Board Meeting Monday August 14th
August 12, 2023
BOARD OF DIRECTORS MEETING
Monday August 14, 2023 7:30PM
2nd Floor Party Room
Agenda & Report
6:30PM – CLOSED SESSION
The Board is scheduled to meet to discuss rule violations, pending litigation, Unit Owner account issues and personnel matters.
7:30PM – OWNER FORUM
The Board of Directors and Management will welcome and address feedback and questions from Unit Owners.
CALL TO ORDER – Board Meeting Open Session
The meeting chair, expected to be Board President Michael Parrie, will call the meeting to order.
Confirm Quorum
The meeting chair will confirm a quorum of Board Members is present. Board Members and representatives from Management will be introduced.
Commission Reports
Commission chairs or members so designated will be invited to update the Board and Owners on business and activities.
Attached to the report for Board review is the most recent report from the Home Improvement Commission.
Board Report
The meeting chair may give a report on current Association business and activities of interest.
Action Items
- Closed Session Business
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
- Minutes – Board Meeting July 10, 2023
Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday July 10, 2023, as submitted by Property Manager Timothy Patricio.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves the minutes from the Board Meeting held on Monday July 10, 2023.”
- Updated 22.1 Disclosure
Attached to the report for Board Member review is the updated 22.1 disclosure as of August 2023 for formal Board approval.
The 22.1 Disclosure, is a standard document we provide upon request in the event of any sale and make available for inspection to the prospective purchaser. This incorporates:
- A copy of the Declaration, by-laws, other condominium instruments and any rules and
- A statement of any liens, including a statement of the account of the unit setting forth the amounts of unpaid assessments and other charges due and owing as authorized and limited by the provisions of Section 9 of this Act or the condominium
- A statement of any capital expenditures anticipated by the unit owner’s association within the current or succeeding two fiscal
- A statement of the status and amount of any reserve for replacement fund and any portion of such fund earmarked for any specified project by the Board of
- A copy of the statement of financial condition of the unit owner’s association for the last fiscal year for which such statement is
- A statement of the status of any pending suits or judgments in which the unit owner’s association is a party.
- A statement setting forth what insurance coverage is provided for all unit owners by the unit owner’s association.
- A statement that any improvements or alterations made to the unit, or the limited common elements assigned thereto, by the prior unit owner are in good faith believed to be in compliance with the condominium
- The identity and mailing address of the principal officer of the unit owner’s association or of the other officer or agent as is specifically designated to receive
As a matter of routine, we continue to update this regularly, and will present it periodically for Board review and formal approval.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves the 22.1 disclosure as drafted with the best available information as of August 2023.”
- Fidelity Bond Increase
Following an inquiry from a pending sale we believe it would be appropriate and best practice to increase the Association’s Fidelity Bond (also known as Crime Policy) coverage. At present our insurance only covers $4.5 Million, but we have almost $6.5 Million altogether. Since we are retaining higher balances than we have in the past, it is reasonable to expect we have the policy covering that.
Our cash and investments have increased in recent years, mostly due to savings on a number of projects, interest income, and the timing of the hallway project. Also, on the operating side, we’ve consistently run within budget.
We consulted with our reps at Alliant Insurance Services. Attached to the report for Board Member review is their suggested approach and proposal for coverage. The additional premium is estimated at $1538 for the remainder of the year. We suggest an increase to $7 Million, which gives the Association some extra protection and flexibility for the total balance which will fluctuate up and down as business is conducted.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves increasing our total crime policy coverage from $4.5 Million to $7 Million, as proposed by Alliant Insurance Services, for an estimated additional premium of $1538 for the remainder of the 2023/2024 fiscal year.”
- Annual Plaza Terrazzo Sealing
Attached to the report for Board review are proposals for annual power washing and sealing of the plaza area terrazzo surface. This was included with the budgeted sealant project last year, and is otherwise included as an operating project from year to year.
JLJ Contracting $10,125
Monson Nicholas $11,331
Monson Nicholas has been the low bidder in recent years, but JLJ Contracting has bid under them hoping to pick up the work. We are hoping for two other proposals in time for the meeting, however our engineer indicated a couple of the other vendors he called sounded as if they won’t bother, since we call them for bids each year and never get the work.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves the plaza spray wash and sealing as proposed by JLJ Contracting at an expense of $10,125.”
- Garage Electrical Panel
Attached to the report for Board review are proposals for the budgeted garage electrical panel project.
Dunning Electrical $6,710.07
Jamerson & Bauwens $13,110
Kroeschell Engineering $8,436
Dunning Electrical completed a similar project for the lobby area, in the service area foyer next to elevators 5 and 6. We see no reason not to proceed with their proposal.
The budget for this project was $25K from the reserve. Our team originally believed it was possible the work needed would be much more extensive. Fortunately that is not the case. And although budgeted as a Reserve Project, the Board could elect to fund this through the Operating Fund, due to what is actually proposed. We are running with a modest surplus in the Operating Fund. This would allow for some surplus to build in the Reserve to address any unknown or projects that may not otherwise fall within budgeted expectations.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves the garage electrical panel project as proposed by Dunning Electrical Services, Inc., at an expense of $6,710.07.”
- Roof Lighting Samples
As we reported previously, our team has tested a variety of fixtures for use to install at the roof level for the long anticipated roof lighting project. Attached to the report for Board review are proposals for three possibilities we’ve narrowed it down to, as well as some photos for reference.
Active Electrical (Senik Graze) $60,673.88
Active Electrical (Senik Flex) $36,671.36
Midwest Lighting (Insight Pilot) $106,695.12
Our engineer has suggested a provision of $5000, once the project gets underway for unknowns. This was budgeted for $63,000, and if you consider inflation the first two fixtures fall at or below expectations with the provision.
We believe from the testing and handling of the fixtures, the first proposal is the light which will serve our purposes most effectively. It is actually similar in quality to the more costly fixture, but that fixture might be more appropriate for a taller wall. The light from the $60K fixture will start tapering off around the top of the wall, where as the $96k fixture would be more efficient for a wall about twice the height.
Based on our tests and observations, we would like to test further with the $60K fixture. As a next step, we would like to order 4 of these fixtures and install them as they would be permanently, test the interface and make more observations. Obviously at that point, everyone would be able to better see what to expect and judge whether it meets expectations. This would be displayed along the Southeast facing wall.
We suggest a budget of $7500 which should cover the bulk of materials needed, plus taxes.
It should be noted, the interface and panel are included and would be a one time purchase. The supplies and materials proposed have 5 year warranties, but realistically should have a 10 year useful life.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves a budget of $7500 for conducting a test of the light fixture (Senik Graze) proposed by Active Electrical Supply for the roof lighting project, to be funded by the reserve.”
- Dock Masonry & Flashing Repairs
After the severe weather we experienced the weekend before the 4th of July, there was some leaking in commercial Suite 108. Upon examination of the wall along the dock on that side, we observed some cracking along old tuckpointed joints, leading from the louvers which are immediately to the right as you walk out the dock doors. It appears flashing serving the large louver in that location has failed. We sought proposals to repair the flashing and tuckpointing, which are attached to the report for Board review.
JLJ Contracting $19,785
LS Contracting $22,672
WJ McGuire Co. $23,445
This work is not budgeted, however it is appropriate for funding from the Reserve. We see no reason not to proceed with the low bidder.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association hereby approves the the masonry and flashing repairs along the exterior dock wall as proposed by JLJ Contracting Inc., at an expense of $19,785, to be funded by the reserve.”
- Construction Requests
Attached to the report for Board Member review are remodeling packets for the following Unit Owners’ construction projects
Unit 703 Window Tinting
Unit 808 Bathroom & Kitchen Remodel
Unit 2506 Washer & Dryer
Unit 3906/07 Unit Combination & Remodel
A sample motion follows: “I move the Board of Directors of the Park Tower Condo Association approves the remodeling plans for units 703, 808, 2506 and 3906/3907 as submitted by the unit owners, 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
Attached to the Report for Board Review is the June 2023 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.
Fund Balances End of June 2023
Operating assets totaled $1,680,475 and the Reserve cash and investments were $4,739,781 for a total of cash and investments of $6,420,256.
June 2023 Revenue and Expenses
Total Operating Revenue: $641,371
Total Operating Expenses: $485,314
Income (Loss) From Garage: $7,917
Contribution To Reserve: $164,975
Total Deficit: ($1,000)
Ratify Treasury Bill Roll Over
A Treasury Bill being held for the Reserve Fund matured on July 27, 2023, and in consultation with the Board Treasurer and President, it was rolled over. A confirmation statement is attached to the report for Board review. At the time of purchase it was worth $500,000, and rolled over at $510,887. Its scheduled yield is 5.28% and it was renewed for a term of one year.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the reinvestment of a $510,887 Treasury Bill for the Reserve Fund, and affirms that management continue consulting with the Board Treasurer and President between Board Meetings when making new investments or future adjustments to such investments.”
2. Management Report
Attached to the report for Board review is the most recent Monthly Activity Report and Sales & Lease Reports. Property Manager Tim Patricio is expected to review current business and activity of interest and the latest sales.
ADJOURNMENT
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the August 14, 2023 Board Meeting at____PM.”
OWNER FORUM
The Board of Directors and Management will welcome and address feedback and questions from Unit Owners.
The next regular Board Meetings are expected to be scheduled for August 28th and September 11th at 7:30PM. All such meetings are expected to be held in the 2nd Floor Party Room unless otherwise posted.
About the Author: Tim Patricio
Park Tower Horizons
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