BOARD OF DIRECTORS MEETING

Management Report and Agenda

Monday April 10, 2017 at 7:30PM

2nd Floor Party Room

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

The Board and Management will address questions and feedback from Unit Owners.

OPEN SESSION – Call to Order

The meeting chair, expected to be Board President Michael Parrie, will call the meeting to order. Please be courteous – no audience participation is permitted.  If applicable, speakers will be recognized by the Meeting Chair.

Roll Call – Confirm Quorum

The meeting chair will confirm a quorum of Board Members are present. Board Members and representatives from Management will be introduced.

Committee Reports

Committees will be invited to deliver updates to the Board on business and activities.

Board Report

The meeting chair may make comments or provide updates on Association business and activities or otherwise address the Board and Owners present.

Action Items – New Business

1. Closed Session Business

This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.

2. Minutes – Board Meeting March 27, 2017

Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday March 27, 2017, as submitted by Timothy Patricio, Property Manager.

A sample motion to approve the minutes for March 27th: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday March 27, 2017.”

3. Roof Deck Planter Repairs

Attached to the report for Board Member review, are several proposals we collected as we researched how to approach relining the planters on the 2nd floor roof deck. You will also see the RFP we originally drafted for this project. Some of the proposals are ‘turnkey’ – meaning the contractor is coordinating some or most of the excavation and landscaping, masonry and waterproofing, such as JLJ and Sager Sealant. Others are for phases or particular components of the work needed, such as Mark 1 Restoration, Allied Waterproofing and Brightview Landscaping.

Over the past several months, we have gone from considering relining ALL the planters, to considering only temporary repairs, to considering completing the project in various phases. After digesting all the facts and information as we understand them now, we believe the project should be done in phases over the next 2 to 3 years. We are ready to recommend the 2 northernmost planters be done this Spring, as soon as possible.

We know there is periodic leaking along the walls of Suite 108, just outside the rear dock entrance by the Security office. This is in the Northeast corner of the suite. (Suite 108 is the office neighboring the Management Office to the North.) We believe flashing and mortar deterioration along the wall facing North toward the dock area, are the primary culprit. Masonry and tuckpointing repairs to these locations are also budgeted this year as a separate project and Management is preparing an RFP for this work. BUT, there is a possibility the deterioration along this wall is actually caused by water seeping from a comprised liner in the planter on the adjacent side. This would be the northernmost “serpentine” shaped planter on the roof deck.

Inside this planter, we also have a non-functioning branch of the irrigation lines. Despite repeated attempts at a permanent repair over the past couple seasons, with our staff trying to surgically target the exact problem, we continued having malfunctioning sprinkler heads and entire sections of the line which have been inoperable. Our maintenance staff and plumber intend to dig up a large section of this line whether the liner is replaced this year or not. That would be almost half the total length of this planter. This would be a wasteful endeavor – much of the work needed to dig up the irrigation line would be redundant for the planter liner replacement (including excavation and landscaping).

So at a minimum, working in phases, we want to begin with this planter.

Also, the far east circular planter on the deck, where residents use the grills, has had a variety of problems in recent years. This includes a compromised drain, leaky irrigation line, and areas where its liner has been breached. Several instances of leaking have been found to originate from this location. All these have been repaired surgically as needed, but because of its location and proximity to the other planter, we believe it would be wise to address this planter at the same time.

Putting what we do have together has been a challenge. Besides the attached materials we considered in response to our RFP, two other contractors declined to get involved – reputable contractors we wanted to consider for liner projects like this – because they are too busy this season. Also, despite our RFP and numerous meetings and walk-throughs with the contractors who did provide responses, we could not quite get anyone to present a proposal that was substantially consistent with the others. The most consistent was JLJ, however their product comes with only a 2 year warranty, not to mention they are the highest bidder.

Of the bids we have, we would like to focus on two in particular which I starred and marked as “Key Bid #1” by Allied Waterproofing and “Key Bid #2” by Brightview (formerly Brickman Landscaping). Allied has quoted a material with a 15 year warranty, and Brightview being our current landscape maintenance contractor is by far the most reasonable choice to manage the excavation, new plantings and at the same time be responsible to keep the other planters and flower beds managed while the project is underway. Brightview also indicated they often work in tandem with Allied Waterproofing, and they are very comfortable with their solution for planter liner replacements.

Allied did not include masonry work, however, the tuck pointing portion can be completed as a part of the coming masonry project. Fortunately, there does not appear to be serious mortar deterioration problems with the inner masonry wall. Deterioration seems isolated to the outer wall, so proceeding with the liner work either before or in close vicinity to scheduling tuckpointing is acceptable in our opinion.

While now would be the time to make any planting changes you would like to see, as a part of their bid, Brightview requested and reviewed our original drawings for the roof deck construction. They developed a landscaping plan consistent with the original plantings and configurations chosen by the architect and Board at the time the deck and planters were built. For the most part, the original plantings thrived, so we see no reason to revisit the design, unless there is a strong desire by the Board to redesign those planting beds or consider alternate plant materials.

The final piece of this is the irrigation work, which we plan to complete in house as guided by the Association’s plumber. Our team would work in tandem with the waterproofer and landscaper to conduct the necessary work as it becomes necessary.

We are waiting for answers to more questions we’ve had and additional information and details from each contractor – pieces of the RFP they did not include, references, warranty information, and in some cases bids for considering the future phases for budgeting. Anything pertinent to the Board agreeing to proceed, will be presented in time for the Board Meeting.

All else remaining the same, we request the Board consider proceeding as bid by Brightview for excavation and plantings at $64,542, and Allied Waterproofing for replacement of the liner at $99,400. All together $163,942. There is a relatively good chance for unknown conditions to arise, so we recommend the Board also consider a provision to address unknown conditions. For this type of project and location, we suggest about 15%. All together about $188,533.

Using the attached bid information, the closest apples to apples comparison would be as follows:

Mark 1 Restoration + Brightview Re-planting only = $339,546

JLJ Contracting + Brightview Re-planting only = $375,286

The extraordinary expense over Allied and Brightview, is because companies such as Mark 1 or JLJ generally hire companies like Sager or Allied, and typically charge you 10-15% or more profit and overhead on both the labor and materials. They are also including some tuckpointing and masonry we do not believe necessary in this phase. The advantage is, they manage all these moving pieces and put them together. Fortunately we feel strongly our team has the wherewithal to manage ourselves.

The original budget for this activity was $155,000.

A sample motion to approve this project: “I move the Board of Directors approves the planter liner project for the two northern and eastern most planters on the roof deck, with Brightview Landscaping for excavation and planting at $64,542, and Allied Waterproofing for replacing the planter liners for $99,400, as proposed, as well was a provision of $25,000 to address unknown conditions should they arise.”

4. Health Club Committee Membership

We have been advised by the Health Club Committee they would like the Board to consider appointing a new member, James Jardine, Unit Owner 4004.

A sample motion for appointment: “I move the Board of Directors approves the appointment of James Jardine, Unit Owner of 4004, to the Health Club Commission.”

5. Construction Requests

Attached to the report for Board Member review are remodeling packets for the following Unit Owner construction projects:

4202 – Kitchen Remodel

5204 – Kitchen Remodel, Hardwood Flooring and Bathroom Remodel

5406 – Hard Flooring Installation

A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 4202, 5204 and 5406, 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

Fund Balances End of February 2017

Operating Funds $353,941 (decrease of $116,170 from January)

Reserve Funds $2,211,095 (increase of $123,386 from January)

Total Cash and Investments $2,688,421 (increase of $7,215 from January)

February Income and Expenses

Total February Income: $472,476

Total February Expenses: $341,638

Income From Garage: $17,781

Contribution To Reserve: $122,738

Total Surplus or (Deficit): $25,881

CD Transactions

Management acted, in consultation with the Board Treasurer, to purchase a new Certificate of Deposit with funds which had matured from a CD at Lakeside Bank. This action should be formally ratified by the Board. Attached for Board review is the internal memo from Draper and Kramer with details of the bank activity.

A CD with International Bank of Chicago, for the Operating Contingency Fund, was purchased for 18 months, totaling $26,761.08 with a 1.25% yield:

A sample motion follows: “I move the Board of Directors approves the purchase of a $26,761.08 Certificate of Deposit with a 1.25% interest rate for 18 months with International Bank of Chicago for the Operating Contingency Fund, scheduled to mature on September 28, 2018.”

2. Management Report

a. Business and Activities

b. Monthly Activity Report

c. Recent Sales Activity

ADJOURNMENT

There being no further business, the Board will consider adjourning the meeting.

A sample motion follows: “I move the Board of Directors adjourns the April 10, 2017 Board Meeting at _ _ PM.”

OWNER FORUM – 15 minutes, 2 minutes per person

The Board and Management will address questions and feedback from Unit Owners.

Next Meeting Date Monday April 24th at 7:30pm

Resident Forum Wednesday May 3rd at 7pm