BOARD OF DIRECTORS MEETING

Monday July 12, 2021

Management Report 

6:00PM – CLOSED SESSION

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

7:30PM – OWNER FORUM

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 acting Board President Michael Parrie, will call the meeting to order. 

Confirm Quorum

The 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, is a report from the Home Improvement Commission and the results of a survey presented by the Health Club Commission.

Board Report

The chair and acting Board President may give a report on current Association business and activities of interest.

Action Items 

1. Appointment Of Officers For 2021/2022

The Board will need to formally elect corporate officers for the business year, to each of the following positions: President, 1^st Vice President, 2^nd Vice President, Treasurer, and Secretary.

To keep things efficient, you might also acknowledge the appointment of Commission Liaisons for the business year 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 1^st Vice President and liaison of the _____________ Commission, _____________, as Board 2^nd Vice President and liaison of the _____________ Commission, _____________, as Board Treasurer and liaison of the _____________ Commission, and _____________, as Board Secretary and liaison of the _____________ Commission.” 

The motion should identify the ASCO representative where necessary. 

2. Closed Session Business

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

3. Minutes – Board Meeting June 14, 2021

Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday June 14, 2021, as submitted by Timothy Patricio, Property Manager for Board consideration.

A sample motion: “I move the Park Tower Condo Board of Directors of the Park Tower Condo Association hereby approves the minutes from the Board Meeting held on Monday June 14, 2021.” 

4. Board Meeting Schedule 2021/2022

Attached to the report for Board Member review is a draft notice to Unit Owners with a list of proposed Board Meetings 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 28th, Tuesday October 28th, Saturday January 29th, and Thursday April 28th.

A sample motion: “I move the Board of Directors schedules Board Meetings for the 2021/2022 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.” 

5. Updated 22.1 Disclosure

Attached to the report for Board Member review is the updated 22.1 disclosure 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 update this regularly, and will present it for Board review and approval.

A sample motion: “I move the Park Tower Condo Board of Directors of the Park Tower Condo Association approves the 22.1 disclosure as drafted with the best available information through June 2021.” 

6. 5354-5356 N. Sheridan Road

The purpose of this Action Item is for possible discussion about the “Wing Hoe” lot development at 5354-5356 North Sheridan Road.

ASCO is meeting on Tuesday, July 13th, and would like Park Tower’s input.  Past Boards have neither supported nor objected to plans for neighboring or nearby developments.  Rather, they chose to remain neutral and if anything encourage individual owners and residents to attend and contribute to the public meetings if they so chose.

For the Board to respond to ASCO, direction can be considered and voted upon if necessary at the meeting.

7. 1p Door Fob Access Policy

The purpose of this Action Item, at the direction of Michael Parrie, is for the Board to formally consider a request by a Unit Owner to allow residents to have permanent 1p fob access so they can escort guests if necessary in the garage.

8. Garage Project – Reimbursement From Reserve Fund

With the garage project wrapping up and with no huge surprises, a final piece of business is to reimburse the Operating Fund, and specifically the Garage, as budgeted for the temporary help hired to buttress the staff while the project was underway.

Specifically, the value of the temporary help, including salary, taxes, insurance and benefits was valued to be $84,800. This was budgeted as a part of the funding for the Garage Project in the Reserve, and as income to Garage Miscellaneous Income.

Of course, the Board could decide to either table this action for future consideration or scrap it altogether. At present, the Association’s bottom line is very favorable through the first quarter, mostly due to savings in payroll and utilities. One approach would be to await the coming audit for the 2020/21 Fiscal Year so last year’s bottom line and any necessary adjustments for this year can be integrated.

However, we present this now, as the activity was scheduled for consideration in July.

A sample motion follows: “I move the Board of Directors approves the transfer of $84,800 from the Reserve Fund to the Operating Fund, as budgeted for consideration with the Garage Project to reimburse the Operating Fund for the estimated value of the temporary garage employee hired to assist over the course of the project.” 

9. Riser Project Planning

For 2020/2021 fiscal year, $525,000 was budgeted to complete the next 3 risers, which were put on hold due to the COVID-19 pandemic. The contracts were approved in June of 2019, and being that 2 years have passed, those contracts are technically expired. Workers salaries have gone up and the price of transportation and materials have increased dramatically in just the last 12 months. Both the carpenters and the plumbers have insisted they need to adjust their fees.

Plumbing – Attached to the report for Board review are the old and new quotes from Fettes, Love & Sieben for the plumbing portion of the risers. Originally, they quoted a total for these Risers of $140,850. Their revised proposals totals $150,300 which works out to just above 3% per year. We did not feel it would be efficient or productive to completely rebid this, as this is a reasonable increase when you look at union salaries for plumbers. However, we did give a newer firm we’ve been working with the opportunity to bid the project. Also a union outfit and referred to us by other managers at Habitat, Corporate Plumbing expressed interest in future projects and provided a quote of $184,800 for these risers.

Carpentry – Attached to the report for Board review are the old and new quotes from MPD Construction Group. They are providing demolition and reconstruction services to open the wall for access to the risers and then rebuilding and finishing the walls and re-installing the fixtures. Previously they quoted these risers at $154,440. Their revised proposals total $169,520. This is an increase of just under 5% per year. We inquired why the inflation was higher than some might expect, and they said it is based on what the average workers are able to command for increases. Particularly recently. For this one, we pulled the previous competitive quotes for comparison:

DeltaCity – 2020/2021 Risers $187,200

DK Construction – 2020/2021 Risers $195,000

We’ve used MPD Group now for almost a decade on such projects and given that their inflationary increase does not even meet the prior quotes from two years ago, we believe it is reasonable to proceed as proposed.

Insulation – Fortunately, Dettman Industries did not advise to expect an increase and has confirmed their availability for the project. Their anticipated expense for the project is $88,670. Since the individual doing the work is also an Owner of the business, it not surprising they are holding the price.

Materials – Materials for these risers were purchased in bulk when the original contracts were approved in 2019, which given the present explosion and roller coaster pricing for copper and other metals, actually works out in our favor in a pretty big way at the moment. However, Louie advises we do need to plan for unknowns. When we open the walls, we typically find other small problems to address. In brainstorming with him, we did some math and estimate no more than $15,000 can be anticipated. So, breaking it out:

We’ve been fortunate to run into few major “unknown” conditions when we’ve completed the Riser Projects over the past 8 years. However, we suggest a provision of about 5% of the totals proposed, so our team has some flexibility to approve additional work as needed. That would be about $21,000 for.

The combined total is $442,490. This year’s budget is $525,000. A big piece of the savings over the budget, is really the choice to purchase all the major materials for 2 years of risers in bulk, in 2019.

A sample motion follows: “I move the Board of Directors approves a total of expenditures not to exceed $442,490 for the planned projects to replace the High Zone ’07/’08 bathroom tier riser, the High Zone ’06 kitchens tier riser and the Low Zone ’09/’10 bathroom tier riser, as proposed and scheduled by Management, for which the total expected expenditures include a provision of $15,000 as needed for materials and supplies, $150,300 for plumbing as proposed by Fettes Love and Sieben, $169,520 for carpentry as proposed by MPD Construction Group, Inc., $88,670 for insulation as proposed by Dettman Industries, Inc., and a provision for unknown conditions totaling $21,000.”

10. Ratify VFD Replacement

Following recent severe weather, damage occurred to a drain line which serves the plaza area near the market and lobby, and which is over the chiller mechanical room. Unfortunately, water made contact with a variable frequency drive which controls 1 of 2 pumps that serve the chillers. Our team was able to get multiple bids quickly (which is a great advantage of working with multiple firms this time of year on a variety of projects), but having one of these down during the middle of summer especially given the lead time on ordering any metal products or electronics, was our chief concern.  We choose a proposal directed work be started as quickly as possible on an emergency basis.

The proposals were as follows:

Kroeschell, Inc.                $11,994 (Parts in stock – work could begin immediately.)

Quality Mechanical         $10,615 (Parts not in stock, estimated 2 to 3 weeks for delivery.)

W.J. O’Neil                       $10,585 (Parts not in stock, estimated 2 to 3 weeks for delivery.)

We chose to proceed with Kroeschell for two reasons. First and most importantly, they had what we needed in stock. Second, work would need to be done to set the new VFD into the BAS system and make sure it is communicating properly. This is noted on their proposal. Had we chosen any of the other vendors, we would need to contact Kroeschell to do a service call for this purpose anyway. (Kroeschell is to our BAS system, as OTIS is to the elevators.)

A sample motion follows: “I move the Board of Directors ratifies and approves the action by Management to replace the damaged VFD drive serving the chillers and make the appropriate connections and setting adjustments for the BAS system, as proposed by Kroeschell, Inc. for $11,994.”

11. Ratify Leak Repairs

Also following recent severe weather, leaking occurred in the garage which did impact a couple parking spaces. The source was identified as masonry and concrete deterioration around the stairs and exit to the north of the pool. Having just completed exterior concrete and masonry repairs in this vicinity, our team sought out JLJ Contracting. They quoted a sum of $13,920, and after reviewing and confirming it to be consistent pricing with their bid from the work completed in the Spring, we directed they proceed on an emergency basis. Due to the type of weather we can experience this time of year, and due to the nature of the conditions leading to the leaking and its impact on parking, we determined it to be critical not to delay the effort.

We would also suggest, due to the nature and expense and because of its similarity to the Spring tuckpointing and concrete repair project, that the Board consider this to be a Reserve expenditure.

A sample motion follows: “I move the Board of Directors ratifies and approves the action by Management to direct repairs begin to address water infiltration at the North Staircase adjacent to the pool, as proposed by JLJ Contracting, Inc. for $13,920, and directs this be funded by the Reserve Fund.”

12. Construction Requests

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

2504 – Hard Flooring & Kitchen Remodel

2903 – Hard Flooring

3609 – Hard Flooring and Kitchen Remodel

3808 – Hard Flooring

4510 – Bathroom Remodel

A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 2504, 2903, 3609, 3808 and 4510 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

Attached to the Report for Board Review is the May 2021 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.

Fund Balances End of May 2021

Operating assets totaled $1,471,553, and the Reserve cash and investments were $2,843,993 for a total of cash and investments of $4,315,546.

May 2021 Revenue and Expenses

Total Operating Revenue: $567,277

Total Operating Expenses: $403,469

Income (Loss) From Garage: $18,844

Contribution To Reserve: $146,508

Total Surplus: $36,144

2. 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 items of interest from Maintenance.

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 12, 2021 Board Meeting at ____PM.” 

OWNER FORUM – Via ZOOM Chat

The Board of Directors and Management will welcome and address feedback and questions from Unit Owners via ZOOM chat. 

The next Board Meetings are scheduled for Monday July 26th and August 9th at 7:30pm and a Resident Forum Wednesday July 28^th at 7:30pm, in the 2^nd Floor Party Room.