Board Meeting Monday Feb. 22nd
February 19, 2016
BOARD OF DIRECTORS MEETING
Agenda and Management Report
Monday February 22, 2016 at 7:30PM
2nd Floor Party Room
Owner Forum – 7:30pm – 15 minutes, 2 minutes per person
Management and the Board will address questions and feedback from Owners at the meeting.
Call To Order
The Board President is expected to call the Board Meeting to order and confirm a quorum of members is present, following the Owner’s Forum. Please be courteous – no audience participation is permitted, though the Board may pose questions to the audience from time to time. Speakers will be recognized by the Meeting Chair.
Committee Reports
Committee Chairs or Members will be welcomed to present reports or updates on business and activities to the Board.
Board Report: Board President George Pauley
Action Items – New Business
Closed Session Business
This agenda item is provided for any resolutions to propose resulting from Closed Session discussion.
Minutes – Board Meeting January 25, 2016
Attached to the report for Board Members review, are the proposed minutes from the Board Meeting held on Monday January 25, 2016, submitted by Timothy Patricio, Property Manager.
A sample motion follows: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday January 25, 2016.”
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, as presented by Mesirow Financial.
Renewal of the Commercial Package is proposed with total premiums of $152,010, which represents an increase of only $501 from last year. The budget is $158,000.
Renewal of the Workers Compensation is proposed with a total premium of $55,919, which represents an increase of $12,415 from last year. This increase was anticipated due to a claim in late 2014 – the budget is $58,000. Mesirow did seek competitive proposals, from Travelers for $59,090 and Berkley for $64,500.
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 2016/2017 fiscal year as proposed by Mesirow Financial with total premiums of $207,929.”
Faucets For Building Stock
The original Speakman bathroom faucets are no longer manufactured and it has become impossible to find replacement parts and fixtures.
Our engineering staff and plumber have selected and recommend we begin using the Moen Darcy faucet, Model #84551. Attached to the report for Board Member review is a specification sheet with more details. This model is readily available and Moen is very good about providing parts, no questions asked under their lifetime warranty. They are American made, our staff is pleased with their customer service, and their parts and pieces are used in most Moen products meaning residents who install Moen products would have some assurance that we may have items in stock if repairs are needed.
We would like the Board to formally authorize this as the faucet used for general stock.
A sample motion follows: “I move the Board of Directors approves the MOEN Darcy Model #84551 as the bathroom faucet kept in stock for general repairs and replacements as needed and requested by Unit Owners.”
Shared Cost Sidewalk Program
Attached to the report for Board Member review is a program overview of the City of Chicago Shared Cost Sidewalk Program.
Several times in the past Management signed up for this program to have deteriorated sidewalk along Sheridan Road replaced. Basically, the City will replace several of the damaged sections of sidewalk in front of the building, if we share the cost. According to Dan Luna with the Alderman’s office, last year that was $250/per typical square.
We received word our application was accepted this year, and CDOT has already been out to survey our sidewalk. The next step is they will send an invoice and we need only pay 50% down to make sure we secure our sidewalk for replacement. For this reason, we propose the Board approve a budget so this can be done. It is some guesswork until we receive the invoice. But to qualify we will have to turn payment around quickly, so assuming the Board agrees with participating, we would like preliminary approval. We suggest a fund of $10,000.
A sample motion follows: “I move the Board of Directors approves a preliminary budget of $10,000 to participate in the City of Chicago Shared Cost Sidewalk Program, to replace deteriorated sections of sidewalk along Sheridan Road.”
High Zone Domestic Hot Water Heater Replacement
This year, $130,000 is budgeted to replace the High Zone hot water heaters, which serves all bathrooms and kitchens from the 30th to 55th floors.
Because this supplies the hot water which is used in those kitchens and baths, we recommend hiring our Mechanical Engineers with Elara Energy (the team whom helped us manage the cooling tower replacement in 2008) to put together formal specifications for the project.
We would like the Board to authorize a cost not to exceed 10% of the $130,000 so we can engage Elara to begin this process.
A sample motion follows: “I move the Board of Directors approves a budget of $13,000 to begin engineering design specifcations for the High Zone Domestic Hot Water Heater Replacement Project.”
Unit Owner Construction
Attached to the report for Board Member review are remodeling packets for the following Unit Owner construction projects:
410 – Bathroom remodel
2011 – Kitchen remodel (replacing existing appliances)
2715 – Kitchen remodel
3201 – Living room flooring
4411 – Kitchen and Bathroom
5001 – Kitchen remodel (replacing existing appliances)
A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 410, 2011, 2715, 3201, 4411, and 5001, 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.”
Action Items – Old Business
TSTAT Bulk Installation Program
Attached to the report for Board Member review is the specification worksheet for the proposed T-stat – Honeywell 3 Speed Fan Coil Thermostat – for use in the bulk installation program the Board has asked Management to organize. Both Management and the building engineers are satisfied with this device. After looking at a couple different T-stats presently in units, this seems to be the most reasonable. We can get this model through one of our suppliers at a bulk rate of $75 per 100. We are trying to get that count down to 50, or get the rate down further.
We have two electricians (Dunning Electric and City Service Electric), both familiar with the building, preparing bids. We expect based on preliminary discussions they will take 2-4 hours per installation at a rate of at least $100/hour. Meaning the total cost without taxes or unknowns, may be somewhere in the range of $275-$475 per install. They have also agreed to install other T-stats residents choose for themselves, though depending on the device, the installation could be more time consuming, thus resulting in a higher cost.
We request the Board approve the device for the bulk deal so the electric.
A sample motion follows: “I move the Board of Directors approves the Honeywell 3-Speed Fan Coil Thermostat Model# TB6575A1000 as the device for use in the proposed Bulk Thermostat Installation Program.”
Health Club Remodeling
Attached to the report for Board Member review is the previously accepted “Health Club In-house Demo and Construction Plan”, as well as the flooring proposal from Total Fitness Connection. Now that the project is budgeted as proposed, we ask the Board to formally accept the plan and funding.
The budget of $112,200 was based on this plan. Several pieces of this plan are coming under budget, so barring any unknowns, management expects to come under budget. As we get closer to considering the proposed locker room work later in the year, we will present other pieces of this project being handled by contractors to the Board for formal approval, though the dollars fall within the $112,200 funding plan.
Despite having been previously “accepted” by the Board for budgeting purposes, the actual funding needs formal approval for us to begin the project in earnest.
A sample motion follows: “I move the Board of Directors approves funding of $112,200 for the Health Club remodeling, as proposed in the Health Club In-hous Demo and Construction Plan, including construction to turn racquetball court #1 into the new weight room, and turning the existing weight room into the new cardio room, including flooring installation as proposed by Total Fitness Connection.”
Health Club Equipment
Attached to the report for Board Member review is the proposal from Total Fitness Connection, consistent with the previously accepted “Health Club In-house Demo and Construction Plan”. The total proposal is $79,260.41. However, $3193.38 of this falls under the remodeling portion of the project, within the budgeted $112,200, which is for the wireless receivers and transmitters for the tvs to be installed in the new cardio room. So the total actual equipment cost within this proposal is actually $76,067.03. The budget for the equipment is $77,000.
In addition, you will find the proposed 5 year maintenance agreement, which includes two PM visits during the initial warranty period of 3 years, and 4 visits in years 4 and 5. Three of the PM visits are included with the purchase of the equipment. Years 1, 2 and 3 are $350 per year; years 4 and 5 are $1400 per year, for a total cost of $3850 over 5 years.
Such as with the remodeling, despite having been previously “accepted” by the Board for budgeting purposes, the actual funding for the purchase of the equipment needs formal approval for us to begin the project in earnest.
A sample motion follows: “I move the Board of Directors approves the purchase of new health club equipment as proposed from Total Fitness Connection at a total cost of $76,067.03.”
A sample motion for the maintenance program follows: “I move the Board of Directors approves the 5 year plan and contract for health club equipment preventative maintenance as proposed from Total Fitness Connection at a total cost of $3850.”
Business Reports:
Treasurer’s Report – Jean Shamo
Board Treasurer will review Operating and Reserve Account balances for December 2015.
December Financials (Accrual Based)
Total Revenue = $456,010
Total Operating Expenses = $389,823
Net Income from Garage Operations = $31,330
Net Income = $97,517
Reserve Contribution = $117,200
Net Surplus/(Deficit) = ($19,683)
Total Reserve Expenses = $37,142
October Bank Activity (Actual EOM Balances)
Operating Account Balance = $641,418
(Increase of $185,650 from November.)
Reserve Account Balance = $1,373,876
(Increase of $263 from November.)
Total Cash and Investments = $2,015,294
Management Report – Tim Patricio
- Updates
- Monthly Activity Report
- Sales and Leasing Report
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 January 11, 2016 Board Meeting a_ PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
Management and the Board will address questions and feedback from Owners at the meeting.
The next meeting date is Monday March 14th at 7:30pm in the Party Room.
About the Author: Tim Patricio
Park Tower Horizons
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