BOARD OF DIRECTORS MEETING AGENDA

Monday December 12 2022 7:30PM

2nd Floor Party Room

6:30PM – CLOSED SESSION

The Board is scheduled to meet to discuss rule violations, pending litigation, Unit Owner account issues and personnel matters.

OWNER FORUM – 7:30PM

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.

Board Report

The meeting chair may give a report on current Association business and activities of interest.

Action Items

1. Closed Session Business

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

2. Minutes – Board Meeting November 14, 2022

Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday November 14, 2022, as submitted by Property Manager Timothy Patricio, for Board consideration.

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 November 14, 2022.”

3. Minutes – Board Meeting November 19, 2022

Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Saturday November 19, 2022, as submitted by Property Manager Timothy Patricio, for Board consideration.

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 Saturday November 19, 2022.”

4. Block Bins Composting

Attached to the report for Board review are details from Republic Services and Block Bins about their composting programs. Following up from discussion at the November 19th meeting, we gathered specific information from Block Bins about their programs for large accounts.

After a discussion with both reps, we estimate to begin a building wide program, we would start with three 35 gallon bins picked up bi-weekly and potentially growing to weekly pick up.

The basics are as follows:

Block Bins

3 bins $110/month for bi-weekly pick up, $302.40/month for weekly pick up

Republic Services

3 bins $90/month for the bin, $90 per pick up of the bins

$195/month for bi-weekly pick up, $390/month for weekly pick up

For budgeting this would mean Block Bins would be about $3600 per year, and Republic $4700 per year. Should the Board want to add this service, a timeline for announcements and residents opting in can be considered. Also, it should be budgeted for.

If any action is desired, a motion can be proposed at the meeting.

5.  Mailing of the 2023/2024 Proposed Budget

Attached to the meeting report for Board review is the final draft of the proposed budget as edited following the Board Meetings held to discuss the budget November 5th, 12th, and 19th 2022. This requires mailing to the Unit Owners for their review period and consideration, which we propose be done the week of December 19th.

In addition, the Board will find a proposed cover letter and Special Meeting Notice to include with the budget, drafted by Board President Michael Parrie and edited with the help of Management, highlighting the key adjustments and changes, and emphasizing the challenges the Association faces.

*A sample motion: “I move the Board of Directors accepts the draft of the proposed Park Tower Condominium Association Budget for the 2023/2024 fiscal year, and hereby directs Management to mail the document in its entirety to all Park Tower Condominium Association Unit Owners for the required review period and for their consideration, as well as a notice for a Special Meeting of the Unit Owners scheduled to be held January 9th at 7:30pm prior to the monthly Board of Directors Meeting, for the purpose of Unit Owner discussion of the proposed budget, as required prior to the Board of Directors considering formal adoption.”

*It should be noted, if the Board of Directors chooses to begin the previously discussed composting program, it should be integrated into the budget prior to mailing.

6.  Updated 22.1 Disclosure

Attached to the report for Board Member review is the updated 22.1 disclosure through October 2022 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:

(1)         A copy of the Declaration, by-laws, other condominium instruments and any rules and regulations.

(2)         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 instruments.

(3)         A statement of any capital expenditures anticipated by the unit owner’s association within the current or succeeding two fiscal years.

(4)         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 Managers.

(5)         A copy of the statement of financial condition of the unit owner’s association for the last fiscal year for which such statement is available.

(6)         A statement of the status of any pending suits or judgments in which the unit owner’s association is a party.

(7)         A statement setting forth what insurance coverage is provided for all unit owners by the unit owner’s association.

(8)         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 instruments.

(9)         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 notices.

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 approves the 22.1 disclosure as drafted with the best available information through October 2022.”

7. Leasing Policy Discussion

The purpose of this action item is by request, for the Board to consider a policy regarding Owners of multiple units swapping their primary residential unit for a rental unit, where that rental unit would become the new primary residence of the unit owner.

8. Hallway Exhaust Fan Motor Replacement

Attached to the report for Board review are proposals for the replacement of the hallway exhaust fan motor, which is located in the 56th floor mechanical penthouse. This was discovered to be in a problematic condition following recent inspections. The bearings seem to be failing and it’s become quite noisy. Our team solicited replacement, which bids are as follows:

Fluid Technologies           $6,852

Quality Mechanical          $11,985

WJO Chicago                     $7,027

The size and location of the motor makes a repair attempt for the problems we’re observing, likely too costly to consider. It would have to be removed, taken to an external shop and taken apart. This would likely cost several thousand dollars just for the problem to be diagnosed. So replacement makes the most sense.

This is appropriate as a reserve expense, though not specifically budgeted. Net savings from other capital projects make this possible to fit in the overall budget already in place.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the replacement of the hallway exhaust fan motor as proposed for $6,852 by Fluid Technologies Pumps and Controls, Inc., as a reserve expense.”

9. Chiller Room Exhaust Fan Replacement

Attached to the report for Board review are proposals for the replacement of the chiller room exhaust fan, which is located in the 2P mechanical room. This has failed and is not repairable as advised by multiple mechanical vendors who work for us periodically. Our team solicited bids for replacement, which are as follows:

Hayes Mechanical            $7,328

Kroeschell Service            $7,136

Quality Mechanical          $9,751

As with the prior discussion on the hallway exhaust fan motor, this is appropriate as a reserve expense, though not specifically budgeted. Net savings from other capital projects make this possible to fit in the overall budget already in place.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the replacement of the chiller room exhaust fan as proposed for $7,136 by Kroeschell Service, Inc., as a reserve expense.”

Business Reports

1. Treasurer’s Report

Attached to the Report for Board Review is the October 2022 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.

Fund Balances End of October 2022

Operating assets totaled $1,584,694 and the Reserve cash and investments were $4,062,726 for a total of cash and investments of $5,647,420.

October 2022 Revenue and Expenses

Total Operating Revenue: $619,802

Total Operating Expenses: $400,187

Income (Loss) From Garage: $23,572

Contribution To Reserve: $149,567

Total Surplus/(Deficit): $93,619

2. Management Report

a)      Business and Activities – Property Manager Tim Patricio will review current business and activities of interest.

b)     Engineer’s Report – Property Manager Tim Patricio will review activity of interest from the Maintenance team.

c)      Recent Sales Activity – Property Manager Tim Patricio will review the most recent Sales. The current Sales & Lease reports are attached to the meeting report for Board review.

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 12, 2022 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 scheduled for December 26th at 7:30PM, and January 9th, 2023 following a Special Meeting of The Unit Owners at 7:30pm to review the proposed budget for the 2023/2024 Fiscal Year.