BOARD OF DIRECTORS MEETING

Management Report

Monday March 11, 2024

7:00PM – CLOSED SESSION

The Board is scheduled to meet to discuss rule violations, pending litigation, Unit Owner account issues or 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 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 is the most recent Home Improvement Commission report.

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 February 12, 2024

Attached to the meeting report for Board Member review, are the proposed minutes for the Board of Directors Meeting held on Monday February 12, 2024, 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 February 12, 2024.”

3. Updated 22.1 Disclosure

Attached to the report for Board Member review is the updated 22.1 disclosure through February 2024 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 February 2024.”

4. Annual Meeting Schedule

Below for Board Member consideration is the proposed schedule for the 2024 Annual Meeting of the Unit Owners:

a. Initial notice mailed the week of April 15th.

b. Candidate Application due by Friday May 10th at 5pm.

c. Formal Annual Meeting Notice and proxy forms mailed by Friday May 17th.

d. Meet the Candidates Meeting Wednesday June 5th 7pm.

e. Annual Meeting Monday June 10th 7:30pm.

Attached to the report for Board review is a draft of the notice, election rules and candidate information form to be distributed following approval of the schedule.

A sample motion: “I move the Park Tower Condo Board of Directors hereby approve formal scheduling of the 2024 PTCA Annual Meeting of Unit Owners for Monday June 10th, 2024, at 7:30pm, as well as Meet the Candidates Night on Wednesday June 5th at 7pm, and directs the necessary notices and mailings be drafted and distributed by Management as proposed.”

5. 2022 Reserve Study Update

Attached to the report for Board review, following discussion and direction during the budget review meetings in November 2023, is a proposal from Reserve Advisors to conduct an update of the 2020 professional Reserve Study. This is following the most recent update conducted in 2022.

With the inflation we experienced as the economy emerged from the pandemic, an update will help us understand our position and whether reserve fund is still adequate to address future needs.

Reserve Advisors has agreed to honor the proposal they gave us to include with reserve planning, of $12,000. In 2022 they charged $11,300. This represents an increase of only about 3% annually, certainly beating inflation over that period.

A sample motion: “I move the Board of Directors approves to hire Reserve Advisors, LLC as proposed to conduct an update of the 2020 Reserve Study, at an expense of $12,000.”

6.  Social Commission Appointment

A request was made to appoint Rita Allison of Unit 1901 to the Social Commission.

A sample motion: “I move the Board of Directors approves appointing Rita Allison (Unit 1901) to the Social Commission.”

7. Green Week Rummage Sale

During last year’s Green Week, we received feedback about use of the mall not generating enough traffic and interest for the Rummage Sale. Specifically, the suggestion was made by more than one resident to consider allowing use of the exterior plaza (weather permitting).

Management does not see a problem with using such a setting, and in fact with the visibility it may generate more interest from passersby and could result in a much more successful event.

A sample motion follows: “I move the Board of Directors approves use of the exterior plaza for the Green Week Rummage Sale event, planned for Saturday April 27th from 9am to 3pm.”

8. ASTOUND Fiber Project

Attached to the report for Board review is the updated contract addendum incorporating the desired migration from Co-Axial to Fiber video and internet service. This is consistent with the proposal negotiated by the Ad-Hoc Cable & Internet Commission previously accepted by the Board, and will act as the formal renewal for the ongoing contract with ASTOUND (formerly RCN).

Here are the key changes from the previous coaxial agreement:

• The Co-axial network will be decommissioned and a new Fiber infrastructure will be installed.
• Provision of understanding that the lobby camera Channel 196 and management station Channel 195 will no longer be carried. (We are looking into alternatives for residents to be able to view this camera and others remotely.)
• The Modem with Wi-Fi router will be replaced by an Optical Network Terminal and the ASTOUND Enhanced Mesh Wi-Fi with up to two devices per unit.
• Internet upload and download speed will be One (1) Gig x One (1) Gig, symmetrical high speed data.
• The TIVO video boxes will be replaced by a Cloud based DVR box – up to 3 will be available per unit.

Now, some of the technical details: As proposed, ASTOUND will install the new fiber network by using the pre-existing fiber source in the basement, which serves the Co-axial now. ASTOUND will install a new Gigabit Passive Optical Network (GPON) system and rack in the basement with one 1/16 splitter box that will service the eleven (11) courtesy locations (e.g. wifi in the Party Room, 2nd Floor, lobby and other locations). From the GPON system, they also will run the necessary fiber lines to splitter boxes in the crawlspace above the lobby and 2nd floor.

Starting at the top floor, in all units, ASTOUND will cut a 2×5 opening (or smaller) in the existing drywall at the HVAC chase by the window. Once the drywall is removed, they will scan the concrete and core between floors to identify a location to run multiple 12-count fibers per tier. (There are fourteen (14 tiers), though it may be mapped out such that only 11 chases will need lines run.) Astound will secure the fiber with a liquid nail adhesive to the concrete support column inside the pipe chase.  To protect the integrity of the fiber from any damage during future piping projects, ASTOUND will cover the fiber with metal molding.  Astound will bring in two (2) fibers per unit at the floor level; one (1) for use and the second one will serve as a spare. The drywall will be taped, patched and sanded, once the fiber is installed. The building will be responsible for the cost associated with painting the patched drywall.

Then, in every unit, ASTOUND will install a Point of Entry (POE) module box near the fiber tier location opening, at the floor level.  From the POE module, an “Invisilight” white fiber line (that is practically naked to the eye) will follow a path along the baseboard to a predetermined location based on the tier.  The Invisi-fiber product will be affixed to the baseboard with an adhesive. At the outlet location, ASTOUND will install a fiber wall plate and fiber jumper.  During this process, ASTOUND will utilize a plastic drop cloth to prevent dust in the unit as well as vacuum following construction.

The coaxial service will remain active until after the new fiber network is in place. Scheduling will be opened to residents over a 3 week window for the replacement of the current equipment with the new devices.

ASTOUND also agreed to schedule up to three presentations for residents to learn how to use the new Cloud based DVR video system.

A sample motion: “I move the Board of Directors approves the Ninth Amendment To The Residential MDU (multiple dwelling unit) Agreement as proposed with RCN Telecom Services of Illinois, LLC, doing business as Astound Broadband, to include as planning and scheduling permits a transition from a coaxial cable network to a fiber network, at a starting base rate of $41.79 per unit per month, before applicable taxes, municipal surcharges and fees and any other governmental imposed charges.”

9. 01/03 HVAC Riser

The purpose of this action item is for discussion regarding the status of the 01/03 Master Bedroom/Studio HVAC Riser, and potential plans to schedule its replacement.

As we previously suggested, our team has been laying preliminary groundwork to replace this entire riser following recent events. This would be from 5501/5503 down to 301/303. Because of our experiences and conditions we observed, it’s our opinion this needs to be done sooner rather than later. The Board will need to consider and formally approve any such plans. We are trying to put the pieces together quickly, because timing will be critical. Between seasons would be the best time to do this, so our team is mobilizing fast to make this happen (if the Board so chooses) before we are deep in summer weather.

As we have reported to the Board already, the bad news is, we are having to be reactive. The good news is, this presents us with an opportunity we speculated about for awhile now, and that is to do a mock-up HVAC Riser. This is a project we’ve long understood would likely follow completion of the domestic hot water riser replacements. Also, this will be much less complicated than the kitchen and bathroom risers, since they don’t involve tearing apart and putting back together kitchens and bathrooms. Where those risers we talk about weeks per unit, this should be more like days.

Also to our advantage, while we would likely have an outside contract do the Riser itself, our inhouse plumber will be able to do the branchlines. If not for our in house plumber and our accumulative experiences up to now with the domestic water Risers, we would be in a much more challenging position. Also, the team is motivated to get this done and use it as an opportunity to plan better for these in the future. We will be able to target budgeting and scheduling so expectations will be more manageable.

Additional information is being considered and we expect to present more detail at the meeting.

We don’t expect the need for a resolution at this time, but if one is needed it can be proposed at the meeting.

10. Construction Requests

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

Suite 109 – Hard Surface Flooring

Suite 116 – Bathroom Renovation

Unit 1501 – Bathroom Remodeling

For Suite 109 we are awaiting a formal scope of work in time for the meeting, but it is just a flooring install.

A sample motion follows: “I move the Board of Directors approves the remodeling plans for 109, 116 and 1501 as submitted by the unit owners, 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 January 2024 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.

Fund Balances End of January 2024

Operating assets totaled $2,009,742 and the Reserve cash and investments were $5,032,172 for a total of cash and investments of $7,041,914.

January 2024 Revenue and Expenses

Total Operating Revenue: $624,097

Total Operating Expenses: $525,000

Income (Loss) From Garage: $(10,176)

Contribution To Reserve: $250,697

Total Surplus/(Deficit): $(161,775)

Investment Activities

Management has continued exploring opportunities for maximizing the interest on Association funds and  getting competitive returns on investments.

Working in consultation with the Board Treasurer and Board President, we reinvested a maturing Treasury Bill into another Treasury Bill. Specifically, for the Reserve Fund we purchased a 6 Month Treasury Bill at 5.103% Yield for $523,749.57 through WINTRUST Wealth Management. Attached to the report for Board review is the confirmation for this transaction.

It would be appropriate for the Board to ratify this action, and reaffirm the policy for Management to consult with Treasurer and Board President for ongoing investment considerations.

A sample motion: “I move the Board of Directors of the Park Tower Condo Association approves the purchase of a 6 Month Treasury Bill at 5.103% Yield for $523,749.57 for the Reserve Fund, through Wintrust Wealth Management, and affirms that management continue consulting with the Board Treasurer and President between Board Meetings when making any new investments or future adjustments to such investments.”

2. Management Report

Attached to the report for Board Review is the updated Monthly Activity Report, and the Sales and Lease Reports.

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.

ADJOURNMENT

There being no further business, the Board will consider adjourning the meeting.

A sample motion: “I move the Board of Directors adjourns the March 11, 2024 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 March 25th and April 8th at 7:30PM. The next Resident Forum is scheduled for Tuesday April 23rd at 7PM. At this time, all such events are anticipated to be held in the 2nd Floor Party Room unless otherwise posted.