Board Meeting Monday May 14th
May 10, 2018
BOARD OF DIRECTORS MEETING
Agenda and Management Report
Monday May 14, 2018 7:30PM
2nd Floor Party Room
7:30PM – OWNER FORUM – 15 minutes, 2 minutes per person
The Board and Management will address feedback and questions from Unit Owners. Please be courteous and respectful to speakers who have the floor.
OPEN SESSION – Call to Order
The meeting chair, expected to be Board President Michael Parrie, will call the meeting to order. Please be courteous – if applicable, the meeting chair may choose to entertain audience questions as may be applicable to each agenda item. All speakers shall be recognized by the chair as necessary. Please do not interrupt speakers who have the floor.
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 give updates to the Board on business and activities.
Board Report
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
- Closed Session Business
This agenda item is provided for any resolutions proposed resulting from Closed Session discussion.
- Minutes – Board Meeting April 9, 2018
Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday April 9, 2018, as submitted by Timothy Patricio, Property Manager.
A sample motion: “I move the Board of Directors approves the minutes from the Board Meeting held on Monday April 9, 2018.”
- 2017/2018 Audit Acceptance
The draft audit report by Picker & Associates for the Association’s 2017/2018 fiscal year financial statements, was distributed to the Board to begin review. Attached to the report for Board Member reference, is the Audit Representation Letter which will need to be signed and submitted to Picker.
In recent years, the draft has been made available for review and the Board has invited the Association’s auditor to present the audit results at an open meeting and answer questions. Due to the timing, if the Board would like to do this before formally accepting the audit, we would suggest the auditor be invited to the June 11th or June 25th Board Meetings.
A sample motion follows: “I move the Board of Directors approves releasing the DRAFT Audited Financial Statements of the 2017/2018 Fiscal Year, ending February 28, 2018, as prepared and presented by Picker & Associates, LLC, and hereby directs a meeting be scheduled with the auditor for a future Board Meeting, for an opportunity to review the draft audit and ask questions.”
Alternatively, if the Board believes the audit is ready to release to owners, it could be accepted and finalized.
A sample motion: “I move the Board of Directors accepts the audit of the Financial Statements for the 2017/2018 Fiscal Year, ending February 28, 2018 as presented by Picker and Associates, Inc.”
- Garage Condition Survey
Attached for Board review is a proposal from the Association’s engineers at WJE (Wiss, Janney, Elstner), to perform the planned condition survey. The purpose of this effort is to conduct a professional study of the garage surfaces and determine with more certainty the condition of the 1p membrane and concrete and 2p concrete, so budgeting to do the expected coming work can be refined and more reliable.
The budget for this project is $25,500. WJE has proposed $24,500. Board members may note the date of their proposal is from October. We had asked for an estimate at the time to help with budgeting. They have committed to holding that number.
For comparison sake and due diligence, we asked WJE and two other engineering firms (KGH and Full Circle Architects) to provide their hourly rate sheet for architects, and support staff. This too is attached for Board review. WJE presently has the highest rates. However, while not the cheapest firm, we believe they are the best, and their significant familiarity with the building and involvement in multiple projects over the past two decades makes them the best suited to do this survey. (As of the drafting of this report, we were still waiting for the documented rate sheet for Full Circle and will forward it to the Board upon receipt.)
A sample motion: “I move the Board of Directors hereby approves the proposal by Wiss, Janney, Elstner, at a cost not to exceed $24,500 to perform a condition survey and assessment of the Garage, in preparation for possible future concrete and membrane repairs.”
- Action Plan For 2nd Floor Deck Pond
During efforts to budget for 2018/2019, it was suggested the Board consider removing the pond, as a part of the budgeted project to reline the pond and adjacent planter. Due to the course of business, we chose not to pursue this project in the Spring and are instead aiming for the fall. As we now make plans to proceed with bidding, we need Board guidance.
Does the Board truly want to eliminate the pond?
If so, what would you like to see it replaced with?
Should the planter be expanded into the pond?
Should the deck be expanded into the footprint of the pond?
Are there any other conditions or options the Board would like considered?
As a first step, we’d like to request the Board establish some parameters which we can take back to the contractor to finalize a proposal. If there are multiple considerations, we can ask the contractor to provide alternate bidding for consideration.
A motion can be suggested at the meeting, if a resolution is needed. However, Management only needs direction regarding the pond at this time.
- Outdoor Pool Repair
As Spring finally emerged, cracks in the plaster lining the outdoor pool emerged, damaging the coating and exposing the concrete below. We asked two firms to inspect the condition, JLJ Contracting and All Seasons Pools & Spas. Both reported repair of the condition was needed to prevent further plaster damage and potential damage to the concrete.
JLJ Contracting provided an estimate of $8340, and All Seasons $8800, for the necessary repairs to the plaster and coating. All Seasons would not be available until July or August. However, JLJ was available immediately, so to avoid any further problems, and after consultation with the Board President and Treasurer, we approved the proposal by JLJ. The work was since completed.
Because this not budgeted, and beyond our elective spending limit, we respectfully request the Board ratify our decision to conduct these repairs.
A sample motion: “I move the Board of Directors approves the proposal by JLJ Contracting, at a cost not to exceed $8340 to perform plaster and coating repairs to the outdoor pool, and otherwise ratifies Managements action to conduct the repairs in an effort to avoid more damage to the pool and coating.”
Business Reports
Treasurer’s Report
Fund Balances End of March 2018
Operating Funds $518,886 (increase of $39,488 from prior month)
Reserve Funds $1,296,091 (decrease of $44,169 from prior month)
Total Cash and Investments $1,814,977 (decrease of $4,681 from prior month)
March 2018 Revenue and Expenses
Total Operating Revenue: $507,781
Total Operating Expenses: $462,207
Income From Garage: $11,057
Contribution To Reserve: $136,675
Total Deficit: $80,044
CD Transactions
Management acted, in consultation with the Board Treasurer, to renew two Certificates of Deposit with Bridgeview Bank; one for the Reserve Fund and one for the Operating Contingency Fund. These actions 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 Bridgeview Bank, for the Operating Contingency Fund, was renewed for 12 months, $92,256.37 with a 2.02% yield:
A sample motion follows: “I move the Board of Directors approves the renewal of a $92,256.37 Certificate of Deposit with a 2% interest rate for 12 months with Bridgeview Bank for the Operating Contingency Fund, scheduled to mature on March 31, 2019.”
A CD with Bridgeview Bank, for the Reserve Fund, was renewed for 1 year, $153,760.61 with a 2.02% yield:
A sample motion follows: “I move the Board of Directors approves the renewal of a $153,760.61 Certificate of Deposit with a 2% interest rate for 12 months with Bridgeview Bank for the Capital Reserve Fund, scheduled to mature on March 28, 2019.”
DK Enhanced Interest Program
Attached is the letter from DK Corporate explaining the enhanced interest program for the cash accounts. In consultation with the Board President and Treasurer, the Association is presently opted into the program (and can opt out at any time). However, we respectfully ask the Board pass a formal resolution.
A sample motion follows: “I move the Board of Directors approves opting into Draper and Kramer’s enhanced interest program as proposed, for the funds held in the Max Safe accounts at Barrington Bank.
Management Report
Management will review current business and activities of interest and recent sales activity.
ADJOURNMENT
There being no further business, the Board will consider adjourning the meeting.
A sample motion: “I move the Board of Directors adjourns the May 14, 2018 Board Meeting at _ _ PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
Next Meeting Dates Monday June 11 (including Annual Meeting) & June 25, 2018, at 7:30PM
About the Author: Tim Patricio
Park Tower Horizons
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