Board Meeting 12.10.18
December 8, 2018
BOARD OF DIRECTORS MEETING
Management Report and Agenda
Monday December 10, 2018 7:30PM
2nd Floor Party Room
6:30PM – Closed Session (Held by Board in Management Office)
7:30PM – OWNER FORUM – 15 minutes, 2 minutes per person
The Board and Management will address feedback and questions from Unit Owners.
OPEN SESSION – Call to Order
Roll Call – Confirm Quorum
The meeting chair, expected to be Board President Michael Parrie, will confirm a quorum of Board Members is present. Board Members and representatives from Management will be introduced.
Committee Reports
Committee Chairs or others so designated will be invited to update the Board on business and activities.
Board Report
The Board President may review business or other matters of interest with the Board and audience.
Action Items – New Business
- Closed Session Business
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
- Appointment of Board Member
This agenda item is provided for any potential consideration of filling the open Board Position left by the resignation of Board Vice President Paul Heck. Pursuant to the Association’s governing documents, the Board may appoint an Owner to the position by a vote of ¾ of the present voting members.
- Minutes – Board Meeting November 12, 2018
Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday November 12, 2018, as submitted by Timothy Patricio, Property Manager.
A sample motion: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday November 12, 2018.”
- Minutes – Board Meeting November 17, 2018
Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Saturday November 17, 2018, as submitted by Timothy Patricio, Property Manager.
A sample motion: “I move the Board of Directors approves the minutes from the Board Meeting held on Saturday November 17, 2018.”
- 2019 Management Office Holiday Hours
Attached to the report for Board Member review, is the Draper and Kramer corporate holiday schedule. There are 10 holidays being recognized and employees are entitled to a total of 12 paid days off. All together there are also 6 days where early close is acceptable.
For the 2018 holiday schedule the Board approved the Management Office to be closed on 6 holidays – New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day, with a reduced staff for the other holidays as deemed appropriate. Notice is posted for early release days.
A sample motion follows: “I move the Board of Directors approves the following holiday schedule for the management office employees for 2019, with the Management Office to close on the observed New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, with a reduced staff as deemed appropriate by management for the balance of DK Condo’s scheduled holidays, and early release dates with appropriate notice.”
- Management Contract Extension
Attached to the report for Board review, is the most recent Management Contract Extension between the Association and Draper and Kramer. The current period ends February 28, 2019. The Board has the option to renew under the existing terms, including locking in the present fee structure, through February 28, 2022.
The Board should formally affirm whether opting out or renewing. It is our understanding the Board wishes to activate the extension.
A sample motion: “I move the Board of Directors approves the option to renew the Condominium Management Agreement with Draper and Kramer for the term of March 1st , 2019 through February 28, 2022, with all terms, conditions and fees to continue as specified in the present agreement.”
- 2019/2020 Budget Mailing
Attached to the report for Board review, is the 2019/2020 proposed budget for mailing to the Unit Owners, with changes consistent with discussion throughout the November budget meetings. A summary of changes made and the respective budget worksheets are included.
The Board should consider whether any further changes are necessary, though changes can be made up to point the Board formally adopts the budget.
A sample motion: “I move the Board of Directors approves the mailing of the proposed budget, as presented by Management and reviewed and edited by the Board, for consideration by Unit Owners, and hereby directs Management to include appropriate notice for the Special Meeting of the Unit Owners to discuss the budget to be held on Monday January 14th, 2019.”
- Hot Water Storage Tank Insulation
Attached to the report for Board review, are bids for the insulation of the new hot water storage tank. This is needed to save water, electric, and gas.
Dettman Industries $10,100
EHC Insustries, Inc. $12,300
WJ O’Neil Industries $11,850
A sample motion: “I move the Board of Directors approves the proposal by Dettmann Industries to complete the insulation of the new Hot Water Expansion tank and all associated piping and connections, as proposed at an expense of $10,100 to be funded by the Reserve Fund.”
- Sewage Ejector Pump Replacement
Attached to the report for Board review, are bids for the replacement of the Sewage Ejector Pumps. These pumps are original and antiquated. Repair and maintenance has become difficult to perform at times due to availability of parts, and in fact cast components are no longer available.
These pumps were scheduled to be rebuilt for $26,000, but upon closer investigation of their condition, replacement this year as a reserve expense is strongly recommended.
FTI Pumps and Controls $64,968
JM McGann and Co. $74,587
Tramco Pump Company $78,812
The FTI proposal is not only the lowest, but they provide a very good explanation for why a rebuild option would be unwise. We are familiar with each bidder, and comfortable with suggesting FTI for this job.
A sample motion: “I move the Board of Directors approves the proposal by FTI Pumps and Controls to complete the replacement of the ejector pumps as proposed at an expense of $64,968 to be funded by the Reserve Fund.”
- Gas Booster Pump Replacement
Attached to the report for Board review, are bids for the scheduled replacement of the Gas Booster Pump. We don’t know with certainty whether this pump is original, but similar to the ejector pump repairs and maintenance have become difficult to perform at times due to availability of parts.
AMS Mechanical Systems $39,080
Kroeschell, Inc. $40,375
WJ O’Neil Chicago $34,800
Members will also note, the bids include an alternate for a Variable Frequency Drive. At present, every time the boilers cycle on and off, the gas is pumped in at 100%. The VFD will allow it to provide gas on demand at a rate that is gradual and more consistent with the level needed. We are told this device could pay for itself in a single year.
We are very familiar with each bidder, and suggest WJ O’Neil be chosen. The anticipated budget for this project was $30,000, so we will be a bit over budget.
A sample motion: “I move the Board of Directors approves the proposal by WJ O’Neil Chicago LLC to complete the replacement of the gas booster pump as proposed at an expense of $34,800 to be funded by the Reserve Fund.”
- Construction Requests
Attached to the report for Board Member review are remodeling packets for the following Unit Owner construction projects:
3701-bathroom remodel
3815-flooring remodel
5515-bathroom remodel
A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 3701, 3815, and 5515 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
Treasurer’s Report
Fund Balances End of September 2018
Operating Funds $576,991 (decrease of $98,526 from prior month)
Reserve Funds $1,903,120 (increase of $101,591 from prior month)
Total Cash and Investments $2,480,110 (increase of $3,064 from prior month)
October 2018 Revenue and Expenses
Total Operating Revenue: $509,282
Total Operating Expenses: $349,474
Income From Garage: $18,529
Contribution To Reserve: $136,675
Total surplus: $41,661
Management Reports
Business and Activities
Recent Sales Activity
ADJOURNMENT
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the December 10, 2018 Board Meeting at ____PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
The Board and Management will address feedback and questions from Unit Owners.
Next regular Board Meetings – Monday January 14th and January 28th 7:30PM
Special Meeting of Unit Owners to Review 2019/20 Budget – Monday January 14th 7:30PM
(To Be Followed By Regular Board Meeting.)
About the Author: Tim Patricio
Park Tower Horizons
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