5000 Marine Drive Corporation
August 2007 Newsletter
A Report from the Board of Directors to the Shareholders of 5000 Marine Drive Corporation
An Infamous Anniversary
With this Newsletter, we are reminded of Monday, August 9, 2004, at about noonwhen we were all notified of a fire in the building by the loud knocks at our doors, of the ensuing exodus of the building,of standing for hours in the park watching the flames and terrible black smoke force themselves out of a 15th floor window.
Only three years ago it was. But we lived with the damage for months and, in some cases years. And we were left with feelings of vulnerability and loss of confidence.
It hasn’t been an easy three years. But we were so lucky not to have suffered more damage, as extensive as it was, and not to have suffered loss of life beyond our one unlucky cat that wouldn’t come out of hiding. We were lucky to have the staff that we have who went to heroic efforts to assure our safety.
It is good to be here with all of you.
But a Famous Anniversary
We will observe the 85th anniversary of our home, The Aquitania, in 2008.
Completed in 1923, the Aquitania was one of the early better class apartment buildings located at the north end of Chicago’s lakefront. The Aquitania was recognized almost immediately as significant. It was published in the December 1924 issue of Western Architect. …So many features of the Aquitania define it as a luxury building – its siting, its form, its homelike features, its modern conveniences and its style.[1]
We will need to think of ways to observe this anniversary and to celebrate the heritage and beauty of our building. If anyone has ideas, please pass them on to us.
Thanks…
- A small study last week showed that 46.7% of our resident shareholders are active in working for the common well-being of the Corporation! That percentage is remarkably high and we are fortunate to have in our community so many shareholders who are so willing to work on behalf of all of us – on top of very busy professional lives and the well-earned years of reflection and relaxation. We have brought ourselves through these three difficult years. Thanks to all who work for us all, to protect our investments and to assure our quality of life.
Thanks (cont.)…
- Thanks to Bill and Mary Hersh who have established and are maintaining a beautiful website for us: It’s a beautiful website that is developing beautifully for our benefit.
- Thankyou to Barbara Cooper for her gift of the 4 urns and bushes that enhance the front entrance. They are lovely and we are all grateful to our new neighbor and shareholder.
- Thanks to all the shareholders for being careful about the 15-minute limit in the loading zone.
Did you notice?
- …the new light fixture in the Board Room? Finally, one can read in that room! Thanks, Design Team!
- …the metal trim rings around the recessed lighting on the Marine Drive front entrance were badly rusted? They’re now repainted black.
- …and the yellow curb along the street in the loading zone on Argyle has been repainted? Thanks David, Sado and Dean!
- …the family of 5 beautiful American Kestral hawks on the fire escape outside 14C? Their neighbors, John Koch and Ray Hicks, consider them a great addition to the neighborhood.
Coming soon…
New Door Mats: We’re anticipating the arrival of new door mats for both of our entrances within six weeks. The new door mats will be customized with a “5000” design.
New Board Room Décor: By mid-August, we will witness the transformation of the Board Room, as designed and implemented by the Design on a Dime Team. The design is an Art Moderne style that carries through the style of the lobby and first floor. The sample board for the design will be displayed in the lobby next week, so that we can get a taste of what the space will look like. In anticipation of a lovely make-over, we thank the Design Team in advance: John Koch, Liz Hayden, Helene Marie Quick, Iris Blustain, Ed Bowe and Judy Thornber.
July23rd Board Meeting
The agenda for our July 23rd meeting reflected the complexity of issues with which we are all dealing this year. But the meeting was quite productive insofar as the following formal actions were taken:
Conference Table and Chairs for the Board Room: $1,500 was approved for the purchase of new (read “new to us”) table and chairs for the soon-to-be-redecorated Board Room. The Board acknowledged that it would be a challenging budget for the Design on a Dime task force. If the issue needs reconsideration by the Board, that can be done. Resolved: approval to send notice to laundry service of termination of contract expiring 9/08
Hyde Park Bank Account Sweep: Upon the recommendation of the Finance Commission, the Board voted approval to direct Hyde Park Bank to sweep our operating account of any amount over $60,000 into a Money Market account. This sweep will happen nightly and will redirect our funds into higher earning accounts.
Remodeling Plans: Upon the recommendation of the Maintenance Commission, the Board approved plans to remodel 12A kitchen.
Project Manager for Phase I of the Plumbing Project: The Board approved the recommendation of the Maintenance Commission to approve a contract with Loeppert & Associates to serve as the Project Manager of Phase I of the plumbing project. (Please see details below under the Maintenance Commission report.)
Maintenance Contract for Elevators: The Board approved the Otis Elevator maintenance contract in the amount of $919. per month for a 5-year contract (following 60-day notice to current contractor), plus $13,900 for pre-existing conditions if our current maintenance contractor (Hopkins) does not address these conditions in our current contract.
July23rd Board Meeting (cont.)
Boiler Burner Replacement: Sado noticed that the fire bricks around the backup coiler were in poor condition. It was also discovered that six of the burner heads are rusted. The Board approved the boiler burner replacement proposal as submitted by Holub in the amount not to exceed $21,000. This boiler replacement will allow for much great energy efficiency for the building.
Installation of Combination Smoke and Carbon Monoxide Detectors: The Board approved the installation of 32 combination detectors in the 26 units that do not currently have them. This work will be done by Romar Electric Company for $3,400.
Transfer of Shares: Upon the recommendation of the Eligibility Committee, the Board approved the transfer of shares for units 4 D-E and 5 D.
Other Issues…
West Alley parking: Because the west alley is a fire lane, we are going to have to start to ask for the car keys of those who choose to park there. The keys will be kept in the shareholder’s mail box. Door staff are prevented by our governing documents from moving or driving any vehicles that belong to shareholders. Cars will be moved only in an extreme emergency. The governing documents provide for towing cars, but that will also be a last resort. Please help us keep parking in the west alley an option by being careful of our policies there. The alley as a fire lane always takes precedence.
Review of Rules and Regulations: Our corporate attorney has begun a review of our governing documents. She has alerted us to a couple of issues. We will report on all issues when her review is completed. In the meantime, if any shareholder has a concern or an idea about policies outlines in the governing documents, please alert a member of the Board and we will ask for legal review of that issue or idea. If no one objects, we assume that the rules and regulations currently in place are acceptable and that everyone will continue to agree to abide by them.
City of Chicago Inspection: Our report in last month’s Newsletter is the latest. No new developments.
Vandalism: David Shaw and the staff will be reviewing policies regarding incidents of vandalism in the building. A staff report on each incident, along with a picture (if applicable) and the filing of a police report will be routine if any vandalism occurs.
Chicago’s Life Safety Ordinances: Mike Cosgrove and David Shaw are continuing their research and attention on life safety issues, as prescribed by the City of Chicago. This will have implications for the installation of one and two way communication systems, sprinkler systems and the deadline for such mandates.
Updates from the Commissions/Committees/Task Forces
House Commission
The House Commission raised the issue of the laundry facilities, which resulted in the action of the Board to terminate the current laundry contract. If a notice of non-renewal is not given 365-402 days before the termination of the contract in October 2008, the contract automatically renews for 10 years! In the year before the conclusion of our current contract, then, the House Commission will be addressing the laundry room issues and looking at all alternatives for that function.
Design on a Dome
Once the make-over of the Board Room is complete, the Design on a Dime Team will continue their good work of transforming the inelegant common spaces that we have been living with to something more in keeping with the integrity of the building and our living spaces.
Emergency/Crisis Planning Commission
This group has developed its mission statement, which reads:
To develop and distribute a useable crisis emergency plan for staff and residents that will address all areas of crisis such as evacuation, in-place shelter, utilities management, emergency materials and resources, alternate shelter resources, communication and staff, shareholder roles including staff and shareholder training.
The ECP Commission is reviewing our current plan and those of other buildings. The Cook County Disaster Preparedness Action Plan and all other resources from the CTA and City of Chicago will also be reviewed.
Maintenance Commission
The Maintenance Commission continues to work on its heavy agenda – and quite effectively. The current issues before the MC are the following:
Approval of a Project Manager for Phase I of the Plumbing Project: The MC recommended Loeppert and Associates to serve as project manager. An outline of their services, timeline and costs is below:
Loeppert & Associates, Inc.Investigation of conditions including photos and/or video of each wall to use in bid package; examine waste stack; determine permits; prepare drawings; make recommendations for method; ensure accurate description for bidders; present results; Preparation of bid package; assist in contract preparation; develop Project Manual / $6,000
Conduct bidding process; make a recommendation; finalize contract and schedule; conduct a pre-construction meeting with the contractor (residents may attend) / $3,500
Monitor the actual construction; perform inspections; processing payouts; making sure residents are satisfied; project close-out; develop overall schedule and budget for the rest of risers / Not to exceed $4,000
N/A / N/A
$13,500
Loeppert provided the following estimates for duration of the phases: Phase I completed in 3-5 weeks; Phase II completed in 2-3 weeks; and Phase III completed in 30 days with actual construction consisting of 10 working days.
Terra Cotta Replacement and Masonry Project: This project is on schedule and will begin with the delivery of the terra cotta in October 2007.
One and Two Way Communications System: These issues continue to be on a front burner. As noted elsewhere, Michael Cosgrove and David Shaw are pursuing the clarifications that are needed from the City of Chicago.
Remodeling Procedures Guidelines: Some shareholders find the provisions of the governing documents related to remodeling confusing. The MC is reviewing and revising a set of guidelines for remodeling that were first formulated in 2002. These guidelines should prove helpful to shareholders as they pursue their remodeling plans.
Finally, after many years of dedicated service, Steve Kadlec resigned from the Maintenance Commission to take care of his professional duties, though he agreed to stay on as a consultant when needed. We all owe great thanks to Steve for his leadership and dedication for so many years.
Eligibility Committee
The Eligibility Committee continues their work on the revision of documents that will assist new shareholders in their adjustment to the shareholder community at 5000 Marine. The Board reviewed and commented on draft documents of “Discussion Guidelines for New Shareholders” and updated disclosure statements. These documents will be revised by the Committee and brought back to the Board for approval.
Finance Commission
The Finance Commission recommended the sweeping policy for our operating account at Hyde Park Bank, as stated above. The Commission continues to monitor the activities of all of the Corporation’s funds. A report on each of the Corporation’s funds is given at each Board meeting.
Marketing Task Force
The Marketing Task Force reported on four things at the Board meeting:
Open Houses: The first open house was held on Saturday and Sunday, July 21-22. There were about 8 people who attended. Another open house is scheduled for the week-end of July 27-28.
An Open House for Brokers: Phyllis Higgins is providing leadership for a Broker’s Open House. Details will follow when they are determined.
Web Site: A web site and web address for interested buyers is in process of development.
Post Cards: A post card with a picture of The Aquitania and a phone number will be developed and sent via mass mail as a marketing strategy for the building.
Long-Term Financial/Capital Strategy Task Force
Bank Meeting: The Long-Term Financial Strategy group has concluded a series of six bank visits to explore the possibilities and alternatives for funding our capital improvements. The group continues to be in conversation with all the banks, though three of the banks appear to provide the most feasible services for our building. Those three banks will be invited to meet with the task force, members of the Board of Directors and interested shareholders in early August.
Financing Scenarios: The task force has been considering several financing scenarios that include various combinations of operating funds, special assessments and long-term financing. That conversation will continue and will include our banking partners.
Tax Freeze: Don Gottesman and Patrick Thompson have done valuable research into the tax freeze implications for the building. At this point, it appears that our current tax freeze ends in 2012 and that it must expire and a new tax assessment be levied before we can apply for an extension of the tax freeze. An extension would involve evidence of continuing capital investments in the building, and, of course, a tax freeze after the expiration of our current tax freeze would apply to the newly assessed tax level.
Their tax freeze research also indicates that our current tax liability, which is about $77,000, would increase to $325,000-$350,000 were there no tax freeze. Thus, it is clear that we have much to gain by seeking another tax freeze. All of these things must be taken into account as we develop a long-term financial strategy for the Corporation.
“Green Initiatives”: Patrick Thompson has also done a lot of research on the value of “green” initiatives for the building. Though he has not yet locked in on opportunities for low-cost loans, etc., he did propose many initiatives that might be of great benefit and that are environmentally conscious and responsible, such as thermostat radiator values, occupancy sensors for our lights, a green roof, etc. Such initiatives often pay for themselves in 2-5 years. Some of these alternatives will be pursued by the Maintenance Commission.
If you are interested in “green” initiatives for the building, David Shaw will have copies of a NY Times article on green initiatives that have been taken by co-op buildings in New York.
September Discussion: We are still hoping to have a drafted financial strategy to shareholders by September for review and comment.
If you have comments, questions, suggestions…
The Board of Directors is always anxious to hear your concerns and suggestions. Please know that you are welcome to let us know how we can better serve The Aquitania and its shareholders.
Katherine Delaney, 3 FMichael Cosgrove, 7 FDon Gottesman, 5 F
Beth Hansen, 4 BTerry Hayden, 10 ATom Lohr, 12 F
Frances Maggio, 5 ABernadette Ross, 4 A Rob Rubin, 12 C
Selections from National Register Nomination
Plans for the Aquitania, described as “Apartments for George K. Spoor” on the blueprints, were drawn up in October of 1922 by his architects Ralph C. Harris and Byron H. Jilson. Spoor had owned the property where the apartment was to be built since 1912. Completed in 1923,…Spoor continued to own the building, under the name Aquitania Building Corp., until August 1929, when it was sold to Sidney H. Kahn, under the name of the ArgyleLakeShoreBuilding. In 1936, the name of the corporation was changed to the Aquitania Apartment Company. It remained under this umbrella until 1949, when the Aquitania Apartment Company deeded the property to 5000 Marine Drive and the building was converted into a cooperative. …