PARK TOWER CONDOMINIUM ASSOCIATION

BOARD OF DIRECTORS MEETING

Monday October 13, 2014

6:30PM: CLOSED SESSION

Board met for discussion of litigation, personnel, and/or violations of rules and regulations (Condominium Act – Sec. 18, a. 9)

7:30PM: OWNERS FORUM

The Board and Management answered questions and discussed building related issues with Unit Owners present.

7:45 PM: OPEN SESSION

Open Session was called to order.

Roll Call

The Board President, George Pauley, confirmed there was a quorum. All Board Members were present except Tom Wartowski. The Board President noted he reported he was ill, and the Board wishes him a speedy recovery.

Committee Reports

Budget and Finance Committee Chair Paul Groeninger reported the Committee has held three meetings so far to review the proposed budget for the fiscal year beginning March 2015, and said once again Management has made their job very hard by presenting tight numbers. He reported that it will be tough to keep the pledge to limit the assessment increase to 3.5% due to several things that the Association can not control which are resulting in upward pressure on the assessment – ComEd electric distribution charges, the phasing out of the City’s scavenger rebate, and significant increases in the cost of water and sewer. He indicated the next meeting is this week, Wednesday October 15th at 4:30pm in the Party Room, after that the next meeting is Tuesday October 21st in the Party Room, and all owners are welcome to join them.

Board Member Michael Parrie gave an update from the Ad Hoc Rules and Regulations Review Committee. He reported that the Committee has been focusing on the Park Tower Construction and Remodeling packet, and considering several samples provided to Management by other buildings. For the time being they are planning to continue meeting each Wednesday from 7 to 9pm in the Party Room. He invited all owners to join them.

Board Member David Nicosia reported that ASCO met for a general meeting in the Park Tower Party Room, and that representatives of the Chicago Fire Department were present as well as Alderman Harry Osterman. He said they talked quite a bit of the status of buildings in the ward working toward compliance with the looming deadline for the life safety ordinance. He also mentioned, in relation to the Budget and Finance Committee, there was discussion with the Alderman about the phase out of the scavenger rebate and his desire to see it reinstated.

Board Report

Board President George Pauley reported no issues to address with the Board.

Action Items – New Business

Motions from Closed Session After a motion by Michael Parrie and second by David Nicosia, the Board unanimously approved a fine and fee for forced place insurance for 19 owners that have not adequately presented proof of insurance as of the date of the Board Meeting. After a motion by Michael Parrie and second by David Nicosia, the Board unanimously approved directing Management to send a letter to a unit owner whose renters are creating a nuisances and disturbances that are disrupting a neighboring unit.

Minutes August 11, 2014

After a motion by Betty Terry-Lundy and second by David Nicosia, the Board unanimously approved the minutes from the Board Meeting on August 11th, 2014.

Minutes September 8, 2014

After a motion by Michael Parrie and second by David Nicosia, the Board approved the minutes from the Board Meeting on September 8th, 2014. George Pauley, Michael Parrie and David Nicosia voted in favor. Betty Terry-Lundy voted against.

Garbage Chute Repairs

Management reported that while in the process of conducting the trash chute repairs in September, leaking continued in stairways at a number of locations. Further investigating was done inside the chute, and the contractor discovered areas with serious deterioration and even holes above and below locations already replaced. To adequately address this, it is recommended the balance of the chute – approximately 34 floors – be replaced. Pictures were provided to the Board with a preliminary bid of $91,000. The bid indicates that another service provider could be chosen to conduct the cinder block and drywall repairs, and that would result in about $38,000 deduction. Management sought a bid from NRS, who does the carpentry work for the risers and other work in the building. They provided a bid for $25,000 for that portion of the work. Management explained that we are waiting for at least one more bid for the chute, but that the current contractor was already bidding about 10% less per floor, and shared concerns that because of an expected lengthy wait of 6 to 8 weeks or more to custom manufacture the new chute, that we could not afford to wait to much longer. It was suggested the Board consider passing a resolution at a cost not to exceed $80,000, to conduct the remainder of the chute replacement.

After a motion by George Pauley and second by David Nicosia, the Board unanimously approved a resolution for replacement of the balance of the garbage chute at a cost not to exceed $80,000.

2014 Bad Debt

Management reported that Bad debt for the year is budgeted at $63,000.  Consistent with the findings of the audit of the 2013/2014 financial statements, there are six accounts that foreclosed or declared bankruptcy in the 2014 fiscal year which are determined to be uncollectible. These represent about $33,097.32 in unpaid assessments and fees due to the Association.  Management recommended the Board formally write this balance off as bad debt.

After a motion by David Nicosia and second by Michael Parrie, the Board unanimously approved a resolution to write off $33,097.32 as bad debt.

Ad-Hoc Rules Review Committee Members

Board Member Michael Parrie reported the Ad-Hoc Rules and Regs Review Committee requests for unit owner Mary Toosi, Unit 5206, and unit owner Chuck O’Bringer, Unit 1603 be added as a committee members.

After a motion by Michael Parrie and second by David Nicosia, the Board unanimously approved a resolution appointing Mary and Chuck to the Ad-hoc Committee.

Budget Workshop Dates with B&F Committee

The Budget and Finance Committee requested the Board schedule dates to meet with them to review the changes to the proposed 2015/16 operating budget after they have finished the initial review, and suggested Monday November 24th from 8:00PM to 10:00PM, and/or Monday December 1st from 7:30PM to 10:00PM. The pointed out that November 24th was already noticed as a meeting, and that notice would need to be mailed for December 1st if a quorum of Board Members will be present.

After a motion by David Nicosia and second by George Pauley, the Board unanimously approved a resolution scheduling workshop dates as recommended by the Committee; if the workshop of December 1st is needed, Management is directed to mail notice accordingly.

Construction Requests

After a motion by Michael Parrie, and second by George Pauley, the Board unanimously approved a resolution authorizing construction requests by Units 308, 1405 and 1703.

Treasurer’s Report

Board Treasurer David Nicosia delivered the monthly Treasurer’s Report.

AUGUST FINANCIAL ACTIVITY

(Accrual Based)

Total Revenue = $427,421

Total Operating Expenses = $299,518

Net Income from Garage Operations = $28,981

Net Income = $156,884

Reserve Contribution = $113,108

Net Surplus/(Deficit) = $43,776

Total Reserve Expenses = $220,704

AUGUST BANK ACTIVITY (Actual EOM Balances)

Operating Account Balance = $328,011.12

(Increase of $20,463.58 from July.)

Reserve Account Balance = $1,660,571.62

(Decrease of $121,599.13 from July.)

Total Cash and Investments = $1,988,582.74

Reserve CD Renewal

After a motion by David Nicosia, and second by George Pauley, the Board unanimously ratified the renewal of a reserve fund investment CD at International Bank of Chicago for 18 months in the amount of $160,159.74 at a rate of 1.00%.

Management Report

Property Manager Tim Patricio delivered the Management Report, discussing the status of the exterior project, improvements to the Association’s phone system and reviewing the Monthly Activity Report and Sales and Leasing Report for the month ending August.

Approval to Adjourn

After a motion by David Nicosia and second by George Pauley, the Board unanimously approved a resolution to Adjourn the Board Meeting at 8:15pm.

8:15 PM: OWNERS FORUM

The Board and Management answered questions and discussed building related issues with Unit Owners present.

The next Board Meeting is scheduled for Monday October 27th 7:30PM in the Party Room. A Unit Owners forum is scheduled for Saturday November 1st 1PM to 4PM.

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NOTE: The Board Meeting Round Up is a review of business conducted by the Board for Unit Owners’ convenience. This is neither intended to be nor should be considered an actual substitute for approved minutes. Minutes for Board meetings are typically approved at the next scheduled Board Meeting. Copies are placed in the bin across from the Cleaners/Receiving Room, and posted online on the DK Condo Park Tower Website, along with other useful forms and documents. The “ptcondo” website Library is currently under construction and is expected to contain minutes for use access once it is built.