BOARD OF DIRECTORS MEETING

Management Report

Monday February 13th, 2017 at 7:30PM

2^nd 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 Member is 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: Board President Michael Parrie

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 January 23, 2017

Attached to the report for Board Member review, are the proposed minutes from the Board Meeting held on Monday January 23, 2017, as submitted by Timothy Patricio, Property Manager.

A sample motion follows to approve the minutes for January 23th: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday January 23, 2017.”

3. Proposed Decs & Bylaws Amendments

The purpose of this Action Item is for discussion of last minute details regarding the proposed amendments and the notice being prepared.

It has also been suggested that before issuing the notice, the Board consider simplifying the amendments/choices with regard to how the questions related to dogs, cats and detection animals be presented. We are presently working with counsel on how this might work.

4. Special Meeting Dates

It has been proposed that the Special Meeting date for March 15^th be changed to March 22^nd, due to ACTHA classes Board members are planning to attend. (For the benefit of Owners reviewing the report, ACTHA is the Association of Condo, Townhome and Homeowners Associations.) 

5. Appoint ASCO Representative

Board Member Dave Nicosia has announced to the Board President and Management he is resigning as the buildings representative with ASCO (the Association of Sheridan Road Condo and Co-op Owners). He has served in the position for about 5 years.

The Association is not required to have a representative for this position in order to remain active, though as a member of ASCO it would be helpful to have someone designated to attend their meetings. In the past, the position has been held by either a Board Member or a Unit Owner. The Board could call for volunteers – perhaps from the Board or audience at the meeting.

A sample motion follows: “I move the Board of Directors appoints ______________ as Park Tower Condo Association’s representative with ASCO.”

6. Insurance Program Renewal

Attached to the report for Board Member review is the worksheet showing the bids for renewal of our Commercial Package Insurance Program and Workers Compensation for the 2017/18 fiscal year, as presented by Mesirow Financial. I will be meeting with our rep from Mesirow to review the proposal in more detail, prior to the Board Meeting and should be ready if Board Members have any specific questions. I have a handful myself, but nothing preventing Management from recommending the Board authorize renewal as proposed.

Renewal of the Commercial Package is proposed with total premiums of $152,672, which represents an increase of only $662 from last year. The budget is $162,300.

Renewal of the Workers Compensation is proposed with a total premium of $51,153, which represents a decrease of $4,766 from last year. The budget is $60,000.

For the insurance program all together, the Association budgeted $222,300 for 2017/18. The proposed renewal premiums total $203,825. That is $18,475 favorable to budget. Premiums year over year fell $4,104.

A sample motion follows: “I move the Board of Directors approves renewal of the Commercial Package insurance program and the Workers Compensation insurance for the 2017/2018 fiscal year as proposed by Mesirow Financial with total premiums of $203,825.”

7. Uniform Rental Contract

Our present Uniform Rental contract for maintenance and garage employee uniforms, with Lechner and Sons is set to expire this month, and an RFP was sent out for proposals from 3 vendors. Attached is a cover summary and proposal worksheets from each. The anticipated fixed annual expense for rentals was bid as follows:

Lechner & Sons (incumbent) – $6,292/annually (1 year renewal)

Aramark – $5,720 (with 5% increase year 2 and year 3)

Cintas – $11,076 (1 year)

Lechner & Cintas did not reply to all our points of reference in the RFP, mainly that we requested a 3 year proposal. We are waiting for follow ups to our inquiries. However, Lechner remains competitive enough at this time that we don’t recommend changing – and we would like to try to lock them in for 3 years.

The total budget for uniform related expenses is $9600. Keep in mind, the budget includes provisions for non-fixed costs such as uniform repairs (including doorman repairs and cleaning), and setting up new employees. (We own the doorman uniforms.)

A sample motion follows: “I move the Board of Directors approves renewal of the service contract for Uniform Rental with Lechner & Sons for 1 year, as proposed with a base annual rate of $6,292 for rental of maintenance and garage employee uniforms.”

8. Landscape Maintenance Contract

Our present Landscape Maintenance contract for basic maintenance of our parkways and planting beds with Brightview Landscape Management (formerly Brickman), is set to expire this year. An RFP was sent out for proposals from 6 vendors, but only 3 have responded in time for consideration – 1 declined and 2 may yet respond. Attached is a cover summary and proposals from the 3 present respondents. The anticipated fixed annual expense for these services was proposed as follows:

Semmer Landscaping – $4,005 (year 2 and 3 $4,095/yr.)

Brightview Landscape (incumbent) – $7,040 (year 2 $7,680, year 3 $8,320)

Woodlawn’s Landscape – $11,582

We are waiting for additional information from Brightview and Semmer. As a part of the RFP, we requested the prices on 10 additional items for annual plantings that are typical, as well as bags of soil and winter interest supplies used by owner Kent Brave when he works on the beds. Also, we are hopeful to have at least one more vendor’s proposal for consideration. Based on Semmer’s pricing though, we believe it is possible they assume they may be making additional dollars by actually doing the planting Kent does. We will sort through all this in time for the meeting.

The budget for this service is $7,040, as it was based on Brightview’s proposal. We have asked them to comment on the tough increases in years 2 and 3, but particularly as it relates to wages, we already know it is likely in part due to the City’s annual minimum wage increases.

At the end of the day however, we are very happy with the incumbent overall, and cannot see recommending someone else at this time.

A sample motion follows: “I move the Board of Directors approves renewal of the service contract for basic Landscape Maintenance of our parkways and planting beds with Brightview Landscape Management for 3 years, as proposed with a base annual rate of $7,040 for year one, $7,680 for year two, and $8,320 for year 3.”

9. Window Washing Contract

Our present Window Washing contract for exterior window washing and spider control with Corporate Cleaning is set to expire this year. An RFP was sent out for proposals from 5 vendors, but only 3 responded in time for consideration. Attached is a cover summary and proposal worksheets from 3 bidders. The anticipated fixed annual expense for window washing and spider control treatment was proposed as follows:

American National Skyline – $34,760 (1 year)

Shine On Group – $32,290 (1 year)

Corporate Cleaning (incumbent) – $30,940/annually (Will lock 5 years not to exceed increase of 5%/yr)

Corporate is the only vendor that responded to all our points of reference in the RFP, mainly that we requested 3 and 5 year proposal options. The other vendors have not yet responded to our inquiries, though we will continue collecting as much additional information as we can in time for the meeting.

The budget for this service is $30,100. We know locally, there has been inflationary pressure, particularly as it relates to wages, likely in part due to the City’s annual minimum wage increases.

A sample motion follows: “I move the Board of Directors approves renewal of the service contract for exterior Window Washing and Spider Treatment with Corporate Cleaning for up to 5 years, as proposed with a base annual rate of $30,940, with annual rate increases not to exceed 5%.”

10. Metal Maintenance Contract

Our present Metal Maintenance contract with Chicago Metal is set to expire this year, and an RFP was sent out for bids. It was sent to 5 vendors, but only 3 responded in time for consideration. Attached is a cover summary and proposal worksheets from 3 bidders. The anticipated base annual expense for common area professional metal maintenance was proposed by the respondents as follows:

Chicago Metal (incumbent) – $16,500 (Locked for 3 years)

Millard Group – $23,496 (Locked for 3 years)

Midwest Signature – $10,800 (Locked for 3 years)

We are waiting for the formal proposal and references from Midwest, and will continue gathering information. We are concerned by the small dollar figure of their bid. Also, Millard included the 2^nd floor deck columns in their number, so we are waiting for a revised number – this was only to be provided as a 1 time figure.

The budget for metal maintenance is $24,200. We have additional projects to consider this year, such as the 2^nd floor deck area column painting. We are not ready to make a recommendation, but hope to have more detail in time for the meeting.

A sample motion follows: “I move the Board of Directors approves a service contract for common area professional Metal Maintenance with ______________ locked for 3 years, as proposed with a base annual rate of _________.

11. Construction Requests

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

1608 – Kitchen Remodel

3503 – Bathroom Remodel

4211 – Kitchen and Bathroom Remodel

A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 1608, 3503 and 4211, 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 December 2016

Operating Funds $411,442 (decrease of $229,351 from November)

Reserve Funds $2,095,875 (increase of $203,166 from November)

Total Cash and Investments $2,507,317 (decrease of $26,186 from November)

December Income and Expenses

Total December Income: $480,300

Total December Expenses: $364,011

Income From Garage: $7,541

Contribution To Reserve: $122,742

Total Surplus or (Deficit): $1,089

2. Management Report

The property manager is expected review current Association Business and Activities including key Monthly Activity and Recent Sales.

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 February 13, 2017 Board Meeting at _ _ PM.”

OWNER FORUM – 15 minutes, 2 minutes per person

Next Meeting Dates Monday February 27^th and Monday March 13^th