BOARD OF DIRECTORS MEETING

Agenda and Report

Monday March 8, 2021  7:30pm

Via “ZOOM” Meetings Online

6:30PM – CLOSED SESSION (Via ZOOM With PT Board)

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

7:30PM – OWNER FORUM – Via Zoom Chat              

ZOOM Meeting ID #868-2082-3424

ZOOM Meeting Link https://us02web.zoom.us/j/86820823424

ZOOM Conference #1-312-626-6799

OWNER FORUM – Via Zoom Chat

The meeting chair, expected to be Board President Michael Parrie, will confirm a quorum of Board Members is present via ZOOM. 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.

Board Report

The Board President 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 – Special Meeting February 8, 2021

Attached to the meeting report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday February 8^th, 2021, as submitted by Timothy Patricio, Property Manager.

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 February 8th, 2021.”

3. Annual Meeting Schedule

Attached to the report for Board Member consideration is a draft initial notice for the 2021 Annual Meeting of the Unit Owners, including the Board Election Rules and draft Candidate Application form.

We propose a scheduled of Annual Meeting activities for this year as follows:

1. Initial notice mailed Friday April 23^rd.
2. Candidate Application due by Friday May 14^th at 5pm.
3. Formal Annual Meeting Notice and proxy forms mailed Friday May 21^st.
4. Meet the Candidate Meeting Wednesday June 9^th 7pm.
5. Annual Meeting Monday June 14^th 7:30pm. 

A sample motion: “I move the Park Tower Condo Board of Directors hereby approve scheduling of the 2021 PTCA Annual Meeting of Unit Owners for Monday June 14^th, 2021, at 7:30pm, as well as Meet the Candidates Night on Wednesday June 9^th at 7pm, and directs the necessary notices and mailings be drafted and distributed by Management as proposed.” 

4. Garage Project Change Order

Attached to the report for Board Member review is a change order for the Garage Project. Specifically, at the request of Maintenance, Monson Nichols was asked to provide a price to coat the garbage room. This is where the dumpsters are stored and moved to and from the compactor room and the back dock. Because of the nature of what is stored and for greater sanitation and ease of cleaning, this location would benefit from a protective coating over the concrete.

The proposed expense of $15,370 is consistent with the per unit costs within the original contract. In terms of quantities, we continue to be well within budget on the project itself. In addition, the Board passed a provision for unknown conditions of $91,000, which at present appears may not be spent. We agree this would be a beneficial improvement for the space as well as improve sanitation, and therefore suggest this be approved.

A sample resolution follows: “I move the Board of Directors of the Park Tower Condo Association approves a contract with Monson Nicholas, Inc., as proposed at a cost of $15,370, as a change order to the Garage Project, for surface repairs and the installation of a traffic coating in the 1P trash room.” 

5. HVAC & Pool Chemical Contract

Consistent with the budget, this year we are scheduled to renew our program for HVAC and Pool Chemicals. In the Fall of 2020, we made a tentative agreement with our present provider to hold their prices for 2021, and planned to sit down after the holidays to negotiate renewal. Ultimately they agreed to hold their pricing for year 1 of the contract, $975.52/month, with a 4% increase to follow and held for years 2 and 3 at $1014.54/month.

We do not see a need to bid the contract out this year. Our team is happy with HOH and their familiarity with our facility. They’ve been our chemical vendor for almost 20 years, and that kind of tenure is valuable. Holding their rates shows a lot of good faith. However, during the budget process we did seek a competitive proposal from Aqualab Water Treatment, who proposed $1,200/month plus tax (about $1,323/month).

Both proposals are attached to the report for Board Member review.

A sample motion follows: “I move the Board of Directors of the Park Tower Condo Association approves renewal of the contract for HVAC and Pool chemicals with HOH Water Technology, as proposed at a cost of $975.52 per month for year 1, with a 4% increase total for years 2 and 3.” 

6. Construction Requests

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

1101 – Kitchen Remodel

2906 – Kitchen Remodel

3005 – Kitchen Remodel

4004 – Washer & Dryer Install

A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 1101, 2906, 3005, 4004 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 January 2021 Balance Sheet and Statement of Income & Expenses as reported by the Habitat Company.

Fund Balances End of January 2021

Operating assets totaled $1,267,108, and the Reserve cash and investments were $2,852,855 for a total of cash and investments of $4,119,963.

January 2021 Revenue and Expenses

Total Operating Revenue: $559,188

Total Operating Expenses: $416,096

Income (Loss) From Garage: $19,061

Contribution To Reserve: $149,258

Total Surplus: $12,894

Transfer of 2019/2020 Surplus to Reserve

Attached to the report for Board Review, is the February 2020 Executive Summary, adjusted post audit, showing the Excess of Operating Revenue over expenses for the 2019/2020 fiscal year, which was $107,789.95.

We suggest the Board approve transferring this net Operating Surplus to the Association’s Reserve fund. To do this requires a relatively complex resolution. In summary, the Board needs to recognize this was a surplus of operating funds from assessment income collected from owners, but that upon due consideration the Board believes for the financial health of the reserve, these funds should be kept for future capital needs of the building.

The following motion for resolution is consistent with past advice from legal counsel.

A sample motion: “WHEREAS, the Board of Directors (the “Board”) of Park Tower Condominium Association (the “Association”) is the governing body of said Association and is charged with the direction and administration of the Property subject to that certain Declaration of Condominium for Park Tower Condominium, as from time to time amended (the “Property”); and

WHEREAS, the Declaration provides that the Association is obligated to maintain, repair, and replace the common elements located in the Property; and

WHEREAS, an accounting for the 2019/2020 fiscal year revealed that there is an accumulated amount of cash in excess of the amount required for actual expenses (“excess”) in the amount of $107,789.95; and

WHEREAS, the Board has reviewed the status of the Association’s capital reserve account; and

WHEREAS, the Condominium Property Act requires, pursuant to section 9 (c) (2), the Association to maintain reasonable reserves for capital expenditures and deferred maintenance for repair or replacement of the common elements located in the Property; and

WHEREAS, the Board has considered the following factors relative to the reasonableness of the Association’s reserves:

1) The repair and replacement cost, and the estimated useful life, of the property which the Association is obligated to maintain, including but not limited to structural and mechanical components, surfaces of the buildings and common elements, and energy systems and equipment;

2) The current and anticipated return on investment of the Association’s reserve funds;

3) The amount that the Association’s most recent capital reserve study provides should be on deposit in the capital reserve account;

4) The financial impact on the unit owners in the market value of the condominium units of an immediate assessment increase to fund the reserves and

5) The ability of the Association to obtain financing or refinancing as a supplement to the capital reserve account; and

WHEREAS, after due consideration of the foregoing factors, the Board contends that their fiduciary duty demands that the excess funds be transferred into the capital reserve account.

NOW, THEREFORE, BE IT RESOLVED that the Park Tower Condominium Association Board of Directors approves the transfer of $107,789.95, the identified year-end operating fund surplus cash for 2019/2020, to the Association’s reserve account, after taking into consideration the criteria for establishing a reasonable reserve set forth in Section 9(c)(2) of the Illinois Condominium Property Act, in order to more properly fund said reserve account.”

2. Management Report

Business and Activities – Property Manager Tim Patricio will review current business and activities of interest. The Monthly Activity Report is attached to the meeting report for Board review.

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 March 8, 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 March 22^nd and April 12^th. All meetings will continue to be held online via ZOOM. Instructions to join the meeting will be posted in advance on our bulletin boards, and the website at www.ptcondo.com.