Fourth Quarter Board Meeting Notes

FROM: Amanda Klepitsch

RECA Board,

First and foremost I want to thank Niko/Mike for a very informative and productive meeting last night, but also I want to stress that I am happy to be apart of the River’s Edge Condo Association team. I hope to continue the excellent working relationship we have! Below is a recap of projects complete, current action items/projects and spring projects for 2012

Accomplishments for 2011 to date,

-       Transition from self management to Cagan Management; transfer of all documents, transfer of vendors and opening an operating bank account through Banco Poplar for collection of assessments

-       Nici Carpet Cleaning was out to clean carpets throughout the building in September

-       Danny Escobar was out to rod the main lines for the building as of July 2011 and a kitchen stack from the roof in October 2011

-       Three quotes were obtained to repair four manholes, potholes, cracks in the S parking lot of the building as well as sealing and striping. It was decided to hire Allways Paving for a negotiated price of $4K to also include a cement section on the side E entrance of the building. The work was expedited in October 2011

-       Management obtained quotes for scavenger service through Groot, Lakeshore and National to compare with Allied’s pricing for either negotiations or to switch providers. The lowest bid obtained was for $140 per month; Allied matched the price and although they requested a 5-year agreement, they dropped the agreement down to 1 year through December 2012. This saved the association $100 per month/$1,200 per year

-       Four snow bids were presented to the board for review and given the pricing, it was decided to stick with Italian Landscapes, whom the association has used for several units. The contract was signed and submitted and as discussed at the meeting, I will keep a cognizant eye on their billing

-       New mailbox tags were put on each mailbox for a neat appearance. Moving forward, new tags will be ordered for any new names that are displayed

-       Sent a violation notice/warning to 2A related to cigarette smoke in the halls

-       Paint touch-ups and minor repairs were done in the hallway for minimal pricing per Niko

Current Action Items/Pending,

-       After obtaining multiple bids to replace the porches at the community, Mastercraft was hired to replace the 4 N side balconies at our meeting in September. A deposit for the porch project and survey was provided to Mastercraft in the amount of $3,760 ($7,240 remains as a balance owed for the project upon completion). We expect the plans to be ready within the next 2 weeks per John of Mastercraft

-       As you know, the rule and regulations draft has been prepared for the board’s review and consideration. Please take a moment to provide any feedback (suggestions on additions or removal). Once the final draft is complete and majority of the board approves the draft, we will schedule a special meeting 30-days out to approve

-       At the meeting last evening, the 2012 budget draft prepared was discussed and changes to the draft budget will be provided shortly for the board’s review

-       Management has requested loss runs through State Farm (association’s current provider) so we may investigate alternative insurance providers for package policy and worker’s compensation for potential premium savings. Mesirow and Cisa were notified; I am going to get the physical quote from Lakeview Insurance Agency whom was estimated at $5K

-       Units 1A/Kugleman and 1F/Kowka will be given a 60-day notice to either comply with the association’s mandated requirement to change out their windows and/or have the appearance from the exterior of the building conforming with other units, or they will be subject to a $500 fine. Furthermore, the association may choose to have the work completed and bill back the costs involved in doing so

-       Satellite dishes: Management will be drafting a letter to DirectTV and Comcast regarding 1) relocating dishes to the roof or they will be subject to disconnection and 2) clean up the cable wiring and boxes, and relocating as feasible, wiring to the W side of the building (neatly).

-       1D/Lannon and 2A/Santoro, will be sent to the association’s attorney, John Brennock for further legal actions against the unit. I will be informing the board as to the next steps we may take moving forward

-       Notices will be remitted to all other owners that have fallen behind now that the accounts are fully reconciled

-       Estimate will be provided regarding fire extinguishers that should be in halls and laundry rooms

-       Will obtain an estimate through Colley and other elevator vendors to get the elevator emergency service phone installed and any other legal necessities

2012 spring projects and maintenance,

-       2^nd Phase of porch project through Mastercraft, estimated at $5-$8K, plans already will be prepared from 2011 so it is a matter of getting permits to move forward

-       Annual Maintenance to include,

§  Hall touchups (as necessary)

§  Carpet cleaning, twice annually

§  Full plumbing maintenance rodding/basin cleaning

§  Roof inspection/repairs

As you know, we will be looking at a meeting some time in December for the Rules and Budget meeting. I will be re-connected with you on dates of availability so we may schedule. If there is anything I missed, please let me know. Otherwise, have a great weekend all!

Amanda Klepitsch

Property Manager

O: 847.324.8937

F: 847.679.5516

3856 West Oakton Street

Skokie,  IL  60076

Meeting was Yesterday November 2nd

The fall meeting was yesterday due to scheduling conflicts. So there is no meeting tonight. We apologize about the mixup. We will let you know about the next one.

NEW DAY: Fall Board Meeting - November 2nd

NEW DATE: The Fall Board meeting 2011 will be held on November 2nd at 7pm at Unit 2H. All are welcome:

Topics:
1. Standard window styles to be made mandatory. All must comply with existing window style used by most units.
2. Assessment status and collection efforts.
3. Mail theft by one owner.
4. Rules and regulations. Vote on fees and fines schedule
5. Project status
6. Budget
7. Other open business to be completed

Length of meeting will be strictly one hour.

Board Meeting Postponed Until August 18th

Unfortunately due to last minute scheduling conflicts the board meeting must be moved to August 18th. It will be held at 7pm at Unit 2H.

Thank you.

Quarterly Board Meeting Wednesday July 13th

The 3rd Quarter 2011 Board Meeting will be held at Unit 2H at 7pm. Topics to be discussed and voted on:

• Replacing North balconies
• Installing evergreen bushes to define front walkway corners
• Minor General repairs

All are welcome to attend.

New Address for Assessments

Starting July 1st please send your assessments checks payable to "River's Edge Condo Association"

Cagan Management Group
3856 Oakton
Skokie, IL 60076

Introductory packages will be delivered to all units. Renters should forward these to the owners of the units.

Package Thief is Bill Kugelman

After months and months of trying to figure out who was stealing my packages, I finally caught Bill Kugelman several times with a hidden micro-camera.

I was happy to know who the thief was but at the same time sad that it is a neighbor. Today I decided to write a personal note to Mr. Kugelman to let him know that I have the videos and allow him the choice to return all the packages, list all packages that he stole and apologize in writing to me. In return I would keep this a secret.

To my surprise I found my note posted in the lobby with the note from Mr. Kugelman "Show Me the Video".The video can be requested from Niko Spyridonos. There are 7 hours of video clips and 5 instances of Kugelman stealing packages.

I have no choice but to proceed with criminal charges and civil lawsuit for damages. This man is actually dangerous. He thinks he is above the law and his ego is bigger than life. He needs a reality check. His reality check will be upon him soon.

I am really sad it came down to this.

Niko Spyridonos

Board Meeting March 14th 2011

Present Members:
Niko Spyridonos
Mike Keating
Julia Perisot

The Board of Directors met at 6pm at Unit 2H to review and discuss the contracts by Cagan and Connected Management. The Board unanimously decided to interview Connected Management representatives at its next board meeting on Monday March 21st at 6pm at Unit 2H.

Niko Spyridonos will request a few contract changes from Connected and request to have a new contract for review before March 21st.

General Meeting - March 7th, 2011

Our Treasurer Mike Keating organized our 2011 General Meeting to allow the Association to decide whether to hire Cagan Management Group to manage our property or choose another property management company.

18 Units were represented at the meeting (4 with proxy votes).

Amanda Klepitsch from Cagan Management Group was present to address all our concerns and answer questions for the first 35 minutes of the session. Amanda left with a few questions that could not be answered.
a) Pending lawsuits to Cagan
b) Member of BBB
c) Fees to owners for collecting assessments if we do not use Banco Popular

General Meeting

• 30-minute debate about the topic of  transferring our management to Cagan or other comparable management company.
• Owners voted 12 YES and 6 NO (66.7%). The Association elected to use Cagan Management Group or another management company for no more than $615/month and per final contract review and fee structure. The regulations state that in order to transfer to a management company a 2/3 of the vote is needed. The voting result was sufficient to elect to switch to a management company.
• It must be noted that the Association will continue having an active board that will manage the relationship with the Management company and will fire the management company if there is general dissatisfaction with their services.
• Mike Keating will request a comparable contract from Connected Property Management, LLC to compare with Cagan and decide between the two companies. The Board of Directors shall decide which company to use in an upcoming special Board meeting.
• The Association elected a new Board of Directors unanimously as follows:
  - Niko Spyridonos (3D) - President
  - Mike Keating (2D) - Treasurer
  - Julia Perisot (3F) - Secretary
  - Phil Geib (1F) - Member

This was a very good and constructive meeting and it shows that the State of Our Association is still strong and we all share the same goals and vision for the future of our property.

Congratulations to our Association for thinking forward and embracing challenges of the future.

17 Reasons why we should hire a management company

1. As of today we are owed $10,284 from owners that do not pay. The management company will put processes in place to collect the money.
2. Manage the wear and tear of the building by forecasting maintenance projects. This protects our building and unit values.
3. They provide automatic payment options for assessments.
4. They manage our bills and pay them on time. They simplify things for us.
5. They negotiate with vendors on our behalf so we can save money.
6. They advise on long term projects and provide accurate budgeting.
7. They advise us on legal matters and provide us options to cover ourselves legally.
8. They negotiate insurance claims and insurance costs on our behalf.
9. They seek competitive bids for projects and hire contractors on our behalf to our specifications.
10. They file our taxes and provide accountant services.
11. They file for garbage disposal rebates with the City every year so we don’t have to do it.
12. They deposit our money to our account on a timely manner.
13. Lower maintenance and repair costs. They manage the property and catch problems early. This causes us to spend less on maintenance and repairs.
14. 24-hour emergency service to provide less stress for us. Less to worry about, only a phone call away.
15. For those that live away from the property they will have the peace of mind that the property will be managed well.
16. They provide tenant screening for renters. They can manage safety.
17. They provide financial and legal information to mortgage companies when owners are selling units or refinancing. This is a very time consuming process.

We can afford it: $615/month. We do have the money, no need to raise assessments to cover the cost.

Management Company

Dear Neighbors,

The Association is facing many challenges that cannot be managed by the current board of directors. We have reached a point that we need professional help by acquiring the services of a management company.

As owners are trying to sell their units or refinance, mortgage companies are asking for details that this board has no resources or the know-how to produce. At the same time there are several owners that are very late on their assessments. In the past we had hired an attorney to place liens, file lawsuits and perform collection duties. This practice is no longer sustainable and this board cannot play the role of collector.

There continue to be theft of courier and US Mail packages by someone and the Association needs to have surveillance video to monitor common elements. We can no longer police the building.

Our insurance has gone through the roof and we must raise assessments to pay for our bills. The building needs care and constant attention and the Board is at no position to do all that is needed to handle the building needs.

It is my intention to hire Cagan Managemenet of Skokie Illinois and will dissolve the current Board of Directors which has served without an election since April 16, 2008. As many of you know, the Association had elected to hire Cagan Management on April 16, 2008 but the Board decided to hold off since at the time the workload was still manageable. This is no longer the case and with the economic slow down and mortgage market collapse the Association needs to run in a manner that we at the Board do not know how to execute.

This board is unable to deal with the many issues that are necessary to keep the Association in good standing. Summarizing the pressing issues and concerns:

• Over $9,000 in past-due assessments receivables. Those of you that have not paid you must pay immediately. The situation is getting out of hand and the Association will do whatever it takes to protect its interests.
• Huge insurance costs. Insurance cost is over $12,400 this year and it will continue going up.
• State Farm is requiring that we do certain maintenance work on the building or will drop us.
• There are several construction projects that must be performed. For example, South balconies, foyer concrete, rotting wood surfaces through out building.
• Lenders are requiring us to have detailed records and expertise that only professional management offices can produce. We do not have the capacity to do what is needed to stay in good standing.
• There are concerns about theft of packages and the building needs to be monitored.

The cost of Cagan is $615/month. The Association will be able to handle this cost for the 1st year and the Management company will be able to determine assessment increases for the rest of the year or next year. Assessments were increased in April of 2008 to cover the costs of Cagan.

Cagan Management has been put on notice. It is my intention to hire them within March of 2011. Immediately after Cagan is hired I will dissolve the board, will assign full responsibility to Cagan and call for new elections. If any owner has an objection, he/she is welcome to take over the day to day management of the building and run the board, call for elections now and take over cash management responsibilities.

Thanks.

Niko Spyridonos

2011 Budget

River's Edge Condo Association   
2011 Budget       
Revenue    Cash Reserves                       $18,000.00
2011 Assessments Income     $38,100.00
Receivables Assessments       $5,000
Refuse Rebate                       $3,000
TOTAL INCOME               $64,100.00
   
Expenses
Scavenger/Recycling              $3,000.00
Snow Plowing                       $2,000.00
Electricity                              $2,250.00
Water/Sewer                        $3,250.00
Payroll                                  $6,000.00
Annual Building Maintenance $2,000.00
Insurance                              $12,430.00
Real Estate Taxes                  $160.00
Landscaping                          $550.00
Elevator Service                    $400.00
Management Company         $6,000.00
Miscallaneous                       $1,000.00
SUB-TOTAL                      $39,040.00
   
2011 Projects   
Landscaping                         $2,000.00
South Balconies Rebuilding   $10,000.00
Building Repairs                   $3,000.00
Elevator Upgrades               $2,000.00
SUB-TOTAL                     $17,000.00
   
TOTAL EXPENSES         $56,040.00