September 27, 2004

Meeting Time

Meeting called to order at 7:05pm

Board Members

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

The Building Group

Tania Zawadzki (TZ)

NOTES / ACTION ITEMS

1. Approval of Minutes

1.1. Minutes of July 26, 2004 Board Meeting Approved by board

2. Financial Overview (BH)

2.1. BH presented the Treasurer’s Report

JOINT PROPERTY TAX APPEAL: Our Joint Property Tax Appeal has come to a successful conclusion. Our Board Treasurer will this week send a letter to all owners providing a more in-depth discussion of the results to augment the brief explanation that was included in the Assessments Statement mailing last week. Here's a brief summary:

The joint appeal reduced the 2003 aggregate assessed valuation of RNC from $5,877,562 to $5,782,080... a reduction of $95,482 (about 1.6%).
This lower valuation should remain in effect until the next reassessment in tax year 2006, so this lower valuation will be used for our 2003, 2004, and 2005 property tax computation.
The tax rate and equalization factor may change in each of these years, but based on last year's (2002) rates, this favorable appeal should result in an annual tax savings of about $17,000 in each of these three years.
The assessed valuation is divided among unit owners in proportion to each owner's percentage of ownership and so is the estimated tax savings. The individual owner's annual tax savings ranged from about $52 to $192 per year.
Our arrangement with the law firm that handled our tax appeal is to pay them 20% of the tax savings, so we will this month pay them $3,430 for their services. This fee was apportioned among the owners in accordance with the percentage of ownership and included in the Assessment Statements for assessments due October 1, 2004.

FINANCIAL STATUS AT JUNE 30, 2004:

Cash balances in the Operating Fund plus Replacement Reserve Fund are on budget and are at a combined total of $148,615; we have an additional asset of $13,517 in cash in Gas & Electric Deposits. Thus far we are on track to rebuild our Reserve to over $100,000 by year end.

Income year-to-date total of $598,125 is slightly better than budget due to an improvement in our assessments delinquency status and other income such as move-in/out fees.

Expenses year-to-date total of $558,090 is on budget overall. We have moved an extra $20,000 from our checking account to our savings (reserve) account, so our rebuilding of our Reserves Fund is a bit ahead of schedule.

Assessment Payments status continues to be good and we have no significant dollar amounts in the over 60-days overdue category. Our total assessments owing is $3,700 and no owners have a non-current balance of more than $500.

BANK LOAN:

As previously reported, our $100,000 bank loan is has been approved. After conquering paperwork and "red tape" and we now expect the funds to be deposited into our reserve account by the end of September. This loan is intended to fund the first $100,000 of brickwork leak repairs which are now in progress. The payments on this loan are included in the approved 2004 budget and regular assessments.

3. Old Business

3.1. DS Discussed the building facade repairs:

Bral Restoration continues to repair drops #10 and #33 units from floors 4 to 6.
A change order of $58,000 to complete drops #10 and #33 was approved.
The board is working with Bral to determine the next drops to repair.

3.2. DS Discussed the status of EDC $ settlement:

After performing due diligence in the form of a façade study, water penetration study, mortar test, etc., the Board of Directors approved the Enterprise Development Company settlement of $175,000.
The funds will be used to repair the façade that allows water penetration.
By accepting the settlement, RNC waives the rights of the building to sue Enterprise for any common area issues.

4. New Business

4.1. Wireless Internet

BM We are currently testing AWB High Speed Internet in 7 units. To date, we have had 1 problem that affected all testers. A crane was erected between the antenna on the RNC roof and the AWB transmitter causing all testers to lose access to the Internet.

4.2. Building Manager Update

DS Announced that Tania Zawadzki is our new building manager for the Building Group.

4.3. Eliminate Comcast from the building

We are not going to allow Comcast into the building. Repairmen have been cutting the wires of DirectTV customers. David to negotiate best deal with DirectTV for unit owners.

4.4. Open BOD position

DS Announced that Ken Sherman is moving from RNC. Rick Edel was appointed by the board as the interim replacement until the December elections.

4.5. Misc – DS – Stated that residents need to keep loading zones open and boxes out of trash room.

5. Committees

5.1. Rules and Regulations

The Rules and Regs committee sent a draft of the permanent Rules and Regulations to the BOD on September 21

6. Neighborhood Update

There are 5 new high-rise development projects in the works. There will be an RNRA meeting at Reza’s with Alderman Burton Natarus on November 9th at 7:00 p.m. to discuss the Butterfield and Ronsley developments.

7. 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.