BOARD OF DIRECTORS MEETING

Management Report and Agenda

Monday December 11, 2017  7:30pm

2^nd Floor Party Room

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

The meeting chair, expected to be Board President Michael Parrie, will call on audience members to speak. Please be courteous and respectful, and do not interrupt speakers who have been acknowledged by the chair.

OPEN SESSION – Call to Order

The meeting chair will call the meeting to order. Please be courteous – if applicable, the meeting chair will entertain questions as may be applicable to each Agenda item; all speakers shall be recognized by the chair if necessary.

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 give 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 November 11^th, 2017

Attached to the report for Board Member review, are the proposed minutes from the Board Meeting held on Saturday November 11, 2017, budget meeting #2, 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 11^th, 2017.”

3. Minutes – Board Meeting November 13^th, 2017

Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday November 13^th, 2017, 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 13^th, 2017.”

4. Minutes – Board Meeting November 18^th, 2017

Attached to the report for Board Member review, are the proposed minutes from the Board Meeting held on Saturday November 18, 2017, budget meeting #3, 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 18^th, 2017.”

5. Special Meeting To Review Budget

Before the Board can adopt the proposed budget for the upcoming fiscal year, Unit Owner review is required for a period of at least 25 days, but no more than 30 days. Considering the present Board Meeting schedule, we propose the following:

– Budget to be mailed for Unit Owner Review, Week of December 26^th, 2017

– Special Unit Owner Meeting for Open Review of Proposed Budget Monday January 8^th, 2018, 7:30pm

– Board Meeting with final Unit Owner comments and questions, and consideration of budget adoption Monday January 22^nd, 2018, 7:30pm

A sample motion: “I move the Board of Directors approves scheduling a Special Meeting of the Unit Owners to be held on Monday January 8^th, 2018 at 7:30pm, for open review of the proposed budget for the 2018/2019 fiscal year”

6. Mailing 2018/2019 Proposed Budget

Attached to the report for Board review, is the Proposed Budget for the 2018/2019 fiscal year. As directed at the budget review meetings, changes to individual income and expense items were tracked and inputted. The accumulated dollar amount resulted in a $7800 net increase in the reserve contribution, with no change in the proposed assessment adjustment of 3.5%.

Before the budget can be adopted, it must be mailed to Unit Owners for a 25-30 day review period. Considering the schedule for the Special Meeting and upcoming Board Meetings, we would plan to mail the budget the week of December 26^th.

NOTE – Management needs to revise the forecasting for each category to recognize the new YTD figures uploaded in our app, and several errors were identified with some of the YTD figures which need to be corrected before mailing. The work is underway. This is expected to be done by the date of the proposed scheduled mailing.

A sample motion: “I move the Board of Directors approves mailing of the proposed budget with a proposed assessment increase of 3.5% and reserve contribution of $1,640,100 for the 2018/2019 fiscal year, such that the unit owners have a minimum 25 days but no more than 30 days to review the budget prior to consideration for adoption of the budget at the Board Meeting scheduled to be held on Monday January 22^nd, 2015.”

7. Taskforce Examining Property Values – Membership Appointments

The purpose of this action item is by request, in the eventuality the Commission is prepared to aske the Board to consider membership appointments.

A sample motion: “I move the Board of Directors approves appointing unit owners ________________, ________________, and _________________, to the Ad-hoc Commission known as the Taskforce Examining Property Values.”

8. Roof Project Change Orders #7 & 8

As the project draws to a close, following is a review of the change orders to date:

• CO #1 – Replacement of embedded electrical outlets in the screen wall: The existing electrical outlets rusted away and contributed to concrete damage. Without replacing the rusted outlets, the new concrete would eventually become damaged by the rusted outlets. Replacing of the existing outlets eliminated potential concrete damage in the future. $9467
• CO #2 – Repair of Damaged Electrical Conduit: Conduit embedded in the concrete of the penthouse was damaged during concrete demolition. This conduit needed to be replaced before the new concrete was poured so the electrical wire on the inside did not get covered in concrete. Berglund did not know the conduit was in the concrete until the conduit was struck. $6722
• CO #3 – Damaged Roof Drain Replacement: This roof drain basin, which is the part that sits in the roof, was found to be damaged when the existing roof was removed. This drain needed to be replaced so the new roof could be properly installed. If the roof drain was not replaced, the new roof system could not have been properly tied in with the existing roof drain and had the potential to possibly leak in the future, causing damage to the newly installed roof and interior finishes. $8053
• CO #4 – Replace Mesh with Sheet Metal Coping Cap on Top of Screen Wall: This change order is a $0.00 change order, meaning no money is being added or removed from the contract value. This change order is to remove a portion of work for the painters involving a metal wire mesh embedded in paint and replacing it with a aluminum sheet metal coping cap that the roofers would install on top of the screen wall. $0
• CO #5 – Install Liquid Applied Flashing on Cooling Tower Concrete Curbs: The concrete support curbs under the cooling tower did not have enough height for the typical sheet metal flashing to be installed per the roof manufacturer’s requirement for warranty. In order to maintain proper performance for the roof system so the manufacturer will warrant the new roof, liquid applied flashing was installed on the concrete curbs. $3847
• CO #6 – Penthouse Tower Metal Flashing: This change order is for the install of additional sheet metal flashing at the top of the roof penthouse. This work involved accessing the highest point of the roof penthouse from the main roof level, to do so, Berglund needed to provide additional scaffolding to the roofer, so they could install the sheet metal as directed by the Architect of Record (WJE). $3000
• NEW CO #7 – Increase in Concrete Repair Quantities: This change order is to cover the cost of an additional 58.5 square feet of concrete patch replacement that the Architect of Record (WJE) instructed Berglund to perform. The project originally included 160 SF of concrete replacement and 218.5 SF of concrete replacement was performed. $14,625.
• NEW CO #8 – Install a New Electrical Circuit and Reroute Power: This change order is to provide new wiring from the screen wall outlets to a different breaker panel with new circuit breakers installed. The original breaker panel that the outlets were connected to could not allow every outlet to be used at the same time, the new panel and circuit allows for every outlet to be used at once if needed. $4875

Change Order number 7 is the accumulated result of the added quantity of concrete work throughout the project. Consistent with the contract, the quantities were approved by WJE engineers during the course of the project, as work was identified as necessary. Although the contract was approved and specified how additional concrete would be handled, we recommend the Board approve the change order as a formality.

Change Order number 8 is the result of a request by maintenance. The current panel the exterior roof level outlets are on, can only accommodate one 240v outlet. This work allows all the outlets to be used, which will provide efficiencies for future projects requiring swing stages or access to multiple outlets at once. It is also safer, since it will eliminate the need for extension cords to run multiple stages. Our assistant engineer Matt Brown said he believes for the work being done, the proposed dollar amount is a very good deal.

A sample motion: “I move the Board of Directors approves roof project change orders #7 and #8 at a cost not to exceed $14,625 and $4875 respectively, as proposed by the contractor Berglund Construction and change order 7 recommended by the roof engineer with Wiss, Janney, Elstner, and change order 8 recommended by the management and the staff.”

(Members may notice a discrepancy in the Change Order numbers, versus past ‘requests’ for change orders from Berglund. The above list of change orders are the actual numerically ordered, approved change orders corresponding with billing. There have been a handful of other ‘requests’ throughout the project which were not approved by WJE. For the permanent payable record however, the above change order numbers will be associated with the actual invoices to be processed.)

9. Construction Requests

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

607       Remodeling

1112     Window Retrofit

3706     Window Retrofit

3909     Bathroom Remodel

5306     Remodeling and Hard Flooring

5308     Remodeling and Hard Flooring

5504     Remodeling and Hard Flooring

A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 607, 1112, 3706, 3909, 5306, 5308, and 5504 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

Board Treasurer Jean Shamo is expected to review key financial data for the month.

Fund Balances End of October 2017

Operating Funds $409,369 (increase of $47,633 from prior month)

Reserve Funds $1,902,031 (increase of $60,528 from prior month)

Total Cash and Investments $2,311,400 (increase of $108,151 from prior month)

October 2017 Revenue and Expenses

Total Operating Revenue: $502,742

Total Operating Expenses: $359,080

Income From Garage: $28,629

Contribution To Reserve: $131,417

Total Surplus: $40,874

Management Report

Property Manager Tim Patricio is expected to review current PT business and activities and 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 11, 2017 Board Meeting at _ _ PM.”

OWNER FORUM – 15 minutes, 2 minutes per person

Next Meeting Dates Monday January 8^th and 22^nd