BOARD OF DIRECTORS MEETING

Agenda and Management Report

Monday July 27, 2015 at 7:30PM

Mall Atrium Under The Skylight

7:30PM – OWNER FORUM – 15 minutes, 2 minutes per person

Management and the Board will address questing and feedback from Unit Owners.

7:45PM – OPEN SESSION – Call to Order

The Board President will call the meeting to order. It is requested that attendees be courteous – no audience participation is permitted.  Speakers will be recognized by the Meeting Chair.

Roll Call – Confirm Quorum

The Board President will confirm a quorum of members is present.

Committee Reports

Committee Chairs will be given the opportunity to address the Board regarding business and committee activities.

Board Report – Board President George Pauley

The Board President may discuss certain Association business and activities.

Action Items – New Business

Minutes – Board Meeting July 13, 2015

Attached, for the Board of Directors, are the proposed minutes from the Board Meeting held on July 13, 2015, submitted by Timothy Patricio, Property Manager.

A sample motion follows: “I move the Board of Directors approves the minutes from the Board Meeting held on July 13, 2015.”

Motions From Closed Session

Should there be any business from Closed Session requiring resolutions, motions can be made at that time.

2nd Floor Masonry Wall Leak Repairs

During the Management Report at the July 13th Board Meeting, we discussed leaking into the market and damage to the membrane on the roof deck, adjacent to the skylight and racquetball court structure. The curved masonry wall at this location was identified as the culprit.

JLJ Contracting (currently working on the lobby ceiling plumbing project) provided preliminary bids for the necessary repairs. Option 1, to completely rebuild the wall and repair the membrane is $79,875. Option 2, to remove the wall, flash the curb and repair the membrane is $41,047. Option 3, to install siding and flashing on the wall (similar to the skylight structure) and repair the membrane is $38,828. Bids are attached to the report for Board review.

Based on discussion at the July 13th meeting, once we received the siding bid we reached out to two other contractors to get competitive proposals. Action does need to be taken or the damage will spread, so we are hoping to have these additional numbers in time for the meeting.

A sample motion follows: “I move the Board of Directors approves installing siding over the 2nd floor masonry all adjacent to the skylight and racquetball court structure, and repairs to the adjacent leak damaged membrane at a cost not to exceed $38,828.”

Emergency Leak Repairs

During the Management Report at the July 13th Board Meeting, we discussed emergency repairs for leaking into the mechanical room adjacent to the Circle Drive. The leaking was due to deteriorated masonry and sealants in the intake and exhaust shafts immediately adjacent to this mechanical room. The leaking was serious enough to cause minor flooding of this mechanical room, and damage to equipment housed there was possible. For that reason, repairs to prevent any further leaking were authorized on an emergency basis.

Because of their presence on site and ability to respond quickly and minimize the possibility of any additional damages, JLJ Contracting was asked to conduct the repairs, which cost $9280 for the air intake shaft repairs, and $8450 for the exhaust shaft repairs. The work required to address the leaking included some cinder block repairs, caulking and mortar repairs, and installing a membrane at the base of the shafts to help encourage water that enters to make its way to drains located at the bottom. The bids considered are attached to the report for Board review.

Although Management is expected to conduct such repairs, and authorized to do so on an emergency basis consistent with the Management contract, we request the Board ratify this action by passing a resolution.

A sample motion follows: “I move the Board of Directors approves the action by Management to hire JLJ Contracting to conduct leak repairs to the air intake and exhaust shafts located adjacent to the mechanical room next to the Circle Driveway, for a cost of $9280 and $8450 respectively.”

Plumbing Project Change Order For Drain Downs

Once the ceiling was opened and we were able to make a full and adequate assessment of what we were facing, it became immediately obvious that we would need to install “drain downs” on each riser. These apparatus will cut the time needed to prepare for riser shut downs by more than half, and will save a significant amount of water – on the order of thousands of gallons or even tens of thousands when multiple tiers are shutdown. Furthermore, two main valves proposed to help control shutoffs for the low rise and when it is done for the entire building, will help us bypass a giant holding tank which our plumber estimates causes about 90% of the sediment clogging aerators following shutdowns. This could save thousands of dollars a year – we pay $10-20,000 a year on average to have a service flush lines due to such clogs when we do shutdowns.

Our staff and Management strongly recommend this change order be approved. A bid from JLJ contracting with the breakdown in added labor and material costs is attached. We did authorize the first set of valves be installed, due to timing and to help identify the actual labor and material needs from the balance of the work to come. The limited cost of what we already authorized falls within the original contract authorizations, thanks to savings already realized.

A sample motion follows: “I move the Board of Directors authorizes drain down valve installation on all risers and main lines connected to the Lobby Ceiling Plumbing Project, at a cost of $25,200.”

Note: At the meeting, Management may request discussion of another possible change order for replacement of rotten and seriously deteriorated insulation on a large expanse of AC and Cold Water lines, uncovered during the demolition process. We are seeking multiple bids for this effort. As of the drafting of this report, we do not have preliminary figures to share. There are two primary concerns – 1. The conditions could result in condensation and leaking onto the new drywall ceilings, in multiple locations. 2. With the ceilings down now, these areas are exposed and much easier to access. From our discussions with the insulators, it would be more costly to defer this work not to mention the potential for damage to the new ceilings.

Control System Maintenance Contract Renewal

Our maintenance contract with Kroeschell Service for the HVAC control system expires this month.

They provided a proposal to renew the contract with no increase, at $9580, per year. We asked, and they agreed to hold the price for 3 years. Because Kroeschell was the low bidder last year, and as the contractor who installed the system and has performed maintenance without any problems for the past 3 years, we see no reason to go out to bid. A copy of the proposal is attached to the report for Board review.

A sample motion follows: “I move the Board of Directors approves a Control System Maintenance Contract for 3 years, as proposed with Kroeschell Service Inc., at a cost of $9580 per year.”

Business Reports:

Treasurer’s Report – Jean Shamo

CD Renewal with Lakeside Bank

We request the Board ratify the renewal the Reserve Fund CD with Lakeside Bank, totaling $109,286.32, for 18 months at a rate of 1.35%. More information from DK Condo is attached to the report for Board review.

A sample motion follows: “I move the Board of Directors approves the renewal of the Reserve Fund CD with Lakeside Bank, totaling $109,286.32, for a term of 18 months at an interest rate and yield of 1.35%.”

ADJOURNMENT

There being no further business, the Board will consider adjourning the July 13, 2015 Board Meeting.

A sample motion follows: “I move the Board of Directors adjourns the July 27, 2015 Board Meeting at ______PM.”

OWNER FORUM – 15 minutes, 2 minutes per person

Management and the Board will address questing and feedback from Unit Owners.

The next meeting is scheduled for Monday August 10, 2015, at 7:30PM in the Party Room.