247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 23 August 2004, Unit 402 Directors Present: David Terry, Chase Milbrandt, Gary Hill 1. Call to Order President Terry called the meeting to order at 7:35 p.m. Dan Stone was present from Collins Management. Members present were Alan and Becky Caudill, John Hagar, Kerry Newkirk, Roberta RendahI, and Arthur Robinson. 2. Entranceway Fan Mr. Terry announced that the fan should be installed in the entranceway soon. 3. Garage Waterproofing Mr. Terry moved that the lime and Materials contract/proposal dated July 29, 2004, from Rainbow Waterproofing & Restoration Co. be accepted.. The board approved this unanimously. Mr. Terry moved that we proceed under the contract to repair the remaining leaks in the east corner of the garage, with limit not to exceed $5000. The matter was discussed, then suspended due to the arrival of Mr. Tippett of ErTech. 4. ErTech Waterproofing Richard Tippett arrived, representing ErTech. Mr. Terry reported that the board had received revised proposals from Mr. Tippett, which divide the proposed work into three parts: 1. correction of leaks through the walls 2. correction of category three window problems 3. restoration of the front of the building Mr. Tippett spoke at length on the background of Erlech, and on the proposed work, with specific emphasis on the sealing of leaks through the concrete walls unrelated to the windows, using technology demonstrated in Unit 401 to seal the cold joint where the wall meets the floor. Sealing the joint from the inside with epoxy injection has a far lower cost than sealing from the outside, particularly when scaffolding or a hoist would be required, but the seal is visible on the inside wall. Mr. Tippett estimated that sealing all of the cracks which show evidence of leakage could cost up to about $30,000 exclusive of his project management fee of $12,000. Sealing of the cracks as specified in the first proposal will significantly reduce the water intrusion problem without implementing the second and third proposals. There was extensive discussion of the matter by the board and all present. Mr. Terry asked Mr. Stone whether, in his opinion, the ErTech fee was fair for the services proposed to be rendered. Mr. Stone stated that it was. Mr. Tippett departed (at about 9 pm). There was extensive discussion of how to pay for the proposed repairs. Mr. Hill reported that the repair of leaks was nowhere anticipated by the Reserve Study, that all funds in the Reserve Account, and all contributions being made to the Reserve Account, were budgeted by the Reserve Study, and that therefore the proposed work was unfunded. He stated that while there was no question that the proposed repairs were a proper use of reserve funds, and that sufficient money was available to pay for the repairs contemplated by the first proposal, the question to be considered by the board was how the funds should be restored to the Reserve Account. Recovering the entire worst case cost of $42,000 in one year would exceed the limit on the board to raise the assessments without approval of the membership (20%). Mr. Hill stated that he opposed an assessment increase which would require a vote of the membership, and that he did not consider the proposed repairs to be an emergency which would justify bypassing a vote of the membership. Mr. Stone advised that the cost could be recovered over a two or three year period. Mr. Terry moved that the proposal from ErTech dated 19 July 2004 identified by subject as: `Proposal for Providing Consulting Services to Correct Leaks Through Walls' be accepted. The motion carried unanimously. 5. Garage Waterproofing (more) The board returned to the subject of the proposal from Rainbow for further work correcting leaks in the garage. The motion to proceed with sealing the remaining leaks in the east corner of the building carried unanimously. Rainbow is asked to inform the board before proceeding. if it appears that the cost will exceed $5000. Mr. Stone will follow up to schedule the work. 6. Resolution - Rule 4.8-i Mr. Hill introduced a resolution which would revise Rules 4.8-i A and 4.8-i C, concerning the calculation of utility surcharges for the restaurant which occupies Unit ill, and moved its acceptance (attached). He stated that the change to Rule 4.8-i A will clarify the calculation of the electricity charges by defining the accounting for the meter service charge in the manner approved by the 1999 board, and that the change to Rule 4.8-iC will remove obsolete language concerning the `two yard dumpster,' and change the charge for refuse removal from a fixed $175 to 2S0Io of the cost of regular compactor service, which will be approximately $190 per month. He stated that the resolution had been submitted to 247 Partners, owners of Unit iii, for review, and that they had not raised any objection. Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 23 August 2004 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 5 July 2004, Unit 402 Directors Present: David Terry, Gary Hill Director Absent: Chase Milbrandt 1. Call to Order President Terry called the meeting to order at 7:10 p.m. Collins Management was not represented. Members present were Lynne Huntting, Roberta RendahI, and Arthur Robinson. Richard Tippett of ErTech was present after 7:30. 2. Minutes The minutes of the board for June 16 were approved unanimously. 3. Fly Abatement Mr. Terry reported that Terminix has recommended a ceiling fan as the most effective means of combating the problem of flies congregating in the entranceway, as they prefer still air. Mr. Hill asked whether any research had been done to select a fan, and Mr. Terry reported none as yet. Mr. Hill stated that his requirements were that the fan must be architecturally compatible with the building, and that it must be of sufficient quality so as to provide years of maintenance free operation. He presented documentation of several fans of an industrial design, and recommended the Emerson HFl l6OBK as being the most suitable, particularly as it is intended for high ceilings. Mr. Hill took an action item to obtain a quote for the fan he recommended. 5. Garage Lighting Mr. Hill reported that ten of the four foot two lamp fixtures have been installed, and that one remains to be installed. All two foot fixtures remain to be installed. 6. ErTech Mr. Tippett arrived, representing ErTech. Mr. Terry reported that the Association's relationship with F. L. Arms had been terminated, and that a proposal had been solicited from ErTech to manage repair work suggested by the Leak Report. Mr. Tippett gave background on ErTech - 25 years in business, first in roofing, then waterproofing. Since the early 1980's, ErTech has specialized in waterproofing, with many clients being common interest developments. Ms. RendahI accused Mr. Hill of favoritism toward Cuckoo's Nest with regard to the calculation of assessments for Unit ill. Mr. Hill emphatically denied this, and he considers the accusation to be false and defamatory. The motion carried unanimously. 7. Resolution - Privacy of Telephone Numbers Mr. Hill introduced a resolution which would remove telephone numbers from the membership roster, and heretofore include them in the roster only with the consent of individual members on being advised that the information could be released to other members. Mr. Hill stated that he was outraged that telephone numbers had recently been released by the action of one director, which was unprecedented. He stated his position that members should receive only what they were entitled to by law, that being members' names, mailing addresses, and voting rights. The matter was discussed by all present, some persons pointing out that the Bylaws of the Association state that the roster includes telephone numbers. Mr. Terry tabled the motion with the concurrence of Mr. Hill, Mr. Milbrandt objecting. 8. Budget Mr. Hill gave a draft of budget data to the board and to Mr. Stone, and said that he would work with Collins Management to produce a budget for board action soon. 9. Minutes The minutes of the Board for July 12 were approved unanimously. 10. Adjournment The board adjourned at 9: 0 p.m. Gary A. Hill, Secretary Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 23 August 2004 such as the Crescent which were described as "contractor friendly" were cheap items intended to help contractors submit low bids. He advised that it was poor economy to keep the cost of a project low by buying the cheapest equipment available, and that we ought to install fixtures which we could expect to be in good condition ten or fifteen years hence. He further reported that after thorough research he believed that the Lithonia fixtures were the best for the application, but that nevertheless he thought the overall quote was too high, and that he therefore had requested a quote for phase one of the project, which would install 13 fixtures around the garage in the driveway area and in the walkway behind the elevator, excluding the lighting directly over the parking bays. Lighting in the parking bays would be addressed in phase two after completion of phase one and researching alternatives which could lower the overall cost. Current Electric submitted a quote of $4090 for 13 Lithonia VSL fixtures. Mr. Hill advised proceeding with phase one immediately and moved acceptance of this quote. Mr. Milbrandt and Mr. Terry expressed concern about further delay by implementing the project in phases, and said that they were inclined to proceed with the full proposal for 30 fixtures, even though it was expensive. At this point, F. L. Arms showed up, and the garage lighting item was tabled. 5. F. I. Arms Report The board received (some days previously) a document titled "4th Street Lofts Leak Report," dated March 24, 2004 from F. L. Arms & Associates. Present from F. L. Arms were Frank Arms, Ray Booth, and Paul Platt. Mr. Booth discussed the report at length, dividing the problems into three categories: the elastomeric sealant system, steel windows, and garage water intrusion. VIP elastomeric paint was applied to the rear wall in 1997 and the Alice Street wall in 1998 by George E. Masker, Inc. The Fourth Street wall has not been painted since the original buildout ca. 1992. The report supports the contention of VIP that the continuing problems with water intrusion on the walls treated with VIP materials are not a result of a failure of the materials, but of the preparation and application. George E. Masker, Inc. has made several proposals for further work, at additional expense, but disclaims any further responsibility for warranty work. The consensus of the board is that we are not willing to pay any additional money to Masker. Open questions are whether they should be expected to do any additional work under warranty at their own expense, and whether the Association should seek any compensation from Masker. Mr. Hill stated that he did not want George F. Masker, Inc. doing any further work on the building even at no cost. The steel windows are a difficult problem because continuing rusting makes it difficult to stop the leaks. The cost of controlling rust is increased by the problem of asbestos and lead in the putty and paint. There will also be significant noise associated with repair and restoration or replacement of the windows. Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 13 April 2004 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 13 April 2004, Unit 104 Directors Present: David Terry, Chase Milbrandt, Gary Hill 1. Call to Order President Terry called the meeting to order at 7:35 p.m. Collins Management was not represented. Members present were Patricia Beadles, Ray Boyer, Mike Fackovec, Steve Fossum, Lynne Huntting, Kerry Newkirk, Jim Pire, Roberta RendahI, and Arthur Robinson. Also present was Steve Lowery representing Pauletta Chanco. 2. Minutes The minutes of the board for March 18th were accepted by unanimous consent. A question was raised by a member about distribution of minutes. The Secretary's practice is not to distribute minutes, but to file them with the management company when approved. Any member may request copies of minutes or other documentation from management. Collins Management can distribute hard copy and can generate PDF format for electronic distribution. 3. First Bank Agreement Mr. Hill presented an Automated Clearing House Agreement from First Bank Association Services ( incorporated herein by reference ) governing the payment of assessments by automatic debit. The board approved the agreement unanimously. 4. Garage Lighting Mr. Terry gave a thorough summary of the work that has been done so far on the problem of installing new lighting in the garage. Mr. Hill discussed the quotes received so far from Current Electric, and reported that as a result of the high cost of the sodium lamp proposal, $7880, he now favored using linear fluorescent T8 lamps with electronic ballasts, which are more energy efficient. The quote for the fluorescent alternative from Current Electric for $3790 did not specify the type of fixture to be used, and Mr. Hill reported that he had requested that the quote be revised specifying Lithonia VSL fixtures, and that any alternate fixture be specified. Current Electric submitted a revised quote for 30 Lithonia VSL fixtures at $8188, and identified the fixtures for the previous quote as Crescent, however these are no longer available, so the quote no longer applies. Mr. Hill reported that the difference between high and low quotes for the fluorescent fixtures was primarily due to differences in the quality of the fixtures, and that fixtures Mr. Hill replied that the problems on the back wall had been present for many years, that they were difficult, that the current board was not responsible for the delay in dealing with them, and that the board was working on them. Mr. Terry stated that the severity of the situation on the back wall should not prevent the board from working on scheduled maintenance, and that repainting the front wall was needed, scheduled, and overdue. 6. Adjournment The board adjurned at 9:55 p.m. Gary A. Hill, Secretary Board Meoting Minutes 247 Fourth Street Lofts Owners' Association 27 April 2004 Mr. Hill said that the full proposal did not provide an incremental value proportionate to its cost, that he did not consider it a good value for the Association, and that he recommended implementing phase one of the Current Electric proposal and further study of alternatives before completing the project. He also stated his concern that the proposal for lighting the parking bays with single two foot T8 lamps might not put enough light into the parking bays to satisfy their users. The board discussed the proposal at length, with the participation of members present. Several persons present expressed a concern that implementing the project in two phases would add to the overall cost. Mr. Terry and Mr. Milbrandt shared that concern. Mr. Terry stated that unless Mr. Hill could assure him that the light would be inadequate, he was inclined to go ahead with the full proposal. Mr. Hill could not give that assurance. Mr. Terry moved that the full proposal be accepted. Mr. Milbrandt concurred. Mr. Hill opposed. The proposal from Current Electric dated March 30 was reconfirmed. 4. F. I. Arms Mr. Terry reported that F. L. Arms & Associates had quoted a fee of $6000 for preparation of bids for work suggested by the Leak Report. Mr. Terry expressed his concern at the high cost of this quote, and the need to reevaluate how the board would proceed with F. L. Arms and with the reapairs. Mr. Hill stated that he was not surprised at the amount of the quote and that his concern was that the board did not appear to have control of the matter. He stated that it appeared to him that F. L. Arms had been given the impression in the previous board meeting that they were to proceed with preparing requests for bids for all of the work suggested by the Leak Report, subject to approval of the estimated cost. Mr. Terry also reported that F. L. Arms had not yet responded to the request of the board in its previous meeting that the billings to date be reconciled with the original contract, which specified a fee not to exceed $4500 for the first phase of the work. After discussion of the matter, Mr. Terry took an action item to discuss the matter further with F. L. Arms. Mr. Terry's objective is to obtain clarification of what work they are to do on our behalf from now on, and to obtain reconciliation of the billings to date before further work is commissioned. 5. Forum Mr. Robinson stated, in response to Mr. Hill's advocating proceeding with restoration of the front wall and repair of the Alice Street wall, that the board's priority should be first to deal with the leaks on the back wall, which were severe. He further stated that he was not aware of the water intrusion problems when he purchased his unit in 2003, and that he would have considered this a reason not to purchase the unit whereas the appearance of the front of the building was not a factor in that regard. Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 27 Ap#iI 2004 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 27 April 2004, Unit 402 Directors Present: David Terry, Chase Milbrandt, Gary Hill 1. Call to Order President Terry called the meeting to order at 8:35 p.m. Collins Management was not represented. Members present were Ray Boyer, Lynne Huntting, Rick Leicher, Kerry Newkirk, Jim Pire, Roberta RendahI, and Arthur Robinson. 2. Minutes The minutes of the board for April 13th were accepted by unanimous consent. 3. Garage Lighting Mr. Hill moved reconsideration of the acceptance of the proposal from Current Electric dated March 30, 2004 (the full proposal ). Mr. Hill said that as result of further analysis of the differences between the full proposal and the phase one proposal, he wished to change his vote. After some discussion, the board agreed to reconsider the proposal. Mr. Hill summarized the differences between the two proposals as follows: The phase one proposal installs 13 fixtures of 30 in the full proposal. The phase one proposal installs 26 lamps of 46 in the full proposal. The full proposal provides a mixture of two and four foot lamps. Considering a two foot lamp to be one unit of light, and a four foot lamp to be two units, the phase one proposal installs 48 units of light of 68 in the full proposal, which is 7OOIo of the total. The phase one proposal is about $4100 and the full proposal about $8200, so the phase one proposal installs 7OOIo of the light for one-half of the cost. The single two-foot lamps installed in the parking bays by the full proposal have a light output of about 1400 lumens, which is approximately the same light output as a 23 watt compact fluorescent lamp. The full proposal does not install more light in the parking bays, however the efficiency of the linear T8 lamps is greater than compact fluorescent and the lifetime of the lamps is twice as long as compact fluorescent lamps, so lamp costs will be somewhat lower. stated that it would be necessary to obtain a legal opinion on the requirements for amending the governing documents, with regard to sections 8.6A and 10.3 of the CC&Rs, and any other applicable sections of the governing documents, and suggested the first week in August for the special meeting, in order to allow time for this. Mr. Terry and Mr. Milbrandt agreed to this. Mr. Collins will have Ms. Bonato write a legal opinion on the subject of requirements for amending the governing documents with respect to cumulative voting. 8. Forum Mr. Baudendistel stated that he had become aware of a proposal by 247 Partners to install a door to the Cuckoo's Nest restroom in the first floor hallway, which would be near the door to his own unit on the opposite side of the hallway, and that he was opposed to it. Mr. Terry replied that the board was also opposed to it, that an attorney (Ms. Bonato) had written to 247 Partners on behalf of the Association stating the opposition of the board to it, and that the board hoped that the matter would end there. Mr. Collins reported that 247 Partners had not responded to the letter. 6. Adjournment The board adjourned at 10:10 p.m. Gary A. ill, Secretary Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 17 May 2004 Mr. Hill stated that there appeared to be a communication problem, and that he did not consider it be entirely the fault of F. L. Arms The representatives of F. L. Arms departed. Mr. Terry stated that he was upset about the inadequate response of F. L. Arms to the requests for bid which he put before them. Mr. Hill disagreed, stating that these should not have been submitted to F. L. Arms, with whom we have a time and materials contract. Mr. Hill introduced a resolution calling for termination of all dealings with George E. Masker, Inc. Mr. Terry stated that it was his intention not to look to Masker for any further work so the resolution was unnecessary, and asked that the resolution be withdrawn. Mr. Hill did so. 5. Utility Reconciliation Mr. Hill reintroduced a resolution first introduced on March 15th, in amended form (attached), which revises the rules governing calculation of the surcharges for excess use of utilities by the restaurant contained within Unit ill. He reported that he had notified 247 Partners of the proposed changes. Mr. Collins reported that they had not responded. No action was taken. 6. Articles of Incorporation Mr. Hill reintroduced a resolution first introduced on March 15th, in amended form (attached), which would amend the Articles of Incorporation and submit restated Articles to the membership for ratification. Mr. Hill stated that the purpose of the amendments was to protect the current structure and manner of election of the Board of Directors from attempts by some members to eliminate cumulative voting. He added that it was specifically motivated by Mr. Hagar's assertion in the most recent annual meeting of members that the cumulative voting rule could be amended by majority vote, which he believed was not the case. He advised the board that there was a need to be prepared, and that as there was a disagreement over the procedures for amending the rule, it would be necessary to seek a legal opinion. Mt. Terry suggested that the matter be taken up at the special meeting of members (see following item). Mr. Hill stated that the resolution was not in proper form for consideration by the members, and that it would be necessary to have the restated Articles written by an attorney as provided in the resolution for presentation to the Association. Mr. Terry and Mr. Milbrandt agreed. Mr. Collins will have Ms. Bonato prepare a restated Articles of Incorporation as provided in the resolution. 7. Special Meeting The board received a petition from several members requesting a special meeting of members, for the stated purpose: "to address the issue of cumulative voting. Mr. Hill Board Meeting Minutes 247 fourth Street Lofts Owners' Association 17 May 2flfl4 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 17 May 2004, Unit 402 Directors Present: David Terry, Chase Milbrandt, Gary Hill 1. Call to Order President Terry called the meeting to order at 7:35 p.m. Paul Collins was present from Collins Management. Frank Arms and Paul Platt were present from F. L. Arms. Members present were John Baudendistel, John Hagar, Lynne Huntting, Rick Leicher, and Kerry Newkirk. 2. Minutes The minutes of the board for April 27th were approved by unanimous consent. 3. Financial Mr. Hill reported that the reason that the Annual Report which was mailed to the members contained obvious errors of fact was that it had not been submitted to the board for approval. He said that he was appalled that a report would be sent out in the name of the Board of Directors without having been reviewed by the board, that he was accustomed to being asked to review the report and make representations by the previous CPA, and that he was not inclined to use Levy and Co. again as a result. Mr. Hill added that the issue was not errors such as reporting the incorrect number of units, but omissions in the footnotes. He stated that it was his intention to add a footnote disclosing the Leak Report and expected unbudgeted expenses, and that because of the failure of the annual reports to mention the problem, and with a Reserve Study which reports that we are 103% funded, he felt that we were not meeting our responsibilities to prospective buyers. Mr. Collins stated that the report was sent without review because of time constraints imposed by the Civil Code, and that a supplementary report could be released if the board wished. 4. F. L. Arms Mr. Terry spoke on the relationship between F. L. Arms and the Association. Extensive discussion followed, covering windows, painting, garage wateproofing, and the scope of work to be done. Mr. Arms reported that he had been instructed to stop work, after having been given instruction to proceed with the Rainbow Waterproofing project in the garage, and that therefore he could not report whether the work was complete and to what extent it was successful. 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date: June 4, 2004 Directors Present: David Terry, Chase Milbrandt, Gary Hill 1. Call to Order The board met by telephone conference to discuss urgent matters requiring the participation of the president, who was out of town. President Terry called the meeting to order at 12:40 p.m. Paul Collins was present from Collins Management. 2. Leaks The board discussed the current status of work on repair of water intrusion problems in the building at length. By unanimous consent, the board approved the following: 1. All work involving the services of F. L. Arms remains on hold. 2. Mr. Terry has solicited a proposal from Mr. Tippett of ErTech, which the board will review before deciding how to proceed with F. L. Arms. 3. Mr. Collins has asked Rainbow Waterproofing to inspect the garage with a representative of the Association and to quote further work to be done this year. Mr. Hill will meet with Mr. Rentfro from Rainbow. 3. Garage Lighting The board discussed the status of the garage lighting project. Mr. Hill reported that the four foot lamps are in stock, and that the two foot lamps should arrive in a week. 4. Special Meeting The board discussed the options for proceeding with the special meeting requested by several members, taking into account the advice of Mr. Collins and the attorneys at Berding & Weil. By unanimous consent, the board agreed that the board will write the resolution to be acted upon at the meeting. Mr. Collins will draft the notice to the members, and will rely on the advice of counsel at Berding & Weil to ensure that our responsibilities are carried out properly. 5. Adjournment The board adjourn at 1:50 p.m. Gary A. Hill, Secretary project at the base of the ramp until the entire ramp area could be studied, and moved acceptance of the first part of the proposal for $6700. The motion carried unanimously. Mr. Hill took an action item to follow through with this project. 5. ErTech Mr. Terry reported the discussion he and Mr. Hill had with Mr. Tippett of ErTech on May 19 to discuss the Leak Report and to solicit a proposal from ErTech for repairs arising out of that report. He reported that the board has received the proposal, dated 4 June 2004. All agreed that the ErTech proposal was comprehensive and detailed. Mr. Terry moved that ErTech be hired as project manager for the repairs. Mr. Hill agreed with the recommendation to hire ErTech, but stated that the proposal could not accepted in its current form, but would need to be revised so as to remove items such as the Rainbow work which would not require management services, and to define the scope of work which the board would approve. He recommended that the board meet with Mr. Tippett to revise the scope of work. Mr. Terry agreed and took an action item to schedule a meeting between the board and Mr. Tippett. 6. Garage Lighting Mr. Terry reported that Current Electric is waiting for some of the fixtures, and that work should begin in early July. Mr. Jerry expressed his desire that the work be completed before the July 15 board meeting. Mr. Hill reported that the lamps have been received. 7. Special Meeting of Members Mr. Terry reported that a date of August 10th had been set for the special meeting requested by several members, and that the notices would be mailed shortly. He reported that the delay in getting the notice out resulted from the necessity of obtaining legal advice regarding the form of business to be put before the members, and the number of votes required for amendments. He reported that while the board had been advised that the form of the petition did not require that any resolution be put before the membership, the board had agreed unanimously that one resolution for amendment of the bylaws would be put before the membership for consideration. No position papers will be distributed with the official announcement. 8. Adjournment The Qard adjourned a :55 p.m. Gary A. Hill Secretary Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 16 June 2004 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: June 16, 2004, Unit 402 Directors Present: David Terry, Chase Milbrandt, Gary Hill 1. Call to Order President Terry called the meeting to order at 7:40 p.m. Collins Management was not represented. Members present were Lynne Huntting and Roberta RendahI. 2. Minutes The minutes of the board for May 17 and June 4 were approved unanimously. 3. F. I. Arms Mr. Terry reported that he was not satisfied with the working relationship with F. L. Arms, that they were not responsive to the desires of the board and insensitive to the financial constraints of the Association. He added that Avelar & Associates did not find the Leak Report adequate for their purpose. He moved that the relationship with F. L. Arms be terminated and that Mr. Collins be asked to write a letter to that effect. Mr. Hill concurred with the motion, but added that he thought the board should acknowledge some responsibility for miscommunication. Mr. Milbrandt and Mr. Terry agreed with this. The motion carried unanimously. Mr. Terry took an action item to work with Mr. Collins to produce a satisfactory letter to F. L. Arms. 4. Garage Waterproofing Mr. Hill reported that he had inspected the garage with Mr. Rentfro from Rainbow Waterproofing, and that a proposal dated June 16, 2004 had been received for further work as follows: Sealing of one more section of the joint between the floor and the back wall adjacent to the test section, sealing of approximately three sections of the joint in the east corner of the garage, and sealing of one location in the floor between parking spaces 4 and 5, at a cost of $6700. Sealing of the joint between the ramp and the garage floor at a cost of $1800. Mr. Hill reported that the area around the ramp required much more work than was quoted, involving removing and replacing the new concrete which was poured on top of the original floor, and that he did not request a quote for this because he felt that the project was too much to take on this year. He recommended not doing the The board discussed the problem of leaks at length with Mr. Tippett. A consensus was reached that it is the objective of the board that significant progress be made on repairing leaks without imposing an onerous burden on the members of the Associa- tion, and that ErTech will help the board meet this objective. Mr. Tippett will inspect Units 202 and 408, which between them have four category three windo vs and two category two windows, in order to evaluate the window repairs needed. He will also inspect the cold joint at the floor in Unit 408. The board requested proposals from ErTech for three project phases: 1. Repair 10 category three windows, including steel, concrete, and paint. 2. Seal the cold joints at the floor line on the third and fourth floor of the back wall, at Unit 401 on the Alice wall, and any horizontal cracks with active leaks elsewhere on the walls. These joints can be sealed either from the inside or the outside. Unit 401 will be used as a test of the method of sealing from the inside, as it is an isolated leak. 3. Restoration of the front wall, including spall repair, rust removal, and painting. 7. Unit ill Utility Reconciliation Mr. Hill presented a proposed reconciliation of utility surcharges for Unit ill (Cuckoo's Nest), which he had distributed to the board earlier, and moved its acceptance. The reconciliation calls for a refund to Unit ill of $2843, approx- imately one third of which is for electricity, and most of which is for overassessment of refuse collection. Mr. Terry had no objection, so the reconciliation is approved. The proposal must be sent to 247 Partners for approval. Mr. Hill will follow up. B. Cuckoo's Nest Restroom Door Mr. Terry reported the status of a dispute between the Association and 247 Partners, which seeks to install a door from the first floor hallway into a restroom in Cuckoo's Nest, and which the board opposes. The matter is still unresolved. 9. Forum Discussion of leaks. 10. Adjournment The board adjourned at 9:35 . Gary A. Hill, Secretary Board Meeting Minutes 247 Fourth Street Lofts Owners Association 5 July 2004 Mr. Hill expressed his opinion that we have never had an enforceable warranty for the exterior waterproofing, and that we ought to write it off and have no further dealings with George E. Masker, Inc. Mr. Hagar objected to ruling out possible legal action against the contractor. Mr. Krause reported that the previous board, while taking a new approach by hiring F. L. Arms, had closed no doors with respect to Masker. He also stated that F. L. Arms was not expected to look into questions of responsibility. 5. Garage Mold The board received a report of extensive mold in the garage along the back wall. The damp conditions in the garage were discussed. Mr. Leicher reported that a sump pump at New Market Lofts may be contributing to the problem in the area of the adjacent walls. The problem of exterior water intrusion generally is within the purview of F. L. Arms. Mr. Hill suggested that the mold be treated with bleach and that IGMS should be able to do it. 6. Trash Room The problem of junk being dumped in the loading dock and elsewhere in and around the building was discussed by all present. Remedies discussed included whether new rules or better rule enforcement are needed, or periodic scheduled pickups. Mr. Hill Reported that he had discussed the need for properly orienting the trash compactor bin for pickup with Mr. Rivera of IGMS, and that he expected the problem of missed pickups to be reduced. 7. Reserve Study Proposal Mr. Hill presented a proposal from Richard Avelar & Associates for writing a new reserve study for the Association. Mr. Hill advised the board that he did not have confidence in the current reserve study as a predictor of long-term maintenance costs of the property, and he recommended accepting the proposal from Avelar, which would take a fresh look at the component list and write a new reserve study from scratch, at a cost of $3450. Mr. Hill reported that the high cost was a consequence of producing an entirely new study, and that the recurring cost for three-year updates would be in line with what we are accustomed to paying. Mr. Hagar recommended that the board consider other proposals before acting on a question of this importance. Mr. Terry tabled the motion and requested additional proposals. Mr. Milbrandt agreed to seek another proposal. Board Meeting Minutes 247 Fourth Street Lofts Owners' Association S January 2004 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 8 January 2004, Unit 104 Directors Present: Gary Hill, Chase Milbrandt, David Terry 1. Call to Order Mr. Terry called the meeting to order at 7:35 p.m. Members present were Patricia Beadles, Mike Fackovec, John Hagar, Lynne Huntting, Jeffrey Krause, Rick Leicher, Connie Oksol, Jim Pire, and Arthur Robinson. Also present were Steve Lowery representing Pauletta Chanco, and Diane Wills-Garner representing Steve Fossum. 2. Minutes The minutes of the board for December 3rd, 2003 were approved as written by unanimous consent. 3. Property Management Mr. Terry reported that the board had interviewed five prospective property managers: Assured Management, Bridgeport Realty, Collins Management, Common Interest Management, and Walsh Property Management. A sixth, Miramonte, did not respond to a request for an interview. He further reported that no action had yet been taken and that the board was prepared to act at the present meeting. Mr. Hill, Mr. Terry, and Mr. Milbrandt each reported in turn their thoughts on the subject, and members present contributed questions and comments. Mr. Terry moved that the proposal from Collins Management be accepted. Mr. Hill and Mr. Milbrandt concurred. 4. Letter from Ms. Chanco The board received a letter dated January 5th, 2004, from Pauletta Chanco, owner of Unit 410, reporting leaks in her exterior wall and requesting action. The matter was discussed by the board and by members present. The Association is currently under contract with F. L. Arms to review all exterior water intrusion and to recommend action. Mr. Krause, president during the previous board term, reported that neither the water- proofing contractor, George E. Masker Inc., or the materials manufacturer, Lighthouse Products (now a division of G.E.), is willing to honor the warranty, and that legal action would be required to attempt to enforce it. responded to date. He stated that Levy was recommended by Mr. Collins, and that he recommended accepting the proposal, because of insufficient time to solicit another. Mr. Terry moved that the Levy proposal be accepted, and the motion carried by unanimous consent. 11. Reserve Study The board received two proposals for a new reserve study, in addition to the one received previously from Avelar & Associates. One was from Applied Reserve Analysis and the other from The Helsing Group. The board discussed the need to wait for completion of the F. L. Arms report before proceeding with the reserve study, and whether the item of business should remain on the table until completion of the F. L. Arms report. Mr. Terry ruled that if there was no objection and the board was ready to act, we could approve a proposal, with work to begin after completion of the report. Mr. Hill and Mr. Milbrandt stated that they were ready for the question. The alternatives were discussed by the board. Mr. Hill moved acceptance of the proposal from Avelar & Associates. The motion carried unanimously. 12. Financial Report Mr. Hill announced that the board had received the final unaudited financial statement from Hudson Management for 2003, and that he would report on it in a subsequent meeting. 13. Adjournment The board adjourned the open session at 9:35 p.m. and continued in executive session. 14. Executive Session The board discussed an unresolved legal matter and a problem of missing documentation and authorized Mr. Hill to draft letters on the subjects for board review. C Gary A. Hill, Secretary Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 29 January 2004 7, Maintenance There being a number of maintenance items on the board agenda, Mr. Hill suggested that the management of the maintenance agenda would be more efficient if separated from the board agenda, and that the Vice President ought to assume responsibility for organizing it. Mr. Terry concurred, and made the following motion: Resolved, that Mr. Milbrandt shall be the primary liason between the board and the management company for maintenance of the building. In that role he is charged with developing and updating, in cooperation with the property manager, an itemized list of maintenance tasks, including priority, estimated cost, and status. This list is to be submitted to the board for review and action. Further resolved, that the Vice President is delegated authority to direct action on maintenance of a routine nature within the discretionary spending limit specified in the physical property management agreement. The motion carried without objection. 8. IGMS - janitorial Service The board received a proposal for additional janitorial services from Mr. Rivera of IGMS, who is doing some work for the association now which is not covered by an agreement. Mr. Terry stated that the proposal was not sufficiently clear. Mr. Hill and Mr. Milbrandt agreed. Mr. Hill asked Mr. Rivera whether it would be satisfactory for Mr. Collins to write a statement of responsibilities for which Mr. Rivera would quote his fee. Mr. Rivera agreed, and Mr. Collins will follow up. 9. Lighting Mr. Hill stated that there were many lighting problems in the building, that some of them were safety related, such as defective emergency lights, and that the number and complexity of the problems warranted a special committee. He made the following motion: Resolved, that a committee consisting of Mr. Terry and Mr. Hill will study the problem of lighting in the building, including specifically the garage lighting, the canopy lighting, and the emergency lighting, but also lighting generally, and make recommendations for repair and replacement, with particular emphasis on maintaining safety and improving efficiency. The motion carried without objection. 10. CPA Mr. Hill reported that our previous CPA was not available to us this year, and that he had solicited proposals from two accounting firms, but that only Levy & Co. had Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 29 January 2004 There are possible deficiencies in the coatings or their application on the three exterior walls. The rear and side walls were recoated with elastomeric paint in 1997 and 1998, respectively, while the front coating appears to be have been applied during the development of the lofts ca. 1992. Some leaks appear to originate from the roof and parapet. F. L. Arms stated that they will review the documentation pertaining to the contracting of the waterproofing work and discuss matters with Mr. Wood lee, who represents VIP in this area, and with the contractor. Mr. Hill asked for an estimate of the proportion of leaks of each type. Mr. Booth estimated that 3O0fo of the problems are due to cracks in the concrete, and most of the remainder are related to the windows. Miscellaneous problems include incorrect slope on the slate terrace, which allows rainwater to enter the restaurant, a problem which is not easy to correct. Water enters the garage through groundwater seepage, but a part of the problem is due to a roof drain leading to the sewer near the driveway to the garage, which spills into the garage when overloaded. F. L. Arms will submit its report to the Association in a few weeks, which will identify the various problems allowing water intrusion and recommend incremental repairs. The cost of window replacement was discussed. Mr. Booth estimated the cost at $7000 to $8000 per window, and said that there could be a need for lead abatement, which would add to the expense. There are also considerations relating to our status as a contributor to a historic district. The project was discussed by all present. Mr. Leicher stated that F. L. Arms knew what they were doing. Mr. Hill stated that he was also impressed with their work. 5. Minutes The minutes of the board for January 8th were approved by unanimous consent. 6. First Floor Hallway Refinishing Mr. Milbrandt moved that Quick & Right be brought back to do further work to improve the appearance of the first floor hallway, at a cost not to exceed $500. Mr. Terry concurred, Mr. Hill opposed. Mr. Milbrandt will follow up. Mr. Hagar encouraged the board to pay attention to the budget so as to avoid the necessity of a special assessment. Board Meeting Minutes 247 Fourth Street Lofts O#ners Association 29 January 2004 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 29 January 2004, Unit 104 1. Directors Present: David Terry, Chase Milbrandt, Gary Hill Call to Order President Terry called the meeting to order at 7:40 p.m. Paul Collins, agent for the Association, was present. Members present were Ray Boyer, John Hagar, Lynne Huntting, Rick Leicher, Kerry Newkirk, Roberta RendahI, Arthur Robinson, and Greg Tsutaoka. Also present was Steve Lowery representing Pauletta Chanco. Guests present were Frank Arms and Ray Booth of F. L. Arms, and Carlos Rivera of IGMS. 2. Agenda Jack London Networks was dropped from the agenda. 3. President's Report - Collins Management Mr. Terry introduced Paul Collins of Collins Management, the new management company for the Association. Mr. Collins is a principal of the company, and is the property manager for the account. Mr. Robinson asked to whom questions or requests should be directed. Mr. Collins stated that communication regarding the association or its property should be sent to Collins Management. Mr. Terry stated that he would post contact information on the Association's bulletin board in the mailroom. Ms. Newkirk asked for clarification regarding the scope of services. Mr. Collins stated that Collins was providing complete management services, but that financial manage- ment and physical property management were covered by separate contracts, so that property management could be terminated without interrupting financial services. 4. Water Intrusion - F. L. Arms Mr. Terry introduced Frank Arms and Ray Booth of F. L. Arms & Associates, which has been retained by the Association to investigate and report on water intrusion problems in the building. Mr. Arms spoke generally about the service that they were providing, and stated that his primary contact would be the property manager. Mr. Booth, who is performing the inspections for F. L. Arms, gave a synopsis of his findings so far. Leaks fall into three categories: windows and window frames, cracks in the concrete unrelated to the windows, and miscellaneous. and that it was motivated by the declared intent of the previous board to revise the bylaws of the Association, and particularly by the assertion of Mr. Hagar in the most recent annual meeting of members that the bylaw provision regarding cumulative voting could be amended by a majority vote, whereas the CC&Rs require an affirmative vote of two-thirds of the entire association to amend any provision in the governing documents affecting voting rights. Mr. Milbrandt expressed his view that board would take a lot of heat from the membership if it approved this. Mr. Hill expressed his view that it was not clear what proportion of the membership opposed cumulative voting, and that in any case the board could not implement the change without first submitting it to the entire membership for ratification. By unanimous consent, the board tabled the resolution to permit notification of the membership before the resolution is further discussed by the board. 12. Forum 13. Adjournment The Board adjourned at 9#S5 p.m. Gary A. Hill, Secretary #oard Meeting Minutes 247 Fourth Street Lofts Owners Association 15 March 2004 8. Garage Lighting The board received a quote from Current Electric for replacement of the garage lights with Cooper HPS lights for $7880, and for a fluorescent alternative for $3790. All agreed that the HPS alternative was too expensive. Mr. Hill noted that there was no specification for the fluorescent fixtures, and that they should be specified before accepting it. Mr. Terry expressed his dissatisfaction at being unable to accept a proposal, but agreed to wait for more information. Mr. Collins will obtain another quote if the board thinks it necessary. 9. Cuckoo's Nest Restroom Doorway Mr. Collins reported that he had communicated to 247 Partners, owners of Unit 111 containing Cuckoo's Nest restaurant, the board's objection to their plans to install a doorway from one of the restrooms in the restaurant into the first floor hallway, and that he had sent them a cease and desist order, asking them to present their plans to the board before proceeding, but that he had received only an oral response from Mr. Bartlett asserting a right as declarant to make modifications to the common area without board approval. The board received a drawing of the planned doorway which Mr. Hill had obtained from Mr. Clay, owner of Cuckoo's Nest. 10. F. L. Arms The board has not yet received a report from F. L. Arms, which was expected by this time. Mr. Terry expressed his concern at the failure of F. L. Arms to follow through in a timely manner. Mr. Collins reported that he had spoken with a representative of F. L. Arms and explained that the reason for the delay is due in part to attempts by F. L. Arms to get information from George E. Masker, Inc. The board expressed concern about the lateness of the report, as it is delaying our reserve study, and requested that Mr. Collins obtain it as soon as he is able. Mr. Terry will call a special meeting to discuss the report after it is received. 11. Resolutions Mr. Hill presented a resolution to board (attached) proposing a revision to Rule 4.8-i C, governing the calculation of the assessment for the restaurant for trash collection, and moved its acceptance. Mr. Collins advised that amendments to the Rules and Regulations required prior notice to the membership of the association, as a result of legislation enacted by ABSl2 last year. The board agreed to table the motion pending further investigation of this point. Mr. Hill also presented a resolution to the board (attached) proposing amenment of the Articles of Incorporation so as to define the size, term, and manner of election of the board of directors as they are currently defined in the bylaws, and to protect the Articles by specifying a two-thirds vote of the Association to amend the Articles and a three-quarters vote to amend the new article pertaining to the board of directors. Mr. Hill stated that this was intended to add stability to the governance of the Association, Board Meeting Minutes 247 Foi,rth Street Lofts Owners' Association 15 March 2004 Ms. Wills-Garner asked whether copies of financial documents could be made available at board meetings. Mr. Hill replied that the unaudited year-end financial statement was available by the end of January every year, and that it could be requested from the management company without waiting for a board meeting. Mr. Terry will arrange to have extra copies of board packets (excluding any privileged matter) at subsequent board meetings. 5. Work Orders The board received a Work Order Summary dated March 9th from Mr. Collins. Mr. Hill asked for discussion of item 10004, for replacing the door frame around the door to the trash room. He stated that while the door and frame showed some signs of abuse, that they were nevertheless sound, and could be refurbished rather than replaced at much lower cost. After discussion, the board unanimously agreed that the door and frame will be repaired and repainted. Mr. Collins will follow up. With regard to item 10020 for repair of a sump pump, Mr. Hill proposed that if Mr. Milbrandt was satisfied with the service we had received previously from East Bay Pump and Supply, that we should stick with them for all sump pump problems. Mr. Milbrandt stated that he was satisfied, and Mr. Terry agreed. 6. Correspondence Mr. Hill reported that he had written a letter to Mr. Kennedy of First Bank concerning a matter raised with First Bank by the previous CFO, with the approval of the board, and that he had nothing further to say on the subject at this time. The board received a letter from Reynolds and Brown on behalf of their tenant in Unit 110 (RBB Architects), complaining about noise originating from construction activity in Unit 203 above them over a period of several days. Mr. Hill reported that he had talked with the tenant about the problem, and subsequently with the owner of Unit 203, and determined that he had been removing plaster from the concrete with a hand chisel. Members present reported that at other times, power equipment had been used. The board and members present discussed the matter at length. Mr. Collins and Mr. Milbrandt will take the matter up with Mr. Christiansen to see that the work is conducted in accordance with the rules of the Association. 7. Janitorial Contract The board received a proposed contract from IGMS for extended janitorial services to be provided to the Association at a cost of $1500 per month for regularly scheduled weekly, bimonthly, and monthly services, and $640 for quarterly services. Mr. Hill noted that while this is about $400 over our current budget, our management fees are under budget by a similar amount, so taken together the cost was acceptable. The board accepted the contract unanimously. Board Meeting Minutes 247 Fourth Street Lofts O#vners Association 15 March 2004 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 15 March 2004, Unit 104 Directors Present: David Terry, Chase Milbrandt, Gary Hill Call to Order President Terry called the meeting to order at 7:35 p.m. Paul Collins, agent for the Association, was present. Members present were John Hagar, Rick Leicher, Arthur Robinson. Also present was Diane Wills-Garner representing Steve Fossum. 2. Agenda Hearings and executive session were dropped from the agenda. Owners' forum was moved to the end. 3. Minutes Mr. Hill reported that the minutes of the board for January 29 had been accepted in action without a meeting and filed. 4. Financial Report Mr. Hill reported on the closing (unaudited) financial statement for 2003. The operating budget showed a surplus of $20,968 for the year, primarily due to the following: Income was $3896 over the base assessments, $1062 late fees, $2789 "other", and $45 miscellaneous. Mr. Hill reported that he did not know what was included in `other' because he had not yet seen the general ledger. Administrative expenses were $469 under budget. Maintenance expenses were $10,318 under budget. Most of this was due to Janitorial Payroll, which was budgeted at twice the actual payroll. Utilities were $5923 under budget, mostly due to electricity. The Reserve Fund balance at the end of the year was $138,625. The most recent reserve study (2001) reported that the Association was lO3OIo funded, however the first draft of this same study reported 770Io funded. The difference was a consequence of rescheduling roof work from 2004 to 20011. Mr. Hill stated that the substantive question of what repairs would be needed on the roof had not been addressed, and that the problem of water intrusion was not addressed at all by the reserve study. The water intrusion is currently under investigation by F. L. Arms, and we will have a new reserve study prepared by Avelar & Associates after completion of the Arms report. Mr. Hill advises waiting for the new reserve study before drawing any conclusions about the adequacy of our reserve funding. Mr. Milbrandt expressed some disagreement with Mr. Hill's two-phased approach for fear that the second phase may not be completed within a reasonable period of time, and also that the total cost of a two-phased approach might exceed the cost of performing the entire project at once. Mr. Milbrandt performed an informal poll of the owners present regarding their interest in proceeding with the full lighting plan at the quoted cost of $8188. The consensus of the owners present was to proceed with the full proposal at this cost. Mr. Milbrandt consequently changed his position to support of the full proposal as initially proposed by Current Electric. Mr. Terry concurred. Mr. Hill stated his opposition to the full proposal because of its high cost, but added that if both Mr. Terry and Mr. Milbrandt wanted to proceed with the full proposal, he would go along with it. As they did, the proposal from Current Electric dated March 30, 2004 for relighting the garage with 30 Lithonia VSL fixtures at a cost of $8188 was accepted unanimously. Mr. Hill recommended buying the lamps from our West-Lite account, which has a credit, and asking Current Electric to adjust the quote accordingly. Mr. Terry and Mr. Milbrandt concurred. Mr. Hill suggested that because of the high cost of materials we should pay Current Electric $4000 for materials payable upon delivery of the fixtures to Fourth Street Lofts. There was no objection. 7. Forum Ms. Huntting complained that the board was not meeting monthly as required by the bylaws. Mr. Hill replied that the previous board meeting was on March 18th, that we met with Collins Management bimonthly for greater efficiency and cost savings, that our meetings were scheduled irregularly because the president, Mr. Terry, traveled frequently, that we were in substantive compliance with the bylaws, and that if Ms. Huntting didn't like it, she should "try to do something about it." 8. Adjournment The board urned at 9:40 p.m. ry A. Hill, Secretary Board Meeting Minutes 247 Fourth Street Lofts Owners Association 13 April 2004 Mr. Hill stated that he desired to separate the window problems on the rear wall from those on the front and Alice Street walls, because the problems on the front and side were less severe and the incentive to preserve the original appearance was greater. Mr. Booth continued with a discussion of the groundwater problem in the garage, which is influenced by the tides, and the problem of rainwater from the roof discharging into the garage when the drain system is overloaded. Mr. Arms discussed generally the problem of how to proceed from here with phased projects. Mr. Hill stated that the problems on the rear wall were severe and required further analysis, and that he believed we should proceed first with the front and side walls. He requested that F. L. Arms prepare a request for bid for restoration of the front wall, which would have the objectives of repairing leaks and restoring concrete where necessary, and prolonging the useful life of the original steel windows within practical limits. He further requested that a request for a supplemental bid be prepared for local repair of problems on the Alice Street wall, to be performed in conjuction with restoration of the front wall. Mr. Terry asked F. L. Arms to prepare requests for bids for work on the back wall as well. Mr. Hill stated that this was not ready to be put out to bid, and that he wanted the requests for bid to be separated into manageable pieces, and to be submitted to the board for review before any bids were solicited. Mr. Arms agreed to submit the requests for bid to the board. The board received, via F. L. Arms, a proposal from Rainbow Waterproofing & Restoration Co., dated February 11, 2004, to test a system for waterproofing the joint between the garage floor and the rear wall by applying the system between a pair of columns on the back wall, at a cost of $1800. Evaluation of this test would be used to plan further work. Mr. Terry moved that this proposal be accepted and the board approved it unanimously. Mr. Hill called to the attention of the board and F. L. Arms that the contract with F. L. Arms specified not to exceed $4500 for the first phase of the contract, that we had so far been billed $5435 plus $1020, and that it was not clear from the itemized billings which items should have been included in the base price and which should be extra charges. Mr. Arms said that he would look into it. 6. Garage Lighting The board returned to the question of the garage lighting proposals. Mr. Hill again advised proceeding with phase one, and reported that he was researching options for phase two which would lower the cost somewhat, and that he was attempting to maintain visual compatibility between the fixures. He identified the RAB VANl5 as one fixture under consideration for the parking bays, which is about $150 per fixture. Board Meeting Minutes 247 Fourth Street Lofts Owners' Association ia April 2004 FOURTH STREET LOFTS BOARD OF DIRECTORS MEETING MINUTES PAGE 2 SECRETARY OF STATE CORPORATION FILING. Management asked to provide the Board with a copy of the filing updating the contact information for the Association. (ITEM OPEN). ELEVATOR COMPLIANCE. An order was received from the State of California, Department of Industrial Relations, Division of Occupational Safety and Health, Elevator, Ride, and Tramway Unit to correct unsafe conditions or to show cause. Manager agreed to respond prior to the September 14th deadline. (ITEM OPEN) 2004 BUDGET. Treasurer Foster requested that management contact Waste Management and the insurance agent to obtain forecasts for next year. Ms. Foster stated that the CC&Rs require that the th proposed budget be mailed to the membership October ito October15 . (ITEM OPEN) ADJOURNMENT: MSC to adjourn therneeting at 8:15 p.m. Respectfully submitted, For the Board of Directors 247 FOURTH STREET LOFTS BOARD OF DIRECTORS MEETING August 25, 2003 MINUTES Present were: Jeffrey Krause President Ray Boyer Vice President Ann Foster Treasurer Also present were C. Chase; K. Newkirk; G. Hill; L. Huntting; M. Lawless; S. Roscom; Jan York, Hudson Management. (MSC denotes motion made, seconded and carried unanimously) CALLTO ORDER: President Krause called the meeting to order at 7:05 p.m. MINUTES: MSC to accept the minutes of the July 25, 2003 meeting with following change under Maintenance Items: The maintenance items per the attached list need to be arranged. (See attached list). TREASURER'S REPORT Ann Foster reported that year to date expenditures are less than expected due mainly to several items having not yet been taken care of. Management was directed to send the Association's checks to President Krause while Ms. Foster is away and have the CPA send the taxes to be signed prior to her leaving. PRESIDENT'S REPORT Jeffrey Krause reported on the progress being made on the Jack London Square parking issues. And on the th annual Trash Bash" on September14 . Lastly, the janitorial staff has requested a paid 2-week vacation. MSC: As in previous years, the janitorial staff will be given one week paid vacation each. SATELLITE DISH INSTALLATION: Ray Boyer reported that a committee consisting of himself, Mike Lawless and Steve R will continue the investigation into having some kind of satellite dish/Direct `TV installed. Catherine Chase offered information on TOS of Fremont (similar to Digitalix). Before any contract can be entered into it will be sent for review by the. Association's attorney. PAINTINGIEXTERIOR SEAL #401: Architect Peggy Woodring's report was just received and will be reviewed by the Board. GARAGE LIGHTING: Ray Boyer reported that he would obtain additional bids for the improvement of the garage lighting. 2002 ANNUAL REVIEW. The Board just rece jved the CPA's amended version and will review for approval by the end of the week. WATER METER. Manager to contact Aqua Tech and #111 to schedule installation. Notices will be posted prior to the water being shut off. STEAM CLEANING. Management was again asked to have the hallway to the garbage room steam cleaned. INTERIOR PAINTING. Ray Boyer and Kerry Newkirk will begin working on the interior painting project. VIOLATION LETTERS. Manager was asked to review proposed violation notification letter for concurrence with the CC&Rs and report back to the Board. Two violations were reported and the manager agreed to inspect and send appropriately worded letters if necessary. FOURTH STREET LOFTS BOARD OF DIRECTORS MEETING MINUTES PAGE 2 2004 BUDGET. The CC&Rs state #`At least forty-five days and not more than sixty days prior to the beginning of each subsequent fiscal year, the Board shall establish the Regular Annual Assessment for that fiscal year." That requires that the proposed budget be mailed to the th membership between November 1 and November 15 . (ITEM OPEN) RULE VIOLATION. Moving in or out must be done through the garbage dock, not the front door. ADJOURNMENT: MSC to adjourn the meeting at 7:55 p.m. Respectfully submitted, For the Board of Directors 247 FOURTH STREET LOFTS BOARD OF' DIRECTORS MEETING September 22, 2003 MINUTES Present were: Jeffrey Krause President Ray Boyer Vice President Also present were C. Oksol; K. Newkirk; G. Hill; L. Huntting; M. Lawless; S. Fossum; Jan York, Hudson Management. (MSC denotes motion made, seconded and carried unanimously) CALL TO ORDER: President Krause called the meeting, to order at .7:04 p.m. MINUTES: MSC to accept the minutes of the August 25, 2003 meeting as written. TREASURER'S REPORT MSC: To accept the financial statements as of August 31, 2003. PRESIDENT'S REPORT Jeffrey Krause reported on the progress being made for on-street parking development as well as a number of current local issues. COMMITTEE REPORTS SATELLITE DISH INSTALLATION: Ray Boyer reported that the committee will contact TDS (True Digital Satellite), Fremont. GARAGE LIGHTING: Ray Boyer reported that he has contacted companies and is waiting for proposals for the improvement of the garage lighting. INTERIOR PAINTING. The Committee is considering an Interior Design Consultant. It was suggested that the garage interior be included in the painting project. MANAGEMENT REPORT 2002 ANNUAL REVIEW. The Board's approval was received and the CPA's report mailed to the membership. (ITEM CLOSED) WATER METER. Manager to contact Aqua Tek and #111 to schedule installation. Notices will be posted prior to the water being shut off. STEAM CLEANING. Management had the hallway to and the garbage room steam cleaned. PAINTING/EXTERIOR SEAL #401: Architect Peggy Woodring's report is under consideration by the Board. SECRETARY OF STATE CORPORATION FILING. Management provided the Board with a copy of the filing updating the contact information for the Association. (ITEM CLOSED). ELEVATOR COMPLIANCE. The State of California, Department of Industrial Relations, Division of OccupationalSafety and Health., Elevator, Ride, and Tramway Unit issued the permit to operate the elevator as the elevator is currently in compliance with all requirements. (ITEM CLOSED) 247 FOURTH STREET LOFTS BOARD OF DIRECTORS MEETING October 27, 2003 MINUTES Present were: Jeffrey Krause President Ray Boyer Vice President Ann Foster Treasurer Also present were Units 401, 104, 409, 309 and 103; Jan York and Bob Lewis, Hudson Management. CMSC denotes motion made, seconded and carried unanimously) CALL TO ORDER: President Krause called the meeting to order at 7:02 p.m. MINUTES: MSC to accept the minutes of the September 22, 2003 meeting as written. TREASURER'S REPORT MSC: To accept the financial statements as of September 30, 2003. MSC: To approve the operating budget for 2004 as presented by the Treasurer. MSC: To lower insurance deductible from $5,000 to $1,000 when policy renews in December. PRESIDENT'S REPORT Jeffrey Krause reported on the Board search for a construction management company. Three proposals have been reviewed to define the scope of the problem, write specifications of the repairs with a budget, oversee the bid process, monitor work and secure appropriate permits. MSC: Hire Frank Arms after due diligence checking references. COMMITTEE REPORTS SATELLITE DISH INSTALLATION: Ray Boyer reported that Comcast had actually been on site to upgrade the system. The committee will evaluate the upgrade and compare to TDS (True Digital Satellite), Fremont. GARAGE LIGHTING: This project was returned to the management to obtain additional proposals. INTERIOR PAINTING. This project wiFI probably be incorporated into the exterior painting project which will be handled by the consultant, Frank L Arms. MANAGEMENT REPORT AGREEMENT WITH FIRST BANK. MSC: Approve agreement and authorize First Bank to initiate electronic withdrawals. ANNUAL MEETING. The Annual Meeting will be held November 24, at 7:30pm in loft #409. The Nominating Committee is Lynn Huntting, Connie Oksol and Ray Boyer. ADJOURNMENT: MSC to adjourn the meeting at 8:47 p.m. Respectfully submitted, For the Board of Directors 247 Fourth 5treet Lofts Owners Association Annual Meeting Minutes - November 24, 2003 Page 2 ELECTION OF bI#ECTORS There were three positions available, each for a one-year term. There were three announced candidates. There were no nominations from the floor. MSC: Ballots be distributed and votes tallied. The votes were tallied by President Krause and two volunteer members. One proxy withheld their votes. There was a request to announce the number of votes each candidate received. Gary Hill: 10 votes; Chase Milbrandt: 33 votes; E#avid Terry: 17 votes. (60 total votes). AtJOURNMENT There being no further business to discuss, the meeting was adjourned at 8:45 p.m. 247 FOURTH STREET LOFTS OWNERS ASSOCIATION ANNUAL MEETING MINUTES NOVEMBER 24, 2003 247 4m STREET #409 Present were: Ray Bayer; Catherine Chase; Christian Christiansen; Michael Fackovec; Steve Fossum; Ann Foster, Gary Hill; Carol Lynne Huntting; Richard Leicher; 5ean Manning; Chase Milbrandt; Kerry Newkirk; Jeffrey Krause; John Hagar; James Pire; #avid Terry. Also present: Jan York from Hudson Management Company. MSC denotes moved, seconded & carried CALL TO ORI#ER The meeting was called to order by President Krause at 7:48 p.m. VERIFICATION OF QUORUM Management confirmed a quorum of 21 members of the Association represented in person or by proxy. MINUTES A motion was made to accept the Minutes for the special meetings of the members on June 17, 2002 and July 15, 2002. There was no second. MSC: Table acceptance of 6/17/02 and 7/15/02 Minutes and add to agenda for next meeting of the membership. MSC to approve the minutes from the I#ecember 2, 2002 Annual Meeting as written. PRESIbENTs REPORT Jeffrey Krause gave a brief report touching on some of the current issues including the replacement of the janitorial service and management services; water intrusion problems and the hiring of consultant FL Arms; the garage lighting and roof maintenance. FINANCIAL REPORT Treasurer Foster gave a report on the financial condition of the Association. EXCESS INCOME RESOLUTION MSC that any excess of membership income over membership expenses, for the year ending I#ecember 31, 2003, as defined in IRS PEG. 1.277-i, shall be applied against the subsequent tax year member assessments for operations or common area replacement, as provided by IRS Rev. 70-604. Ms. Foster called to the attention of the board that certain payments to Hudson Management have been withheld due to a question whether expected services have been received. Mr. Hill will look into the matter and seek prompt resolution. 8. Adjournment The board adjourned at 8:30 p.m. I. Gary A. Hill, cretary Board Meeting Minutes 247 Fourth Street Lofts Owners' Association 3 December 2003 6. Trash Compactor Mr. Hill reported that for the most recent trash pickup, the compactor had been disconnected, presumably by IGMS, but had not been oriented properly for pickup. This would have caused the pickup to be skipped, had not he, with the assistance of Mr. Longwell of Cuckoo's Nest, done the job. He reported that he had looked for the agreement with IGMS, but had been told by Hudson Management that we did not have a formal agreement with IGMS for this. He also reported that he was unable to reach Mr. Rivera of IGMS, whose telephone seems to have been disconnected. Ms. Foster reported that agreements between IGMS and the previous board were short term, so as to leave options to the new board. Mr. Hill further reported that Mr. Longwell had raised the possibility that Cuckoo's Nest might take responsibility for disconnecting and reconnecting the compactor, for compensation. This was discussed, and there was general approval of the concept. Mr. Hill will follow up and request a specific proposal to put before the board. Mr. Leicher reported that the compactor had been serviced in the last 18 months. He also reported that Cuckoo's Nest appeared to be admitting someone into the building for the purpose of taking recyclables. The board does not consider this appropriate, and Mr. Milbrandt asked Mr. Hill to discuss the matter with Mr. Longwell. 7. Management Mr. Hill presented a proposal from Collins Management for financial services, and moved that it be accepted. He spoke at length how he had arrived at this position, based on his interviews with many management companies over a period of a few years, his experience with prior management companies, and after reviewing the list of management companies assembled by a search committee. He stated that because of the short time available to us to begin the transition it was necessary to act very soon, and that this was best achieved by separating the financial services and acting on these so as not to lose continuity, then taking more time to select a property manager. He reported that Collins would facilitate this approach by providing emergency response beginning January 1st, and by offering a supplementary proposal for property management which would give complete management services from one company, while preserving our option to use a separate company if we preferred. The question was discussed at length by all present, with particular attention to the recently expressed willingness of Condominium Financial Management and Assured Management, who worked for us from mid 1997 through 2001, to serve us again, an option favored by some. Mr. Milbrandt accepted Mr. Hill's recommendation, and Collins Management will be our next financial management company. Mr. Hill will begin work immediately on the transition. Bg#rd Meeting Mh#utes 247 Fourth Street Lofts Owners Assooiation 3 Deoen#her 2OU# (U 247 Fourth Street Lofts Owners' Association Board of Directors Board Meeting Minutes Date and Place: 3 December 2003, Unit 104 Directors Present: Gary Hill, Chase Milbrandt Director Absent: David Terry Call to Order Mr. Milbrandt called the meeting to order at 7 p.m. Members present were Mike Fackovec, Ann Foster, Rick Leicher, and Art Robinson. 2. Minutes, Agenda The minutes of the board for November 29 were approved as written. The agenda was revised to accommodate Jack London Networks and to move the discussion of management to the end. 3. jack London Networks Mr. Hogg, representing Jack London Networks, asked the board for permission to install conduit in the back stairwell and garage to support an improved internet connection. This was discussed, and Mr. Hill asked for a written proposal. Mr. Hogg stated that he would provide one. 4. Sump Pump Mr. Milbrandt reported that the inoperative sump pump had been replaced at a cost of only $443 and that the flooding problem had been resolved 5. First Floor Refinishing Mr. Hill presented a proposal which he had solicited from Quick & Right for refinishing the first floor hallway from Unit 105 to the mailroom, for a cost of $819, and recommended that it be accepted. The matter was discussed. Mr. Milbrandt concurred. Mr. Hill asked that the choice of stain, which will be required in the short segment of hallway next to the mailroom to produce a uniform appearance, be delegated to Ms. Oksol. Mr. Milbrandt stated that she must come before the Architural Committee with her recommendation, which she will. Mr. Hill will work with Hudson Management to coordinate the work. 8. Member Forum Ms. Huntting called to the attention of the board the need to update the Sentex directory. Mr. Hill reported that the new property manager would take responsibility for this very soon. 9. Adjournment The board adjourned at 9:10 p.m. Gary A. Hill, cretary Board Meeting Minutes 247 Fourth Street Lofts Owners Association N January 2004