for landscaping improvements in the amount of $4,100. Motion Passed

  3. Patch / Paint Common Areas
    • WGS General Contractors proposes drywall repairs and painting in common areas throughout the Superior and Huron buildings
    • Discussion: Two options: 1) one-coat all hallways for $5,900; 2) one-coat 2-7 hallways and two-coat first floor hallways of both buildings for $7,650
    • Better protection and appearance from two-coats of paint on first floors (Option 2) is preferred

    Motion: to approve WGS proposal for painting and patching improvements in the amount of $7,650. Motion Passed

  4. Elevator Safety Test
    • Barnard Elevator Co. proposes performing full load safety test, as required by the City of Chicago, on building elevators
    • Discussion: Building inspector has cited RNC for violations; tests are mandatory and needed ASAP; PR indicates price is reasonable

    Motion: to approve Barnard Elevator Co. full load safety tests on building elevators in the amount of $3,360. Motion Passed

  5. Garage Door Section Replacement
    • Overdoors of Illinois, Inc. proposes removal and replacement of bottom section of east Superior garage door
    • Discussion: damage was caused by a resident who ran into garage door with bicycle carrier on roof of SUV; incident reports, witness accounts and damage to door appear to confirm negligence
    • Board instructs PR to bill resident for cost of repair; resident has the right to appeal decision before board

    Motion: to approve Overdoors of Illinois, Inc. proposal for garage door section replacement in the amount of $895. Motion Passed

  6. Bulk Rate Satellite Service
    • USA Wireless Satellite TV proposes offering DirecTV service to all units at RNC at significantly reduced rates; proposal is for service charges to be billed through owner assessments
    • USA Wireless proposes installation of HD satellite dish, giving residents access to HDTV signals for an additional monthly charge
    • Discussion: Benefit to association would be lower costs for basic service, which would be comparable to rates charged by Comcast
    • Board needs more information on miscellaneous charges, including deposits for satellite boxes, service upgrades and installation fees, was well as comparison pricing for comparable internet service
    • A board member will discuss further with USA Wireless and report back at a future meeting

V. Homeowner Business

  1. Water Ponding on Roof
    • Active Roofing Co. proposes installation of two “roof saddles” to raise natural depressions in roofs and eliminate pooling of water
    • Water pooling does not harm roofing materials and is not a leak threat. No action necessary at this time
    • Discussion tabled for future consideration
  2. Air Conditioning Unit Vibrations
    • With the return of warm weather, several 7th floor unit owners report vibrations from air conditioning units mounted near their residences
    • Funds were allocated in 2005 to address vibration issues
    • PR instructed to fix problem
  3. Mailbox Remounting / Superior Building
    • Property manager instructed to look into problem and take corrective action at all units reporting problems

VI. Committee Business

  1. Social Committee
    • Committee members report large attendance at monthly Third Thursday gathering at Zealous Restaurant; the next Third Thursday is May 19, beginning at 5:30 pm, at a location to be named
  2. Decorating/Facility Committee
    • Lobby renovation of Huron building was designed to include a mirror on the East wall and an interior bench
    • Committee chairman will obtain bids for purchase of mirror and bench for future consideration by board

VII. Management Report

No outstanding issues.

VIII.Open Forum

  1. Key Return
    • Further discussion of RNC’s key policy by owners in attendance
    • A memo from Board will be issued outlining RNC’s policy and giving owners a final opportunity to retrieve keys from PR office, 1609 S. Halsted Street, prior to key destruction
    • Residents are advised security personnel are not authorized to accept or hold residents’ keys for any reason.
  2. Borrowing Building Ladders
    • A resident raised concerns about an “Illinois Ladder law,” which assigns responsibility for personal injuries resulting from the use of a ladder to the owner of the ladder
    • The resident questioned whether it was wise for RNC to loan building ladders to residents, given the possibility of association liability
    • PR recommends against this practice
    • After discussion, board members instructed PR to ensure that building ladders are securely stored and not loaned to unit owners or residents

Meeting adjourned at 8:30 PM