Board Meeting Monday Nov. 13th
November 11, 2017
BOARD OF DIRECTORS MEETING
Management Report and Agenda
Monday November 13, 2017 7:30pm
2nd Floor Party Room
7:30PM – OWNER FORUM – 15 minutes, 2 minutes per person
The meeting chair, expected to be Board President Michael Parrie, will call on audience members to speak. Please be courteous and respectful, and do not interrupt speakers who have been acknowledged by the chair.
OPEN SESSION – Call to Order
The meeting chair will call the meeting to order. Please be courteous – if applicable, the meeting chair will entertain questions as may be applicable to each Agenda item; all speakers shall be recognized by the chair if necessary.
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. Attached to the report for Board Member review is the most recent Health Club Report. We expect the Social Committee may also deliver a report at or in time for the meeting.
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 October 9th, 2017
Attached to the report for Board Member review, are the proposed minutes from the Board Meeting held on Monday October 9th, 2017 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 October 9th, 2017.”
- Minutes – Board Meeting November 4th, 2017
Attached to the report for Board Member review, are the proposed minutes from the Board of Directors Meeting held on Monday November 4th, 2017, budget meeting #1, 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 Saturday November 4th, 2017.”
- Property Tax Appeal
The Triennial Reassessment will take place in 2018 for all properties in the City of Chicago, establishing the assessed valuation factor for property tax bills in 2018, 2019 and 2020.
We received the following proposals (attached to the report for Board review) for tax attorney’s, including the incumbent Terrence Kennedy, and our general counsel KSN (Kovitz/Shifrin/Nesbit):
Law Office General Terms
Terrence Kennedy – 10% of 2018 tax savings capped at $12,500
Mayster & Chaimson – 18% of 2018, 12% 2019, 6% 2020, capped at total accumulative fee of $30,000
Frank A. Edelman – 9% of 2018 tax savings capped at $12,000
Kovitz/Shifrin/Nesbit – 12% of 2018 tax savings capped at $10,000
KSN has indicated they are willing to beat any competitors proposal. If they were a ‘ma & pa’ outfit, I would be concerned about that, but they are not. Also, while the incumbent has a natural advantage due to the experience with our building, it may be time for a fresh set of eyes looking at our sales history and the other data necessary to make a case.
As an opportunity to shave some future expense, we are inclined to suggest the Board consider allowing KSN to have this job for the upcoming triennial. However, I will contact Terry Kennedy. If as a long time client he is willing to shave our fee to be capped at $10,000, I would reconsider.
A sample motion: “I move the Board of Directors approves entering a contract with ________________, for the purpose of filing an appeal of the 2018 triennial reassessment of property tax valuations, as proposed on a contingency fee basis of ____%, capped at a total fee of $10,000.”
- Ad-Hoc Committee – Property Value Research
The purpose of this action item, is by request of the Board President, who would like the Board to discuss forming a committee to research Park Tower’s property values and consider actions that could be taken to strengthen them.
While discussion is needed, to simplify this, we suggest you might call this a “taskforce” such the Property Value Research Taskforce. If a resolution is decided upon, it can be proposed at that time. A Board Member liaison should also be considered.
- Winter Bike Room Rate
The purpose of this action item is for the Board to formally approve the winter bike room registration discount to $30. We do have spots available, and have offered a 50% discount effective November 1st.
A sample motion: “I move the Board of Directors approves a 50% discount for winter bike room registrations, for a $30 charge effective November 1st through the Spring annual registration effort in 2018.”
- 2018 Holiday Schedule
Attached to the report for Board Member review is the authorized Draper and Kramer holiday schedule for 2018. It includes thirteen days off during the calendar year and four days with an early close. These days may be taken on the actual holiday or taken as a comp day by an employee, scheduled within 3 weeks of the holiday.
For the 2017 holiday schedule the Board approved the Management Office to be closed on 6 holidays – New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day, with a reduced staff for the other holidays “as deemed appropriate”. Notice is posted for early release days.
A sample motion follows: “I move the Board of Directors approves the following holiday schedule for the management office employees, with the Management Office to close on the observed New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, with a reduced staff as deemed appropriate by management for the balance of DK Condo’s scheduled holidays, and early release dates with appropriate notice.”
- Health Club Rules
Attached to the report for Board Member review are the proposed updated policies and procedures for Health Club Memberships. If the Board agrees, these would be printed on the agreements members and owners sign when joining or renewing a membership for the Health Club. We will also distribute the updated rules to all current members.
Management has no objections and supports the adoption of the revised membership policies and procedures. For reference, a copy of the current membership agreement is attached for Board Member review. The rules are printed on the back page of the agreement, where members and owners are required to initial.
A sample motion follows: “I move the Board of Directors approves the proposed Park Tower Health Club policies and procedures as recommended by the Health Club Commission, effective immediately for all new memberships and as of the date of an appropriate notice to be mailed to all current members.”
- Social Committee Request
The Social Committee sponsored the Social Event “HangOuts” on October 21, 2017. They reported it was a great success with about 50 people attending.
This is the second time Vibe-Pass, by Denis and Rachel Timofeev, Park Tower residents, have donated their services for such an event, and the Committee would like to offer them an honorary fee of $200 for their services. Though $200 is below managements spending limit for elective purchases, since the relationship was originally on a volunteer basis, the Board should technically approve the expenditure.
Based on their efforts, the time involved and what you might typically expect to pay for such services, I suggest based on personal experience $200 would be an appropriate tip for this type of activity, and certainly much less by several hundred dollars what you could expect to pay for professional dj services.
A sample motion follows: “I move the Board of Directors approves a $200 honorary fee be paid to ‘Vibe-Pass’ as a thank you for their recent efforts and assistance with Social Commission planned events.”
- Roof Project Change Orders #3
Attached to the report for Board review, are two change order requests (with attachments and WJE’s engineering comments) related to conditions found while work has continued:
- Change Order #7: Additional metal flashing at the penthouse exhaust tower, due to conditions identified while conducting the penthouse area roof replacement, $3,000.
- Change Order #9: Change to liquid flashing at the Cooling Tower curbs, due to the construction and conditions of the concrete revealed as this location was demo’d, as well as the elevated roof level resulting from the new insulation, $3,847.
Due to the critical timing, with winter all but upon us, management already gave them a green light to make these changes. Obviously considering WJE’s support as discussed in the detail, we had no objections. But the Board should formally ratify this decision via a resolution.
A sample motion: “I move the Board of Directors approves roof project change orders #7 and #9 at a cost not to exceed $3000 and $3,847 respectively, as proposed by the contractor Berglund Construction and recommended by the roof engineer with Wiss, Janney, Elstner.”
- Construction Requests
Attached to the report for Board Member review are remodeling packets for the following Unit Owner construction projects:
804 Hard Floor Installation/Electrical Work
1202 Hard Floor Installation
1209 Remodeling and Hard Floor Installation
1812 Hard Floor Installation
2209 Kitchen and Bath Remodeling
A sample motion follows: “I move the Board of Directors approves the remodeling plans of units 804, 1202, 1209, 1812, and 2209, 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
Treasurer’s Report
Fund Balances End of September 2017
Operating Funds $361,736 (increase of $47,221 from prior month)
Reserve Funds $1,841,513 (increase of $90,193 from prior month)
Total Cash and Investments $2,203,249 (increase of $137,414 from prior month)
September 2017 Revenue and Expenses
Total Operating Revenue: $487,620
Total Operating Expenses: $328,245
Income From Garage: $24,293
Contribution To Reserve: $131,417
Total Surplus: $52,251
- CD Purchases
In consultation with the Board Treasurer, Management directed the purchase of a new Certificate of Deposit with funds from the Reserve Fund. This action should be formally ratified by the Board. Attached for Board review is the internal memo from Draper and Kramer with details of the bank activity.
A CD with TCF Bank, for the Reserve Fund, was purchased for 26 months, totaling $100,000 with a 2% yield. Attached to the report for Board Review is a memo of confirmation from D&K.
A sample motion follows: “I move the Board of Directors approves the purchase of an $100,000 Certificate of Deposit with a 2% interest rate for 26 months with TCF Bank for the Reserve Fund, scheduled to mature on December 10, 2019.”
Management Report
Property Manager Tim Patricio will report on current business and activities and review 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 November 13th, 2017 Board Meeting at _ _ PM.”
OWNER FORUM – 15 minutes, 2 minutes per person
The meeting chair will call on audience members to speak. Please be courteous and respectful, and do not interrupt speakers who have been acknowledged by the chair.
Next Meeting Dates Saturday November 18th, Monday November 27th and Monday December 11th.
About the Author: Tim Patricio
Park Tower Horizons
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