2015 Annual Meeting And June Board Meeting
June 15, 2015
PTCA 2015 Annual Meeting
Monday June 15, 2015 at 7:30pm
5415 North Sheridan Road, 2nd Floor Party Room
Agenda and Report
I. Call Meeting to Order
II. Approval of Minutes: Annual Meeting June 9, 2014
Attached to the report are the minutes from the 2014 Annual Meeting held on June 9, 2014.
A sample resolution for approval follows: “I move to hereby approve the minutes from the 2014 Annual Meeting held on June 9, 2014.”
III. Introduction of Board Members and Election Tabulators
The current Board President will introduce the current Board Members and Election Tabulators from Picker and Associates.
IV. Statement of Purpose of Meeting
The purpose of the meeting is to elect three Directors for a two-year term; Candidates of Record are Joe Guzzardo, Michael Parrie, George Pauley and Jean Shamo.
a. Nominations from the Floor – Unit Owners may nominate a candidate via motion and second.
b. Final Call for Ballots
A sample resolution follows: “I move for a final call for ballots with voting closed at _____PM.”
V. Motion to Suspend Annual Meeting
The meeting may be suspended allow the votes to be tallied.
A sample resolution follows: “I move to hereby suspend the 2015 Annual Meeting at ____PM.”
VI. Reconvene Annual Meeting
The Board of Directors to reconvene the 2015 Annual Meeting.
A sample resolution follows: “I move to hereby reconvene the 2015 Annual Meeting at _____PM.”
VII. Announcement of Election Results
The Election Tabulators will present the preliminary quorum and election results.
VII. Approval to Adjourn: Annual Meeting
There being no further business to conduct, the annual meeting can be adjourned.
A sample resolution follows: “I move to hereby adjourn the 2015 Annual Meeting at PM.”
Board Of Directors Meeting
Monday June 15, 2015
Expected During Suspension of Annual Meeting
Agenda and Report
TBA – OWNER FORUM – 15 minutes, 2 minutes per person
The Board and Management will address questions and feedback from Unit Owners present.
TBA – OPEN SESSION – Call to Order
Please be courteous – no audience participation is permitted. Speakers will be recognized by the Meeting Chair.
Roll Call – Confirm Quorum
Committee Reports
Attached for Board Members to review is a report from the June 2, 2015 Health Club Committee Meeting.
Board Report: George Pauley
The meeting chair may address the Board and Owners with a report.
Action Items – New Business
Motions from Closed Session
Motions can be recommended if any action is considered during closed session.
Minutes – Board Meeting June 1, 2015
Attached, for the Board of Directors, are the proposed minutes from the Board Meeting held on June 1, 2015, submitted by Timothy Patricio, Property Manager.
A sample resolution follows: “I move the Board of Directors approves the minutes from the Board Meeting held on May 11, 2015.”
Health Club Improvement Recommendations
The Health Club Committee has presented recommendations for improvements to the Health Club. Attached to the report for the Board’s review are materials related to the following recommendations.
A. Health Club Renovation Proposed Budget $112,150
1. The Committee proposes to turn the existing weight room into the cardio room, and Racquetball Court #1 (southernmost) into the weight room. The bulk of the physical construction would be done in house, including demo’ing one wall in the current weight room and the glass wall separating the current cardio room from the racquetball court. A suspended strut system and railing would be installed for lighting and ceilings fans in the racquetball court. Outside contractors would install flooring and a wireless network for tvs in the new cardio room. Estimated by Management $43,800.
2. The Committee proposes a complete gut rehab of the men’s and women’s locker rooms. This includes replacing all tilework, all wood in the saunas, rebuilding the women’s shower and updating the plumbing and fixtures, and replacing the men’s shower with a custom built walk-in shower similar in design to the women’s shower, also with updated plumbing and fixtures. Estimated by Arete Renovators $68,350. (Should the Board agree to pursue this rehab, the Committee recommends it be put out to bid to at least two more contractors before executing an agreement.)
B. Health Club Equipment Proposal
1. The Committee recommends we replace most of the Cardio and Weight Equipment with the following, under a 5 year lease and maintenance program:
CARDIO
5 Treadmills (currently 4), 3 Elipticals, Upright Cycle, Recumbent Cycle, Rower (currently none), Stretch Trainer (currently none).
STRENGTH
Hip Abduction/Adduction, Leg Press/Calf Extension, Rear Delt/Pec Fly, Bicep/Tricep
Leg Extension/Leg Curl, Abdominal/Back Extension, Chest Press, Multi Functional Strength Trainer.
ACCESSORIES
(All added) Hyper Extension Bench, Multi Angle Bench, Mats & Miscellaneous Accessories
The Committee Proposes we keep the following equipment to be folded into the maintenance program with the new equipment.
NuStep Seated Stepper, Schwinn AirDyne Cycle, Life Fitness Strength Multi-Gym, Life Fitness Vertical Knee Raise, Life Fitness Seated Leg Press, Weight Rack Cage & Bench, Weight Bars and, Weight Sets, Weight Storage Rack & Dumbbell Sets, Adjustable Fitness Bench.
Bids and references were sought from 3 vendors of different brands:
Direct Fitness Solutions (Predominantly ‘PreCor’ brand cardio and strength)
Equipment Installed w/Tax: $91,200
Annual Maintenance: $610 (2 visits annually; 1st visit free)
Warranty: 2 years parts and labor
Fitness Experts (‘True’ brand cardio and ‘TuffStuff’ strength)
Equipment Installed w/Tax: $91,500
Annual Maintenance: $2,620 (Quarterly visits)
Warranty: TBA
The Fitness Connection (Predominantly ‘Matrix’ brand cardio and strength.
Equipment Installed w/Tax: $76,800
Annual Maintenance: $1125 (6 visits annually; 3 visits free)
Warranty: TBA
After reviewing references, including over 30 responses from DK Condo managers, the Committee disqualified Fitness Experts due to negative feedback about the ‘True’ brand equipment. Attached for the Board’s review are the two remaining proposals from Direct Fitness and Fitness Connection, with a cover page showing a line by line breakdown of the equipment estimates. It is the Committee’s recommendation after reviewing the proposal and considering references, that Matrix is the preferred brand to purchase and The Fitness Connection is the preferred vendor to enter an agreement with for maintenance.
2. Equipment is not budgeted for replacement, neither in operating for this year or the reserve. Also, the reserve study does not consider equipment, as the policy up to now has been to make replacements from operating as needed. So the Committee considered the cost of leasing which has two distinct advantages – it spreads the expense over several years rather than paid for all at once, and actually gives us leverage should we have any equipment problems. The disadvantage is that you pay interest, which is approximately 10%.
Here are how the estimated leasing numbers fall with the two lead bidders:
Direct Fitness (PreCor) Total Fitness (Matrix)
3yr. n/a up to $2,956
4yr. $2,725 up to $2,408
5yr. $2,279 up to $2,014
We can likely get a better interest rate through our bankers with Community Advantage, so we are asking them for a quote. However, a loan like that would eliminate the leverage provided by a lease. As it stands, the Committee recommends the 5 year lease with Total Fitness at a cost not to exceed $2,014/month.
No specific line items have been budgeted for changes to the Health Club as recommended by the Committee. However, $48,000 is allocated by the Reserve Study within the next 5 years to renovate the locker room. The figure did not allow for replacing tilework. Also, in the operating budget, under Fitness Center, $5000 is budgeted each year for new equipment and this year $4500 was allocated for decorating purposes. (The point being, if you proceed, next year’s budget can be reduced by $9500.)
If the Board deems this work to be necessary, there are also funds available in contingency from past surpluses, and we expect the 2014/2015 audit to report a surplus in excess of $100,000.
Management supports this plan and believes it is necessary for maintenance and aesthetic purposes. At any given time, it is not uncommon to have multiple pieces of equipment out of service. For example, at the time of drafting this report 3 pieces of cardio equipment are out of service awaiting parts. Also, it is not uncommon for real estate agents who know Park Tower, to steer clear of the weight room and cardio room. Furthermore, we heat and cool the racquetball courts, but they are very rarely used and even more rarely both at one time (if at all). Repurposing one as proposed would be a much more effective and efficient use of the space.
We suggest the Board consider accepting the recommendations as proposed, with renovations allocated as a reserve expense and equipment allocated as an operating expense. Direction could be given to begin in house construction of the racquetball court repurposing ASAP, get 2 more bids for the locker room rehab for presentation at an upcoming Board Meeting, and that a final lease be negotiated with Fitness Connection for the new equipment.
Because of the complexity of this topic, and possible variables, a resolution should be considered at the meeting.
Construction Requests
Owners of the following units presented the Association with remodeling plans, attached to the report for Board review and consideration:
Unit 5304 Installing engineered wood throughout, removing wall and installing island between kitchen and living space.
A sample resolution follows: “I move the Board of Directors approves the remodeling plans of units 5304 as submitted by the unit owner, following the recommendations of the chief engineer, and as outlined in their written specifications and in accordance with the Rules and Regulations and remodeling guidelines of the Park Tower Condo Association.”
Schedule Next Board Meeting
The Board should consider scheduling the next meeting of the Board, and directing Management to issue proper notice.
A sample resolution follows: “I move the Board approves scheduling the next Board of Directors date and time for ___________.”
Reports:
Treasurer’s Report: David NicosiaAPRIL FINANCIAL ACTIVITY (Accrual Based)
Total Revenue = $472,971
Total Operating Expenses = $310,480
Net Income from Garage Operations = $28,125
Operating Income = $162,491
Reserve Contribution = $117,200
Net Surplus/(Deficit) = $73,416
Total Reserve Expenses = $18,412
APRIL BANK ACTIVITY (Actual EOM Balances)
Operating Account Balance = $667,297
(Increase of $124,458 from March.)
Reserve Account Balance = $1,671,323
(Decrease of $121,322 from March.)
Total Cash and Investments = $2,217,298
Management Report: Tim Patricio
Updates
Monthly Activity Report
Sales and Leasing ReportADJOURNMENT
There being no further business, the Board will consider adjourning the June 15, 2015 Board Meeting.
A sample resolution follows: “I move the Board of Directors adjourns the June 15, 2015 Board Meeting at___PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
About the Author: Tim Patricio
Park Tower Horizons
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