Board Meeting Monday July 11th 7:30PM
July 11, 2022
BOARD OF DIRECTORS MEETING
Monday July 11, 2022 7:30PM
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.
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.
Attached to the report for Board Review are the most recent reports submitted by the Home Improvement and Social Commissions.
Board Report
The meeting chair may give a report on current Association business and activities of interest.
Action Items
- Appointment of Board Officer and Commission Liaison Positions
The Board will need to formally elect corporate officers for the business year, to each of the following positions: President, 1st Vice President, 2nd Vice President, Treasurer, and Secretary. At the same time Commission Liaisons for the business year can be accepted for each of the following active Commissions: Budget & Finance, Health Club, Home Improvement, New Residents, Rules & Regulations, and Social, as well as the ASCO representative.
A sample motion: “I move the Board of Directors appoints _____________, as Board President and liaison of the _____________ Commission , _____________, as Board 1st Vice President and liaison of the _____________ Commission, _____________, as Board 2nd Vice President and liaison of the _____________ Commission, _____________, as Board Treasurer and liaison of the _____________ Commission, and _____________, as Board Secretary and liaison of the _____________ Commission.”
- Closed Session Business
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
- Minutes – Board Meeting June 13, 2022
Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday June 13, 2022, as submitted by General 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 June 13, 2022.”
- Updated 22.1 Disclosure
Attached to the report for Board Member review is the updated 22.1 disclosure through May 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 May 2022.”
- Board Meeting Schedule 2022/2023
Attached to the report for Board Member review is a draft notice to Unit Owners with a list of proposed Board Meeting and Resident Forum dates, as suggested and presented by Michael Parrie. The pattern of meeting dates continues consistent with the schedule for the previous business year, with the primary Board Meetings held on the 2nd Monday evening each month, and a secondary Board Meeting scheduled for the 4th Monday each month. Three Saturdays in November are included for budget review, and resident forums are scheduled for Wednesday July 27th, Thursday October 27th, Saturday January 28th, and Tuesday April 25th.
A sample motion: “I move the Board of Directors schedules Board Meetings for the 2022/2023 Park Tower
Condo Association business year, on the dates as proposed by [insert Board title] Michael Parrie, and directs Management to issue a formal notice via US Mail accordingly.”
- 2022 Reserve Study
As previously approved by the Board of Directors, a full professional Reserve Study Update was recently completed. A draft was forwarded to the Board for review. It has only been two years since the last full Study was completed. However, economic realities such as inflation and supply chain disruptions led to recommendations from Management and other professionals to strongly consider performing a new Study. To say the least, there have been changes that one would expect could significantly alter the sound financial planning for which a Reserve Study helps establish for the long term.
Recognized as one of the top professional firms for this purpose in the condo industry, Reserve Advisors was engaged by the Board to follow up the previous Study completed in April of 2020. As expected, it calls for pretty significant changes. To sum it up, as presented by the Board President at the June 13th Board Meeting, they used a 3.5% as the estimated long term inflation rate for future replacement costs and 1.3% as the estimated annual rate of return on investments. They recommend the Association increase our reserve contribution from $1,794,800 annually this year to $2,162,800 annually for next year, an increase of $368,000. This alone would mean a potential 6.3% increase in assessments, and that would not include expected inflationary increases throughout the operating budget for goods and materials, contracting, utilities and payroll.
It is routine for a Board to review and accept such reports, which will then be used for budgeting considerations. Unless there are either questions about the contents or any potential objections to the facts and information presented, we would suggest the Board formally accept the Study.
Management had one change, and that is with regard to the age of the main roof. It was replaced in 2017, not 2016. We’ve already brought this to their attention and it will be edited for the final draft. If any members have a question or change, we can recommend how to proceed depending on the nature of the matter.
A sample motion follows: “I move the Board of Directors formally accepts the 2022 Full Reserve Study as presented by Reserve Advisors, and hereby directs it be made available to Unit Owners electronically upon request, and hard copy requests are subject to the established printing cost of $1 per page after the first 5 pages.”
- Pool Closing and Memberships
The purpose of this action item is for discussion about the status of work in the pool area, and whether their will be any consideration for memberships. As of the drafting of this report, the roof replacement is finished but repairs to the pool and flooring continue. And the body of the main drain of the pool is scheduled to be replaced. There is a tentative date for reopening, expected to be July 27th.
- Outdoor Pool Electrical Repair
While completing the outdoor pool repair, it was discovered both lights are no longer working. As they troubleshooted, several problems with the line were discovered and since much of it has to be accessed in hard to reach locations, we are opting to recommend replacement of the lights and a full replacement of the wiring, conduit and circuit breaker box. The box appears to be original, if not decades old.
This was not specifically budgeted for. However, $33,800 was considered in the 2022/2023 Reserve Budget for the Outdoor Pool Repair Project, and that came in at just under $16,000, a difference of about $17,800.
This was tabled after questions were raised at the June 13th meeting, and additional research was done. To keep up with code requirements, and avoid losing our license to operate the pools and jacuzzi, it was determined we need to proceed and therefore the work was scheduled so that further delay could be avoided. The alternative was to find a way to completely bar access when it is dark which could be done in a variety of ways, but that would also require a combination of time, resources and potentially the installation of a lockable gate. Also, the staff reports it is used in the evenings – not by a lot of people, but several particularly so on weekends.
The proposals for the electrical work are attached to the report for Board review, and are as follows:
Dunning Electrical Services $8,873
Quality Mechanical $10,420
Sievert Electric $10,875
Due to the timing, Dunning was authorized to proceed after management contacted each Board Member individually to discuss the issues.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association ratifies the decision by Management to approve the outdoor pool electrical repairs as proposed by Dunning Electrical Services at an expense of $8,873.”
- Pool Drain Repairs
After draining the pool, it was discovered that the main drain body was significantly deteriorated. Several contractors familiar with our pool were contacted for opinions and proposals. It is a custom drain body, and initially we were being told it would take 2 to 4 months or more to get the equipment. That being already enough of an unacceptable delay, Management authorized proceeding with the low bidder after consulting with the Board President and supervisor Dave Barnhart. Incidentally, the low bidder also had the shortest lead time on parts and materials.
The proposals are attached to the report for Board review, and the bids were as follows:
All Seasons Pool & Spa $12,800
Monson & Nicholas $9,520
JLJ Contracting $17,885
We chose to proceed with Monson & Nicholas, and the good news is not long after that our team was able to track down the materials which are for the most part now in hand or in route – including the custom drain body – and so work is expected to begin very soon. The timing is such that barring unforeseen conditions, it should not delay the anticipated reopening date.
A sample motion: “I move the Board of Directors of the Park Tower Condo Association ratifies the decision by Management to approve the pool drain repairs as proposed by Monson & Nicholas at an expense of $9,520.”
- Lobby Electrical Panel
As budgeted, the main lobby electrical panel was budgeted for replacement this year, at $20,000.
The proposals are attached to the report for Board review, and the bids were as follows:
Advanced Electrical Systems $24,843
Dunning Electrical Services $17,870
Sievert Electric $18,970
Aside from being under budget and the low bidder, we have cultivated a pretty strong relationship with Dunning and they are becoming more and more familiar with our grid. 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 approves the replacement of lobby electrical panel as proposed by Dunning Electrical Services at an expense of $17,870.”
Business Reports
- Treasurer’s Report
Attached to the Report for Board Review is the May 2022 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.
Fund Balances End of May 2022
Operating assets totaled $1,606,814 and the Reserve cash and investments were $3,551,185 for a total of cash and investments of $5,157,999.
May 2022 Revenue and Expenses
Total Operating Revenue: $591,244
Total Operating Expenses: $428,419
Income (Loss) From Garage: $20,612
Contribution To Reserve: $149,567
Total Surplus/(Deficit): $33,870
- Management Report
Business and Activities – Property Manager Tim Patricio will review current business and activities of interest.
Engineer’s Report – Property Manager Tim Patricio will review activity of interest from the Maintenance team.
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 July 11, 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 Board Meetings are scheduled for Monday July 18th (meeting with Budget & Finance Commission) and Monday August 8th at 7:30PM in the 2nd Floor Party Room.
About the Author: Tim Patricio
Park Tower Horizons
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