Senior Services Commission

APPROVED Minutes of a Regular Meeting of the Senior Services Commission Village of Northbrook January 9, 2014 The meeting was called to order at 7:02 p.m. at the Northbrook Village Hall, 1225 Cedar Lane. Present were Chairman Wax and Members Bachrach, Forde, Ganitopoulos, Stern, and Rosenberg. Members Louis, Moore, and Nevin were absent. Also present were Liaison Rowitz, Realty and Mortgage (R&M) representatives Crane and Jaworski, and Recorder Martin. Review and Approval of Minutes from the November 14, 2013, Meeting Manager Crane suggested that the minutes be corrected to remove the first sentence found in the section of the Manager’s Report devoted to the “Status of Generator Replacement Recommendation.” She suggested that the sentence be replaced with one that reads “Despite prior repairs, a secondary issue arose, causing the generator to fail in the summer.” Member Rosenberg , seconded by Member Ganitopoulos, moved to approve the minutes with the aforementioned correction. The motion passed on a voice vote. Chairman’s Report Chairman Wax welcomed Jeff Rowitz to the Commission as its new liaison. Mr. Rowitz’ title is Deputy Village Manager and Director of Finance. Chairman Wax also said that the Village has found a way to allow Crestwood residents to dispose of e-waste, i.e., waste from consumer electronics and the like. The Public Works Department will install a receptacle to collect e-waste in the building. It will be emptied periodically. The Village employs an e-waste contractor and that firm will see to the proper disposal of the e-waste. Manager’s Report Manager Crane said that she called many firms in an effort to secure bids for the completion of a capital maintenance plan. In the end, she received two quotes (from Klein and Hoffman and Thornton Tomasetti) that were clear and complete as to the work that the firm would do for the price quoted. A third quote, from LM Consultants, was much lower than the other two. When LM Consultants was asked to respond to a detailed list of mechanical systems to be investigated, they did not reply. They also failed to reply to a request for references. Manager Crane said she was skeptical of LM Consultants’ ability to complete the job. She recommended that the job be awarded to Thornton Tomasetti, the lower of the two remaining bids. She said that their work product will be a spreadsheet covering projected costs to replace or upgrade Crestwood’s mechanical and other building systems over the next 20 years. The Commission discussed whether the capital study might cover a time horizon of less than 20 years, given that the last capital reserve study was completed in 2005, only eight years ago. Also, if the study covered fewer years, could it be done for less money? The general consensus was that the study should cover 20 years because the life of building systems is often 20 to 30 years and that requesting a study of only ten years may not save much money. But if possible, prices mentioned in the study for long-term replacement or renovation of building systems should factor in inflation. Otherwise, price data is not useful. Price data in past studies has not necessarily accounted for inflation. Member Stern, seconded by Member Rosenberg, moved to Page 1 of 7 recommend that the contract be awarded to Thornton Tomasetti to complete a 20-year capital maintenance plan for a price not to exceed $20, 000. The motion passed by a unanimous voice vote. Manager Crane reported that two units at Crestwood recently became available and that replacement tenants have been found. The building is 100 percent occupied. Park District Programs Update—Frank Lamberti No one from the Northbrook Park District attended the meeting, so no report was given. Budget and Finance 1) Review of October 2013 Financial Report Chairman Wax reviewed the report, and said that as of October 31, 2013, approximately $633,000 is available for capital projects. Member Ganitopoulos, seconded by Member Forde, moved to approve the October 2013 financial report. On voice vote, the motion passed. 2) Review of November 2013 Financial Report Chairman Wax said that this report shows that approximately $660,000 is available as of November 30, 2013. Member Stern, seconded by Member Bachrach, moved to approve the November 2013 financial report. On voice vote, the motion passed. Old Business 1) Report on Progress of Contract Discussions with R & M The current management contract between R & M and the Village expires April 30, 2014. Deputy Village Manager Rowitz said that the Village has not received a proposed contract from R & M, but that the firm has requested the following increase in its management fee for the next three years: 3.5 percent, 2.5 percent and 2.5 percent. Deputy Village Manager Rowitz said that the current contract has not included a fee increase since it was signed in 2010. He said that the percentage increases quoted above were for R & M’s management fee only. They do not apply to any other budget line item. Chairman Wax said that management fees will be addressed when the Commission votes later this evening on the draft 2014-2015 budget for Crestwood Place. New Business 1) Review of Draft 2014-2015 Budget Chairman Wax said that the Commission would now review the budget for Crestwood Place line by line. Line 521 (Maintenance Equipment) is slated to increase by approximately $1,750. The increase is for a new carpet extractor, which is expected to cost approximately $1,500. Member Rosenberg, seconded by Member Stern, moved to approve $9,210 in Line 521 for Page 2 of 7 the proposed FY 2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 524 (Building Repairs, HVAC Maintenance, Grounds Maintenance Service, and General Exterior Maintenance) contains a total of $160,450 proposed for FY2015. New in this line item is $2,500 to paint the activity room and other common-area spaces. Much of the $25,000 earmarked for decorating in this line item is spent maintaining apartments and redecorating them after tenants move out. Member Forde, seconded by Member Stern, moved to approve $160,450 in Line 524 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 534 (Administrative Services) includes funds paid to the Village’s Departments of Finance and General Government. This line was increased to $80,000 for FY2015 to account for a planned four-percent increase. Member Rosenberg, seconded by Member Bachrach, moved to approve $80,000 in Line 534 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 535 (Water) was increased to $32,400 to account for a 20-percent increase in water rates expected to take effect May 1, 2014. Member Forde, seconded by Member Ganitopoulos, moved to approve $32,400 in Line 535 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 536 (Self-Insurance) was increased to $50,000 to accommodate a five-percent increase expected in the coming year. Member Rosenberg, seconded by Member Bachrach, moved to approve $50,000 in Line 536 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 537 (Telephone Service) is budgeted at $4,500 for FY2015, which is not an increase over FY2014. Past expenditures from this line item included a new intercom system, which will not be a recurring expense. Also telecommunications costs dropped after a telephone line was removed from Crestwood Place in FY2013. Member Ganitopoulos, seconded by Member Stern, moved to approve $4,500 in Line 537 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 538 (Electricity) is budgeted at $26,500 for FY2015. Expenditures from this line item are well under budget for FY2014; therefore, it has not been increased for FY2015. Member Stern, seconded by Member Bachrach, moved to approve $26,500 for Line 538 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 539 (Natural Gas) is budgeted at $15,000 for FY2015. Expenditures from this line item are well under budget for FY2014, but the winter is not yet over, and expenditures may rise substantially. Member Stern, seconded by Member Rosenberg, moved to approve $15,000 for Line 539 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Page 3 of 7  Line 551 (Legal Services) is budgeted at $1,000 for FY2015. These funds are paid to the Village when it performs legal work for Crestwood Place, such as review of the contract with its building manager. The budgeted amount of $1,000 will pay for about four hours of the Village Attorney’s time. Member Rosenberg, seconded by Member Bachrach, moved to approve $1,000 for Line 551 for the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6- 0-0. Line 554 (Other Professional Services) was then discussed by the Commission. This line item includes the management fee charged by R & M. The Commission discussed the 3.5 percent increase in the management fee proposed for the first year of the new contract. With the increase, the management fee would increase from $34,800 in FY2014 to $36,018 in FY2015. The management fee has not increased at all under the current contract, which was signed in 2010. Member Forde, seconded by Member Ganitopoulos, moved to approve $36,018 for the FY2015 management fee, which is included in Line 554 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. The Commission then discussed the Manager Payroll portion of Line 554 (Other Professional Services). As proposed to the Commission, this portion of Line 554 is $60,645, an increase of 3.5 percent. Village union contracts are budgeted for a 2.5 percent pay increase. Increasing the Manager Payroll portion of Line 554 by 2.5 percent (so as to keep it in line with pay raises budgeted for Village staff) results in a Manager Payroll amount of only $60,059. Member Rosenberg, seconded by Member Forde, moved to approve $60,059 for the FY2015 Manager Payroll, which is included in Line 554 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, and Chairman Wax. Member Bachrach voted no. The motion passed 5-1-0. The Commission then discussed the remaining portions of Line 554 (Other Professional Services). It was determined that—as presented to the Commission—the portion of Line 554 devoted to Health Insurance/Employee Benefits included $3,500 for employee bonuses. The consensus of the Commission was to move this item to R & M Line Item 6598 (Payroll Bonus) and to trim the Health Insurance amount to $24,500. The Commission also determined that limiting the increase in the On-Site Office Payroll portion of Line 554 (Other Professional Services) to 2.5 percent would trim this portion of the line item to $12,557. Member Rosenberg, seconded by Member Forde, moved to approve $12,557 for the FY2015 On-Site Office Payroll, which is included in Line 554 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. The Commission then voted on Line 554 (Other Professional Services) as a whole. Member Stern, seconded by Member Ganitopoulos, moved to approve $193,141 for Line 554 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 555 (Custodial Services) includes two payroll figures, one for maintenance and one for janitorial work. Trimming the proposed increase for both to 2.5 percent yielded a total of $77,694 for this line item. Member Stern, seconded by Member Ganitopoulos, moved to approve $77,694 for Line 555 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6- 0-0. Page 4 of 7  Line 585 (Solid Waste Management) is budgeted at $300. Member Rosenberg, seconded by Member Bachrach, moved to approve $300 for Line 585 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 586 (Senior Citizen Programs) is budgeted at $31,000. Member Stern, seconded by Member Bachrach, moved to approve $31,000 for Line 586 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 599 (Miscellaneous) includes staff training associated with real estate licensure, among other items. Member Rosenberg, seconded by Member Stern, moved to approve $6,900 for Line 599 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 601 (Office Supplies) is budgeted at $3,000. Member Stern, seconded by Member Rosenberg, moved to approve $3,000 for Line 601 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 613 (Maintenance Parts and Supplies) is budgeted at $6,950. Member Ganitopoulos, seconded by Member Stern, moved to approve $6,950 for Line 613 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 426 (Interest Income) is budgeted at $400. Member Ganitopoulos, seconded by Member Forde, moved to approve $400 for Line 426 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 461 (Rental Income) as originally presented to the Commission included a 3.7 percent increase in rent charged to tenants. The Commission discussed whether rents should be increased. The building has a healthy reserve fund, but extensive work may be needed in the future. The results of the capital maintenance plan may shed light on exactly how much work will be needed when, and how much it will cost. Also, security is an issue at the building (although convincing residents not to allow strangers into the building may be a problem that money cannot solve). Also, the building lacks an automatic external defibrillator (AED). The lack of an AED is an open issue that can be discussed at a future meeting. The Commission also discussed foregoing the proposed 3.7 percent increase in rent and instead imposing a five-percent rent increase on only new tenants, which results in a budgeted line item of $825,000 for the apartment rent portion of Line 461 (Rental Income). This limited rent increase, combined with government rental assistance and losses due to vacant apartments and other factors, results in a total of $823,644 for Line 461. Member Forde, seconded by Member Ganitopoulos, moved to approve $823,644 for Line 461 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 473 (Miscellaneous Income) includes a sub-line item (#15-0000-473-09) budgeted for “miscellaneous” at $700 for FY2015. This same sub-line item was budgeted at $6,200 in FY2014 and $300 in FY2013. Member Forde asked why this sub-line item spiked in FY2014. Page 5 of 7  There was no clear answer. Member Stern, seconded by Member Rosenberg, moved to approve $700 for this sub-line item of Line 473 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Bachrach, and Chairman Wax. Member Forde voted no. The motion passed 5-1-0. The remainder of Line 473 (Miscellaneous Income) includes $4,130 from laundry, vending, and “not sufficient funds” and late charges. Member Stern, seconded by Member Bachrach, moved to approve $4,130 for the remainder of Line 473 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 703 (Building and Permanent Improvements) is budgeted at $105,700. This includes $35,000 for new lobby furniture, $6,200 to replace a trash compactor, and $64,500 to install walk-in showers in 15 apartments. In past years, approximately ten apartments per year have been outfitted with walk-in showers. There was some concern expressed that with these proposed expenditures, costs will exceed operating income. Chairman Wax said that the proposed budget contemplates spending part of the building’s reserve fund to make some long-term improvements. Member Forde said he could not vote to spend money for new furniture in the lobby. Member Bachrach, seconded by Member Rosenberg, moved to approve $105,700 for Line 703 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Bachrach, and Chairman Wax. Member Forde voted no. The motion passed 5-1-0. Line 705 (Department Equipment) is budgeted at $80,000. This includes $65,000 for a boiler that might need to be replaced. It is approximately 30 years old. If the capital maintenance plan is completed before April 30, 2014, it might provide answers before the start of FY2015 as to how soon the boiler will have to be replaced. Member Stern, seconded by Member Bachrach, moved to approve $80,000 for Line 705 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Line 851 (Principal on Mortgage and Note Payable) and Line 852 (Interest on Mortgage and Note Payable) total $62,500. Member Stern, seconded by Member Ganitopoulos, moved to approve $39,300 for Line 851 and $23,200 for Line 852 of the proposed FY2015 budget. On roll call, voting aye were Stern, Rosenberg, Ganitopoulos, Forde, Bachrach, and Chairman Wax. The motion passed 6-0-0. Hear from the Audience None. Adjourn Chairman Wax announced that the next meeting will be held on March 13, 2014. Member Stern moved, seconded by Member Rosenberg, to adjourn the meeting at 10:00 p.m. The motion passed by voice vote. Respectfully submitted, /s/ Christine Martin Page 6 of 7 Recorder Page 7 of 7