June 28, 2005

Meeting Time

Meeting Time: called to order at 7:05 PM

River North Commons (RNC) Board Members

Debra Siena
Bruce Howard
David Desser
Rick Edel

Phoenix Rising (PR)

Eric Fordyce

NOTES / MOTIONS

I. Approval of Minutes

Minutes of the meeting of April 26, 2005 were approved

II. Financial Status as of May 31, 2005

  1. Cash on hand in the combined Operating Fund and Replacement Reserve Fund was $486,625. The replacement reserve continues to grow with an end-of-month balance of $349,716.
    • Assets: Cash in the Operating Fund is greater than anticipated as a result of a few budgeted expenses which have not yet been paid; income is up significantly as a result of improved collection of assessments as owners adjust to transition to a new property management company
    • Liabilities: the Association’s 5-year bank loan remaining balance is $89,797; the association has undetermined liability for $38,000 in January snow removal fees, which it is contesting
  2. A recently completed transition audit verified all accounting issues relating to the changeover in management companies from The Building Group to Phoenix Rising on 2/1/05

III. Old Business

  1. Capital Projects: Brick & Mortar Repairs for 2005
    • Work began in mid-June on the north side of the Superior building. Eight drops are scheduled, with the first two drops now complete; a third drop is 75% done. The north elevation will take about four weeks. Work will continue throughout 2005 on approximately 18 scaffold drops covering all areas of reported water infiltration.
    • Project mobilization: A 30-foot rolling sidewalk canopy has been erected and is being moved as work begins on each drop. Swing-stage scaffolds, fixed scaffolding, scaffolding baskets and ladders are being used for repairs. Contractor has removed boards from rooftop decks to brace scaffolding; boards will be replaced as drops are completed.
    • Nature of repairs includes grinding and tuckpointing, rebuilding cracked or shifted masonry and caulking, and removing loose or shifted masonry.
    • The board is committed to managing capital repairs in a consistent, cost-effective and strategic way.
  2. Bulk Rate Satellite Proposal update
    • USA Wireless Satellite TV proposes offering DirecTV service on a contract basis to all units at RNC at significantly reduced rates
    • Board is conducting competitive analysis and will report back at a future meeting
  3. Frederick’s Snow Removal Update
    • Frederick Corporation, Blue Island, was contracted in January 2005 by the previous management company (The Building Group) to remove snow from association property. Invoices totaling $38,341.10 for January snow removal far exceed amount authorized by RNC. Association is disputing invoices, but anticipates this will lead to litigation. The board will confer with legal counsel and report status at next meeting.

IV. New Business

  1. Warton, Inc. proposal to develop a short-term capital repair program

    2. The board had agreed by Unanimous Consent Resolution (UCR) to authorize engineering firm Warton, Inc. to: 1) develop a short-term repair program plan targeting units reporting water infiltration; 2) perform walk-through inspections; 3) contact, meet and obtain estimates from contractor Bral Restoration, LLC.

    Motion: to approve UCR in the amount of $4,200 to engage the services of Warton, Inc., for planning and supervision of 2005 capital repairs. Motion Passed
    1. The board previously had retained Warton, Inc. to develop a long-term capital repairs
    2. A working session is planned for late July or early August to discuss Warton’s recommendations for the long-term repairs; board members will report on these at a future meeting
  2. A/C Unit Vibrations Proposal
    1. Various residents of the Superior and Huron buildings have reported noise and vibration from condensing units located on building rooftops
    2. Master Plumbing & Heating Co. (MP&H) was invited in May by property management to inspect installation of units and recommend ways to reduce noise and vibration
    3. MP&H proposes installing anti-vibration padding to wood frames under 200 units, leveling units and anchoring padding to frames

      4. Discussion: Management company and board members agree that a test will be necessary to ensure that recommended repairs would adequately reduce noise and vibration from units.

      Motion:       to authorize a test of recommended repairs on a time and materials basis, and if test is successful, to authorize Board President or Treasurer to sign MP&H contract in the amount of $9,500, plus reasonable additional charges for time and materials. Motion Passed

  3. Fitness Room/Elevator Door Painting Proposal
    1. Fitness room has not been painted since development of RNC. WGS General Contractors proposes to glaze all drywall abrasions and paint walls at a cost of $1,330
    2. Elevator door jams in Superior and Huron elevator lobbies are in need of a fresh coat of paint. WGS proposes painting 32 doorjambs at a cost of $1,585

      3. Discussion: Board members agree painting and repairs are necessary. Board authorizes Decorating Committee to provide direction to WGS.

      Motion: to approve a contract for labor and materials in the amount of $2,915 with WGS General Contractors to paint exercise room and elevator door jambs. Motion Passed

  4. Insurance Policy Renewal RNC’s

    insurance broker, S.T. Neswold & Associates, Inc., proposes policy renewals for 2005/06 with the following carriers, limits, deductibles and annual premium costs:
    • Discover Insurance Company (Property Insurance), blanket buildings $35,000,000; loss of income and extra expense $1,000,000; deductible $5,000 per occurrence – building & contents. Cost: $46,633
    • Nationwide Insurance Company (General Liability – no deductibles), general total limit $2,000,000; products & completed work total limit $2,000,000; personal injury each person limit $1,000,000; advertising injury each person limit $1,000,000; each event limit $1,000,000; fire damage limit (any one fire) $100,000; medical expense limit (any one person) $5,000. Cost: included
    • Travelers Insurance Company (Crime Insurance), $500,000 employee dishonesty ($5,000 deductible); $50,000 forgery or alteration ($1,000 deductible); $25,000 money & securities ($1,000 deductible). Cost: $770
    • Chubb Insurance Company (Umbrella Liability), $25,000,000 per occurrence limit; $25,000,000 aggregate limit; $10,000 retained limit. Cost: included
    • Great America Insurance Company (Directors & Officers), each claim $1,000,000, aggregate $1,000,000; deductible $2,500 identifiable loss. Cost: $1,442
    Discussion: Various board members express concerns whether all insurance policies are needed. Broker notes all policies are required as part of package. Board members also are in agreement that reducing coverage would not be wise. Total cost of insurance also fits within 2005 budget allocation.

    Motion: to approve renewal of 2005/06 insurance contracts in the amount of $48,845 (plus workers’ comp, if any, in the amount of $850) with S.T. Neswold & Associates, Inc. Motion Passed

V. Homeowner Business

  1. Assessment Statements
    • Due to rising cost of mailing monthly assessment statements to owners (approximately $3,600 annually), the RNC board agreed to stop funding the cost of mailings as of Sept. 1, 2005
    • After that date, owners will have the following options: 1) Continue to pay or sign up to pay via electronic funds transfer; 2) Continue to pay a monthly assessment without any notice, statement or reminder; 3) Continue receiving monthly statements at a cost of $60 per year; 4) Receive a coupon book detailing monthly assessment fees at a cost of $10 per year
    • Board members agreed to use the final August statement mailing to describe options and to encourage owners to begin paying monthly assessments via automated payment
  2. Flyer inserts in monthly statements
    • A resident recommends inserting flyers in assessment mailings to promote association functions, such as the RNC book exchange. Because statements will no longer be mailed, board members suggest encouraging owners to enter their email addresses at rivernorthcommons.org to receive notice of RNC functions and business via email communications
  3. More attractive storage in parking spaces. 
    • A resident recommends board endorsement of plastic storage container residents can use in parking spaces. Referred to RNC decorating committee for further consideration and recommendation
  4. Non-resident use of parking spaces
    • Board members are seeking details about use of parking spaces by non-residents. Board instructed management to include a form in August assessment mailing requesting information on ownership and verification of insurance coverage for cars parked on association property

VI. Committee Business

  1. Social Committee
    • Next Third Thursday event on July 21st will be held in Huron Party Room with theme of Italian Café, including a wine tasting and catered food; event replaces RNC’s annual Grillin’ & Chillin’ cookout; all residents are welcome
    • Committee is now considering level of interest in hosting annual Loft Walk
  2. Decorating/Facility/Landscaping Committee
    • Committee members replaced bushes in front door planters at a cost of just over $200 versus an estimate by landscaping company of about $750, saving RNC approximately $500
    • Concerns were raised about dog owners using RNC planting beds as dog lavatories; committee was asked to create and post signs reminding residents of association rules prohibiting such use
  3. Web Site Committee
    • Residents are urged to visit rivernorthcommons.org/News & Events to sign-up for association mailings
    • Web site will send only permission-based emails regarding association business and committee activities; no commercial or advertising emails will be permitted

VII. Management Report

  1. Property Manager provides status on list of board-approved action items, including:
    1. Installation of smoke detectors/fire extinguishers in trash rooms completed
    2. Installation of evacuation maps in stairwells and elevator lobbies completed
    3. Landscaping upgrades completed
    4. Elevator safety test completed
    5. Garage door section replacement installed
    6. Roof maintenance completed
    7. Key return distribution completed
    8. Garage power washing completed
    9. Patch/paint common areas completed
    10. Carpet cleaning completed
  2. Pending items include:
    1. Contracts for snow removal, plumbing maintenance, HVAC, Security, fire prevention, alarm monitoring, elevator maintenance, exterminating, garage/gate maintenance and compactor
    2. Additional pending items include addition of door by management office, fire protection proposals, motion detector for lights in storage area, and security system improvement

VIII.Open Forum

  1. Transition from Comcast to DirecTV and possibility of installing high-definition satellite receiver
    • Further discussion with DirecTV on terms and conditions of contract is needed; board will report at a future meeting
  2. Report of early morning vibration of water pipes in Superior Building
    • Property manager believes problem can be eliminated by adjusting water pump timer; maintenance will look into problem and report back to affected units
  3. CAPS meeting report
    • RNC representative report that neighborhood crime is down overall, however a few recent serious incidents serve to remind RNC residents of the importance of caution in securing personal and association property

Meeting adjourned at 8:15 PM