PARK TOWER CONDOMINIUM ASSOCIATION

2017 ANNUAL MEETING

And June 12th Board Meeting

Monday June 12, 2017 7:30 PM

Party Room 2nd Floor

2017 Annual Meeting of PTCA Unit Owners

Call To Order

The Meeting Chair current Board President Michael Parrie called the 2017 Annual Meeting of the Park Tower Condominium Association to order at 7:30pm, and confirmed with the auditor from Picker and Associates there was a minimum 20% quorum of Association members present in person or by proxy, in order to conduct the meeting.

Approval of Minutes: Annual Meeting June 13, 2016

The meeting chair called for a motion to approve the minutes of the 2016 Annual Meeting. Upon due motion made by Debrah Jefferson (Unit 4411), seconded by Laura Carl (Unit 3015), the Ownership of the Park Tower Condo Association approved the minutes from the 2016 Annual Meeting by a voice vote. The chair affirmed the ayes had it unanimously, as follows:

Resolved, that the Ownership of the Park Tower Condominium Association hereby approves and accepts the Minutes of the 2016 Park Tower Condo Association Annual Meeting that was held on June 13, 2016.

(COPY OF APPROVED MINUTES: Annual Meeting Minutes 06.13.16)

Introduction of Board Members, Management and Election Tabulator

The meeting chair introduced the current Board Members present, himself Board President Michael Parrie, Secretary Dave Nicosia, 1st Vice President Monique Fouant, and 2nd Vice President Paul Heck. Absent was Treasurer Jean Shamo.

He introduced the representatives present from Management, Supervisor David Barnhart, Property Manager Tim Patricio, and Assistant Manager Amir Cobalovic, and the Election Tabulators from the Association’s auditing firm Picker and Associates, CPA Daniel Jacobson and Assistant Zongmin Gong.

Statement of Purpose of Meeting

The meeting chair stated the purpose of the 2017 Annual Meeting being to elect three Unit Owners to the Board of Directors to each serve two-year terms on the Board.

Introduction of Candidates

The meeting chair introduced the Candidates of Record, Paul Heck (Unit 2905), Michael Parrie (Unit 5401) and Jean Shamo (Unit 4606).

The meeting chair called for any nominations from the floor. There being none, the chair called for a motion for final call for ballots. Upon due motion by Paul Groeninger (Unit 4211), seconded by Sheldon Atovsky (Unit 3306), the Ownership of the Park Tower Condo Association approved a final call for ballots at 7:34pm by a voice vote. The chair affirmed the ayes had it unanimously, as follows:

Resolved, that the Ownership of the Park Tower Condominium Association hereby approves a final call for ballots at 7:34pm.

Motion to Suspend Annual Meeting

The meeting chair called for a motion to suspend the meeting so the votes may be tallied by the auditor, and the Board of Directors may hold the June Board Meeting. Upon due motion by Oliver Tugend (Unit 4111), seconded by Ken Anderson (Unit 3106), the Ownership of the Park Tower Condo Association approved suspending the 2017 Annual Meeting at 7:37pm. The chair confirmed the ayes had it unanimously as follows:

Resolved, that the Ownership of the Park Tower Condominium Association hereby approves suspending the 2017 Park Tower Condo Association Annual Meeting at 7:37pm to allow the votes to be tallied and for the Board to hold the June Board meeting.

Reconvene Annual Meeting

After conferring with the auditor, it was apparent the vote was already tallied and ready to report, and as a courtesy the meeting chair called the 2017 Annual Meeting back to order at 7:38pm.

Announcement of Election Results

The meeting chair requested the election results to be delivered and summarized by the Election Tabulator with the Association’s auditing firm Picker and Associates, CPA Daniel Jacobson.

The Election Tabulator reported the percentage of the quorum was 28.73%. Only the candidates of record received votes. The following Unit Owners were elected to fill the three open positions for two years each, followed by their percentage of the vote:

Paul Heck – 26.92%

Michael Parrie – 31.52%

Jean Shamo – 22.83%

Adjournment

There being no further business, the meeting chair called for a motion to adjourn the 2017 Annual Meeting. Upon due motion by Paul Groeninger (Unit 4211), seconded by Laura Carl (Unit 3015), the Ownership of the Park Tower Condominium Association approved to adjourn the 2017 Annual Meeting at 7:40pm. The chair affirmed the ayes had it unanimously as follows:

Resolved, that the Ownership of the Park Tower Condominium Association hereby approves adjourning the 2017 Annual Meeting at 7:40pm.

June 12th 2017 Board of Directors Meeting

Owners Forum

The Board of Directors and Management addressed questions and feedback from Unit Owners present at the meeting.

OPEN SESSION – Call to Order and Confirm Quorum

The meeting chair, current Board President Michael Parrie, called the meeting to order at 8:03pm and confirmed a quorum of Board Members were present. Board Members present at the meeting were Michael Parrie, David Nicosia, Monique Fouant and Paul Heck. Absent from the meeting was Jean Shamo.

Representatives from Management present at the meeting were Property Supervisor Dave Barnhart, Property Manager Timothy Patricio, and Assistant Manager Amir Cobalovic.

Board Report: Board President Michael Parrie

Board President Michael Parrie reported the Board will consider re-forming the ad-hoc commission to review the declaration and bylaws.  The Board is concerned that many owners have not voted and given their input.  If you have not done so, please turn in a signature page with your votes on the issues presented.

Action Items – New Business

1. Closed Session Business

After a motion by Michael Parrie, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to fine 12 unit owners $100 for the first month, to double thereafter for each subsequent month, up to the maximum fine of $1,000 per month, for not having provided adequate proof of insurance.

After a motion by Michael Parrie, seconded by Dave Nicosia, the Board of Directors voted unanimously in favor of a resolution to fine 5 unit owners $50 for the first month, to double thereafter for each subsequent month, up to a maximum fine of $200 per month, for residents not having attended the new residents meeting.

After a motion by Michael Parrie, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to fine the unit owner in case #4.28.17, $250 for a smoking violation, to double thereafter for each subsequent occurrence, up to a maximum fine of $1,000 per occurrence.

After a motion by Michael Parrie, seconded by Paul Heck, the Board of Directors voted unanimously in favor of a resolution to fine the unit owner in case #5.11.17.1, $350 for an unscheduled move.

After a motion by Michael Parrie, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to fine the unit owner in case #5.30.17.1, $50 for an excessive noise violation, to double thereafter for each subsequent occurrence, up to a maximum fine of $1,000 per occurrence.

2. Minutes – Board Meeting May 8, 2017

After a motion by Dave Nicosia, seconded by Paul Heck, the Board of Directors voted unanimously in favor of a resolution to approve the minutes from the Board Meeting held on Monday May 8th, 2017.

(COPY OF APPROVED MINUTES: Board Minutes 05.08.17)

3. Ad Hoc Commission Membership

After a motion by Michael Parrie, seconded by Dave Nicosia, the Board of Directors voted unanimously in favor of a resolution to approve re-forming the Ad-Hoc Declaration and Bylaws Commission, and hereby tasks the Commission with raising awareness about the proposed amendments and purchase of Unit 12c, and encouraging all owners to return their completed signature pages, and additionally, the Board of Directors hereby appoints Ken Anderson, Sheldon Atovsky, Margaret Burnes, Jeff Hauser, Mike Magliane, and Bob Shamo as members of the Commission, Bob Shamo as the Chairperson of the Commission, and Paul Heck as the Board Liaison to the Commission, and furthermore directs the Commission to present a plan to the Board by July 10, 2017, to achieve these tasks.

4. Initiate Process To Purchase Unit 12c

After a motion by Paul Heck, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to schedule a Special Meeting of the Unit Owners and Board of Directors on Monday September 25th, 2017, for the purpose of voting on the purchase of Unit 12c which is the subject of a lien foreclosure initiated by Park Tower Condominium Association in a case pending in the Circuit Court of Cook County as Case No. 2016 CH 14259 and titled ‘Park Tower Condominium Association v. Sheridan Land Trust 5419, and such other matters as may properly come before the meeting.

(NOTE TO OWNERSHIP FROM MANAGEMENT, discussed at meeting:  At this moment in time, the subject unit owes the Association about $75,000. And that is growing at a base rate of $1,919/month.

The ownership’s permission is needed to purchase the unit, in order to complete the foreclosure process on the past due assessments. If it actually goes to foreclosure and a Sheriff sale, like a bank, the Association would make an opening bid in the exact amount of the assessments due. If no one bids higher, then the Association is technically purchasing the Unit for the amount of the assessments due at that time. Therein lies the primary reason the Board needs permission from the Unit Owners, in order complete the foreclosure process.

We WILL NOT actually cut a physical check – at that moment, the worst case scenario is that the Association zeroes out the balance due. The Association would just be crediting the lien on the unit.

THANKFULLY, there may be an interested party, who is a current owner. They understand the cost of the taxes and assessments for the unit, and have a proven track record to make payments and remain in excellent standing with their present units. In Managements opinion, they have been by every measure an upstanding owner in terms of how they manage and maintain their existing spaces. They have suggested they would come to the Sheriff sale and either bid higher, or turn around and buy the space from us and possibly make the Association whole.

The alternative to foreclosure is to let the subject space continue accumulating past due assessments and incorporate the cost into the budget. That would be the past due $75,000, plus the ongoing assessments at $23,000/year plus any increases. By year end that balance will be $90,000, which is about 2.5% in the total assessments. So, we would budget that $90,000 in bad debt. THEN, we would need to budget an additional $23,000 plus any increase in assessments. That would mean about a 3% increase in assessments to all the owners, just because of this one unit.

So, some would argue it is in PTCA’s best business and financial interest to foreclose and if possible facilitate a transaction with the interested buyer. To do so, we need 66 and 2/3rds of owners to give the Board permission to purchase and sell the unit, so the foreclosure can be processed to conclusion.

If you have any questions, feel free to contact me at t.patricio@dkcondo.com.)

5. Peoples Gas Rebate

After a motion by Monique Fouant, seconded by Dave Nicosia, the Board of Directors voted unanimously in favor of a resolution to approve transferring the $9100 Peoples Gas Hot Water Heater Project Rebate in operating funds, to the reserve fund.

6. Main Roof Replacement

After a motion by Paul Heck, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to authorize Management to formally enter a contract with Berglund Construction Company, presently the lowest bidder for the Main Roof Replacement Project, once the bids for the Roof Anchorage Support System have been received, reviewed and vetted by the Association’s consultants with Wiss, Janney, Elstner, and added together for a combined total cost of the project not to exceed a variance from being the low bidder greater than $50,000.

7. Pool Walkway Door

After a motion by Paul Heck, seconded by Dave Nicosia, the Board of Directors voted unanimously in favor of a resolution to approve the bid as proposed by Industrial Door Service for $5,784, to replace the entry door and frame leading to the pool and deck area walkway.

8. Elevator Carpet Replacement

After a motion by Paul Heck, seconded by Dave Nicosia, the Board of Directors voted unanimously in favor of a resolution to approve the replacement of the elevator carpet mats, with Interface Carpet Tiles, specifically the “Step Repeat” pattern and “Sable” color, as recommended by the Home Improvement Commission, and furthermore the Board of Directors authorizes the purchase of enough material for 2 full sets per passenger elevator, at a combined cost not to exceed $6000.

9. Wallpaper Replacement Sample

After a motion by Paul Heck, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to approve the use of ‘Redbridge Strip – Natural’ wall covering by Wolf Gordon, for 2nd floor replacement work, and stock for hallway replacement, and authorizes a budget of $8000 for making an initial purchase of the material.

10. Roof Deck Furniture

After a motion by Paul Heck, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to direct management to budget $15,000 with the upcoming 2018/2019 proposed budget, for the replacement of the roof deck furniture, with Tropitone products consistent with the recommendations of the Home Improvement Commission.

11. BBQ Grill Fee Recommendation

After a motion by Paul Heck, seconded by Dave Nicosia, the Board of Directors voted unanimously in favor of a resolution to approve eliminating the $10 fee to rent the barbecue grills, and authorizes grills be available on a reservation or first come first serve basis.

12. Construction Requests

After a motion by Michael Parrie, seconded by Dave Nicosia, the the Board of Directors voted unanimously in favor of a resolution to approve the remodeling plans of units 1910, 2010, 3012 and 5209, as submitted by the unit owner, following the recommendations of the chief engineer as outlined in their written specifications and in accordance with the Rules and Regulations and remodeling guidelines of the Park Tower Condo Association.

Business Reports

1.     Treasurer’s Report

Board Secretary Dave Nicosia reviewed fund balances and income and expenses for the month of April as follows:

Fund Balances End of April 2017

Operating Funds $422,947 (increase of $28,302 from March)

Reserve Funds $2,240,087 (decrease of $113,730 from March)

Total Cash and Investments $2,663,034 (decrease of $85,428 from March)

April Income and Expenses

Total April Income: $484,779

Total April Expenses: $389,811

Income From Garage: $25,770

Contribution To Reserve: $131,417

Total Surplus or (Deficit): ($10,679)

2.     Management Report

Property Manager Tim Patricio reported on current PTCA Business and Activities, items of interest from the Monthly Activity Report, and recent Sales Activity.

Adjournment

There being no further business, after a motion by Dave Nicosia, seconded by Monique Fouant, the Board of Directors voted unanimously in favor of a resolution to adjourn the June 12th, 2017 Board Meeting at 8:33pm.

Owners Forum

The Board of Directors and Management addressed questions and feedback from Unit Owners present at the meeting.

The next meeting is scheduled for Monday June 26th at 7:30pm, in the 2nd Floor Party Room.