BOARD OF DIRECTORS MEETING

Management Report and Agenda

Monday March 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 Members are 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 February 13, 2017

Attached to the report for Board Member review, are the proposed minutes from the Board Meeting held on Monday February 13, 2017, as submitted by Timothy Patricio, Property Manager.

A sample motion to approve the minutes for February 13th: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday February 13, 2017.” 

3. Minutes – Budget Meeting January 9, 2017

Attached to the report for Board Member review, are the proposed minutes from the Unit Owner Budget Review Meeting held on Monday January 9, 2017, as submitted by Timothy Patricio, Property Manager.

A sample motion to approve the minutes for January 9th: “I move the Board of Directors approves the minutes from the Unit Owner Meeting to discuss the proposed Park Tower Condo Assoication 2017/2018 Budget, held on Monday January 9th, 2017.” 

4. Board Vote On Amendments For Association Owned Units

The purpose of this Action Item is for discussion of handling of votes for the proposed amendments to the PTCA Declaration.

5. Board Vote On Purchase of 12c

The purpose of this Action Item is for discussion of the proposed purchase of Unit 12c.

6. Schedule Unit Owner Meeting For Purchase of 12c

The purpose of this Action Item, should it be needed, is to formally put in process the procedures for pursuing Unit Owner permission to purchase Unit 12c. A date should be chosen to hold the necessary meeting. A Separate notice with proxy forms and ballots will need to be drafted for this purpose. At the meeting – much like the Annual Meeting and Board Election – the vote will be taken. Approval by 66 and 2/3^rd% of the ownership is required to make the purchase.

A sample motion: “I move the Board of Directors approves scheduling a meeting of the ownership to vote on the proposed purchase of Unit 12c in the Park Tower mall on ______________, and direct Management and Association counsel to draft and issue the necessary notice and proxy forms to be sent to unit owners, as well as ballots for the vote at the meeting.”

7. Extend Utility Purchasing Representation

Prospect Resources, the firm that has been guiding and securing our purchasing of natural gas and electricity since 2008, has reported they identified favorable opportunities for hedging gas purchases into 2020. However, our current agreement with them extends only into 2019.

Because of that, and because of their very favorable track record and fantastic performance over the short and long term, we request the Board formally approve extension of their agreement. For efficiency’s sake, and because budget season begins again in a few months, we suggest extending the authorization even further, through 2021.

They have agreed to hold the annual fee flat, at $3600 for Natural Gas and $1200 for Electricity. I believe we can successfully negotiate the additional year with the same rate.

A sample motion: “I move the Board of Directors authorizes extension of the current agreement with Prospect Resources, to continue hedging for and securing the purchase of natural gas and electricity for Park Tower through 2021, at the current agreed upon rates, terms and conditions.”

8. Locker Room Remodeling Plan

Attached to the report for Board review is the remodeling plan for the locker rooms as presented by the contractor working with the Health Club Committee. This is for a top down gut rehab of the facility. It was accepted by the Committee at their March 7^th meeting, and they recommend the Board accept the plan and direct it be put out to bid.

You may recall, last year we put our original plan to bid – which was a much scaled back plan from this. One contractor did not respond, and two said it could not be done without a gut rehab due to the age and conditions of the walls and fixtures. For that reason, the Committee and Management worked with one of those contractors to come up with a suitable base alternative addressing the problematic conditions.

Originally, we anticipated a budget of about $78,000 for the scaled down plan. For the accepted gut remodel, we expect bids to come in the $200,000 range. We do expect the Board may have surplus funds from the 2016/17 fiscal year, some of which could be designated for this. In addition, we expect the pool liner project may come under budget by $30-40,000.

Either way, we request the Board accept the committee’s recommendation and direct an RFP be put out for proposals so we have a solid expectation of what the actual cost will be.

A sample motion: “I move the Board of Directors accepts the base health club locker room remodeling plan as presented and recommended by the Health Club Commission, and direct that an RFP be put out for proposals.”

9. Office Copier

Management has been exploring solutions for our planned and budgeted office copier replacement. The present copier is 12 years old – we have owned it for 6 going on 7 years. We are looking at solutions proposed by Xerox, Ricoh and Konica Minolta. All the solutions we are considering would include capabilities we have now – copying, scanning, collating, networking, faxing, and color images, and are comparable to the present copier. The primary differences are that the new copier will be smaller, faster and cheaper to maintain with todays technology, and we are opting to enter a 60 month lease instead of purchase the copier with a maintenance and service contract.

Every lease option we are exploring at present, would cost less than our present copier is to maintain. We pay about $450/month or $5,400/year. The new budget allows $400/month or $4,800/year. Each leasing option we are exploring would fall below our present rate of expense (primarily due to the age of our copier and cost to maintain it), and within the new budget. The present range of cost under consideration is about $275-$375/month. The lease would include toner, color copying and maintenance as needed.

We would like to request the Board authorize management to continue exploring solutions and implement one that falls within the budget, which we feel best suits the Park Tower management office needs.

A sample motion: “I move the Board of Directors authorizes management to pursue an office copier solution with a 60 month lease, and to enter the requisite contract at a cost not to exceed $4800/year.”

10. Decorating and Home Improvement Matters

The purpose of this action item is for Management to discuss with the Board the preferred procedure for making recommendations related to decorating and other aesthetic improvements, previously under the purview of the Home Improvement Committee. Current matters pending include choosing a new wall paper for stock and deck furniture. Because recommendations for such activities would have started with the Committee in the past, we would like the Board to discuss and consider establishing a new procedure until such time as we have an active Committee.

11. Expand Recycling Program

Due to an increased volume of recycling materials over the past year, and particularly due to the size of boxes and other bulk items, we have need of an additional dumpster. We have come to a proposed agreement with our current hauler to place an additional covered 4 yard recycling dumpster at the dock next to the present 6 yard waste dumpster. (Exactly 2/3rds the size, but essentially a sister dumpster to the one there now for regular garbage).

Both maintenance and management believe this will handle the increased volume of recycling materials we have had, but will allow for some growth as the new City ordinance takes effect and presumably begins being enforced.

Fortunately, the recent reduction in cost with the contract approved in the fall of 2016 will absorb the bulk of the increase, which is $100/month. So despite the increase in service, we anticipate this added expense of about $1200/year will not push us over budget in this category.  Because this is changing the terms of that contract, we would like the Board to formally grant us the authority to amend it to add the additional dumpster and expense.

A sample motion follows: “I move the Board of Directors approves the expansion of our recycling waste handling with Republic Services, amending our present contract to include the addition of a 4 yard dumpster at an expense of $100/month.”

Business Report

Treasurer’s Report

Fund Balances End of January 2017

Operating Funds $470,111 (increase of $58,669 from December)

Reserve Funds $2,211,095 (increase of $115,220 from December)

Total Cash and Investments $2,681,206 (increase of $173,889 from December)

January Income and Expenses

Total January Income: $463,694

Total January Expenses: $473,506

Income From Garage: $18,142

Contribution To Reserve: $122,742

Total Surplus or (Deficit): $(114,412)

CD Transactions

Management acted, in consultation with the Board Treasurer, to purchase two new Certificates of Deposit with funds from two CD’s which had matured at Deleware Place Bank. This action should be formally ratified by the Board. Attached for Board review are copies of memos from Draper and Kramer with details of the bank activity.

A CD with Harris Bank, for the Operating Contingency Fund, was purchased for 25 months, $51,004.92 with a 1.5% yield:

A sample motion follows: “I move the Board of Directors approves the purchase of a $51,004.92 Certificate of Deposit with a 1.5% interest rate for 25 months with Harris Bank for the Operating Contingency Fund, scheduled to mature on March 23, 2019.”

A CD with International Bank of Chicago, for the Reserve Fund, was purchased for 2 years, $102,009.88 with a 1.5% yield:

A sample motion follows: “I move the Board of Directors approves the purchase of a $102,009.88 Certificate of Deposit with a 1.5% interest rate for 24 months with International Bank of Chicago for the Capital Reserve Fund, scheduled to mature on January 20, 2019.”

Management Report

The property manager, Tim Patricio is expected to review current Business and Activities of interest as well as the Monthly Activity ReportRecent Sales Activity.

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

OWNER FORUM – 15 minutes, 2 minutes per person

Next Meeting Dates Monday March 27^th and Monday April 10^th