Welcome Co-Owners Our Agenda for This Evening General Review of 2004 & 2005 to dateGeneral Review of 2004 & 2005 to date What “Your Board” has accomplished… plus & minusWhat “Your Board” has accomplished… plus & minus Infrastructure Review Current & Future (2005/2006) UpgradesInfrastructure Review Current & Future (2005/2006) Upgrades Financial ReviewFinancial Review Financial Needs Going ForwardFinancial Needs Going Forward Normal Board BusinessNormal Board Business

St. Clair Board of Directors Stewardship “The Good, The Bad & The Ugly “Issues & Disappointments” Low owner participation & interest at Board meetings Discontent of co-owners & vandalism Efforts to improve communications did not work out Decorations- widely varying preferences not resolved Prime Site Inc. failures required a change that was disruptive HVAC system replacements ’99-’2000 incorrectly designed ‘2000 Water proofing project incorrectly designed & executed Tractebel electric supplier would not renew contract Piping floods caused extensive damage Aging of PVC piping generating expensive remediation

St. Clair Board of Directors Stewardship “The Good, The Bad & The Ugly The Good – “Significant” tax refunds, reduction in delinquencies, new mechanical contractor, and improved insurance coverage – New garage doors & controls – “New Mgt. Co” Association Management Inc. (AMI) – Sewer Repairs completed well under early estimates – Building water proofing project started –Reserve Study completed; posted on Web site & at desk

St. Clair Board of Directors Stewardship “The Good, The Bad & The Ugly – New control systems for potable hot water – Security system upgraded – Telephone system cost savings implemented – New auditor – More accurate/efficient at lower cost – Professional project approval process implemented – Web site for dissemination of information both internal & external use – Wi-Fi system on 1 st floor

St. Clair Board of Directors Stewardship “The Good, The Bad & The Ugly – Owner surveys for information & feedback – Job descriptions now written for employees – Qualification process for all vendors/contractors – Elevator maintenance contract negotiated at lower cost – Grounds maintenance contract negotiated at lower cost – Draft of Rules & Regulation update ready for review by owners – Created systems for retaining records that are user friendly

Infrastructure What You Don’t Want to Know & Hear… But Have To !! “Our Building is 25 Years Old” and has been poorly maintained !!! “Our Building is 25 Years Old” and has been poorly maintained !!! “We” control the future & that’s all that matters !!! “We” control the future & that’s all that matters !!! “Get involved in Your investment”

Infrastructure What You Don’t Want to Know & Hear… But Have To !! Building Envelope : water proofing, glass, roof current & future HVAC systems: building & individual units of owners Integrated Digital control systems PVC piping is near end of it’s projected life Domestic hot water systems were not controlled properly Security system upgrades NO more “Shade Tree” contractors allowed You “Must” read the Reserve Study

Financial Review and “Needs” including Investment Implications May 23, 2005

Sources of 2005 Operating Budget Increase

Owner Votes on Cost Saving Options

Sales Value Comparison

2004 Assessment

Owner Votes on Capital Improvements

Our Capital Needs for 2005/6

Financing Option Proposal $300,000 Capital assessment paid in two installments (August 1, Nov.1, 2005)$300,000 Capital assessment paid in two installments (August 1, Nov.1, 2005) Amounts to $2.38/square footAmounts to $2.38/square foot $200,000 bank loan with a 5 year payback “Directed” to upgrading floor halls 2-13$200,000 bank loan with a 5 year payback “Directed” to upgrading floor halls 2-13 Annual payments of about $47,500 funded from existing Monthly maintenance fees.Annual payments of about $47,500 funded from existing Monthly maintenance fees. Allows us to send $24,500 to our Reserve FundAllows us to send $24,500 to our Reserve Fund

Considerations Other Maintenance Needs should be met from the allocation from current Maintenance feesOther Maintenance Needs should be met from the allocation from current Maintenance fees Better Insurance will help avoid major costs from flooding failuresBetter Insurance will help avoid major costs from flooding failures Reserve Study gives us a sound base to build onReserve Study gives us a sound base to build on But….Reserve Study based on sound equipment design and maintenanceBut….Reserve Study based on sound equipment design and maintenance Always some risk of major failures in the future requiring emergency fundingAlways some risk of major failures in the future requiring emergency funding

A Look Forward - Reserve Fund Growth A Look Forward - Reserve Fund Growth

Projected Reserves

So….. Building infrastructure knowledge has improved and better maintenance will be a significant step forward but…..Building infrastructure knowledge has improved and better maintenance will be a significant step forward but….. We need added funds to put us on a sound infrastructure & financial footing and …..We need added funds to put us on a sound infrastructure & financial footing and ….. We have the opportunity “NOW” to significantly upgrade the hallways by taking a loanWe have the opportunity “NOW” to significantly upgrade the hallways by taking a loan

That’s the Picture That’s the Picture It is up to all of us to make it happen for “OUR” home and our investment!! WE urge you to vote FOR the funds the Board is recommending